Louisiana is on the brink of a major shift in its online sports betting landscape as the long-discussed tax hike on online wagers is now just one signature away from becoming law. If the bill is passed, Louisiana would join a growing number of states implementing similar measures.
Passed by Senate in a 35-3 vote
Previously, the House Bill 639 proposed to increase the online betting tax from 15 percent to 32.5 percent. However, it was later amended, proposing to hike the tax to 21.5 percent. This amended version of the bill gained traction last month, passing the House of Representatives and heading to the Senate. The bill, introduced by Rep. Neil Riser as part of a broader effort to increase state earnings from legalised gambling, was approved by the Louisiana Senate a few weeks later. The bill passed the Senate in a 35-3 vote. It is now headed to Governor Jeff Landry’s desk for a final signature, which would make it a law.
The previous proposal of more than doubling the tax was met with resistance, with licenced sportsbook operators raised concerns. They warned that such a drastic jump could push consumers toward unregulated offshore options, making it less competitive than neighboring states, and deter new market entrants. The state of Louisiana legalised sports betting in 2021 after voters in 55 of 64 parishes gave it the green light. Since then, the industry has taken off, especially online.
Tax proceeds allocation
The bill also proposes changes to how the tax proceeds are allocated. It will also see Supporting Programmes, Opportunities, Resources, and Teams Fund (SPORT Fund) being established, which will receive 25 percent of the tax revenue. The fund, which will be regulated by a Board of Regents, will be supporting various college sports initiatives in the Pelican State. Meanwhile, 3 percent of the tax collected will be allocated to the Louisiana Postsecondary Inclusive Education Fund. The remaining will fuel the state revenue.
If the bill is passed, Louisiana will be officially joining the wave of U.S. states rethinking how they tax mobile sports betting. Recently, Maryland increased its online sportsbook tax rate from 15 percent to 20 percent. Across the country, several states have already enacted increases, with more proposals currently under review. Ohio raised eyebrows in 2023 by doubling its sports-betting tax rate from 10 to 20 percent.
In related news, Louisiana made history by approving a law that bans the operation of online sweepstakes 바카라s. The state Senate voted unanimously in favour of Bill 181, which aims to end the so-called “dual currency model” used by these virtual 바카라s. This model, very popular on offshore sites, allows players to buy virtual coins, play, and then exchange these coins for cash prizes. For Louisiana legislators, this is nothing more than a disguised form of illegal gambling.
