Louisiana lawmakers have paused a bill that would increase the state’s sports betting tax to the nation’s highest level. The proposed 51% tax rate would match New York, Rhode Island, and New Hampshire. The bill sponsor, Rep. Roger Wilder III, acknowledged the high rate and indicated that he may not push for such a drastic increase moving forward. The current 15% tax rate in Louisiana is already above the national median average.
Opponents of the bill, including gambling stakeholders and industry experts, argue that such a sharp tax increase would raise costs for operators and impact consumers through less favorable odds and reduced promotional opportunities. The tax discussions in Louisiana come as more statehouses consider sports betting tax increases. In recent years, Ohio and Illinois have implemented tax hikes on the industry.
Concerns over the sustainability of the digital gambling industry, particularly mobile sportsbooks, have been raised due to the low margins and potential for increased taxes to deter new market entrants. The industry is also facing challenges in expanding online gaming options like slots and table games, with conservative opposition in many state legislatures.
The discussion around the sports betting tax hike in Louisiana reflects a broader trend in the industry, with stakeholders preparing for further tax discussions in other states. The outcome of these debates could have significant implications for the future of the sports betting and online gaming sectors.
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