Doug Bonjour is a veteran sportswriter with more than a decade of experience, including in the realm of sports betting. He’s written for the New York Times, Associated Press, CBS Sports and Hearst Connecticut Media...
Read Full BioLegislation is on the table in Louisiana to more than double the state’s tax rate on sports betting.
The House Appropriations Committee approved House Bill 639 by a 20-1 vote on Monday, clearing a necessary hurdle as state lawmakers seek to increase the sports betting tax from 15% to 32.5%.
Rep. Neil Riser’s proposal would align the rate for online sports betting with other gaming products, including video draw poker machines. It would also generate millions of dollars in additional tax revenue for education, healthcare, and sports programs.
NCAA Schools Stand to Benefit From Louisiana Tax Increase
Among the biggest beneficiaries of the proposal would be the Supporting Programs, Opportunities, Resources, and Teams Fund—often referred to as the SPORT Fund—which is set to receive 25% of revenue from mobile sports betting taxes.
The fund is designed to benefit NCAA Division I athletes, with an estimated $2.8 million administered by the Louisiana Board of Regents to each of the following institutions: LSU, Louisiana Tech, Grambling State, McNeese State, Nicholls State, Northwestern State, Southeastern Louisiana, Southern, UL Lafayette, UL Monroe, and University of New Orleans.
Another 25% is earmarked for early childhood education programs. The measure also requires 3% to be distributed to the Louisiana Postsecondary Inclusive Education Fund, benefiting students with mental and physical disabilities.
Notably, the bill is closely linked with HB 594, which was proposed by Rep. Chance Henry and calls for creating a flat tax on insurance premiums.
Lofty Projections for Annual Revenue
Louisiana online sports betting went live in January 2022 and is now home to eight operators: bet365, BetMGM, BetRivers, Caesars, DraftKings, ESPN Bet, Fanatics, and FanDuel.
According to the Louisiana Legislative Fiscal Office projections, the proposed tax increase could increase annual sports betting revenue from $59.3 million to approximately $190.1 million.
Since their debut, operators have taken in $1.2 billion in sports betting revenue from $10.1 billion in wagers. In 2024 alone, Louisianans bet $2.9 billion on sports, generating $313 million for operators.
Tax Increase Proposal Not Unprecedented
Louisiana is far from the first state to seek increases to its sports betting tax.
Ohio has already hiked its rate from 10% to 20%. Before lawmakers struck down his proposal, Gov. Mike DeWine sought to double the rate to 40%. Maryland, meanwhile, increased its rate to 20%, down from Gov. Wes Moore’s initial proposal of 30%.
Increases have also been discussed in Kansas. The state’s current 10% sports betting tax is among the lowest in the United States.
By contrast, New Hampshire, New York, and Rhode Island have the country’s highest sports betting tax rates, at 51%.
