- Rep. Roger Wilder (R-71) deferred his Louisiana sports betting tax rate increase bill
- Lawmaker said he will continue to work on the bill
- Will likely re-introduce with a smaller tax rate increase
Rep. Roger Wilder (R-71) voluntarily deferred a bill to increase Louisiana’s sports betting tax rate to 51% during today’s House of Representatives Ways and Means Committee meeting.
Wilder voluntarily took his bill off the table for retooling. The bill, HB 22, would have increased Louisiana’s sports betting tax rate from 15% to 51%, raising the state up to the highest rate in the country.
New York, New Hampshire, and Rhode Island all have sports betting tax rates of 51%.
More Work Needed
Wilder noted during the committee meeting that the impetus of his bill originated from Louisiana’s gray market slot machines. These slot machines, he said, see a revenue return of about 32.5% to the state.
“The math doesn’t math, the numbers don’t make sense. It needs to be paired up a little better,” he said during the committee meeting.
In addition to the tax increase, Wilder’s bill would also ban operators from deducting promotional play credits from their taxable sports betting revenue, requiring operators to pay out even more in taxes each month. Last year, sports betting operators deducted $44.35 million in promotional play from their taxable revenue.
During the last fiscal year, operators were required to pay $52,171,979 in sports betting taxes to the state. Under a 51% tax rate, that total would have jumped to $182.68 million in sports betting tax revenue for the year.
After deferring his bill, Wilder said he would continue to work towards a better solution and potential re-introduce the legislation at a later time.
“I’m well aware that Louisiana is not New York, Rhode Island, or New Hampshire,” he said.
Industry Speaks Out on Bill
The threat of a tax rate increase to 51% was unsurprisingly not supported by the gaming industry. Wade Duty, executive director of the Louisiana Casino Association, reminded the committee that New York has a population of over 19 million, while Louisiana only has a population of slightly more than 4 million residents. The sports betting market simply could not support a tax rate increase to 51%, he said.
“The New York sports wagering handle is eight times more than it is in Louisiana,” Duty said.
The iDevelopment and Economic Association (iDEA) also submitted testimony to the hearing, decrying the potential tax rate increase as “counter to Louisiana’s legacy of pro-growth policy.”
“Rather than fostering growth, this tax increase would likely have the opposite effect – stifling a market that still has significant potential to expand. Such a high tax rate creates a less competitive environment, discouraging operators from investing and innovating in Louisiana. Instead of nurturing a market with room to grow, this policy would impose unsustainable costs that will hinder future development, with operators potentially scaling back their offerings, passing costs directly to consumers, or exiting the market entirely,” iDEA representatives wrote.
Louisiana Lawmaker Delays Bill to Increase Sports Betting Tax
In a surprising turn of events, a Louisiana lawmaker has decided to delay a bill that would increase the tax on sports betting in the state. The bill, which was introduced earlier this year, aimed to raise the tax on sports betting from 10% to 15%, in an effort to generate more revenue for the state.
The decision to delay the bill comes as a shock to many, as it was widely expected to pass with little opposition. However, the lawmaker in question has cited concerns about the impact that the tax increase could have on the state’s burgeoning sports betting industry.
Proponents of the bill argue that the increase in tax revenue would help fund important programs and services in the state, such as education and healthcare. They also point to the success of other states that have implemented similar tax increases on sports betting.
Opponents of the bill, on the other hand, argue that a higher tax rate could drive sports bettors to illegal, unregulated markets, ultimately costing the state more in lost revenue. They also worry that a higher tax rate could discourage new operators from entering the market, stifling competition and innovation.
As the debate over the bill continues, it remains to be seen whether the lawmaker will ultimately decide to move forward with the tax increase or if further delays or revisions will be made. In the meantime, sports bettors and industry stakeholders in Louisiana will be watching closely to see how this issue unfolds.
