Louisiana lawmakers have taken a major step towards restructuring the state’s on-line sports activities betting tax framework with the House’s passage of an amended model of House Bill 639. The laws, launched by Rep. Neil Riser (R-Columbia), proposes elevating the tax on cellular sports activities wagering from the present 15% to 21.5%, a considerable revision from the unique 32.5% enhance prompt in earlier drafts.
New tax income targets faculty athletics, incapacity assist:
The up to date proposal handed with robust assist in a 74-15 House vote and now strikes to the Senate for additional deliberation. The tax enhance is a part of broader legislative efforts to deal with Louisiana’s projected $338.9 million funds deficit in fiscal 12 months 2026 with out rising revenue or gross sales taxes.
A central characteristic of the revised invoice is the deliberate reallocation of on-line wagering tax income. Under HB 639, 25% of all income generated from cellular sports activities betting will probably be directed to a newly shaped Supporting Programs, Opportunities, Resources, and Teams (SPORT) Fund. The fund will assist NCAA Division I athletic departments at Louisiana public universities, together with LSU, UL Lafayette, Southern, and others.
Each qualifying faculty is predicted to obtain roughly $1.7 million yearly. While this quantity might signify a modest contribution for bigger applications like LSU, which operates with a sports activities funds exceeding $200 million, it might considerably bolster funding for smaller faculties with extra restricted athletic budgets.
In addition to the SPORT Fund, 3% of the brand new tax income will go towards the Louisiana Postsecondary Inclusive Education Fund, which helps college students with disabilities in greater training. Other allocations—such because the 25% for early childhood training, 10% to native governments, and three% to dependancy restoration applications—will stay unchanged from present regulation. The remaining income will probably be directed to the state’s common fund.
The authentic model of the invoice referred to as for a 32.5% tax charge, aligning on-line sports activities betting with the speed already utilized to video poker terminals at truck stops. However, business considerations about market sustainability prompted lawmakers to cut back the proposed charge. The revised 21.5% tax applies solely to internet proceeds from digital sports activities betting platforms and excludes in-person retail betting, which stays taxed at 10%.
According to Bossier Press-Tribune, fiscal projections based mostly on the preliminary 32.5% charge anticipated annual tax income from sports activities wagering to develop from $59 million to as a lot as $190 million by 2030. However, with the decrease charge now proposed, up to date estimates are nonetheless pending. State analysts and the Senate are anticipated to evaluate these figures earlier than finalizing the invoice.
Broader funds technique and political dynamics:
Support for HB 639 has come from each side of the aisle, with lawmakers emphasizing the significance of recurring income sources that keep away from politically delicate revenue or gross sales tax will increase. While supporters have highlighted the invoice’s profit to training and pupil assist, not all reactions have been constructive.
Peter Robins-Brown, govt director of advocacy group Louisiana Progress, expressed concern about dedicating new playing revenues to athletics, arguing the funds ought to prioritize addressing gambling-related hurt. “Legalized mobile gambling has created or exacerbated many social and cultural problems, including addiction, bankruptcies and even increases in domestic violence,” he mentioned. “New tax revenue should be used first and foremost to address some of those problems before we talk about spending more money on college sports.”
The invoice’s proposed allocation to athletic applications consists of stipulations to make sure funds don’t exchange present scholarships or awards. Instead, the funds should complement monetary assist, overlaying prices like scholarships, medical bills, amenities upgrades, Alston awards, and litigation settlements. Distribution will probably be dealt with by the Louisiana Board of Regents.
Although HB 639 has cleared the House, it should nonetheless go by Senate committees and the total Senate chamber earlier than changing into regulation. Senate lawmakers may even weigh revised fiscal projections to evaluate how the brand new tax charge impacts each state income targets and the competitiveness of Louisiana’s sports activities betting market.
The invoice’s progress in Louisiana mirrors related developments in different states. In Maryland, a latest regulation elevated the net sports activities betting tax charge from 15% to twenty%, following a compromise between funds wants and business considerations. Other states, together with Ohio, New Jersey, and North Carolina, are additionally exploring new tax frameworks for playing operators in 2025.
