Industry stakeholders in Louisiana are speaking out against a proposed increase in the tax rate on sports betting to 51%. The Louisiana Gaming Control Board is currently considering raising the tax rate from its current 18% to 51%, a move that has prompted concern among industry insiders.
The Louisiana Sports and Gaming Association, which represents several casinos and sports betting operators in the state, is leading the charge against the proposed tax hike. The association argues that such a drastic increase would make it difficult for operators to remain competitive and could potentially drive customers to illegal, unregulated betting sites.
In a statement to EGR Global, the Louisiana Sports and Gaming Association warned that “a 51% tax rate would be devastating to the industry and would hurt our ability to create jobs and economic growth in the state.” The association also pointed out that neighboring states like Mississippi and Arkansas have much lower tax rates on sports betting, making Louisiana less attractive for operators.
The potential tax increase comes as Louisiana is still in the process of rolling out sports betting after voters approved a referendum to legalize it in November 2020. The state has already launched retail sportsbooks, with online betting expected to be available in the near future. However, industry stakeholders fear that the proposed tax hike could hamper the growth of the sports betting market in Louisiana.
The Louisiana Gaming Control Board is set to make a decision on the tax rate in the coming months. In the meantime, industry stakeholders are urging the board to consider the potential negative impacts of such a significant increase and to work with operators to find a more reasonable tax rate that supports growth and competitiveness in the industry.
Source
Photo credit www.egr.global