The first full month of Louisiana online sports betting was a success. In February, $2.2 million was generated for the state in tax revenue from online sportsbooks, fueled likely in part by the popularity of the Super Bowl.
March could be another boon for state taxes with the NCAA Tournament starting this week and offering hoops action every weekend for the rest of the month and into next month when the title game is played on April 4. LSU is seeded sixth in the Midwest Region of the tournament. The Tigers will face Iowa State on Friday at 6:20 p.m. CT in Milwaukee, Wisc.
According to a report released by the Louisiana Gaming Control Board, sportsbooks took in $211 million in total handle in February, with $16.5 million in “net proceeds” or adjusted gross revenue. The state estimates the tax windfall to be $2,220,205 on that figure.
Online sports betting AGR is taxed at a 15% rate in Louisiana. By law, a majority (60%) of the tax collected goes toward the state general fund, with 25% earmarked for early education, 12% for the 55 participating parishes, 2% for gambling addiction and responsible gambling programs, and 1% to the Louisiana sports wagering purse fund for horse racing.
By comparison, retail sportsbooks are taxed at 10%.
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Football and Basketball Lead the Way in Louisiana Sports Betting
Louisiana launched online sports betting in late January and only had four days or data for that month. Due to promotions that cost the sportsbooks money to acquire customers, there was a net negative AGR for January, and no tax revenue was generated for the state from online sports betting.
In February, sportsbooks reported a 7.9% winning percentage on wagers accepted. Of the $16.5 million in AGR, $9.8 million came from football betting and $5.1 million from basketball. Parlay action resulted in $4.4 million in adjusted gross revenue.
Six sportsbooks launched on Jan. 28: Barstool Sports, BetMGM Louisiana, BetRivers Louisiana, Caesars Louisiana, DraftKings Louisiana, and Fanduel Louisiana. Each operator has a partnership with a casino licensee in the state.
Since retail sports betting launched in Louisiana in November 2021, the state has seen $395.5 million in total handle, with $23.6 million in AGR, resulting in nearly $4 million in taxes. From November until Jan. 28, sports bettors were required to go to a retail location to open an account and place a wager.