Louisiana lawmakers advance bill to double online sports betting tax rate

Lawmakers in Louisiana are considering legislation to double the state’s tax rate on sports betting after a bill in 2024 failed to leave a House committee.

House Bill 639 was approved with a 20-1 vote on Monday by the House Appropriations Committee. The measure would amend Louisiana Revised Statutes to raise the state’s online sports wagering tax from 15% to 32.5%. The tax hike, proposed by Representative Neil Riser, would give online sports betting and retail video draw poker devices the same rate.

Louisiana proposes an increase in online sports betting tax

Appropriations voted 20-1 for Rep. Neil Riser bill to more than double tax on online sports betting (raising estimated $68M more from the tax yearly) and dedicate $31M to college athletic programs, athletes. $15M of increase would go to general fund. HB639 to full House. #lalege

— Melinda Deslatte (@MelindaDeslatte) April 28, 2025

The proposed increase in the online sports betting tax is expected to bring in a major boost to Louisiana’s revenue. A fiscal note from the Legislative Fiscal Office estimates that annual tax collections could rise from $59.3 million to about $190.1 million once the higher rate is in place. Of that total, around $35.3 million would go to two newly created funds.

One of the biggest recipients would be the Supporting Programs, Opportunities, Resources, and Teams Fund, or SPORT Fund. This fund is set to receive 25% of the revenue from mobile sports betting taxes. It will be managed by the Board of Regents and is designed to support NCAA Division I athletic departments and student-athletes at public universities across the state.

The fiscal note adds: “The Board of Regents will administer SPORT Fund distributions to qualifying NCAA Division I athletic departments with universities setting eligibility criteria and the Board promulgating rules.”

In total, the bill would direct additional money to several existing funds, including those for early childhood education, behavioral health, local government allocations, and compulsive gambling treatment.

For example, the Louisiana Early Childhood Education Fund would receive more than $5 million in additional funding. Programs that address compulsive and problem gambling are expected to get an extra $2 million each year, helping expand resources for those dealing with addiction.

Flat tax rates on insurance premiums

The future of House Bill 639 is now closely linked to another tax proposal in the state. Lawmakers in the House Appropriations Committee decided to tie HB 639 to a separate bill that also deals with taxes.

That bill, House Bill 594, comes from Representative Chance Henry and aims to create a flat tax rate on insurance premiums. It was introduced earlier this month and has already made it through the Committee on Ways and Means with some amendments.

When the Appropriations Committee voted on HB 639, only one member, Representative Jerome Zeringue, voted against it. His opposition wasn’t about the sports betting tax increase itself, but rather concerns about the financial implications of the flat tax proposed in Henry’s bill.

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