Louisiana bettors will continue to have access to prop betting markets after a proposed legislative ban on the wagers will no longer be considered amid concerns over potential lost revenue.
Senate Bill 354 will no longer be considered during the current legislative session after a fiscal note projected a significant decline in tax revenue if Louisiana were to implement a ban on prop markets.
The bill, filed by Sen. Katrina Jackson-Andrews, aimed to remove the term “proposition bets” from the state’s list of authorized wagers. It defined a prop wager as a “side wager on a part of a sport or athletic event that does not concern the final outcome of the sport or athletic event”.
In addition to a prop ban, SB 354 also aimed to prohibit any “sports micro-bet”, defined as a prop bet that is “wagered live, while a sport or athletic event is ongoing, and concerns the outcome of a play or action occurring in the sport or athletic event”. SB 354 did not provide specific examples of micro-bets, but the measure would have forced operators to pull many live betting markets from their platforms.
“My issue with prop betting and micro betting is this, to be very clear, is that it’s very compulsive in nature,” said Jackson-Andrews during a hearing concerning SB 354.
Fiscal note warns Louisiana would lose millions
However, Jackson-Andrews pulled SB 354 from Louisiana’s legislature after the publishing of a fiscal note that indicated a ban on prop and micro bets would decrease sports betting tax revenue allocated toward the state’s General Fund by up to $21m annually.
“I try to bring very responsible legislation, and I believe this piece is a responsible piece of legislation, but also, serving on [the Senate] Finance [Committee], understanding that if this bill moves forward, we will have to find that $15m for the state general fund,” continued Jackson-Andrews.
“It is an extremely serious issue that I need to revisit without this type of fiscal note on it,” she added, per nola.com. “I realize the serious nature of what it does to the budget.”
Props/micros make up 40% of Louisiana bets
According to data provided by the Louisiana Gaming Control Board, prop and micro-bets account for roughly 40% of online wagers placed throughout the state. It also reports that around 13% of all retail sports wagers in the Pelican State are prop and micro bets.
Other funds in Louisiana that receive tax revenue from betting would have also taken a combined hit of $17m annually from the proposed change, including the Behavioral Health & Wellness Fund, the Louisiana Postsecondary Inclusive Education Fund and the Supporting Programs, Opportunities, Resources, and Teams Fund (SPORT Fund).
The SPORT Fund supports student-athletes at public NCAA Division I programs across Louisiana. With a prop and micro-bet ban, its tax revenue would decline by $9.4m annually.
SB 354’s life cycle
SB 354 died in Louisiana’s current legislative session after being introduced in February. Last month, it was referred to the Committee on Judiciary, where it was read before Jackson-Andrews decided to pull the plug on the piece of legislation this week.
Jackson-Andrews plans on revisiting a potential prop and micro-bet ban in 2027. The lawmaker plans to introduce a new measure next year that considers fiscal costs.
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