A bill in Louisiana that aimed to increase the tax on sports betting has been withdrawn from a special legislative session. The bill, which was proposed by Sen. Ronnie Johns, sought to raise the tax on sports betting revenue from 10% to 18%. However, it faced opposition from industry stakeholders who argued that the increase would make Louisiana less competitive in the sports betting market.
The decision to withdraw the bill comes after the Louisiana Gaming Control Board estimated that the tax increase would lead to a loss of $48 million in tax revenue over five years. This loss would primarily be due to a decrease in sports betting activity in the state as bettors sought out more competitive markets with lower tax rates.
Despite the withdrawal of the bill, it is still uncertain whether sports betting will be legalized in Louisiana in the near future. Currently, sports betting is only legal in a handful of states, including neighboring Mississippi. Many Louisiana lawmakers have expressed interest in legalizing sports betting as a way to generate additional revenue for the state.
In a statement, Sen. Johns acknowledged the concerns raised by industry stakeholders and committed to working with them to find a solution that is mutually beneficial. He also expressed optimism that a compromise could be reached in the future to legalize sports betting in Louisiana.
Overall, the withdrawal of the bill to increase the sports betting tax in Louisiana highlights the complexities of regulating the industry and the need for careful consideration of tax rates to ensure competitiveness and revenue generation. It remains to be seen what steps will be taken next to potentially legalize sports betting in the state.
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