Published on: November 13, 2024, 05:58h. 

Last updated on: November 13, 2024, 05:58h.

A proposal to increase the sports betting tax in Louisiana to 51% has been withdrawn promptly due to pressure from the gaming industry.

Rep. Roger Wilder III (R-Livingston Parrish) introduced House Bill 22 (HB 22) on Monday, intending to raise the state’s sports wagering tax from 15% to 51%. However, Wilder requested to postpone the bill today, acknowledging the necessity to consult with the industry.

“I have some learning to do,” expressed Wilder to local media. “I look forward to hearing the testimony from the industry, to gain a deeper insight of what the industry has with respect to their needs and their concerns on this issue.”

Wilders legislation, supported by both parties, was part of Gov. Jeff Landry’s (R) comprehensive tax plan to enhance revenue and stimulate the state’s economy. The bill is unlikely to progress in the current session, which ends on Nov. 25.

Increasing Sports Betting Taxes Faces Opposition

Illinois is the only state to have raised sports betting taxes this year, implementing a progressive system where major operators pay more than smaller ones based on market share.

Louisiana was not anticipated to follow suit in enhancing sports betting levies, as other states speculated on potential tax increases due to financial strain. The gaming industry has expressed reservations about tax hikes, emphasizing the need for a balanced approach to support both operators and state revenues.

Louisiana currently handles approximately $3 billion in sports bets, ranking in the top half among legal sports wagering states and generating around $55 million annually from online sports betting.

Louisiana Sports Betting Tax Faced Mixed Reactions

Surprisingly, the proposal to raise sports betting taxes in Louisiana, a predominantly conservative state, received bipartisan support and backing from diverse community groups concerned about the repercussions of widespread betting.

In response to Wilder’s proposal, a Caesars Entertainment executive remarked to KLAS News 12 that the company had factored in a 15% tax rate on sports betting investments, not 51%.

“With a 51% tax rate, our Caesars Superdome sponsorship would have been reconsidered,” shared Caesars New Orleans’ Samir Moad in the interview.