(AsiaGameHub) –   Louisiana will not prohibit proposition betting and microbetting this year after a financial assessment highlighted worries about a significant loss of state income. Senator Katrina Jackson-Andrews stated she continues to consider the matter serious, but the anticipated budgetary impact compelled her to pause the effort for the time being.

---

Good to Know

• A financial review indicated the state could forfeit close to $40 million annually if prop bets are eliminated.
• The proposed legislation focused on prop bets and microbets, which encompass wagers on minor in-game occurrences.
• Senator Katrina Jackson-Andrews stated her intention to re-examine the matter next year.

---

Revenue Worries Halt Louisiana Prop Bet Proposal

SB354, introduced by Sen. Katrina Jackson-Andrews in late February, sought to prohibit prop-style betting and microbetting at legal sportsbooks in Louisiana. These wagers include bets on specific, small events within a game, like the outcome of the first pitch in a baseball at-bat.

Jackson-Andrews mentioned that Louisiana Progress, an advocacy organization for low-income and working-class residents, reached out to her regarding the issue. She also cited observations within her own family as sports betting became more prevalent. This combination motivated her to introduce the bill.

Subsequently, the fiscal note arrived. After reviewing the figures, Jackson-Andrews withdrew her support.

“It is an extremely serious issue that I need to revisit without this type of fiscal note on it,” she remarked about the prop betting bill during a Senate Judiciary B Committee hearing. “I realize the serious nature of what it does to the budget.”

The Louisiana Legislative Fiscal Office projected the state’s general fund could decrease by $21 million per year. Additional state-supported funds might see a further loss of $17 million. In total, the estimated annual reduction was nearly $40 million if prop bets were eliminated from the legal marketplace.

“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 (millions of lost funding) for the state general fund,” Jackson-Andrews said.

Louisiana sportsbooks currently provide major markets, futures, parlays, microbetting, and player props. Wagering on college player props is already prohibited, but legal operators can still offer these markets for professional athletes in sanctioned events.

Safety Concerns Remain Under Discussion

Despite the bill being stalled, the hearing clarified that the broader discussion is ongoing. Jackson-Andrews characterized prop bets and microbets as inherently “compulsive in nature,” though she confirmed she will not advance the issue until the following year.

Judiciary B chairman Mike Reese stated that legislators must still address the societal aspects of sports betting, even if the financial consequences complicate immediate measures.

“Senator … 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.

He also highlighted an additional challenge. If legal operators lose these betting markets, some gamblers might turn to offshore or illegal platforms.

“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,” Reese continued. “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.”

Data from the Louisiana Gaming Control Board, reported by NOLA.com, shows that prop bets and microbets represent 40% of mobile sports betting handle in the state and 13% of retail sportsbook wagering. This helps clarify why the financial projection was so substantial.

The analysis also suggested that consumer demand for gambling would probably not decrease significantly if prop bets vanished. Instead, spending would likely move to other legal gaming options.

“Consumer activity is expected to shift to other available forms of gaming rather than be substantially reduced,” it states. “To the degree this happens, the projected negative revenue impacts may be mitigated to an unknown degree.”