A Louisiana legislative committee has recently advanced a proposal that would allow casinos in the Pelican State to take fixed-odds bets on horseracing. Louisiana currently offers sports betting on all major pro sports and college sports, with 55 of its 64 parishes offering online sports betting.
There was no opposition to House Bill 564. The bill, sponsored by Republican House Speaker Clay Schexnayder, was recently brought up before the House Commerce Committee. The new legislation would let casinos change their stance from the standard pari-mutuel form of wagering which is currently available at racetracks.
Ed Fenasci, Executive Director of the Louisiana Horsemen’s Benevolent and Protective Association, spoke at the House Commerce Committee in support of Schexnayder’s bill. When interviewed, Fenasci said that the proposal would “open up horse racing to a growing segment of gamblers.”
Pari-mutuel wagers are pooled and split evenly between winning bettors. In this arrangement, final odds cannot be calculated until betting is closed, so the odds can change after a bet is placed and before the eventual payoff is determined.
However, a bet placed with 5-to-1 fixed odds pays off at that rate no matter what bets are made during the rest of a race. Pari-mutual bettors traditionally compete against one another, which can impact the odds as more money is bet on a horse throughout the event.
The new proposal also lowers the share of fixed-odds profits that casinos forward to Louisiana’s licensed racing association, as a way to encourage sportsbooks to participate. Fenasci told the committee the 25% rate wouldn’t be feasible for casinos to turn a profit and the rate proposed is now 15%.
