Money Talks: Louisiana's HB 639 and the Boost for NCAA D-1 Athletics 💸💰🏆
Louisiana Legislators Contemplate Increasing Tax on Sports Wagers
Hey there, sports fans! Buckle up as we dive into the latest news from the world of betting, covering the US online casino industry and more. Today, we're breaking down the controversial HB 639 bill that's causing ripples throughout Louisiana.
The skinny: HB 639, proposed by Rep. Neil Riser, aims to jack up the state's sports betting tax rate from a modest 15% to a whopping 32.5%[1][3][5]. After passing the House Appropriations Committee with a commanding 20-1 vote[3][5], the bill is now making its way to the House floor, though no debate has been scheduled as of yet[1].
The impact: So, what does this mean for Louisiana's NCAA Division I athletic programs? Well, the tax increase is all about establishing the Supporting Programs, Opportunities, Resources, and Teams Fund (SPORT Fund)[3][5]. The SPORT Fund will pocket 25% of the additional tax revenue, doling it out to institutions like LSU, Louisiana Tech, Grambling State, McNeese State, and Nicholls State, among others[3][5]. With projections of over $31 million per year[5], each participating institution could potentially see an estimated $2.8 million windfall[5]!
But wait, there's more! The bill isn't all about sports: it also allocates 25% of the tax revenue for early childhood education, 10% for local governments, 3% for problem gambling resources, and 3% for the Louisiana Postsecondary Inclusive Education Fund for students with disabilities[3][5].
So, what's the catch? Critics argue that a 175% increase in the tax rate could stifle the growth of the sports betting industry[1][3][5]. On the other hand, supporters claim that the investment in Louisiana's athletic and educational programs will spur economic growth and attract tourists[1][3][5].
Stay tuned for updates on this developing story. In the meantime, check out Michael Savio's latest articles at casinos.com for more insider scoops from the world of online casinos and more! 🎰🃏
In the bustling city of Las Vegas, sports enthusiasts can enjoy not only traditional games like poker but also engage in sports betting, given the legalized industry in the city. The recent proposal of HB 639 in Louisiana could inspire similar legislative changes, as it seeks to increase funds for sports programs, such as at NCAA Division I institutions like LSU, through the SPORT Fund. While this fund could potentially translate to millions for each participating school, opponents argue that the steep increase in tax rates could hinder the growth of the sports betting industry, similar to online casino industries.
