Increasing sports betting tax in Louisiana proposed, aiming to double revenue for supporting college sports.
Hey there! Let's talk about a hot topic in Louisiana - sports betting taxes and a proposed bill that could shake things up for athletic programs, fund education, and tackle problem gambling.
The Big News: Tax Hike ProposalRep. Neil Riser, R-Columbia, has introduced House Bill 639, aiming to boost the tax on sports gambling from a current 15% to a whopping 32.5%. You may recognize that number, as it's the same tax the state imposes on video poker.
Broad Support Across the SpectrumInterestingly, this increase in taxes on sports gambling has found support from both conservative and progressive corners. The reason? They believe that the generated revenue can help address the 'social ills' of gambling, with an additional $2 million earmarked for addiction programs under the new rate.
Moving Forward in the LegislatureThe bill has already cleared a significant hurdle, being approved by the House Appropriations Committee with a 20-1 vote. It's now gearing up for a third reading in the House.
Where the Money GoesIf the bill passes, here's where the funds might end up:
- The SPORT Fund: 25% of the revenue would support athletic programs at LSU, Louisiana Tech, McNeese State, Louisiana Lafayette, Grambling, and Nicholls State.
- Early Childhood Education: 25% will continue to go towards early childhood education, matching the current distribution.
- Problem Gambling: 3% will be allocated to resources, maintaining existing commitments towards addressing problem gambling.
- Postsecondary Inclusive Education Fund: 3% will be dedicated to supporting students with disabilities.
Projected Economic ImpactIf successful, the SPORT Fund is estimated to receive over $31 million annually from the tax hike. With this increase, Louisiana's sports betting tax rate would rank among the highest in the nation, just below Pennsylvania's but above Vermont's.
More Regulatory EffortsIn a related move, a separate bill (SB 181), aimed at banning sweepstakes gambling, has already made its way through the Senate with a 39-0 vote. This action suggests broader regulatory efforts in the world of gambling in Louisiana.
Rep. Neil Riser's proposed House Bill 639 aligns sports-betting with video poker in Louisiana, aiming to elevate the tax rate from 15% to 32.5%. The proposed tax hike finds support across political spectrums, as revenues could help address gambling issues and fund initiatives such as education and problem gambling programs. If approved, the SPORT Fund will receive over $31 million annually, apart from allocations for early childhood education, postsecondary inclusive education, and problem gambling resources.
