A Louisiana state legislator's proposal to more than triple sports betting tax rates was quickly withdrawn after facing industry pushback. Rep. Roger Wilder III's House Bill 22 aimed to increase the tax rate from 15% to 51%, which would have matched New York and Vermont's rates as the highest in the nation.

Wilder deferred the bill on Wednesday, acknowledging the need for deeper industry consultation. The legislation, though backed by both political parties and community groups, was part of Gov. Jeff Landry's broader tax reform initiative.

Currently, Louisiana generates approximately $55 million annually from regulated online sports betting, with an estimated handle of $3 billion. The state ranks in the upper half among jurisdictions with legal sports wagering.

Industry representatives, including Caesars Entertainment, strongly opposed the tax hike. Caesars New Orleans executive Samir Moad noted that major investments like the Caesars Superdome sponsorship were based on the existing 15% tax rate, not 51%.

The bill's withdrawal reflects a broader challenge facing states considering sports betting tax increases. While Illinois recently implemented a progressive tax system, most attempts to raise rates have met resistance from operators who argue excessive taxes could impact betting handles and force cost increases for consumers.

With the current legislative session ending November 25, the proposal is effectively dead, though Wilder indicated he would continue working on the issue after further industry consultation.

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