All in agreement
The Louisiana Senate has approved a bill that sets the tax rate for daily fantasy sports (DFS) in the state at 8%. House Bill 64 (HB 64) got final passage following a 36-0 vote in the Senate on June 23. The House had already voted 82-11 in favor of this bill on June 17, with the Senate Committee on Revenue and Fiscal Affairs giving its approval on June 22. Louisiana Governor John Bel Edwards will now need to sign the bill for it to pass into law.
commits the tax proceeds to the Early Childhood Education Fund in Louisiana
The bill will see a state tax of 8% imposed on net revenue from DFS contests. It also defines net revenues and commits the tax proceeds to the Early Childhood Education Fund in Louisiana. Senator Troy Carter said that a lot of people supported HB 64 “specifically because they understand the significance of providing resources to early childhood education.”
A long time coming
In 2018, 47 of Louisiana’s 64 parishes voted in favor of having daily fantasy sports available in the state. It took almost two years for the legislature to set regulations for the activity and for a tax rate to be agreed.
Governor Edwards signed House Bill 357, which establishes fantasy sports regulations, on June 11. The measure had gained approval in the legislature before the normal legislative session ended on June 1.
the activity would not be allowed unless it was taxed
Following the legalization of fantasy sports in Louisiana, state lawmakers said the activity would not be allowed unless it was taxed. A special legislative session, called to determine budget issues, eventually got the tax rate measure over the line.
Louisiana’s gambling scene
The 47 parishes that had approved daily fantasy sports will soon be able to offer the activity in their area. Residents will have to be at least 21 years old if they want to play for cash prizes. The Louisiana Gaming Control Board will be in charge of issuing licenses to fantasy sports operators such as FanDuel and DraftKings.
Louisiana residents are also set to vote on whether or not they want legal sports betting. Governor Edwards signed Senate Bill 130 on June 11, allowing each parish to have their say on the issue on the November 3 ballot.
The casinos in Louisiana were among the first in the country to reopen for business in May following the COVID-19 shutdown. Many states have yet to reopen their gambling establishments in the wake of the pandemic.