Lawmakers in Louisiana are continuing to consider a measure that aims to raise the state’s tax rate on sports betting during a special session.
On Wednesday, the Louisiana House Ways and Means Committee met to discuss House Bill 22, a measure that aims to amend state gaming law to raise the tax rate on gross gaming revenue for operators from 15% to 51%, matching the highest rate in the U.S.
New York, America’s largest online gaming market, levies a 51% tax rate on operators.
The bill, introduced by Rep. Roger Wilder, has been voluntarily deferred and will undergo amendments to better suit licensed operators and Louisiana’s gaming landscape. A potential amendment includes matching the proposed sports betting tax rate to the tax rate for slot machines at gas stations. In Louisiana, the retailers are taxed at a 32.5% rate.
Operator in Louisiana takes a stand
The meeting included opinions from operators and gaming leaders in the state.
“We recognize that Louisiana is not New York,” said Louisiana Casino Association Executive Director Wade Duty during the committee meeting. “Consider that New York has a population of 19 million people and Louisiana has a population of around 4.5 million. The sports wagering handle in New York is nearly eight times larger than it is in Louisiana.”
Caesars Entertainment also had a presence at Wednesday’s committee meeting as the gaming giant owns three brick-and-mortar casinos across the Bayou State.
“Caesars is proud of the fact that we are the only brand in the state that owns its entire casino and digital platforms,” said Caesars New Orleans GM Samir Mowad during the meeting. “We spent all that money in New Orleans bringing the brand to Louisiana because of the fact we were making an investment based on the expectation of a 15% tax rate.”
Mowad also hinted at Caesars’ investment in the naming rights of the Superdome. He claims that Caesars may not have considered the deal if it faced more than a 15% tax rate.
Opposition to sports betting in Louisiana
HB 22 is under consideration but online sports betting itself is still drawing backlash from lawmakers and non-profit organizations, including the Louisiana Family Forum.
“Children and adults are being bombarded with advertising and inviting gamblers to play every day and get lucky every night and sadly this has led to more addiction and heartache for the families of Louisiana,” said Louisiana Family Forum Legislative Director Kathleen Benfield during Wednesday’s meeting.
The prevalence of sports betting in Louisiana and nationwide has also drawn concerns for the well-being of citizens with studies and data that showcase its impact on society.
“Now, that gambling has become widespread across the country, there are a lot of studies that are coming in and looking at the actual impacts of it,” said Louisiana Progress Executive Director Peter Robins-Brown during the meeting. “We’re seeing things like increases in domestic violence and increases in economic insecurity among people.”
HB 22 was introduced during a special tax reform session called by Gov. Jeff Landry. The 20-day session was called to rebuild Louisiana’s tax system and grow the state’s economy.
The session has also seen lawmakers consider a flat 3% tax rate on personal income.
