A Louisiana bill banning prop betting and micro-bets in Louisiana sports betting markets has been withdrawn after a report revealed the significant deleterious impact it would have on the state’s tax coffers.
However, the sponsor stated she would resubmit a more moderate version of the measure next year.
Costly Consequences
Louisiana State Senator Katrina Jackson-Andrews’ sports betting prop ban, SB 354, that she filed in February, is no longer up for debate, and no change will occur to either player props or in-game betting in the Pelican State this year.
Financial Impact of Prop Betting on Louisiana Sports Betting Revenue
Senator Jackson-Andrews, who sits on the Finance Committee, became aware of the financial consequences of her Louisiana sports betting bill last week after reading a fiscal note on its ramifications. The study revealed that Louisiana would lose a staggering $28.9 million in tax money generated from those particular wagers in the course of a year.
A decrease of that magnitude was not factored into the senator’s calculus when she sponsored the bill.“I received a fiscal note, and although this bill is well-intentioned, I plan on continuing legislation next year to try to clean up what is happening, especially with our young adults,” Jackson-Andrews said. “I realize the state general fund alone will lose $15 million. I try to bring very responsible legislation, and I believe this piece is a responsible piece of legislation, but also, serving on finance, understanding that if this bill moves forward, we will have to find that $15 million for the state general fund.”
How Much of Louisiana’s Sports Betting Comes from Prop Bets and Micro-Betting?
The Louisiana Gaming Control Board informed the Legislative Fiscal Office that 40% of the online sports bets are generated through props and micro-betting.
Although the Fiscal Office reports that some of those lost funds would be diverted to increased lottery spending, the amount is unknown and is likely far less than the nearly $29 million shortfall the bill would create.
Expect a Return in 2027
A conversation Jackson-Andrews had with Louisiana Progress, a support organization for poor and working-class families, inspired SB 354. The immediacy of betting on a game as it is occurring, like whether the next pitch will be a ball, a strike, or a hit, can be a trigger for those vulnerable to gambling addiction. Often, poor or struggling members of society can fall victim to that enticement.
Jackson-Andrews announced her intention to withdraw the bill for this session, stating, “That doesn’t mean I’m done with this legislation. That means, for this session, I am done and trying to come back with something a little more reasonable regarding the fiscal cost.”
Balancing Regulation, Revenue, and Illegal Betting Market Risks
Judiciary B Chairman Mike Reese lauded both the senator’s bill and her objectivity in withdrawing the bill as it is presently constituted.
Gaming industry representatives, including those from the Sports Betting Alliance, Caesars, and the Cordish Companies, attended the meeting.
“Senator, I think you’ve brought up, you and the other proponents that have spoken today, brought up some very important issues, and I hope that the industry that’s present today is hearing what those concerns are from a social aspect, from a mental aspect, from the aspect of the impacts on our youth, many of which you and I would agree are more important to our state than the fiscal impact of the note,” Reese said.
“But you have to balance that with the idea that there’s also this illegal market that could supplant whatever we were to take away from the regulated market, makes the whole conversation relatively difficult. But I hope that the industry will come to the table and help us address maybe the shortcomings that you’ve pointed out here today,” he added.
