Louisiana will not be banning all prop bets in 2026 after the bill’s sponsor realized how much tax revenue the state would lose.
Sen. Katrina Jackson-Andrews filed SB 354 at the end of February with the intent to ban prop bets, especially play-by-play microbets, from the state. Jackson-Andrews said she was approached by Louisiana Progress, an advocacy group for poor and working-class families and had personally seen the impact betting had on her college-aged niece and some of her friends.
But Jackson-Andrews, who serves on the Finance Committee, had not seen just how much that would cost the state until Tuesday, when the Senate Judiciary B Committee held a hearing on her bill. The fiscal note was printed just before 9 am Tuesday and showed if the law was in place for all of fiscal 2026, Louisiana would miss out on $28.9 million in tax revenue.
“I received a fiscal note and, although this bill is well intentioned, I plan on continuing legislation next year to try to clean up what is happening, especially with our young adults,” Jackson-Andrews said. “I realize the state general fund alone will lose $15 million. I try to bring very responsible legislation and I believe this piece is a responsible piece of legislation, but also, serving on finance, understanding that if this bill moves forward we will have to find that $15 million for the state general fund.”
Prop bets 40% of Louisiana revenue
The fiscal note includes a big hit to the status quo considering 40% of online sports betting revenue comes from prop bets, the Louisiana Gaming Control Board told the Legislative Fiscal Office. They also account for 13% of retail sports betting revenue.
It is possible some of that loss would be offset, the fiscal office continued, noting that the “demand for lottery and gaming is relatively inelastic.” In other words, sports bettors would likely spend those sports betting dollars on another gaming product.
Aside from the general fund, multiple other funds concerning healthcare, education, problem gambling, local communities and horse racing would all be affected by the cut.
Discussion will return in 2027
Jackson-Andrews is not done with her attempt to protect young bettors.
“That doesn’t mean that I’m done with this legislation,” Jackson-Andrews said after announcing she would pull it for this year. “That means, for this session, I am done and trying to come back with something a little more reasonable regarding the fiscal cost.”
Judiciary B Chairman Mike Reese welcomed that idea and called out the sports betting industry. Representatives from the Sports Betting Alliance, Caesars and Cordish Companies were present.
“Senator, I think you’ve brought up, you and the other proponents that have spoken today, brought up some very important issues and I hope that the industry that’s present today is hearing what those concerns are from a social aspect, from a mental aspect, from the aspect on the impacts of our youth, many of which you and I would agree are more important to our state than the fiscal impact of the note,” Reese said.
“But you have to balance that with the idea that there’s also this illegal market that could supplant whatever we were to take away from the regulated market makes the whole conversation relatively difficult. But I hope that the industry will come to the table and help us address maybe the shortcomings that you’ve pointed out here today.”
