Louisiana Senate approves sports betting

If Senate Bill 153 is approved, Louisiana voters would determine the fate of sports betting in this fall’s election on a parish-by-parish basis in municipalities where casinos and racetracks are already located. The earliest sports betting could be in place is January 2020, said Ronnie Jones, head of the Louisiana Gaming Control Board.

The proposal, sponsored by Sen. Danny Martiny, R-Kenner, is modeled after sports betting policies that currently exist in Mississippi, though it is slightly more restrictive. Martiny brought the legislation because he’s concerned Louisiana casinos and racetracks will lose business to their counterparts in Mississippi and Arkansas, which have legalized sports betting already.

“It’s a simple thing trying to allow us to compete on a level playing field,” said Martiny of his bill.

The legislation would allow sports wagering on professional and collegiate sports at Louisiana’s four horse racetracks with slot machines, 15 riverboat casinos and Harrah’s Casino in New Orleans. Betting on high school, video game and electronic sports events would be prohibited. Betting would be limited to gamblers 21 and older.

The bill confines sports betting on mobile devices to places where people who are 21 and older can go at participating casinos and horse tracks. Even though in Mississippi, sports bets on mobile devices can be placed from anywhere on a casino resort property, such as poolside or at a restaurant.

It’s unclear how much money legal sports betting could generate for Louisiana because its taxing structure hasn’t been settled yet. Fiscal analysts don’t expect the revenue to be significant.

Martiny backs a structure, with a 12% tax rate and hefty application fees, similar to the one in place in Mississippi, where sports betting has produced $2.5 million in the past seven months. Mississippi sports gambling revenue is expected to stabilize to around $5 million annually, according to a Louisiana legislative fiscal analysis.

Martiny said he is willing to dedicate most tax revenue from sports betting to early childhood education programs. Gov. John Bel Edwards supports that proposal. A small portion of the revenue would also go toward organizations that address compulsive gambling.

Legal sports betting is popular in Louisiana. An LSU survey published earlier this month found that 59% of state residents supported legalizing betting on professional sports. But it’s still opposed by the Louisiana Family Forum, a conservative Christian organization that has a major influence over legislators, especially in election years.

The companion tax bill that Martiny’s legislation needs to make sports betting viable in Louisiana also faces a tougher road than Martiny’s proposal. While Martiny only needed a majority of the Senate’s approval, tax bills have to get two-thirds of state lawmakers’ support to pass. Martiny’s bill didn’t reach the threshold Tuesday that any gambling tax bill will need to succeed.

The companion tax bill to Martiny’s gambling legislation is also having a hard time moving in the Louisiana House at the moment. House Bill 587, sponsored by Rep. Joe Marino, I-Gretna, hasn’t been scheduled for a vote in the House Ways and Means Committee yet.

Rep. Neil Abramson, D-New Orleans -- who has drafted his own sports betting tax bills with different tax rates and fees -- hasn’t put Marino’s legislation on the calendar yet, despite being asked to do so, Marino said. Abramson is chair of the committee and hasn’t appeared on the House floor for votes over the last few days.

Still, Martiny’s promise to dedicate sports betting revenue to early childhood education programs could help the measures pass in a House that is wary of gambling. Lawmakers are desperate to find ways to increase funding for preschool programs, especially because the state is scheduled to lose federal funding for them.

While linking early childhood education to sports betting worked for Martiny, Sen. J.P. Morrell, D-New Orleans, was not as lucky Monday evening. Morrell’s Senate Bill 196 would have attached a fee of up to $50 on gambling winnings, with money generated going to early childhood education. It was voted down 16-21 in the Senate. The money would have stayed locally in the parish where the gambling took place. Morrell said he might bring his bill up at a later date if he can gin up more support.