Louisiana Senator Katrina Jackson-Andrews has withdrawn Senate Bill 354, which aimed to ban prop bets within the state. The decision comes after findings that banning prop bets could significantly impact state tax revenue.
Senator Jackson-Andrews initially introduced the bill in response to growing concerns about the potential social harms associated with sports betting, especially prop bets and microbets. These types of bets focus on highly specific, rapid outcomes within a game. As such, they can encourage more impulsive and frequent betting behavior.
Her position was influenced in part by advocacy groups like Louisiana Progress, which works for working-class Louisianans, that warned about the risks of problem gambling, especially among more vulnerable populations.
However, the proposed ban was ultimately withdrawn.
While the push for a ban was rooted in player safety concerns, the proposal raised immediate red flags regarding its financial implications. An analysis conducted by the Louisiana Legislative Fiscal Office found that restricting prop bets and microbets would significantly reduce sports betting activity, impacting state tax revenue.
According to the analysis, the ban could have cost Louisiana nearly $40 million in annual revenue, affecting both the state’s general fund and other dedicated funds. Since prop bets account for a large portion of total wagering volume, their removal would have led to a sharp decline in operator revenue and taxable revenue.
Faced with these projections, Katrina Jackson-Andrews ultimately withdrew the bill, highlighting the difficult balance between addressing gambling-related harms and maintaining a key source of public funding.
Rather than pursuing a full ban on prop bets, policymakers may look to more targeted measures that balance consumer protection with economic interests. One potential compromise is reducing the availability of prop bets like microbets. Perhaps they can offer fewer options than before.
By limiting these offerings, the state could preserve a significant portion of sports betting activity and accompanying tax revenue while still addressing concerns around player safety. This approach allows regulators to focus on the most problematic segments of the market without broadly impacting the entire industry.
Another potential path forward is strengthening responsible gaming requirements, which are often treated as secondary features on betting platforms rather than core safeguards.
Currently, tools such as deposit limits, time limits, and self-exclusion options are typically available but placed on the margins of the user experience. This means that many players may never actively engage with them.
Regulators could shift this approach by requiring operators to make responsible gaming measures more prominently displayed on their platforms. For example, users could be required to set deposit, loss, or time limits when creating an account, rather than opting in later.
Platforms could also introduce regular check-ins and pending summaries to help out.
By embedding these protections directly into the betting experience, Louisiana could take a more proactive stance on mitigating problem gambling.
Rather than a full-out ban on props, this could be a way to help with player safety.
