Louisiana is about to get a new form of gambling this spring as Daily Fantasy Sports are set to launch. This has been a long time coming for this state, as voters approved legalizing the DFS industry in 2018.
Potential operators will be able to begin applying for licenses as early as February, and it’s expected that approval could only take a few weeks. It’s unclear how many licenses are available or how many operators will apply, but there is hope that DFS contests will be available this spring.
The Louisiana Gaming Control Board is in charge of regulating the new industry, and it finally approved regulations this week. Lawmakers played a role in this process, as determining the tax rate and licensing fee were the two biggest challenges.
Not Available State-Wide
Gambling laws work differently in Louisiana than they do throughout the US, and that presents some unique challenges when it comes to launching Daily Fantasy Sports. Forty-seven of the 64 parishes in the state voted to approve DFS contests, but that means that it will not be available state-wide.
DFS operators will have to utilize geolocation services to track where a customer is located to ensure that they are able to join contests from that parish. This could present some problems for the state and the operators, and it will be one of the biggest hurdles to overcome when launching the industry.
DraftKings, FanDuel Ready to Pounce
When Daily Fantasy Sports finally launches in the state of Louisiana, both DraftKings and FanDuel are expected to be available immediately. These two operators are the biggest in the US, and they will work behind the scenes to ensure they are ready to go.
Monkey Knife Fight is another popular DFS operator, and this company has seen tremendous growth over the past 12 months. It’s unclear if Monkey Knife Fight will target Louisiana this spring, but a launch date at some point is almost inevitable.
DFS contests will be slower during the springtime as the most action comes during football season. Basketball and baseball will produce some unique opportunities, and it will allow the operators to work out kinks before the fall.
Still Waiting on Sports Betting
In November 2020, voters in the state also approved sports betting in 55 of the 64 parishes in Louisiana. A launch date for sports betting has not been set, but there is hope that it won’t take as long to launch as the DFS side of things did.
Lawmakers in Louisiana are currently working on introducing legislation that will regulate the sports betting industry, but this could take months. It’s clear that getting DFS operators approved is the top priority, but the state can’t afford to delay sports betting for too long.
Louisiana is looking for new revenue sources, and the sports betting industry will provide plenty of financial relief. Sites such as DraftKings and FanDuel will also be pressuring the state to launch as they will be able to offer both platforms on their site or mobile apps.