350% or 5BTC + 150 Spins!
New players only. Exclusive Welcome Bonus of 350% + 150 Free Spins
Louisiana will not ban prop betting and microbetting this year after a fiscal review raised concerns about a large hit to state revenue. Senator Katrina Jackson-Andrews said she still views the issue as serious, but the projected budget effect forced her to step back for now.
Good to Know
SB354, filed by Sen. Katrina Jackson-Andrews at the end of February, aimed to ban prop-style betting and microbetting at legal sportsbooks in Louisiana. Those bets include wagers tied to small moments inside a game, such as the result of the first pitch in an at-bat.
Jackson-Andrews said Louisiana Progress, an advocacy group for poor and working class Louisianans, contacted her about the issue. She also pointed to what she had seen inside her own family as sports betting grew more common. That combination led her to file the bill.
Then the fiscal note landed. After seeing the numbers, Jackson-Andrews pulled back.
“It is an extremely serious issue that I need to revisit without this type of fiscal note on it,” she said of the prop betting bill at a Senate Judiciary B Committee hearing. “I realize the serious nature of what it does to the budget.”
The Louisiana Legislative Fiscal Office said the state general fund could fall by $21 million a year. Other state-backed funds could lose another $17 million. Altogether, the projected reduction came to nearly $40 million annually if prop bets were removed from the legal market.
“I try to bring very responsible legislation, and I believe this piece is a responsible piece of legislation, but also, serving on finance, understanding that if this bill moves forward, we will have to find that (millions of lost funding) for the state general fund,” Jackson-Andrews said.
Louisiana sportsbooks currently offer major markets, futures, parlays, microbetting, and player props. College player props are already banned, but legal books can still offer those markets on professional athletes in approved events.
Even with the bill stalled, the hearing made clear that the wider debate is not over. Jackson-Andrews described prop bets and microbets as inherently “compulsive in nature,” though she said she will not take the issue further until next year.
Judiciary B chair Mike Reese said lawmakers still need to deal with the social side of sports betting, even if the fiscal impact makes immediate action harder.
“Senator … you and the other proponents that have spoken today brought up some very important issues, and I hope that the industry that’s present today is hearing what those concerns are from a social aspect, from a mental aspect, from the aspect on the impacts of our youth, many of which you and I would agree are more important to our state than the fiscal impact of the note,” Reese said.
He also pointed to another problem. If legal books lose those markets, some bettors may head to offshore or illegal operators instead.
“But you have to balance that with the idea that there’s also this illegal market that could supplant whatever we were to take away from the regulated market makes the whole conversation relatively difficult,” Reese continued. “But I hope that the industry will come to the table and help us address maybe the shortcomings that you’ve pointed out here today.”
According to the Louisiana Gaming Control Board, prop bets and microbets account for 40% of mobile sports betting in the state and 13% of retail sportsbook wagering, per NOLA.com. That helps explain why the fiscal estimate came in so high.
The analysis also said consumer appetite for gambling likely would not fall much if prop bets disappeared. Instead, money could shift to other legal gaming products.
“Consumer activity is expected to shift to other available forms of gaming rather than be substantially reduced,” it says. “To the degree this happens, the projected negative revenue impacts may be mitigated to an unknown degree.”