Daily fantasy sports (DFS) looks like it will launch soon in Louisiana, two years after much of the state voted to regulate the vertical.
State Governor John Bel Edwards has signed off House Bill 64 (HB64), which was approved by the Senate last month.
Once the market eventually launches, DFS operators in Louisiana will be taxed at 8% of their gross gaming revenue (GGR).
The Louisiana Gaming Control Board (LGCB) has been told to introduce procedures for DFS rulemaking on 1st August at the latest.
DFS could be ready for the new NFL season
HB64 was the legislation required to determine the tax rate for DFS in Louisiana.
The introduction of DFS was dragged back into the spotlight after the COVID-19 pandemic led to a special legislative session being called in the Bayou State. The matter would normally have had to wait until another fiscal year to be discussed, since it involves tax matters, but was able to be brought forward due to an “extraordinary session” taking place.
Rep. John Stefanski, who introduced HB64 when the opportunity to do so arose, believes the vertical will be ready in time for the scheduled start of the 2020 NFL season on September 10th.
He said: “We’re still looking at this upcoming football season not knowing what will happen with the pandemic.
“But we expect daily fantasy sports to be up and running in Louisiana for this football season.”
The practicalities of DFS in Louisiana
Players will be able to play DFS on DraftKings and FanDuel once the vertical goes live in the state. Both operators paid the higher end of the available licensing fees, which range from $5,000 to $40,000. Once awarded, permits will last for three years.
Taxes brought in from DFS gaming will be directed towards the Louisiana Early Childhood Education Fund.
The vertical will be regulated in all of the 47 of Louisiana’s parishes that voted in favour of its regulation two years ago.
DFS has taken so long to launch in Louisiana because efforts to implement the referendum result and determine tax were halted on the last day of the 2019 legislative session. This was due to sports betting, which had been added to the bill later, then being removed. Because of this, Rep. Danny Martiny filibustered the legislation.
Sports betting could also be set to come to Louisiana soon, with a referendum related to its regulation planned for this November. The vertical will become legal in those of the state’s 64 parishes that vote for it and remain illegal in the ones that choose not to.
