Online sportsbooks took in nearly $40.5 million during their first four days of operation in Louisiana, the best four-day debut for any market in the country according to PlayUSA.com. But Thursday, Donna Jackson, gaming auditor for the Louisiana State Police, reported that the six companies licensed to operate in the state reported collective losses of nearly $9 million dollars as they pushed incentives to attract bettors.
“The negative net proceeds include a deduction of $11.7 million for promotional wagers,” she said.
State law allows Louisiana sportsbooks to deduct up to $5 million annually for promotional spending, and one of the operators has already spent its entire allocation. As a group, the six operators spent nearly a third of their yearly credits just during their opening weekend said State Police audit director Jeff Traylor.
“We’re talking about six operators that are tied to six licenses,” said Traylor. “So if you add it all up, it would be $30 million combined between those six. And they used about a third of that in the first four days. So, that’s a significant amount.”
Opening in the weeks leading up to the Super Bowl was a major reason behind the promotional flurry, and as operators use up those credits that means more money for the state. Wade Duty, executive director of the Louisiana Casino Association, says you can expect those promotions to return with every major sporting event throughout the year.
“That was the aggressiveness for those promotional spins,” Duty said. “So, that will taper, but it will be seasonal. When you get into basketball season, and March Madness, and other events, and then back into the fall as we ramp up into football season.”
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