The Louisiana Illuminator reported that Louisiana’s casinos may soon be allowed to offer fixed-odds bets on horse racing, according to a proposal that advanced on April 17.
Louisiana Horse Racing Association Shows Support for Fixed-Odds Betting Proposal
Fixed-odds betting would bring horse racing wagers in line with most other bets at sportsbooks, such as basketball or football games. Under fixed-odds betting, a bet placed with 5-to-1 odds would pay off at that rate no matter what subsequent bets are made on a race. Pari-mutuel bettors compete against each other, which can impact odds as more money is a bet on a horse.
The proposal has received support from the Louisiana Horsemen’s Benevolent and Protective Association, with executive director Ed Fenasci stating in an interview that it would attract a growing segment of gamblers to horse racing.
The legislation also seeks to lower the share of fixed-odds profits that casinos forward to the state’s licensed racing association from 25% to 15% to encourage sportsbooks to participate.
The House Commerce Committee did not receive any opposition to the bill, and it was advanced without issue. If passed, it would mark a significant change for Louisiana’s horse racing industry and could potentially increase revenue for casinos and the racing association.
Louisiana Sportsbooks Profit $37M in December 2022
The Louisiana sports betting industry broke its record revenue in December 2022, bringing in $37 million, with the majority of the revenue generated by mobile sports betting, accounting for $30.5 million, while retail sports betting generated $6.4 million.
This was the fourth time Louisiana sportsbooks had surpassed $30 million in a month, making it the highest-grossing month for the sports betting industry in Louisiana. Despite a decline in total handle, operators still managed to bring in a profit of $37 million due to a hold of 14% in mobile wagers and 18% in retail tickets, which marked a total win rate of 14.5%.
Football was a significant contributor to the revenue generated by both mobile and retail sportsbooks in Louisiana, with mobile operators profiting $7.2 million, and retail operators profiting $2.9 million as a result of football-related bets. Even though the state’s revenue was lower in December than in both November and October, it still brought in over $4.3 million in taxes. The revenue loss reported in November was due to a massive payout of $75 million to Texas furniture mogul Jim “Mattress Mack” McIngvale after placing multiple high-stake bets on the Houston Astros winning the World Series. McIngvale’s major winnings resulted in a revenue decline of 206% in November.