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Louisiana Governor Signs Sports Betting Regulation Bill Into Law
By Jeff Osienya Jun 24, 2021 IndustryFinally, Governor Edwards of Louisiana has rubberstamped the second package of sports betting regulation bill into law. The legal sports betting market in the state is expected to go live by fall 2021, ahead of the kick-off of the new NFL season.On Tuesday, June 22nd, Gov. John Bel Edwards of Louisiana signed the state’s remaining half of sports betting legislation to pave the way for a regulated market. Officially, the Pelican State is now the 32nd USA state to legalize some form of wagering on sporting events to take place within its borders. Narrowing down the criteria further to the Southside of the USA alone, The Pelican State is the third state to green-light mobile sports wagering after Tennessee and Virginia.
Governor Edwards rubberstamped two bills on that day – Senate Bill 247 and the accompanying bill, Senate Bill 142. The main bill, SB 247, outlines the protocols that will guide the regulation of sports wagering. On the other hand, SB 142, the accompanying bill, sheds light on how the proceeds of conducting sports betting in Louisiana will be spent.
Earlier this month – on Monday, June 7th, the governor put his signature on another measure, House Bill 697. This is a tax bill that indicates how different sports betting channels would be taxed by the state and the fees that operators and vendors will be paying for license applications and annual renewals.
Sports Betting in the Pelican State to Go Live in Time for the NFL Season
Following the governor’s signature, the sports betting legislation will take effect on Thursday, July 1st. Lawmakers and industry stakeholders who supported Louisiana’s legalization of sports betting expect that everything needed to facilitate market launch will be good to go in the fall, right in time for the much-anticipated football season, which starts on September 9th. Should things go as planned, The Pelican State will become the 14th USA jurisdiction (including Washington DC) to have an active retail or mobile sports betting industry, or both.
After Gov. Edwards okayed the legislation on Tuesday, Senator Patrick Page Cortez, the Republican Representative of District 23, who is also the State Senate President, voiced his approval of SB 247, saying:
Quote“SB247 fulfills the wishes of the citizens in the 55 parishes that approved the referendum last fall to allow sports wagering, and SB142 will help direct funding derived from this activity to early childhood education,”
John Stefanski, a Republican House Representative of District 42, also expressed his enthusiasm after Louisiana achieved the sports betting legalization milestone. He said:
Quote“I am extremely excited for Louisiana on the signing of the final piece of the sports betting legislation. The citizens of Louisiana spoke last fall when they approved sports betting in 55 of the 64 parishes. Thankfully the legislature did its part and approved the legislation necessary to complete the process. I would like to personally thank Senate President Cortez on his leadership throughout this process. I join my fellow citizens in looking forward to sports betting as early as this fall.”
Rep. Stefanski was the main sponsor of the HB 697 tax bill, along with 13 other co-authors.
A Well-Seasoned Recipe for a Thriving Regulated Sports Betting Market
Based on what industry analysts are saying, The Pelican State is uniquely positioned to have a flourishing sports betting market. For starters, the sports betting bill structure is favorable enough to attract plenty of operators. Moreover, the taxation rate is balanced enough to allow operators and vendors to adequately profit from the activity and generate lucrative proceeds for state coffers.
Independent research firm Spectrum Gaming Group released a study before the pandemic indicating that Louisiana’s sports betting market had the potential to bring in between $237 million and $332 million worth of revenue for operators when the market matures.
In that research, up to $135 million of this estimated revenue was projected to come from online sports betting platforms. Considering that the Coronavirus pandemic boosted the adaptation of online betting among sports fans across the USA, the figure will probably be much higher upon market maturity. With a total of 41 online licenses up for grabs in Louisiana, the market performance for internet betting will likely exceed expectations.
As for taxes, the Spectrum Gaming study estimates that the state coffers will collect $35 – $50 million in tax revenue from the activity. Other market surveys indicate that The Pelican State coffers could collect up to $60 million from taxing locally regulated sports wagering.
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