Louisiana Bill to Double Online Sports Betting Tax to 32.5%

Louisiana lawmakers are shaking up the state’s gambling landscape by pushing forward a bold tax increase on online sports betting—one that could more than double the current rate.

House Bill 639 (HB 639), authored by Rep. Neil Riser, proposes raising Louisiana’s online sports betting tax from 15% to a hefty 32.5%. On April 28, the bill passed the House Appropriations Committee with overwhelming support, earning a 20-1 vote.

If signed into law, this legislation would align the online betting tax rate with that of the state’s retail video draw poker sector, significantly boosting Louisiana’s gambling tax revenue.

Supporters highlight that Louisiana’s sports betting market has thrived since legalization, making it an ideal time to harness additional funds for public benefit. According to projections from the Louisiana Legislative Fiscal Office, annual sports betting tax revenue could jump from $59.3 million to approximately $190.1 million—more than a threefold increase.

The bill isn’t just about generating more tax dollars; it’s about reinvesting in Louisiana’s future. The SPORT Fund (Supporting Programmes, Opportunities, Resources, and Teams), a key feature of the legislation, will channel 25% of mobile betting tax revenue into NCAA Division I athletics at public universities.

Additionally, the bill allocates over $5 million to the Louisiana Early Childhood Education Fund, strengthening early learning initiatives statewide. It also designates $2 million annually for behavioral health and gambling addiction treatment programs, recognizing the social responsibilities that come with legalized betting.

As the bill moves through the legislature, stakeholders across education, healthcare, and sports should prepare for a new funding landscape. Sports betting operators must also brace for higher tax rates, recalibrating their financial strategies if the bill passes into law.

Louisiana House Pushes Forward Major Sports Betting Tax Hike

Key Points

• Tax Increase: HB 639 proposes raising Louisiana’s online sports betting tax from 15% to 32.5%.
• New Revenue Streams: The tax hike could generate an estimated $190 million annually, up from $59 million.
• Fund Allocation: Revenue will support NCAA athletic programs, early childhood education, and gambling addiction treatment.

Louisiana Eyes Big Gains from Sports Betting Tax Hike

Louisiana’s move to increase its online sports betting tax rate signals a strategic shift in how the state views gambling as a public resource. With HB 639 advancing through the House, lawmakers are positioning the state to capture significantly higher revenues from an already booming industry.

Rep. Neil Riser’s proposal aims to align the tax burden on online sportsbooks with the rate applied to video poker operators, fostering consistency across Louisiana’s gaming landscape. The proposed 32.5% tax would push Louisiana toward the top of the U.S. ranking for sports betting tax rates, reflecting a broader trend of states reassessing gambling taxes as legalized markets mature.

The Louisiana Legislative Fiscal Office estimates the increase could drive state revenues from sports betting up to $190 million annually. Of this, $35.3 million would be funneled into two newly created funds. One of these, the SPORT Fund, will be administered by the Louisiana Board of Regents to strengthen NCAA Division I athletic programs and provide resources for student-athletes at public universities.

Beyond sports, the bill also directs a meaningful slice of funds toward the Louisiana Early Childhood Education Fund, ensuring young learners benefit from the gambling boom. Moreover, with legalized betting bringing fresh concerns about gambling addiction, HB 639 earmarks an additional $2 million annually for compulsive gambling treatment and outreach programs.

Interestingly, HB 639 has found rare bipartisan momentum after a similar effort failed in 2024. Only one lawmaker, Rep. Jerome Zeringue, opposed the bill—his concerns centered on broader tax policy mechanics rather than the betting tax increase itself.

This legislative movement reflects a nationwide shift as states increasingly adjust their tax frameworks to reflect the growth and profitability of regulated sports betting. Should HB 639 pass the full legislature and be signed into law, Louisiana will stand as one of the most aggressive states in terms of online sportsbook taxation.

Louisiana’s proposed sports betting tax hike under HB 639 could redefine the state’s gambling and public funding landscape. By more than doubling the online betting tax, lawmakers aim to unlock transformative funding for athletics, education, and public health. As the bill progresses, operators, educators, and healthcare providers alike must prepare for the changes ahead. If passed, this legislation could position Louisiana as a national leader in maximizing the public benefit of its growing sports betting market.