Louisiana dropped a proposed ban on prop bets and microbetting after a fiscal note revealed more than $20 million in potential annual General Fund revenue losses.
Earlier this week, Louisiana lawmakers withdrew a proposed ban on prop and micro bets, highlighting a growing challenge: efforts to curb certain betting products can collide with the tax revenue they generate.
Sen. Katrina Jackson-Andrews pulled Senate Bill 354 after a fiscal analysis revealed the scale of the financial impact, underscoring how deeply embedded prop bets and microbetting have become in state revenue models.
“My issue with prop betting and micro betting is this, to be very clear, is that it’s very compulsive in nature,” Jackson-Andrews said during the Senate Judiciary B Committee hearing on the bill on March 31.
Revenue Reality Overrides Policy Push
Jackson-Andrews withdrew the bill after a fiscal note showed that banning prop and micro bets would significantly reduce state tax revenue.
According to the Legislative Fiscal Office note, the proposal would have cut more than $20 million annually from Louisiana’s general fund between 2027 and 2031. In addition, the state would lose roughly $17 million annually across other dedicated funds.
“I try to bring very responsible legislation… but also, serving on [the Senate] Finance [Committee], understanding that if this bill moves forward, we will have to find that $15m for the state general fund,” Jackson-Andrews said.
“It is an extremely serious issue that I need to revisit without this type of fiscal note on it… I realize the serious nature of what it does to the budget.”
Props and Microbets Dominate the Market
The fiscal analysis also clarified why the impact is so significant.
According to data from the Louisiana Gaming Control Board, prop and micro bets account for approximately 40% of mobile sports wagers and 13% of retail wagering in the state.
That revenue supports a wide range of state programs, including education, healthcare, responsible gambling initiatives, and the Supporting Programs, Opportunities, Resources, and Teams (SPORT) Fund, which funds student-athlete programs.
The SPORT Fund alone would lose more than $9 million annually under the proposal.
Part of a Fragmented National Trend
Louisiana’s reversal comes as states take sharply different approaches to prop bets and microbetting.
It should be noted that Louisiana is one of the few states that bans college athlete prop bets. Others include Vermont, Ohio, and Maryland.
Several states are considering restrictions on proposition bets. In Kentucky, lawmakers passed a broad gambling bill earlier this week that includes a ban on prop bets on in-state collegiate athletes.
In Massachusetts, lawmakers advanced a bill to ban both prop bets and in-play wagering. Bills are also under consideration in New York, Colorado, and Minnesota.
By contrast, Washington has taken the opposite route. It recently enacted a bill that allows wagers on college games while restricting bets tied to individual athlete performance.
Increased Attention to Microbetting
While much of the regulatory focus has centered on prop bets, SB 354 was among the few bills aimed at eliminating microbetting. New Jersey is another state debating the topic, where a bill recently advanced from a committee.
SB 354 defined a prop bet as “a side wager on a part of a sport or athletic event that does not concern the final outcome.” It defines a microbet as a live wager tied to “the outcome of a play or action occurring” during an event. Examples of microbetting include whether the next pitch in a baseball game will be a strike or the next football play will be a run or a pass.
Proponents of a ban on these types of wagers say they create heightened risks of addiction and other gambling harm. Those concerns mirror arguments raised during the Louisiana hearing. Supporters of the bill pointed to the potential behavioral risks associated with high-frequency wagering formats.
Microbetting is also facing increased scrutiny in courts. A recent Pennsylvania lawsuit against DraftKings, FanDuel, and the NFL alleges that the design of microbetting products encourages compulsive behavior through rapid, continuous wagering. The complaint compares the format to slot-machine play, arguing that its structure reduces natural stopping points for users.
The Louisiana case highlights a broader policy dilemma. As high-frequency betting products drive a growing share of sportsbook revenue, efforts to restrict them may come with increasingly difficult fiscal trade-offs.
Set for a 2027 Return
While she withdrew SB 354, Jackson-Andrews indicated that the debate remains unresolved.
“That doesn’t mean that I’m done with this legislation,” Jackson-Andrews said after the withdrawal. “That means, for this session, I am done and trying to come back with something a little more reasonable regarding the fiscal cost.”
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