USA Top 10 crypto casinos in Ohio

  • Casino News
  • USA News

Louisiana’s Sports Betting Tax Hike Spurs Backlash

Louisiana proposes a 51% tax on sports betting revenue, drawing strong industry opposition. HB22, introduced by Rep. Roger Wilder, aims to boost state funds but faces criticism over potential impacts on legal betting markets.
facebook twitter twitter
Louisiana Flag

Branimir Ivanov | Senior News Contributor

Updated: Nov 12, 2024

Controversial Decision to introduce Taxes

Louisiana is the latest state to propose a substantial tax increase on sports betting, sparking significant debate in the industry. Republican Representative Roger Wilder filed House Bill 22 (HB22) in a special legislative session, proposing to more than triple the current gross gaming revenue (GGR) tax for online sports betting from 15% to 51%. This move, if successful, would align Louisiana's rate with New York’s—the highest in the United States. Additionally, the bill seeks to eliminate promotional credits, a measure widely used by sports betting operators to attract customers.

Filed on November 10, HB22 has been referred to the Ways and Means Committee, where it will need a two-thirds majority vote in both the House and Senate to pass. This proposal has faced strong resistance from the betting industry, which argues that such a tax increase could undermine the legal betting market in Louisiana and potentially push bettors toward illegal operators.

 

Current Tax Landscape and Proposed Changes

Louisiana presently imposes a 15% GGR tax on online sports betting, which generated $52.2 million in tax revenue from $358.2 million in net proceeds for the 2023-24 fiscal year. Operators also offered $44.4 million in promotional credits, which they were allowed to deduct from taxable revenue. Wilder's HB22 would prohibit these deductions, thus increasing the taxable revenue base and pushing up the overall tax burden.

If enacted, the proposed 51% tax rate, combined with the removal of promotional credit deductions, would have resulted in an estimated $182.7 million in tax payments last fiscal year—a staggering 671.6% increase over the current tax haul. Wilder's bill is part of a broader tax reform agenda spearheaded by Governor Jeff Landry, who has argued for an overhaul of Louisiana’s tax code, calling it “bloated” and “broken.”

The sports betting industry has responded sharply to Wilder’s proposal. Brendan Bussmann, a consultant with B Global Advisors, expressed concerns that the proposed tax hike could drive legal operators out of Louisiana’s market, opening the door to unregulated competitors. “There’s only so many times you can go to the golden goose before you kill the goose,” Bussmann remarked, highlighting what he views as a detrimental trend in state-level sports betting tax policies.

Brandt Iden, Fanatics’ vice president of government affairs, questioned why Republicans, who have championed low tax rates, would pursue such a drastic increase. “It seems strange to me that Republicans in Louisiana are looking to increase taxes over 300% on the industry,” Iden noted, adding that the proposed tax hike contradicts recent Republican promises to boost the economy by keeping tax rates low.

Louisiana is not the first state to contemplate increased sports betting taxes. In recent years, other states have explored higher GGR tax rates as a means of boosting public revenues. Illinois raised its tax rate to 20-40%, depending on the operator’s earnings, while Ohio doubled its rate to 20% earlier this year. New Jersey has also floated similar ideas, though efforts to raise the state’s tax to 30% have stalled.

Industry critics argue that escalating tax rates weaken the legal sports betting market, creating incentives for bettors to turn to illegal platforms that don’t face similar financial obligations. This, they argue, undercuts the benefits of regulation, such as consumer protections and problem gambling programs, which are central to the industry’s legalization in many states.

 

There’s only so many times you can go to the golden goose before you kill the goose.

 

Financial Impact on Louisiana’s Revenue Goals

For Louisiana lawmakers, a 51% tax rate represents a potential windfall. With $3.04 billion in bets placed in the state’s last fiscal year, the tax hike could yield a significant increase in state revenue, helping to address a projected $700 million budget shortfall. Under the new rate, Louisiana’s tax revenue from sports betting could have soared from $52.2 million to over $182 million last year—a crucial boost for state coffers.

However, opponents warn that this short-term gain may come at a cost to the industry’s long-term viability in the state. They argue that operators could scale back on local investments or even exit the market entirely, which would ultimately reduce state revenues rather than enhance them.

 

Conclusion

Louisiana’s HB22 proposal presents a critical juncture for sports betting legislation in the United States. As lawmakers weigh the benefits of additional revenue against potential industry pushback, the state’s experience could serve as a model—or a cautionary tale—for other states contemplating similar measures. If passed, the bill could signal a shift in how states balance tax revenue needs with the sustainability of regulated sports betting markets.

The Hottest Usa casinos of 2024

USA Icon
US Players Accepted
Avantgarde Casino logo

Avantgarde Casino Review

USARated 100.00/100%

welcome bonus

400% Weekly Promotion

35x wagering (Deposit & Bonus)

Play
Number of games
20+
Payment methods
14
Game providers
5
Min deposit
25
US Players
Accepted
American Eagle
All-American Casino
SlotsandCasino Casino logo

SlotsandCasino Casino Review

USARated 99.98/100%

welcome bonus

300%/$1,500 + 100 Free Spins

30x wagering (Deposit & Bonus)

Play
Number of games
11+
Payment methods
6
Game providers
10
Min deposit
25
US Players
Accepted
burger
American Favorite
Cafe Casino logo

Cafe Casino Review

USARated 98.12/100%

welcome bonus

250%/$1,500

40x wagering (Deposit Only)

Play
Number of games
150+
Payment methods
8
Game providers
3
Min deposit
20
US Players
Accepted
Popularity Icon
Trending in the USA
DuckyLuck Casino logo

DuckyLuck Casino Review

USARated 99.97/100%

welcome bonus

500%/$2,500+ 150 Free Spins

30x wagering (Deposit & Bonus)

Play
Number of games
11+
Payment methods
6
Game providers
10
Min deposit
25
US Players
Accepted
trending topic
Hot in USA
Bovada Casino logo

Bovada Casino Review

USARated 99.12/100%

welcome bonus

100%/$1,000

25x wagering (Deposit Only)

Play
Number of games
10+
Payment methods
4
Game providers
3
Min deposit
20
US Players
Accepted
growth
Growing in USA
Ignition Casino logo

Ignition Casino Review

USARated 98.11/100%

welcome bonus

300%/$3,000

25x wagering (Deposit Only)

Play
Number of games
10+
Payment methods
5
Game providers
4
Min deposit
20
US Players
Accepted
USA Icon
US Players Accepted
Slots LV Casino logo

Slots LV Casino Review

USARated 98.13/100%

welcome bonus

200%/$3,000 + 30 Free Spins

35x wagering (Deposit & Bonus)

Play
Number of games
150+
Payment methods
4
Game providers
73
Min deposit
20
US Players
Accepted
Betonline Casino logo

Betonline Casino Review

USARated 99.18/100%

welcome bonus

100 Free Spins

Play
Number of games
70+
Payment methods
7
Game providers
8
Min deposit
25
US Players
Accepted
gold medal
#1 Crypto 2024
BC.Game Casino logo

BC.Game Casino Review

USARated 99.46/100%

welcome bonus

360%/$220,000

60x wagering (Deposit & Bonus)

Play
Number of games
610+
Payment methods
5
Game providers
64
Min deposit
0.01
US Players
Accepted
USA Icon
U.S. Choice Champion
JazzSports Casino logo

JazzSports Casino Review

USARated 97.96/100%

welcome bonus

200%/$2,000

40x wagering (Deposit & Bonus)

Play
Number of games
83+
Payment methods
7
Game providers
36
Min deposit
10
US Players
Accepted
10/ 10 (100%)

Related News

Play'n GO

State Lottery Win2Day Joins Forces with Play’n GO

Might of Freya Megaways

Might of Freya Megaways Joins Pragmatic Play’s Portfolio

Massachusetts Flag

Massachusetts Sports Betting Sets New Record

hide-html