The House of Representatives in Louisiana has dropped a recent bill that would have raised the tax on online sports betting in the state by a large amount. The planned tax hike, HB22, which was only introduced last week, would have increased the online sports betting tax from 15% to 51%. This action would have brought Louisiana’s sports betting tax rate into line with that of New York, which now has the highest tax rate in the nation.
The proposed bill sparked immediate opposition from various industry stakeholders. Jeff Ifrah, Co-Founder of the iDevelopment and Economic Association (iDEA), criticized the tax increase, calling it “a drastic and counterproductive shift in policy.” Ifrah explained that such a steep rise would harm Louisiana’s sports betting market. He noted, “This measure, if passed, will make Louisiana one of the highest-taxed sports betting markets in the country, significantly undermining the competitiveness of legal operators in the state.”
Ifrah warned that the tax hike would not only raise costs for operators but would also negatively impact consumers. He added, “Such a sharp increase would not only raise costs for operators but ultimately impact consumers, who will bear the brunt through less favorable odds and reduced promotional opportunities.” This sentiment was echoed by several other industry experts who expressed concerns over the potential for reduced operator investment and innovation in the state’s online sports betting market.
After only a few days of discussion, the bill was deferred, with local reports indicating that there was little chance of it being revisited before the current legislative session concludes on November 25. Ultimately, the bill was officially withdrawn from the House. The tax increase was initially proposed as a means to offset losses in state income tax revenue, but the proposal faced considerable opposition from both industry leaders and lawmakers who feared it could hurt Louisiana’s growing sports betting market.