Louisiana Betting Bills Squeak Through
The regulation of Louisiana’s sports betting market, as well as the distribution of funds generated by legal wagering, are set to be formalized in two bills which narrowly passed a conference committee on the final day of the state’s legislative session. They are now on their way to Governor John Bel Edwards for his signature.
Two Louisiana gambling bills have narrowly passed a conference committee on the final day of the state’s legislative session. The pieces of legislation will regulate the sports betting market, as well as the distribution of funds generated by legal wagering. ©videomaxic/Pixabay
Louisiana Senate Rejected Amended Version of Bill 247
Two pieces of legislation regulating Louisiana’s sports betting market and legal wagering funds have narrowly snuck through the state’s final legislative session before it paused for recess.
A bill regulating the state’s nascent sports betting market, along with a separate bill formalizing the distribution of funds generated by legal wagering, are now on their way to Governor John Bel Edwards for his final sign off.
The two bills, Senate Bill 247, sponsored by Senate President Patrick Page Cortez, and Senate Bill 142, coming from Senator Rick Ward III, both ended up being passed after being debated by a conference committee. This followed the upper chamber rejecting amendments to the legislation which were proposed by the state’s House of Representatives.
This continued back and forth meant that both bills ended up being passed on the final day of the state’s legislative session. Cortez’s bill SB247 arrived back from the House with a number of new amendments attached, which proceeded to be wholly rejected by the state’s Senate.
The proposed amendments on behalf of the House included measures such as permitting licensees to take cash wagers in their sportsbooks, redefining the definition of a gaming device in order to include sports wagering mechanisms, and the implementation of all necessary rules needed to properly regulate sports wagering in Louisiana.
The rejection of the House’s amendments by the Louisiana Senate meant that the fate of the bills, as well as legal sports wagering in Louisiana, rested on the shoulders of a committee of lawmakers from each chamber of the state’s legislature.
Conference Committee Agreed to Accept Amendments
Following the rejection of proposed amendments to Senate Bills 142 and 247 by the Louisiana Senate, a conference committee of legislators from each chamber agreed to accept them. Bill 247 subsequently passed through the Senate with 33 votes in favor and with only three votes against.
The result of the passing of Senate Bill 247 means that 20 operator licenses will now be available for select Louisiana racetracks and casinos, consisting of one land-based property, 15 riverboat casinos and four racinos — the latter of which is a combined racetrack and casino. Each will be allowed to offer sports betting through two skins.
The other accompanying bill, SB142, had a similar trajectory as Senate Bill 247, with its House amendments initially being rejected by the Senate, before the legislative body reversed its decision once the bill had been approved by the conference committee.
Senate Bill 142 is an appropriations bill which determines where funds generated by the newly-legalized vertical are to be allocated, with 25% of the funds now going to the Louisiana Early Childhood Education Fund.
An additional 10% of these funds will be sent to the Sports Wagering Local Allocation Fund, which will be established as a result of SB142. The fund’s goal is to distribute money to the parishes in which the sports betting is actually taking place.
Another new fund, the Sports Wagering Purse Supplement Fund, is set to receive 2.5% of returns. These returns are expected to be allocated to prize purses at the discretion of the Louisiana State Racing Commission.
Finally, two more already-established funds, the Disability Affairs Trust and Behavioral Health and Wellness Funds, will receive 2% of legal wagering funds each, or $50,000 — whichever amount ends up being greater. Any remaining money generated by legal sports wagering will be sent to the State General Fund of Louisiana.
Sports Betting Taxation Already Covered by Recent Bill
Louisiana’s first legislative steps towards legal sports betting in the state arrived in April, when Governor John Bel Edwards signed the first of two bills required to regulate tax rates, licensing fees and a number of other sports wagering requirements.
House Bill 697 was first passed by the state’s House and Senate in May before moving onto Governor John Bel Edwards for his final signature. The bill determined the taxation of the money generated in the legal market.
As a result, a 10% gross revenue tax for retail betting has been set, which increases to 18% when dealing with online betting. A $250,000 licensing fee now exists for operator license applicants, with an additional $500,000 charge once the license itself is successfully received.
HB697 also provides the opportunity for the Louisiana State Lottery to offer sports betting itself — however this is only provided that the lottery pays 30% of its gross proceeds back to the state. With the inclusion of the State Lottery, there is the potential for as many as 41 different providers permitted to operate in Louisiana’s burgeoning gambling market.
FanDuel Set to Launch in Louisiana by September 2021
As the sports betting market really begins to kick off in Louisiana, sports betting company FanDuel announced in May 2021 that it would be going live in the state just in time for the start of the nation’s fall NFL season.
In a shared statement, FanDuel revealed it is working closely with local legislators to get sports betting ready in the state by the start of the 2021 NFL season — which typically begins in early September.
Major operators such as FanDuel, Caesars, and DraftKings have all revealed that they have become the official sports betting partners of the NFL. FanDuel has been continuing to grow its presence in the blossoming United States sports betting market, most recently launching in Illinois and Indiana.
Parish-by-Parish Vote Welcomed Sports Betting into Louisiana in November 2020
In a somewhat unique parish-by-parish vote, 55 out of Louisiana’s 64 parishes voted to expand sports betting in the state back in November 2020. The vote followed overwhelming support for the legalization of sports betting in five American states: Virginia, Colorado, Maryland, Nebraska, and, of course, Louisiana.
The momentous vote to expand sports betting in November paved the way for the changes Louisiana is currently experiencing to its gambling, and especially sports betting, market.
