Proposal for Increasing Tax on Sports Betting in Louisiana Faces Immediate Rejection
Louisiana's Proposed Sports Betting Tax Hike Stalls
Louisiana, one of the states with legalized sports wagering, currently has an estimated handle of $3 billion, placing it in the upper half of states with such legislation. The state generates nearly $55 million in annual receipts from regulated online sports betting, with a 15% tax rate on sports betting.
However, a proposed tax hike on sports betting in Louisiana has faced opposition and is all but dead for the current session, which expires on November 25. Rep. Roger Wilder III (R-Livingston Parrish) proposed House Bill 22 (HB 22) on November 13, 2024, aiming to raise Louisiana's sports betting tax to 51%.
If HB 22 had passed, Louisiana would have had the highest sports betting tax among states, equal to New York and Vermont. The proposed tax increase would more than triple the current sports betting tax in Louisiana.
Wilder's proposal was part of Gov. Jeff Landry's broader tax proposal to boost revenue and stimulate the state's economy. However, the gaming industry has expressed concerns about the proposed tax increase. Caesars Entertainment, one of the largest casino operators in Louisiana, stated that its investments in Louisiana factor in a 15% tax on sports betting, not 51%. An executive from Caesars Entertainment expressed concern that the proposed 51% tax rate could have impacted their investment in the Caesars Superdome sponsorship.
The gaming industry has argued that states need to be pragmatic when considering hiking gaming taxes, as rising rates too far too fast could force operators to pass higher costs onto bettors, potentially denting handle and revenue. On November 14, 2024, Wilder asked that HB 22 be deferred for further discussion with the gaming industry.
Illinois is the only state to have increased its sports betting taxes year to date, implementing a progressive tax scheme. The larger operators by market share in Illinois pay more taxes under the progressive tax scheme. However, the details of the investment in Louisiana with a 15% tax rate on sports betting are not named in the provided search results.
Wilder's sports betting tax hike proposal had bipartisan support, but it seems the issue will be revisited in a future session. Rep. Roger Wilder III (R-Livingston Parrish) stated that he needs to gain a deeper insight of the gaming industry's needs and concerns regarding the proposed tax increase.
Read also:
- chaos unveiled on Clowning Street: week 63's antics from 'Two-Tier Keir' and his chaotic Labour Circus
- Skechers Debuts First American Stores Focused on Athletic Footwear Performance
- Budget discrepancy jeopardizes highway projects' financial support
- Racing ahead in Renewable Energy Dominance: Changzhou, Jiangsu Pushes for Worldwide Renewable Energy Ascendancy
