LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 64 HLS 201ES 209
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 25, 2020 10:53 AM Author: STEFANSKI
Dept./Agy.: Public Safety - Gaming Control Board
Subject: Fantasy Sports Contests - Taxation Analyst: Greg Albrecht
TAX/GAMING EN INCREASE SD RV See Note Page 1 of 1
Levies a state tax on the net revenue of fantasy sports contests (Item #17)
Proposed law imposes a tax of 8% on the net revenues (entry fees less winnings paid to players) of fantasy sports contests
offered to consumers within the state, due and payable monthly. The gaming division of State Police shall collect the taxes,
and deposit the collections into the Louisiana Early Childhood Education Fund.
Effective upon governor's signature.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. INCREASE INCREASE INCREASE INCREASE INCREASE
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other INCREASE INCREASE INCREASE INCREASE INCREASE
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
State Police reports that the administration of fantasy sports taxation may require two additional positions; an auditor and
an investigator (approximately $200,000 of payroll, related benefits, and operating expenses) plus one-time modifications to
the gaming activity and remittance system ($70,000). Actual requirements will be determined as the overall regulatory
structure for fantasy sports wagering is established. Permitting/licensing fees are typically utilized to offset administrative
and enforcement costs.
REVENUE EXPLANATION
Fantasy sports contests were authorized by Act 322 of 2018, and approved in 47 parishes at the November 6, 2018
statewide election. Assuming a regulatory and tax collection framework is adopted, the potential revenue base is discussed
here.
The magnitude of fantasy sports contests net revenue in the state is speculative. Limited information on this activity
suggests that total tax receipts the state might expect to eventually receive are relatively small. The New York State Gaming
Commission reports that interactive fantasy sports in Apr’17-May’18 generated only $4.038 million in tax receipts, based on
a tax rate rate of 15%, and with New York state residents comprising 9.3% of nationwide gross revenue of this industry.
Louisiana residents of the 47 parishes that approved fantasy sports contests would comprise a much smaller share of
industry revenue, and this bill levies a tax rate only 53% as high. Simply using the state population share of the nation
(1.4%) and the 8% tax rate of this bill, the New York report implies only about $375,000 of tax receipts to Louisiana. This
rough extrapolation might be somewhat low, since the New York participation share (9.3%) is over 60% larger than the NY
state’s share of nationwide population (6%). However, not all of the Louisiana population would be able to participate
without being in an approved parish when participating.
It is not clear if full year tax receipts are likely in FY21, but are presumably likely in FY22 and beyond. What collections that
do occur are dedicated to the Louisiana Early Childhood Education Fund.
In addition, the REC has typically not adopted gaming revenue estimates for new forms or venues until after the activity has
been observed for some time.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Evan Brasseaux
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Staff Director
or a Net Fee Decrease {S}


Statutes affected:
HB64 Original: 27:302(8)
HB64 Engrossed: 27:302(8)
HB64 Reengrossed: 27:302(8)
HB64 Enrolled: 27:302(8)
HB64 Act : 27:302(8)