In a decision that highlights the complex tug-of-war between responsible gaming oversight and state tax reliance, Louisiana lawmakers have officially withdrawn a proposed ban on proposition and micro-bets.
Senate Bill 354, spearheaded by Senator Katrina Jackson-Andrews, was pulled from consideration after a devastating fiscal analysis revealed the move would strip nearly $40 million in annual revenue from the state’s coffers.
The “Compulsive” Debate vs. The $40M Revenue Hit
During a Senate Judiciary B Committee hearing on March 31, Senator Jackson-Andrews expressed deep concern over the high-frequency nature of these wagering formats.
“My issue with prop betting and micro betting is this, to be very clear, is that it’s very compulsive in nature,” Jackson-Andrews stated.
However, the moral argument met a cold reality when the Legislative Fiscal Office released its note. The analysis projected that a ban would slash $21 million annually from Louisiana’s General Fund through 2031, with an additional $17 million loss across dedicated funds, including those for healthcare and education.
A Market Dominated by High-Frequency Action
The fiscal note underscored just how essential these bets have become to the state’s economy. Data from the Louisiana Gaming Control Board shows that prop and micro-bets now account for a staggering 40% of all mobile sports wagers and 13% of retail betting.
These funds directly support the Supporting Programs, Opportunities, Resources, and Teams (SPORT) Fund, which assists student-athletes. Under the proposed ban, the SPORT Fund alone would have faced a $9 million annual deficit. Confronted with these numbers, Jackson-Andrews, who also serves on the Senate Finance Committee, acknowledged the legislative dilemma:
“I try to bring very responsible legislation… but also, serving on [the Senate] Finance [Committee], understanding that if this bill moves forward, we will have to find that $15m for the state general fund. It is an extremely serious issue that I need to revisit without this type of fiscal note on it”.
Louisiana in the National Regulatory Context
Louisiana’s reversal occurs amidst a fragmented national landscape. While states like Vermont, Ohio, and Maryland already restrict certain collegiate prop bets, and Kentucky recently passed its own targeted ban, few have attempted to eliminate microbetting entirely.
Microbets, which allow users to wager on individual plays like the next pitch in a baseball game, have drawn comparisons to slot machines in recent Pennsylvania lawsuits against giants like DraftKings and FanDuel, with critics arguing the format reduces natural stopping points for players.
While SB 354 is dead for the current session, Senator Jackson-Andrews signaled that the conversation is far from over, aiming for a “more reasonable” version in 2027 that balances player protection with fiscal stability.
