Louisiana representative Roger Wilder has deferred consideration of his 51% sports betting tax bill during the current special legislative session taking place in the state. Governor Jeff Landry called for the special session to address tax system changes, including a potential income tax reduction and expanded sales tax. Wilder’s bill, HB22, would increase the tax rate on digital sports betting revenue from 15% to 51%, following a trend seen in other states such as Illinois and Ohio.
Opponents of the bill, including operators like Caesars Entertainment, argue that such a high tax rate could negatively impact the competitiveness of legal operators in the state and ultimately affect consumers. On the other hand, proponents believe that the gambling industry should pay for the harm it creates, including addiction and its impact on families.
The bill would only increase taxes on sports betting revenue, despite other forms of gambling such as horse race tracks, bingo halls, and video lottery machines also operating in the state. Proponents of the bill suggested that the increase in tax revenue could benefit problem and responsible gambling efforts by providing more funding for related programs.
Operators, however, are staunchly opposed to the proposed tax increase. Critics argue that the high tax rate could undermine the competitiveness of legal operators in the state and negatively impact consumers. Louisiana would become one of the highest-taxed sports betting markets in the country if the bill is passed. Louisiana Casino Association executive director Wade Duty emphasized that the amount bet in gambling should not be seen as a loss but rather the cost of entertainment.
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