Rep. Neil Riser had called for a 32.5% tax on sports wagering when introducing HB 639 last month, but after discussions in the House, the proposed rate was amended to 21.5%. This is a more modest increase from the current rate of 15%.
Louisiana House Approves Reduced Sports Betting Tax HikeColleges to benefit from tax increase
Louisiana House Approves Reduced Sports Betting Tax HikeRiser commented on the need for additional funds for the state’s colleges, stating, “The need is so high. When you start talking about the SEC, talking about any level of athletics right now, it’s changed so dramatically.”
At the moment, 63% of tax funds go to the state’s general fund, which will be reduced to 34%. The money going towards early childhood education will remain the same at 25%, and 3% will be allocated towards problem gambling initiatives, compared to the current 2%. The remaining 3% will go towards an inclusive education fund.
At the current rate, the state collected $65 million last year; the increase to 21.5% would have brought in approximately $30 million additional funds.
Louisiana sports betting growing
Louisiana sports betting has grown year-on-year since its launch in 2021.
| Year | Betting Handle | Gross Gaming Revenue (GGR) | Tax Revenue Collected |
|---|---|---|---|
| 2021 | ~$39 million (Nov–Dec only) | ~$6.7 million | ~$1.3 million |
| 2022 | ~$2.34 billion | ~$228 million | ~$34 million |
| 2023 | ~$2.91 billion | ~$367 million | ~$32.6 million |
| 2024 | ~$3.7 billion | ~$467 million | ~$65 million |
Other states rasing tax rates
Louisiana House Approves Reduced Sports Betting Tax Hike, but similarly to Louisiana, the initial proposal to double the rate was tempered. Gov. Wes Moore eventually signed off on an increase to 20% from the current 15%. Louisiana House Approves Reduced Sports Betting Tax HikeIf the bill does make it into law, then Louisiana will be hoping the growth witnessed to this point continues apace.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
