The special legislative session on tax reform in Louisiana is currently discussing HP 22, a bill proposed by State Representative Roger Wilder. This bill aims to increase the tax on net gaming proceeds from electronic sports wagering on websites and mobile applications. The host plans to invite Representative Wilder, a regular guest and friend of the show, to discuss the bill further, despite anticipating a disagreement on this issue.
Scott Ward from the Sports Betting Alliance joins the conversation to provide his perspective on HP 22. Ward expresses his disappointment about the need for this discussion, noting that legal sports betting was only introduced in Louisiana a few years ago. He shares his personal enjoyment of sports betting as a form of entertainment and highlights its positive impact on local casinos, such as the development of sports books at various locations in Baton Rouge.
Ward explains that sports betting has been operational in Louisiana for 2.5 years, following a voter referendum in 2020. The industry has generated $58 million in tax revenue over the past year and created jobs through partnerships with local casinos. Advertising revenue from sports betting has also supported jobs in radio stations and newspapers.
However, Ward warns that HP 22 would increase the tax on sports betting by over 300%, which he describes as unprecedented. He argues that businesses need economic certainty and that such a significant tax hike would disrupt their operations. Ward predicts that the increased tax burden would ultimately be passed down to consumers, resulting in fewer promotions, reduced advertising, and worse odds for bettors. He cites examples from other states, such as Ohio and New York, where similar tax increases led to negative consequences for the sports betting industry.