Sports-Betting Tax Hike Set For Debate At Louisiana Legislature

In Louisiana, a bill to increase the tax on sports betting is scheduled for floor debate in the state House of Representatives on Tuesday, May 20.

Under House Bill 639 by Rep. Neil Riser, R-Columbia, the tax on sports betting would go from 15% to 32.5%, aligning with the tax on video poker, according to the Louisiana Illuminator. Sports betting is legal in most Louisiana parishes in-person at casino sportsbooks and on mobile devices such as cellphones and computers.

For a bill to become a law, it must be approved in the full House and Senate before going to Gov. Jeff Landry for his consideration. The 2025 legislative session at the Capitol in Baton Rouge is set to end June 12.

Noting that tax increases require a 2/3rds legislative vote, state Sen. Kirk Talbot, R-River Ridge, recently told Gambling.com the bill probably has a 50-50 chance of being approved. The state Senate has 39 members, while the House has 105.

The bill on sports gambling was scheduled for a floor debate earlier in May but has been rescheduled for next week. 

The sports betting bill is paired with House Bill 594 by Rep. Chance Henry, R-Crowley, creating a flat rate of insurance premium tax, the Louisiana Illuminator noted. The bill to increase the sports betting tax can only take effect if the insurance premium bill is approved. Henry’s insurance premium bill is scheduled for House floor debate on Monday, May 19, one day before the sports-betting tax bill, according to the Louisiana State Legislature website.

With the sports-betting tax increase, a $31 million annual fund would be created to benefit Division I college athletics. Each year, schools would receive $2.8 million.

The state universities that would benefit under the Supporting Programs, Opportunities, Resources and Teams (SPORT) fund include LSU, UL Lafayette, UL Monroe, Louisiana Tech, Grambling, McNeese, Nicholls, Northwestern, Southeastern, Southern, and the University of New Orleans.

Additional funding would be set aside for gambling addiction programs and for a separate education fund benefitting students with disabilities.

In other gaming-related matters, a bill to outlaw sweepstakes casinos, Senate Bill 181, is awaiting a hearing in the House Committee on Administration of Criminal Justice, according to the Louisiana State Legislature website.