- House Bill 64 would tax DFS contests in Louisiana at 8%.
- The measure passed through its final hurdle in the Louisiana State Legislature on Tuesday.
- The odds that Governor John Bel Edwards signs the bill are high, as he recently approved similar gambling bills.
- LA HB 64 expects to see $375,000 in yearly revenue that would be put toward the early childhood education system in Louisiana.
BATON ROUGE, La. – The LA State Legislature has passed House Bill 64 that would tax the Daily Fantasy Sports (DFS) in the state on Tuesday.
It will now move onto Governor John Bel Edwards’ desk for his signature to become law.
House Bill 64 was introduced in the House the very next day on June 10.
What Will House Bill 64 Do For Louisiana?
The unanimous vote in the Senate of 36-0 to pass LA HB 64 was done quickly. From introductions to the House to its passage in the Senate, it took all of two weeks.
House Bill 64 would impose an 8% tax on the newly legalized DFS contests and their net revenue. DFS and the contests being taxed take place in 47 of the 64 parishes in Louisiana.
Taxes gained from this outlet would be put toward education, more specifically early childhood education statewide.
Lawmakers don’t expect that they will gain much money from this tax as it deals with only DFS contests but it’s still added funding for schools in desperate need.
It is estimated that revenue from this bill if passed into law, would see upwards of $375,000 annually. This estimate is based on a similar tax in New York and the numbers they’ve seen.
Taxing Louisiana DFS
With the 47 parishes in the Bayou State allowing their residents to engage in DFS activities, an 8% tax could be a helpful resource when budget cuts start to take effect in order to deal with the Coronavirus Pandemic and the financial fallout it’s caused nationwide.
House Bill 357 is already in effect which means signing House Bill 64 would be the final piece of the puzzle to begin collecting taxes from the DFS industry in Louisiana.
The timing for LA HB 64 was not a mere coincidence, as it seems to have been well calculated to be introduced to the Legislature after the latest DFS bill became law.
Once Governor Edwards receives House Bill 64, he will be given over a week to decide on whether to sign or veto it.
However, the need for revenue, especially in terms of the education system in Louisiana makes the idea of him signing off in approval of the bill a safe bet.
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Christina has been writing for as long as she can remember and does dedicated research on the newly regulated sports betting market. She comes from a family of sports lovers that engage in friendly bets from time to time. During the winter months, you can find Christina baking cookies and beating the entire staff at Mario Kart…the N64 version of course.