Louisiana Universities Eye Higher Sports Funding with Tax Hike
Louisiana lawmakers are revisiting a proposal to double the state's sports betting tax rate.
LISTEN TO THIS ARTICLE:House Bill 639, proposed by Rep. Neil Riser, seeks an amendment to Louisiana Revised Statutes to increase the state's online sports wagering tax rate from 15% to 32.5%. The bill has advanced in the House after securing a 20-1 vote from the Appropriations Committee.
The primary beneficiaries of HB 639 would be the athletic departments at public universities across Louisiana, including LSU, Louisiana Tech, McNeese State, Louisiana Lafayette, Grambling, and Nicholls State.
The NCAA Division I programs at these schools will receive 25% of sports betting tax revenue through the Supporting Programs, Opportunities, Resources, and Teams Fund (Sport Fund) to support their student-athletes. The fund is estimated to receive more than $31 million each year.
Additionally, the bill allocates 25% of sports betting tax revenue to early childhood education and 10% to local governments. It also directs 3% each to problem gambling and support services and the Louisiana Postsecondary Inclusive Education Fund, which assists students with physical and mental disabilities.
Presently, Louisiana shares its sports betting tax revenue as follows: 25% to early childhood education, 10% to local governments, 3% to problem gambling resources, and the remainder goes to the state's General Fund.
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Past Attempt Unsuccessful
HB 639 is similar to a 2024 bill that failed to advance past a House committee. Introduced by Rep. Roger Wilder, the 2024 version sought to raise the tax rate on gross gaming revenue from 15% to 51%.
If it had been approved, the measure would have placed Louisiana beside New York as states with the highest online sports betting tax rates in the US. However, it stalled in the House Committee on Ways and Means.
For HB 639 to not follow the same fate, another bill in the House needs to move forward, as their progress is tied together. The legislation, House Bill 594, aims to set a uniform tax rate for insurance premiums.
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