Louisiana Sports Betting Launch Now Faces Significant Hurdle
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Following the approval of sports betting by 55 of 64 parishes, Louisiana had originally hoped to launch its legalize mobile sports betting program at some point during the 2021 NFL season. Still, that goal now appears to be in jeopardy. In a Lafayette Daily Advertiser interview, Republican state Senate President Page Cortez, one of the primary sponsors for Louisiana sports betting legislation, described how the implementation is being delayed by the absence of a regulatory chief in the state. “It’s a little bit of a hiccup. We don’t have a Gaming Control Board Chair, and until [we do], the board can’t promulgate the rules.”
Former Gaming Control Board Chairman Mike Noel recently resigned on June 9 in the wake of a Senate confirmation hearing. He was set to be questioned about his State Police work during the fatal arrest of a black man in an ongoing investigation. In addition, the Gaming Control Board needs to finish setting forth its rules before casinos can add sports betting parlors, and restaurants and bars can secure betting kiosks, a key part of Louisiana’s betting legislation.
Gov. Edwards Response
Louisiana Governor John Bel Edwards signed a series of bills that created the legal framework for mobile sports betting. Cortez, Republican Senator Rick Ward of Port Allen, and Republican Representative John Stefanski of Crowley were the three primary actors in creating this legislation. Stefanski sponsored HB 697, which sets up the tax and fee structure for sports betting, while Cortez sponsored SB 247, which set forth the licensing for 20 different sportsbooks for the state’s casinos and racinos.
Governor Edwards reportedly “looks forward to making an appointment sooner rather than later,” per his spokesperson Christina Stephens. He is “working to find a commissioner with the right skill and experience to lead during this important time for the gaming industry in Louisiana.” Before Noel’s resignation and the vacation of the Gaming Control Board Chair position, Cortez had been optimistic sports betting could be in place in time for the Super Bowl, but “that could clearly change now,” per Cortez.
Edwards reportedly considers Republican Lake Charles Senator Ronnie Johns for the job, and Johns confirmed on Tuesday that he and Edwards have spoken about the position. “It’s the governor’s call to make, but should he honor me by offering me the position I would very much like to serve,” Johnson said. “I think I’d have a lot to offer because the board needs leadership to make sure the industry is compliant, clean and pristine during this critical time.”
Louisiana Market
At the time of the implementation of sports betting, Louisiana will usher in the largest gambling expansion in the state since the lottery, casinos, and video poker was established in the early 1990s. Gambling generated about $600 million in state taxes in 2020, and that number should increase significantly once mobile sports betting is launched. HB 697 calls for a 10% tax on the net proceeds of a land-based sports wagering operator and 18% of the net proceeds of mobile betting operators.
Louisiana will be ushering in a new era of gambling in its state with expanded land-based offerings and the introduction of mobile betting. This implementation will include Las Vegas-style sportsbooks at casinos and racetracks, retail wagering kiosks at restaurants and bars, and online betting through desktop and mobile applications. Of the 64 parishes in Louisiana, 55 have voted to legalize sports betting. In the remaining nine parishes, geolocation software will be used to identify the precise location of players. Louisiana is still on its way, but this “hiccup” in the Gaming Control Board will leave some sports enthusiasts disappointed as it is a significant hurdle that must be overcome.
