A pitch to ban prop betting and microbetting at legal sportsbooks in Louisiana failed Tuesday as state officials feared a substantial loss in revenue.
Key Takeaways
- An analysis found that nearly $40 million could be lost from state funds.
- The senator behind the proposal said that she will revisit it next year.
- Louisiana generated $90 million in mobile sports betting taxes in 2025.
Sen. Katrina Jackson-Andrews (D-Monroe) filed SB354 at the end of February. The bill's primary focus was eliminating prop bets and microbets, or wagers placed on small, individual actions within a competition, such as the outcome of the first pitch of an at-bat.
The 48-year-old senator said she had been contacted by Louisiana Progress, an advocacy group for poor and working class Louisianans. Discussions with the group and her personal observation on the negative impacts of sports betting within her family prompted her to introduce the bill.
However, after being left "shocked" after a fiscal analysis revealed the possible financial effects that would occur, Jackson-Andrews quickly withdrew her support for the bill.
“It is an extremely serious issue that I need to revisit without this type of fiscal note on it,” she said of the prop betting bill at a Senate Judiciary B Committee hearing. “I realize the serious nature of what it does to the budget.”
The Louisiana Legislative Fiscal Office published the analysis, which ultimately concluded that the state general fund could decrease by $21 million annually. Revenue for other state-sponsored funds could also fall by $17 million, totaling nearly $40 million in losses by removing prop bets.
“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.
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Valid concerns?
Louisiana sports betting includes major markets, futures, parlays, microbetting, and player props. College player prop betting is banned, but bettors can still find markets for professional athletes in approved events.
Although Jackson-Andrews might be momentarily halting her proposal, Judiciary B chair Mike Reese encouraged officials to consider legislative changes to increase overall safety for Louisiana gamblers.
“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.
“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.”
The Louisiana Gaming Control Board (LGCB) stated prop bets and microbets represent 40% of the state’s mobile sports betting and 13% of its retail sports wagering markets, per NOLA.com.
Removing prop-style betting from approved sportsbooks would hit local gamblers hard. However, the analysis noted the overall demand for gambling products likely would not change, even if markets such as prop bets are removed.
“Consumer activity is expected to shift to other available forms of gaming rather than be substantially reduced,” it says. “To the degree this happens, the projected negative revenue impacts may be mitigated to an unknown degree.”
Prop bets are big business
As officials ponder a solution, Jackson-Andrews stated prop bets and microbets are inherently “compulsive in nature.” However, she said she won’t pursue the issue further until next year.
Louisiana sportsbooks enjoyed a successful 2025. The LGCB reported approximately $4 billion in total mobile sports wagers, resulting in $492 million in revenue and $90 million in state taxes.
If exactly 40% of the handle came from prop bets and microbetting, those markets would’ve represented a whopping $1.6 billion.
