The Louisiana Senate approved a bill to increase sports betting tax in the state on Sunday. This followed the bill being approved in the House last month.
Rep. Neil Riser’s HB639 now only needs a signature from Gov. Jeff Landry for the tax rate to increase from the current rate of 15% to 21.5%. Initially, Riser had proposed doubling the rate up to 31.5%, but after discussions, lawmakers agreed on a more modest rise.
Louisiana Sports Betting Tax Hike Approved By Senate Louisiana Sports Betting Tax Hike Approved By SenateTax revenue to go to colleges
Louisiana Sports Betting Tax Hike Approved By Senate. At the moment, 63% of tax funds go to the state’s general fund, which will be reduced to 34%. A new fund to support college athletes will be set up, named the Supporting Programs, Opportunities, Resources and Teams (SPORT). The fund will receive 25% of the revenue under the new terms.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.
The tax increase will only apply to mobile sports betting, with the tax on retail betting staying at the current rate of 10%.
Louisiana sports betting on the rise
Louisiana collected $65 million in tax revenue from online sports betting in 2024, just under double the amount collected in 2023 ($32.6 million). Increased operators such as bet365 and ESPN Bet contributed to the rise.
This year looks set to surpass 2024’s record numbers. The first quarter of the year saw bettors wager over $1 billion, leading to $139.34 million in revenue, up 14.6% from 2024 despite bettor-friendly March Madness results.
Other states increasing taxes
Maryland also approved a tax increase recently, raising the rate from 15% to 20%. Additionally, Illinois lawmakers put in the budget a $0.25 tax on every bet, rising to $0.5 on operators that take in more than 20 million bets.
The Sports Betting Alliance (SBA), which now features bet365 as well as Fanatics, FanDuel, DraftKings, and BetMGM, has spoken out against tax increases, warning that it will negatively impact customers who may turn to unregulated betting markets.
Scott Ward, a spokesperson for the group, commented that tax increases mean “fewer promos, smaller bonuses, and worse odds… consumers might turn to offshore or unregulated betting sites.”
Speaking on Illinois’ move to tax not only revenue but also every single bet, an SBA spokesperson said the plan was “discriminatory, punitive and constitutionally suspect.”
Louisiana Sports Betting Tax Hike Approved By Senate
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.
