Louisiana lawmakers consider doubling sports betting tax
The House Appropriations Committee of Louisiana has approved House Bill 639 with a 20-1 vote, favouring an increase in the online betting tax from 15 percent to 32.5 percent. 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.
What House Bill 639 proposes?
, introduced by Representative Neil Riser, proposes increasing the tax from the current 15 percent to 32.5 percent. This is a significant jump, although still lower than the 51 percent proposal from 2024, which failed to gain traction. The bill appears to have a better chance this time, as it is considered “just high enough” to generate revenue without alarming betting operators.
Following a failed attempt in 2024, House Bill 639 has been approved by the House Appropriations Committee with a 20-1 vote. The bill aims to amend the Louisiana Revised Statutes to implement the new tax rate for online sports wagering.
The main reason behind this increase is Louisiana’s desire to generate more state revenue, and sports betting is lucrative. According to projections, raising the tax could take annual revenue from $59.3 million to a whopping $190.1 million.
Where will the new tax revenue be used?
One of the most notable aspects of HB 639 is the establishment of the SPORT Fund (Supporting Programmes, Opportunities, Resources, and Teams Fund). This fund allocates 25 percent of the new revenue to support student-athletes in public NCAA Division I programmes. Additionally, a portion of the revenue will be directed towards early childhood education in Louisiana.
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The Louisiana Board of Regents will oversee the distribution, ensuring that several universities, including LSU, Louisiana Tech, McNeese State, Louisiana Lafayette, Grambling, and Nicholls State, benefit significantly. The bill also includes allocations to other state priorities, including the Louisiana Early Childhood Education Fund.
Comparison to other states
Louisiana’s proposed 32.5 percent tax on sports betting revenue would place it among the highest-taxing states in the country for sports wagering. Currently, only a few states have higher or comparable rates. New York, for example, imposes a 51 percent tax on online sports betting revenue, the highest in the U.S. Similarly, New Hampshire and Rhode Island also tax sports betting revenue at 51 percent. Pennsylvania, one of the largest and most competitive markets, has a 36 percent tax rate, slightly above Louisiana’s proposed level.
The 32.5 percent rate would surpass other competitive markets like Connecticut (18–20 percent) and Illinois (currently 15 percent, with a potential increase under consideration). However, it could also generate substantial revenue for the state if the market remains strong.
The Louisiana Legislative Fiscal Office reports that current revenue stands at $59.3 million, but with the implementation of HB 639, it is projected to soar to $190.1 million.
House Bill 639 represents a calculated shift in Louisiana’s gambling policy. It’s a bold move that seeks to double down—literally—on the potential of sports betting to fuel public programmes.
