Louisiana lawmakers introduce daily fantasy sports tax
The state is debating legalizing daily fantasy sports and fees are going to increase
Louisiana is discussing whether or not to legalize daily fantasy sports (DFS) betting in the state and at least one lawmaker has already stepped up to ensure that the activity is taxed. If the bill, House Bill 495, is approved, net proceeds on DFS wagers will incur an 8% state tax and licenses for running operations will cost $5,000. DFS fans should prepare now to pay more for the activity.
Representative Neil Abramson introduced the bill, which was recently approved by the House Ways and Means Committee. It has now agreed to send the bill to the full House, where it will be debated and, possibly, approved. Abramson told the committee, “This is actually to generate some revenue off of it like all other states do.”
Out of the 64 parishes in Louisiana, 47 agreed last November that DFS should be allowed in their communities.
Abramson wants to the money to be used for education, explaining, “Early childhood education has been a priority of I believe everybody but because of our financing situation we have not been able to get the finances to that critical priority. This will be a new revenue source, so it’s not taking money from any other place.”
Some believe the tax rate is too low. Alton Ashy, the head of the Louisiana Video Poker Association, would like to see a higher tax, asserting, “My clients who live in this state, who live in your districts, who vote for you, who support you, they pay either 26 and a half or 32 and a half percent in taxes.”