Louisiana's Sports Betting Tax Bill Update: HB 639
Hot off the Press! 📰
Louisiana Legislature to Discuss Increase in Sports Betting Taxes in Upcoming Debate
Larry Henry here with the latest scoop on the gaming industry. Let's dive into the current status of House Bill 639, the proposed tax increase on sports betting in Louisiana, shall we?
HB 639's Recent Developments 📅
In a twist of events, the Louisiana House of Representatives has approved House Bill 639 with a proposed amendment to raise the tax on mobile sports betting from the current 15% to 21.5%. This amendment is significantly lower than the initial proposed 32.5% tax rate [2][3][4]. Now that it's cleared the House, the bill is ready for the Senate's consideration.
Chances of Passage 🎲
Despite the lower tax rate, the bill's fate in the Senate remains uncertain. While it received strong support from the House, with a vote of 74 to 15 in its favor, its journey in the Senate will depend on further deliberations and potential amendments [2]. Time will tell if this bill makes it through the Senate for potential enactment.
Impact on College Athletics 🏈
One intriguing aspect of HB 639 is the allocation of 25% of the generated revenue from mobile sports betting. This goes to the Supporting Programs, Opportunities, Resources, and Teams (SPORT) Fund. This fund aims to support NCAA Division I athletic departments at Louisiana public universities, such as LSU, UL Lafayette, Southern, and many others [2][3]. In addition, part of the revenue will be allocated to support students with disabilities. This shift in revenue aims to elevate college athletics and bolster educational programs.
Wider Financial Implications 💰
The tax increase is a part of a wider strategy to address Louisiana's projected $338.9 million budget deficit in fiscal year 2026. By focusing on mobile sports betting, lawmakers aim to generate additional revenue without resorting to increasing income or sales taxes [2][3]. However, updated fiscal projections based on the revised 21.5% tax rate are yet to be considered by the Senate [3].
In Other Gaming News 🎮
A bill aimed at outlawing sweepstakes casinos, Senate Bill 181, is waiting for a hearing in the House Committee on Administration of Criminal Justice. Stay tuned for updates! 🔔
That's all for today's gaming industry news. Keep in touch for more updates from the world of casino, sports betting, and gaming. Until next time! 🌞
Sources
- Louisiana Senate Bill 181 awaits hearing
- How much extra revenue could Louisiana generate from mobile sports betting tax increases?
- Louisiana House approval of sports betting tax bill would boost higher ed, which now needs Senate approval
- House Bill 639 Summary
- The proposed amendment to House Bill 639, if passed by the Senate, will raise the tax on mobile sports betting in Louisiana from 15% to 21.5%.
- In addition to supporting college athletics, part of the revenue generated from mobile sports betting, if HB 639 is enacted, will be allocated to support students with disabilities.
