New Louisiana Bill Proposes Tax Hike for Betting Revenue
A Louisiana legislator has proposed increasing sports betting tax rate during a special economic development session.
The tax hike would catapult Louisiana next to New York as states with the highest sports betting tax rates.
LISTEN TO THIS ARTICLE:Rep. Roger Wilder, a Republican from Louisiana District 71, has proposed House Bill 22, which seeks to amend the state's gaming law to increase the sports betting tax rate to 51%.
Currently, sports betting operators in the state are charged a 15% tax rate on their monthly gross revenue. If passed, the proposed tax hike would catapult Louisiana next to New York as states with the highest sports betting tax rates in the country.
Wilder presented the measure during Governor Jeff Landry's specially convened tax reform session held last month to modernize Louisiana's tax system and boost the economy.
During the 20-day session that started on November 6, lawmakers also proposed a flat 3% tax rate on personal income. In addition to increasing Louisiana's tax rate, HB22 also aims to end taxable income deductions for promotional credits offered by gaming operators.
According to data published by the Louisiana Gaming Control Board, operators gave out $44.4 million in promotional credits to players during the last fiscal year.
HB 22 has been forwarded to the House Ways and Means Committee for review. It requires a two-thirds majority approval in both chambers to become law.
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Wilder's proposal has already started garnering attention and feedback from various stakeholders across Louisiana. According to sports radio host Hunt Palmer, Louisiana lawmakers are eyeing a bigger slice of the lucrative online sports betting pie, which is projected to generate millions of dollars in revenue.
Palmer also warns that implementing additional regulations could trigger operators to offset expenses by charging customers higher fees.
iDEA Growth (iDevelopment and Economic Association), a US online entertainment advocacy nonprofit, recommends that Louisiana lawmakers reject the proposed tax increase and instead focus on alternative policies that can boost economic growth and opportunities.
The introduction of HB22, proposing a staggering tax increase on Louisiana's sports betting industry, marks a drastic and counterproductive shift in policy. This measure, if passed, will make Louisiana one of the highest-taxed sports betting markets in the country, significantly undermining the competitiveness of legal operators in the state.
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