The Louisiana sports betting market could soon see a more than 100 percent tax increase.
The state's House Appropriations Committee earlier this week forwarded House Bill 639, which would raise the online tax rate from 15 to 32.5 percent. A large chunk of the extra funding would go toward supporting public universities competing at the Division I level, such as LSU, Louisiana Tech, McNeese, and others.
The bill was introduced on April 16 and will be under consideration until June 12 when the legislative session ends.
SPORT fund for La. schools
Rep. Neil Riser (R-District 20) submitted the proposal with plans to support public schools, which would create a new fund called Supporting Programs, Opportunities, Resources, and Teams (SPORT).
According to Legal Sports Report, 25 percent of tax revenue generated from legal Louisiana sports betting would go to SPORT, which would split its annual revenue evenly across 11 programs.
Early estimates suggest that would give an additional $2.8 million in funding to each school — just enough to lease a quarterback, in the new era of (NIL) — based on $31 million in annual contributions.
Jokes aside, the SPORT fund could not be used to directly support individual NIL payments.
The $2.8 million might not seem like much to a major institution such as LSU, whose athletic department spent more than $200 million during the 2023-24 fiscal year. However, it would be a considerable amount for a school such as UL Monroe, which spent about $21 million on its athletics programs in 2024.
The complete list of Pelican State Division I schools that would receive funding includes:
- > LSU
- > Louisiana Tech
- > Grambling State
- > McNeese State
- > Nicholls State
- > Northwestern State
- > Southeastern Louisiana
- > Southern University
- > UL Lafayette
- > UL Monroe
- > University of New Orleans
Additionally, the bill would send $2 million toward gambling addiction programs to help address and treat problem gamblers.
A domino effect
The plans for the new money were designed to help bring more competition to Louisiana universities not just against their in-state neighbors, but other Division I programs.
“The need is high,” Riser said of the importance of college sports funding in an interview with the Louisiana Illuminator. “Even at like the University of Louisiana at Monroe, just to be competitive in recruiting, it takes facilities.”
The bill obviously would not sit well with Louisiana sportsbook operators, who have enjoyed a realatively low tax rate.
Fortunately for the sportsbooks, HB 639 is tied to HB 594, which would create a flat tax on insurance premiums, and will not be sworn into law unless its companion is too.
Louisiana sports betting launched in November 2021 and moved online in January 2022. The state accepted $10.1 billion in wagers, leading to $1.2 billion in revenue and $160.8 million in tax funding for the state.
Even that wasn’t enough for Rep. Roger Wilder (R-District 71), who last year suggested increasing the rate to 51 percent.
Several other states — including Maryland, New Jersey and Ohio — have also recently considered increasing sports betting tax rates.