Key points:
- Bill would have brought the state’s tax rate to the same level as New York
- Only filed in the House last week
HB22, the proposed bill that would have raised tax rates on online sports wagering in Louisiana, has been withdrawn from the House of Representatives.
It was only last week when Louisiana Representative Roger Wilder III filed bill HB22, which would have taken the online sports wagering tax in the Pelican State from 15% to 51%, putting it at the same level as the current highest sports betting tax state, New York.
The bill wasn’t best received when it was first proposed, with iDevelopment and Economic Association (iDEA) Co-Founder Jeff Ifrah releasing a statement responding to it, saying: "The introduction of HB22, proposing a staggering tax increase on Louisiana's sports betting industry, marks a drastic and counterproductive shift in policy.
“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.
Good to know: Louisiana's sports betting report for September showed a nearly 30% increase in wagering activity year-over-year
"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."
Only a few days after first being filed, the bill was deferred according to local news reports, with there being a small chance that it was going to be revisited before the current session ends on November 25.
But now, the bill itself, which was put forward to “help offset the loss of revenue from flattening the state income tax,” has now been withdrawn from the House of Representatives.
In related news last week, Ohio Senator Niraj Anta drafted a bill that would cut the tax rate on statewide sports betting in half.
