Bill Increasing Louisiana’s Online Sports Betting Tax Rate Moves Forward

• The Louisiana House of Representatives approved a bill to increase the state’s onlin sports betting tax rate
• The bill calls for an increase from 15% to 21.5% for the sports betting tax rate in the state
• Originally, lawmakers proposed an increase to 32%

Lawmakers in the Big Easy are looking for a big increase to the Louisiana online sports betting tax rate.

The Louisiana House of Representatives yesterday approved Rep. Neil Riser’s (R-20) bill, HB 639, by a 73-15 vote. The legislation calls for an increase to the state’s sports betting tax rate from its original 15% rate to 21.5%.

The introduced version of the bill called for an increase of the Louisiana online sports betting tax rate to 32%. It would not chance the state’s retail sports betting tax rate.

Lawmakers Compromise on Louisiana Tax Rate Increase

Riser’s original bill included an increase for the Louisiana sports betting tax rate to 32%. Louisiana has tax sports betting revenues at a rate of 15% since launching the new form of gaming in January 2022.

The lawmaker introduced his legislation earlier this year, with the House Appropriations Committee approving the bill by a 20-1 vote with its original increase to 32%. The amendment to lower the rate to 21.5% came during the House discussion on the new law.

The sports betting tax bill required two-thirds passage in the 105-member House to move forward to the Senate. The 73-15 vote surpassed the necessary 70-vote threshold to move forward to the Senate.

The Senate has yet to move the bill to a committee.

While the bill was approved in the House, it is paired with Rep. Chance Henry’s (R-42) bill, HB 594, which establishes a flat rate of insurance premium tax. Riser’s bill cannot be approved if Henry’s bill does not move forward.

HB 594 is scheduled to be discussed today on the House floor.

Creates New Athletics Fund

In addition to increasing the state’s sports betting tax rate, Riser’s bill will also crease the Supporting Programs, Opportunities, Resources, and Teams Fund.

The fund will receive 25% of the state’s sports betting revenues, which can be used by athletic departments of NCAA DI for the benefit of student athletes. Funds will be used for scholarships, insurance, medical coverage, facility enhancements, litigation settlement fees, and Alston Awards.

Under the terms of the bill, the following institutions will be eligible to receive revenues from the new fund:

• Grambling
• LSU
• Louisiana Lafayette
• Louisiana Tech
• McNeese State
• Nicholls State