Legal Sports Betting Brief: Louisiana, Minnesota, Missouri

• Louisiana’s HB22 bill proposes raising the tax rate on online sports betting revenue to 51%, matching New York, which could significantly boost state revenue but might face pushback from operators.
• Minnesota’s sports betting legalization efforts have gained traction with new support from Running Aces Casino, suggesting a bill could pass in time for the 2025 NFL season.
• Missouri recently approved sports betting through Amendment 2, but with regulatory steps pending, wagering may not start until early 2025, likely too late for the Super Bowl.

NEW ORLEANS – Several states are making significant moves in the sports betting landscape with Louisiana eyeing a major tax hike for sportsbooks, while in Minnesota, renewed support from key stakeholders has brought a sports betting bill closer to passing.

Missouri, having narrowly made sports betting legal, is now setting up regulatory guidelines as each state’s progress highlights distinct strategies for addressing budget needs and expanding legalized sports betting.

Louisiana Hopes Taxing Sportsbooks Like New York

Louisiana is considering HB22, a new bill proposed by State Representative Roger Wilder, which would increase the tax rate on online sports betting gross gaming revenue (GGR) from 15% to 51%.

This proposed tax hike aligns Louisiana sports betting with New York’s top national rate and would substantially raise tax contributions from operators, who generated $52.2 million in tax revenue from $358.2 million in net proceeds last year. Additionally, HB22 would eliminate operators’ ability to deduct promotional credits – worth $44.4 million last year – from taxable income, further boosting taxable revenue.

While HB22 could drastically increase revenue, operators warn it might discourage legal betting, as high taxes often push bettors to unregulated platforms.

Governor Jeff Landry, aiming to address Louisiana’s $700 million budget shortfall, supports broader fiscal reforms alongside this proposal, including modernizing corporate and income tax structures. However, the bill faces opposition from industry stakeholders and requires a two-thirds majority to pass, making its future uncertain.

Minnesota Sports Betting Rumors

Renewed momentum is headed for legal Minnesota sports betting as Running Aces Casino, which had previously opposed similar legislation, recently expressed support for a compromise bill.

Running Aces sent a letter to the Minnesota Indian Gaming Association on Election Day, advocating for a proposal that would benefit tribal casinos, horse tracks, and charitable gaming organizations across the state. A source close to the discussions indicated that stakeholders are closer than ever to reaching an agreement, with hopes that the bill could pass in time to bet on the NFL before the 2025 season starts.

This shift in support and unity among gaming stakeholders could finally push the long-debated legislation across the finish line.

When Can I Start Betting On Sports In Missouri?

Missouri recently passed Amendment 2 to legalize sports betting, with 50.1% of voters in favor. The amendment takes effect on December 5, 2024, but betting is unlikely to begin immediately. The Missouri Gaming Commission will need to establish rules and issue licenses, which could take several months.

Potential legal challenges, given the narrow vote margin, could also delay the process. Based on other states’ timelines, if moving quickly, the Missouri sports betting launch might begin around March 2025 – potentially in time for MLB’s opening day. But it would create a missed opportunity for Super Bowl betting on the Chiefs.

Once regulations are in place, bettors can wager via approved sports betting apps or at retail sportsbooks located near stadiums and inside casinos.

News tags: Amendment 2 | Jeff Landry | LA HB 22 | Louisiana | Minnesota | Minnesota Indian Gaming Association | Missouri | Missouri Gaming Commission | Roger Wilder | Running Aces Casino