Unleashing a Higher Stake on Sports Betting
Louisiana Legislators Contemplate Enhancing Taxes on Sports Wagering
Let's dive into the latest development shaking up the online casino world in Louisiana, with House Bill 639 (HB 639) aiming to up the ante! This bad boy proposes cranking up the tax on sports betting from a modest 15% all the way to a monster 32.5%. If you're familiar with the gaming scene, you'll recognize this new tax rate as the same one applied to video draw poker machines gracing qualified truck stop facilities[1][4][5].
The proposal has swept through Louisiana's House Appropriations Committee like a hurricane, leaving a trail of astounding votes—20 in favor and just a lonely 1 against[5]. Gaining this level of support is no small fete, clearing a critical step in the legislative process.
But what's unique about this bill isn't just the astronomical tax hike; it's where that extra revenue will be allocated. Approximately a fourth of the proceeds will be funneled into the Supporting Programs, Opportunities, Resources, and Teams Fund (SPORT Fund), managed by the Louisiana Board of Regents. This fund is a lifeline for NCAA Division I athletic departments at public universities participating in football programs ( Bowl Subdivision and Championship Subdivision level) in the state. These funds aim to empower student-athletes, with a fair share distributed among eligible powerhouses such as LSU, Louisiana Tech, Grambling State, and others[4][5].
Moreover, 3% of the tax revenue will be channeled to the Louisiana Postsecondary Inclusive Education Fund, supporting students with mental and physical disabilities, and another 25% will be directed towards early childhood education programs[4][5]. Ambitious, right?
There's a catch, though—this whopping tax hike depends on the passage of another related bill, HB 594, which focuses on imposing a flat tax on insurance premiums[4][5].
The sports betting industry and some stakeholders have voiced concerns regarding the potential downsides of this tax hike. Doubling the tax could trigger worse betting odds and fewer promotions for consumers, leading them to offshore or unregulated sites that don't contribute tax dollars to the state. This could potentially hamper the benefits both for operators and the state overall[3].
There you have it! As of early May 2025, HB 639 has sailed through the House Appropriations Committee with a storm of support. The bill is now on the wooden floor awaiting debate, but it's still batting for further legislative action, tethered to HB 594's success[3]. So keep your eyes on the bayou, folks—this isn't just a game anymore!
- The online casino world is abuzz with the latest development in Louisiana, as House Bill 639 (HB 639) seeks to raise the tax on sports betting to 32.5%, a rate that matches the one for video draw poker machines in qualified truck stop facilities.
- This tax increase proposal, which has gained significant support in Louisiana's House Appropriations Committee, aims to fund various projects, including the SPORT Fund, early childhood education programs, and the Louisiana Postsecondary Inclusive Education Fund.
- Interestingly, the passage of another bill, HB 594, is crucial for the implementation of the increased tax on sports betting, as it focuses on imposing a flat tax on insurance premiums.
- The sports betting industry and some stakeholders have expressed concerns about the potential negative impacts of the tax hike, such as worse betting odds, fewer promotions, and an increased tendency for consumers to use offshore or unregulated sites.
- As HB 639 awaits debate on the wooden floor, it remains to be seen if it will successfully navigate the intricate world of policy-and-legislation, and whether the proposed changes in the sports betting landscape will significantly affect the general news, sports, sports-betting, and sports-analysis sectors in Louisiana.
