Amended Sports Betting Tax Bill Approved in Louisiana
The Louisiana House of Representatives has approved an amended version of House Bill 639, a legislative measure designed to increase the state's tax rate on online sports betting. The bill, introduced by Rep. Neil Riser, proposes raising the mobile sports wagering tax rate from the current 15% to 21.5%. This revised rate is considerably lower than the 32.5% originally outlined in the initial draft of the legislation.
LISTEN TO THIS ARTICLE:The decision to reduce the proposed tax rate was made following deliberations and reflects an effort to balance new revenue generation with maintaining a competitive gaming market. The bill passed the House on Tuesday after these amendments were introduced, and it now moves to the Senate for further consideration. The legislation keeps the tax on in-person retail sports betting unchanged at 10%, with no additional modifications to that rate included in the proposal.
Related: Maryland Sports Betting Tax Increase Signed Into LawEarlier projections made by state fiscal analysts suggested that a tax rate of 32.5% could elevate annual sports betting revenue from approximately $59 million to around $190 million by the year 2030. However, these estimates were based on the higher tax rate, and new forecasts reflecting the updated 21.5% rate have not yet been released. As a result, the financial implications of the bill in its current form remain subject to further analysis and potential adjustments during Senate review.
House Bill 639 is a component of a broader legislative approach aimed at addressing Louisiana's projected budget shortfall for fiscal year 2026. The state is currently facing a potential deficit estimated at nearly $338.9 million. Lawmakers are attempting to raise additional revenue through targeted tax changes without increasing income or sales taxes, which tend to be more controversial among constituents.
The bill includes provisions directing specific portions of the new tax revenue toward key state programs. Under the current framework, 25% of the revenue generated from online sports betting taxes would be allocated to a newly created college sports fund. This fund is intended to provide financial assistance to athletic departments at public colleges and universities across Louisiana.
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Funding for Higher Education
In addition, 3% of the revenue collected from mobile sports wagering would be designated for programs supporting students with disabilities in higher education. These earmarks represent a shift in fiscal strategy by tying gambling-derived revenues to educational and student-focused initiatives, with lawmakers viewing this as a way to protect essential services from future budgetary cuts.
Beyond these targeted allocations, the bill also outlines broader financial goals, including increased funding for education at large, support for local governments, and contributions to the state's general fund. However, given the scaling back of the tax rate from its original proposal, lawmakers anticipate that these allocations may require downward adjustments based on forthcoming revenue projections and fiscal committee evaluations.
Supporters of the bill argue that the revised tax structure presents a pragmatic approach to recurring revenue generation. With online sports betting demonstrating substantial growth in Louisiana since legalization, legislators view it as a viable sector for tax-based funding strategies. The bill's emphasis on maintaining existing tax rates on income and sales while tapping into high-growth industries reflects a calculated attempt to minimize public resistance while addressing the state's financial needs.
House Bill 639 forms part of a larger package of fiscal legislation under discussion during the current legislative session. The final version will depend on the outcome of Senate negotiations and any additional changes introduced during that process.
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