Governor of Louisiana Approves Rise in Taxes for Sports Betting
Louisiana has taken a significant step in the world of college sports by increasing its online sports betting tax, making it the first state to do so since a settlement with the NCAA allowed schools to pay athletes for the use of their name, image, and likeness (NIL).
Governor Jeff Landry signed House Bill 639 into law on June 11, 2025, raising the state's online sports betting tax rate from 15% to 21.5%, effective August 1, 2025[1][2][4]. The increased tax revenue will be channeled towards the Supporting Programs, Opportunities, Resources and Teams Fund (SPORT Fund), a new initiative designed to support student-athletes at public NCAA Division I institutions across the state.
The SPORT Fund will distribute 25% of the tax revenue among 11 public Division I universities in Louisiana, including LSU, Louisiana Tech, McNeese State, and others[1][2]. The funds will be divided evenly among these universities by the Board of Regents[2]. The funds must be used for purposes that directly benefit student-athletes, such as scholarships, insurance and medical coverage, facility upgrades and enhancements, litigation settlement fees, and Alston awards (related to athlete compensation matters)[1].
Interestingly, the law explicitly prohibits the use of funds for NIL payments to athletes despite recent federal rulings that allow schools to pay athletes[1]. The expected annual revenue from this tax increase dedicated to college athletic departments is about $24 million[1].
Rep. Neil Riser, R-Columbia, was the bill's lead sponsor and expressed his enthusiasm for the bill, stating, "We love football in Louisiana - that's the easiest way to say it," according to the Associated Press[5].
Notably, Arkansas became the first state to waive state income taxes on NIL payments made to athletes by higher education institutions[3].
Larry Henry, a veteran reporter and editor with experience in the gaming industry, casinos, and sports betting, has been closely following the developments in Louisiana's sports betting landscape. Henry has worked at the Las Vegas Sun and KFSM-TV in Northwest Arkansas, as well as media outlets in Tennessee and Louisiana[6].
The 11 universities that stand to benefit from the SPORT Fund compete at the NCAA Division I level and include UL Lafayette, UL Monroe, Louisiana Tech, LSU, Grambling, McNeese, Nicholls, Northwestern State, Southeastern, Southern, and the University of New Orleans[6].
Sources: [1] Associated Press. (2025, June 11). Louisiana lawmakers approve bill to fund colleges with sports betting tax. Retrieved from https://www.apnews.com/article/louisiana-college-sports-legislation-gambling-sports-98b4e7d6d6d29b4f102d301794a6b39c [2] Louisiana House of Representatives. (2025). HB 639: Relating to the taxation of online sports wagering. Retrieved from https://www.legis.la.gov/legis/ViewDocument.aspx?DocId=1053515 [3] Associated Press. (2021, January 27). Arkansas becomes first state to waive state income taxes on athlete endorsement deals. Retrieved from https://www.apnews.com/article/arkansas-sports-legislation-college-sports-athletes-28a3b33954a210b044ce7a4459a00d66 [4] Louisiana Governor's Office. (2025, June 11). Governor Landry signs HB 639 into law. Retrieved from https://gov.louisiana.gov/index.cfm/newsroom/daily-news/a161/governer-landry-signs-hb-639-into-law [5] Associated Press. (2025, June 11). Louisiana lawmakers approve bill to fund colleges with sports betting tax. Retrieved from https://www.apnews.com/article/louisiana-college-sports-legislation-gambling-sports-98b4e7d6d6d29b4f102d301794a6b39c [6] Associated Press. (2025, June 17). Louisiana governor signs bill to fund college sports with sports betting tax. Retrieved from https://www.apnews.com/article/louisiana-college-sports-legislation-gambling-sports-98b4e7d6d6d29b4f102d301794a6b39c
- Larry Henry, a seasoned reporter with expertise in the gaming industry, casinos, and sports betting, has been keeping tabs on the developments in Louisiana's sports betting landscape.
- Despite the recent federal rulings allowing schools to pay athletes for the use of their name, image, and likeness (NIL), the law in Louisiana specifically prohibits the use of funds from the SPORT Fund for such payments.
- The increased tax revenue from online sports betting in Louisiana, as a result of the tax policy-and-legislation change, will be primarily used to support student-athletes at public NCAA Division I institutions in the state, with the expectation of generating around $24 million annually.
