Louisiana House Passes Revised Bill to Raise Online Betting Tax

Louisiana lawmakers have taken a major step towards restructuring the state’s on-line sports activities betting tax framework with the Home’s passage of an amended model of Home Invoice 639. The laws, launched by Rep. Neil Riser (R-Columbia), proposes elevating the tax on cell sports activities wagering from the present 15% to 21.5%, a considerable revision from the unique 32.5% improve steered in earlier drafts.

New tax income targets faculty athletics, incapacity assist:

The up to date proposal handed with sturdy assist in a 74-15 Home vote and now strikes to the Senate for additional deliberation. The tax improve is a part of broader legislative efforts to deal with Louisiana’s projected $338.9 million finances deficit in fiscal yr 2026 with out rising revenue or gross sales taxes.

A central function of the revised invoice is the deliberate reallocation of on-line wagering tax income. Underneath HB 639, 25% of all income generated from cell sports activities betting will probably be directed to a newly shaped Supporting Applications, Alternatives, Assets, and Groups (SPORT) Fund. The fund will assist NCAA Division I athletic departments at Louisiana public universities, together with LSU, UL Lafayette, Southern, and others.

Every qualifying college is predicted to obtain roughly $1.7 million yearly. Whereas this quantity might symbolize a modest contribution for bigger applications like LSU, which operates with a sports activities finances exceeding $200 million, it could considerably bolster funding for smaller faculties with extra restricted athletic budgets.

Along with the SPORT Fund, 3% of the brand new tax income will go towards the Louisiana Postsecondary Inclusive Schooling Fund, which helps college students with disabilities in larger schooling. Different allocations—such because the 25% for early childhood schooling, 10% to native governments, and three% to habit restoration applications—will stay unchanged from present legislation. The remaining income will probably be directed to the state’s normal fund.

The unique model of the invoice known as for a 32.5% tax fee, aligning on-line sports activities betting with the speed already utilized to video poker terminals at truck stops. Nevertheless, trade issues about market sustainability prompted lawmakers to scale back the proposed fee. The revised 21.5% tax applies solely to web proceeds from digital sports activities betting platforms and excludes in-person retail betting, which stays taxed at 10%.

Based on Bossier Press-Tribune, fiscal projections based mostly on the preliminary 32.5% fee anticipated annual tax income from sports activities wagering to develop from $59 million to as a lot as $190 million by 2030. Nevertheless, with the decrease fee 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 finances technique and political dynamics:

Assist 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. Whereas supporters have highlighted the invoice’s profit to schooling and pupil assist, not all reactions have been constructive.

Peter Robins-Brown, government 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 cell playing has created or exacerbated many social and cultural issues, together with habit, bankruptcies and even will increase in home violence,” he stated. “New tax income needs to be used initially to deal with a few of these issues earlier than we discuss spending extra money on faculty sports activities.”

The invoice’s proposed allocation to athletic applications contains stipulations to make sure funds don’t change current scholarships or awards. As a substitute, the funds should complement monetary assist, overlaying prices like scholarships, medical bills, services upgrades, Alston awards, and litigation settlements. Distribution will probably be dealt with by the Louisiana Board of Regents.

Though HB 639 has cleared the Home, it should nonetheless move by Senate committees and the total Senate chamber earlier than turning into legislation. Senate lawmakers will even weigh revised fiscal projections to evaluate how the brand new tax fee impacts each state income targets and the competitiveness of Louisiana’s sports activities betting market.

The invoice’s progress in Louisiana mirrors comparable developments in different states. In Maryland, a latest legislation elevated the web sports activities betting tax fee from 15% to twenty%, following a compromise between finances wants and trade issues. Different states, together with Ohio, New Jersey, and North Carolina, are additionally exploring new tax frameworks for playing operators in 2025.