Proposed Louisiana Bill Increases Tax Rate on Online Gambling Activities
Louisiana Looks to Boost Betting Taxes
Louisiana lawmakers are pushing ahead with a plan that could significantly boost the state’s gambling revenue. House Bill 639, sponsored by Representative Neil Riser, received support from the House Appropriations Committee with a 20-1 vote. The measure aims to raise the tax on mobile sports bets from a modest 15% to a hefty 32.5%.
Here’s a quick rundown:
- The proposed tax rate mirrors that of video poker terminals.
- Louisiana could see its annual betting tax revenue jump from an estimated $59 million to around $190 million.
Under the proposal, the state will treat online sports bets and retail video draw poker machines the same, tax-wise.
Spreading the Wealth
If the bill passes, various funds would benefit. A quarter of the mobile betting tax revenue would go to improving NCAA Division I athletic programs and public university student-athletes through the SPORT Fund. Other beneficiaries would include early childhood education, behavioral health services, local government budgets, and initiatives for those dealing with gambling issues.
Double Trouble
In a related move, the Appropriations Committee decided to link HB 639 to HB 594, a bill proposing a flat tax rate on insurance premiums. If HB 594, which already made it through the House Committee on Ways and Means in April 2025, is approved alongside HB 639, the combined impact on the state's budget could be substantial.
But remember, these proposals are subject to change as they make their way through the legislative process. Keep an eye on the news for updates!
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Sources
- Bills by Bill Number
- House Bill 639, Video
- Lawmakers propose bill to boost funding for NCAA athletic departments
- Bill may increase Louisiana’s sports wagering tax rate dramatically, but critics question timing
- Louisiana lawmakers aim to boost education funding with sports betting tax increase
- The tax rate proposed for mobile sports bets in Louisiana, as outlined in House Bill 639 by Representative Neil Riser, is aiming to match that of video poker terminals.
- If Louisiana's House Bill 639 passes, the annual betting tax revenue may rise from an estimated $59 million to around $190 million.
- Under this proposal, online sports bets and retail video draw poker machines will be taxed similarly, with funds from the increased tax on sports bets potentially supporting NCAA Division I athletic programs, early childhood education, behavioral health services, local government budgets, and initiatives for those dealing with gambling issues.
