Sportsbook Sites Spent Millions on Ads in Louisiana, So How Much Did They Make Back?
Online sportsbook sites in Louisiana raked in more than $40 million in less than a week of operation, a number experts say is the best four-day debut for any new market in the country. But it's not all good news. At the same time Louisiana State Police gaming auditors say that the six gaming sites licensed to operate in Louisiana report collective losses of nearly $9 million over those same four days.
In a Louisiana Radio Network story, LSP auditor Donna Jackson explains the apparent contradiction. “The negative net proceeds include a deduction of $11.7 million for promotional wagers," Jackson says.
The law that allows gaming sites to operate in the state includes language that lets them deduct up to $5 million annually for "promotional spending." Collectively, the six operators spent nearly a third of their yearly credits during their opening weekend. And according to State Police, one operator has already written-off the entire seven-figure allocation.
Another LSP auditor, Jeff Traylor, tells Louisiana Radio Network, "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.”
Both analysts and State Police auditors say the plan to begin sports gaming with the NFL playoffs and the Super Bowl was the biggest reason behind the sites advertising push. They also say that operators claiming those deductions means more money for the state in the long run.
It also means that sports gamblers across Louisiana can expect an advertising barrage every time a major event approaches. That includes college basketball's March Madness, the Masters golf tournament in April and the NBA playoffs beginning soon after.