Louisiana’s proposed sports betting tax increase has been put on hold after a backlash from the industry. Representative Roger Wilder introduced House Bill 22, aiming to raise the tax rate from 15% to 51%, with hopes of generating an additional $151 million in annual revenue for the state. However, after facing criticism from sports betting and casino operators, Wilder decided to defer the bill, admitting that he needed to learn more about the industry’s needs and concerns.
The swift shelving of the bill suggests that it may not be revived, making Louisiana the latest state to struggle with increasing tax rates for sports betting. Illinois, which also considered a 51% tax rate, ultimately opted for a tiered tax system based on operator revenue, which helped ease opposition from smaller operators.
This move in Illinois could potentially serve as a blueprint for Louisiana as it navigates its sports betting tax debate. By setting tax rates based on revenue, larger operators like FanDuel and DraftKings would pay more, while smaller operators could have more manageable rates, leveling the playing field and promoting competition in the market.
As Louisiana weighs its options, time will tell if the state follows in Illinois’ footsteps and considers a tiered tax system to address the concerns raised by the sports betting industry. Louisiana’s decision on this issue will have significant implications for the future of sports betting in the state.
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