Fantasy sports gaming to begin soon in Louisiana
La. is the 44th state to offer DraftKings fantasy sports products
NEW ORLEANS (WVUE) - Louisiana gaming regulators voted to award the state’s first license for fantasy sports betting. The three-year license went to DraftKings, which is headquartered in Boston, and the license went into effect immediately.
But the state is not expected to reap huge sums of money from online fantasy sports gaming at least initially.
State Police Trooper 1st Class Joseph Hall testified before the Louisiana Gaming Control Board about investigations of the company.
“Inquiries were also made into their computerized criminal history files. I found no information that would preclude any of the applicants from participating in the Louisiana gaming industry,” he said.
Jeff Traylor, also of the State Police Gaming Division, outlined how much money the company expects to make during the current fiscal year.
“DraftKings’ estimated net revenue in Louisiana for the fiscal year 2021-22 is estimated to be $15.5 million, which based on the tax rate would bring in approximately $1.25 million to the state,” says Traylor.
He also said the company has suffered financial losses in recent years.
“There is cause for concern financially that the applicant has consistent losses and negative operating cash flows during the past several years. However, the balance sheet as of March 31, 2021, appears to be strong and the stock appears to be performing well currently trading at approximately $47 per share as of July 13. Since DraftKings is not investing in a brick-and-mortar facility in the state we feel there is minimal risk to Louisiana if DraftKings does not achieve the profitability they are projecting,” said Traylor.
No one from the company spoke during the meeting but in a press release, DraftKings said its daily fantasy sports product will be live soon in the areas of the state where fantasy sports gaming is allowed by voters which is the majority of the 64 parishes.
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