Louisiana Sports Betting Tax Could Be Doubled By Lawmakers

On Monday, the House Appropriations Committee voted 20-1 in favor of a bill that proposes doubling the Louisiana sports betting tax.

House Bill 639 would raise the tax rate from the current 15% to 32.5% for online sports betting and video poker. The increase is more modest than an effort that proposed raising the rate to 51% last year. That bill was unsuccessful, but it seems this year’s proposal is making more headway.

Rise will benefit rising stars, says Riser

Rep. Neil Riser drafted the bill and views it as an opportunity to increase funds for the state’s college athletes. Riser commented, “This is about long-term support for our student-athletes and our youngest children. We’re balancing fiscal responsibility with opportunity.”

The bill plans to establish the Supporting Programs, Opportunities, Resources, and Teams Fund (Sport Fund). The fund would receive 25% of tax revenue from sports betting to support student-athletes at public NCAA Division I programs in the state.

The schools that would benefit include LSU, Louisiana Tech, McNeese State, Louisiana Lafayette, Grambling, and Nicholls State. Riser estimates that the fund would receive over $31 million annually.

Another 25% of funds will be allocated to early childhood education, 10% goes to local government, 3% to problem gambling interventions, 3% to an inclusive education fund, and 34% to the state’s general fund.

Another supporter of the bill Rep. Marcus Bryant commented, “This is a serious opportunity to fix how we fund sports and education, while ensuring help for vulnerable communities.”

The state has been looking at ways to generate additional revenue from gambling, and is also considering a tax on unregulated operators.

HB639 is contingent on another bill, HB594, which proposes a flat tax on insurance premiums. The only vote against HB639 was from Rep. Jerome Zeringue, who cited reservations about the insurance tax as the reason for the no vote.

Louisiana sports betting

In 2024, Louisianans wagered $2.9 billion, generating $313 million for licensed gambling operators. At the current tax rate of 15%, this led to $47 million in revenue for the state. This could be taken to over $100 million next year if the proposed hike is approved.

Some critics of raising taxes believe that it leads to an increase in traffic for unregulated platforms. According to the American Gaming Association, Louisiana loses up to $4.6 billion annually in untaxed revenue to crypto betting, sweepstakes, and other unregulated gambling platforms.

The state has been attempting to address the issue, and Sen. Adam Bass introduced a bill earlier this month that targets sweepstakes casinos. Bill SB181 proposes a $100,000 fine and potential imprisonment for unlicensed gambling operators. The Senate approved the bill in a 39-0 vote on Tuesday, and it will now head for discussion in the House.

HB639 and HB594 will now head for a third reading and will be effective from January 2026 if approved.