Sports betting in Louisiana faces a potential major tax shift as Rep. Roger Wilder (R-71) introduces HB 22 during a special legislative session. The bill proposes increasing the sports betting tax rate from 15% to 51% and eliminates promotional play deductions from taxable revenue.

The proposed 51% rate would match New York's as the country's highest sports betting tax rate. To become law, the bill needs a two-thirds majority in both legislative chambers. The ways and means committee will review the bill on November 13, 2024.

Financial Impact Analysis:

• FY 2023/2024 current tax revenue: $52.1 million (15% rate)
• Current taxable revenue: $358.2 million
• Potential new taxable revenue: $402.5 million (including promotional play)
• Projected tax revenue under new rate: $205.3 million

Industry experts warn this increase could drive operators out of Louisiana. Jeff Ifrah of iDEA advises against the tax hike, suggesting it would harm market competitiveness and lead to worse odds for consumers.

For comparison, Illinois recently implemented a tiered tax system:

• $0-30M: 20%
• $30-50M: 25%
• $50-100M: 30%
• $100-200M: 35%
• Over $200M: 40%

The bill currently resides in committee, with industry stakeholders closely monitoring its progression through the legislature.

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