A proposed bill in Louisiana may see sports betting operators facing a significant increase in taxes, from 15% to 51%. The bill, introduced by Representative Roger Wilder III, aims to make Louisiana one of the most expensive states for sports betting operators, alongside Vermont and New York. The bill has been referred to the House’s Ways and Means Committee for review before potential passing.
If passed, the bill would eliminate promotional plays offered by sportsbooks, a key tool for operators to attract new users. While the bill aims to generate more revenue for the state, it faces tough challenges ahead as it would drastically impact sportsbooks and could lead to bettors seeking offshore options.
Similar attempts to raise tax rates to 51% have been seen in other states, such as Illinois, but compromises were reached with operators. In Louisiana, operators may push back against the bill by threatening to lower odds and bonuses to offset losses from the increased tax rate. The bill’s opponents argue that it could weaken the state’s sports betting market and drive bettors away.
As the bill moves through the legislative process, both sides will continue to fight for their interests. It remains to be seen whether a compromise can be reached, similar to what was seen in Illinois, or if Louisiana will become one of the most expensive states for sports betting operators.
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