Daily Fantasy Sport (DFS) was allowed in Louisiana, two years ago through voting. However, little has progressed so far.
The state has been working on the tax structure since then, and finally came up with an equitable structure, early this year. The Governor of Louisiana has finally signed the guidelines and DFS Leagues now can become a reality before the NFL season this year.
It could have been even worse as per the Louisiana laws. It states that the tax issues can be addressed every odd year.
This could have resulted in a solution only next year. However, there is an exception which allows extraordinary session and the lawmakers pushed forward for the framework this year. Governor John Bel Edwards has signed the bill yesterday.
92% of the voters agreed to allow DFS in 2018 and lawmakers did not really take this up seriously until last year. However, Louisiana was missing out on the revenue typically by casinos, which were shut down by the COVID19 pandemic. John Stefanski however refuted the claim and said that there was urgency last year as well. However, lawmakers tried to package it with Sports Betting and it did not go through.
Louisiana Gaming Control Board is going to oversee the DFS regulations. However, the board needs to establish the procedures by August 1. The licenses are to be issued for 3 years and it would cost around $5000 to $40000. The price would depend on the size of the company and that could make the larger companies unhappy. The bill says that an additional 8% tax on the net revenue of all the DFS contests would be collected for the Louisiana Early Childhood Education Fund.
Sports gambling could be the next thing for Louisiana. The losses incurred by the coronavirus is making the governments take the decisions that were once considered taboos. The desperation of the situation could be understood from the support DFS Tax bill received. The bill was passed by 81-11 in Senate and 36-0 in the house.
This certainly paves the way for the sports betting legalization like the neighboring states.