Louisiana Sports Betting Revenue Projections
As sports fans in the Pelican State prepare to make their first wagers as Louisiana sports betting prepares to launch, we took a deep dive into Louisiana sports betting revenue projections.
Get a sense of what state officials and industry insiders expect when this hot new Southern market launches. We’ll explore possible challenges for the LA sports gambling market, as well as advantages that might help sportsbooks generate a big profit. Plus, we’ll compare the state government’s revenue projections to actual results from recent market launches elsewhere in America.
Read on for a detailed look at the future sports betting industry in Louisiana.
LA Market Overview
To grasp Louisiana’s potential as a sports gambling market, here’s some key context to keep in mind.
State Population (2020 Census): 4,657,757
In-state Pro Teams: New Orleans Saints (NFL), New Orleans Pelicans (NBA)
Expected Launch Date: Late 2021 or early 2022
Biggest Monthly Revenue: TBD
Regulator: Louisiana Gaming Control Board
Platforms: Online and retail (launch pending)
Tax Rate: 10 percent of retail revenue and 15 percent of online betting revenue
LA Sports Betting Revenue: Month-by-Month Data (Projections)
Sports Betting Dime will track Louisiana’s monthly sports betting financial reports closely when the market launches this fall to provide up-to-date insights and analysis.
In the meantime, here are our estimates for the first full month based on what we’ve seen from similar markets in 2021.
|Month/Year||Estimated Betting Handle||Estimated Revenue||Hold Percentage||Approximate State Tax Revenue|
|October 2021 (TBD)||$100,000,000||$7,200,000||7.20%||$1,008,000|
The above table will be updated monthly when actual figures are available from the Louisiana Gaming Control Board.
Depending on when the Louisiana market goes live, it’s entirely within the realm of possibility that it will exceed our estimated betting handle in its first month, especially if multiple online sportsbooks launch in time for the 2021 NFL and college football seasons.
Note that for estimation purposes, we’ve used the national average hold rate of approximately 7.2 percent. The approximate state tax revenue is based on an 80-20 split between online and retail sports betting and their respective tax rates.
Louisiana Sports Betting Revenue Expectations: What Do State Officials Think?
According to the Louisiana Illuminator, a local news outlet, Louisiana state officials were unable (or reluctant) to estimate the tax revenue that sports wagering could generate.
However, the legalization campaign, Louisiana Wins, projected between $237 million and $332 million in gross sports betting revenue annually. This could result in anywhere from about $30 million to $48 million back in tax revenue each year, depending on the split between mobile and in-person wagering, which are taxed at 15 and 10 percent, respectively.
The state has released preliminary plans for how to use funds that wind up back in state coffers. The majority of revenue generated by the Louisiana Lottery itself will go towards K-12 education and programs for people with intellectual disabilities.
Tax revenue from private casinos and racetracks will be mostly unrestricted state funding, but a combined 15 percent will go to specific causes such as gambling addiction treatment, services for people with disabilities, and local government funding. 25 percent will be used to fund early childhood education. Additionally, unclaimed winning sports bets will be used to pay for medical exams for rape victims.
Sports Betting Dime will present up-to-date analysis as official Louisiana sports betting revenue reports start coming in. In the meantime, just know that the Pelican State is expected to punch above its weight and become a thriving new market.
Louisiana Sports Betting Revenue: Advantages
Louisiana lawmakers have set up an open and competitive legal sports wagering market, with plenty of licenses available for both retail and online operators. They have also implemented fewer restrictions on college sports betting than some states. You’ll be able to place wagers on in-state college sports teams such as the LSU Tigers and Louisiana Ragin’ Cajuns, for example.
Additionally, Louisiana has a thriving tourism industry and a long history of casino gambling. None of its bordering states have legal online sports betting, so Louisiana could see an influx of bettors crossing state lines to place their wagers, especially from Texas. Houston is the fourth-largest city in America and is just a two-hour drive from the Louisiana border.
When you take all of this into account, Louisiana has the makings to be one of the biggest sports betting markets on a per capita basis. The Pelican State should have no trouble outperforming its relatively small population.
Here’s a look at the top performing states in 2020 on a per capita basis:
|State||Census Population||2020 Betting Handle||Per Capita Handle|
At a minimum, we’d expect Louisiana to generate at least as much as Indiana on a per capita basis, if not quite a lot more given the draw of New Orleans as a tourist destination. Thus, we’d be shocked if Louisiana didn’t generate at least $1.2 billion in sports betting handle in its first 12 months. It has the potential to take in double or even triple that amount in the near future as the industry continues to grow in 2021 and beyond.
Latest LA Revenue News
Check back here for the latest revenue-related news from Louisiana.
June 4, 2021: Gov. John Bel Edwards signs Louisiana House Bill 697, which outlines the tax rate and licensing fee structure for sports betting. Revenue from retail sportsbooks will be taxed at a rate of 10 percent, while revenue from mobile and online bets will be taxed at 15 percent.
Learn More About Wagering on Sports in LA and Beyond
As the Pelican State gets ready for legal sports betting, get ready for the action by checking out our list of top online sportsbooks to wager with and helpful Betting 101 guides.
Sports Betting Dime will provide exclusive LA sportsbook promo codes for launch day and any important updates regarding rules and regulations sports bettors should be aware of.
To learn more about gambling revenues from other states, you can explore our state-by-state sports betting revenue tracker.