Louisiana lawmakers have decided to retract a proposed ban on prop bets and microbetting following a fiscal analysis that indicated potential losses exceeding $20 million in annual revenue for the state’s General Fund.
This decision was made earlier this week when Senator Katrina Jackson-Andrews pulled Senate Bill 354 after realizing the financial implications of such a ban. The analysis highlighted how integral prop bets and microbetting have become to the state's revenue streams.
During a Senate Judiciary B Committee hearing on March 31, Jackson-Andrews expressed her concerns regarding the compulsive nature of prop and micro betting. However, the fiscal note revealing the potential tax revenue loss prompted her to reconsider the legislation.
The Legislative Fiscal Office's analysis indicated that banning these betting options would reduce the state's general fund by over $20 million annually from 2027 to 2031, along with a loss of approximately $17 million from other dedicated funds.
Jackson-Andrews emphasized the need for responsible legislation while serving on the Senate Finance Committee, acknowledging the challenge of finding an alternative $15 million for the state’s general fund if the bill were to proceed.
Furthermore, the fiscal analysis underscored the significance of prop and micro bets in the market, with data from the Louisiana Gaming Control Board showing that they account for around 40% of mobile sports wagers and 13% of retail betting in the state. This revenue supports various state programs, including education, healthcare, and responsible gambling initiatives, as well as the Supporting Programs, Opportunities, Resources, and Teams (SPORT) Fund, which benefits student-athlete programs.
Louisiana's decision reflects a broader trend across the nation, where states are adopting varying stances on prop bets and microbetting. Notably, Louisiana is one of the few states that prohibits prop bets on college athletes, alongside Vermont, Ohio, and Maryland.
Other states are also considering restrictions on prop bets. For instance, Kentucky recently passed a broad gambling bill that includes a ban on prop bets related to in-state collegiate athletes, while Massachusetts advanced a bill to ban both prop bets and in-play wagering. Conversely, Washington has moved in the opposite direction, recently passing legislation that permits wagers on college games while limiting bets on individual athlete performance.
As regulatory attention continues to focus on microbetting, SB 354 was one of the few bills attempting to eliminate this betting form. New Jersey is also discussing this issue, with a bill recently advancing from a committee. SB 354 defined a prop bet as a wager on a specific aspect of a sport or event that does not relate to the final outcome, while a microbet is described as a live wager tied to the outcome of a play or action during the event.