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Louisiana lawmakers are looking to online sports betting as a way to ease upcoming budget pressures. A new bill passed in the House aims to raise tax revenue from mobile sportsbooks without turning to broader tax increases.
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Louisiana is adjusting how it taxes mobile sports betting. The House of Representatives passed House Bill 639, which raises the tax rate on online wagers from 15% to 21.5%. Although the rate is lower than the original proposal of 32.5%, the bill still plays a key role in a broader plan to reduce a projected $338.9 million deficit in fiscal year 2026.
Retail sports betting tax rates remain unchanged at 10%.
Before the tax rate was reduced, analysts projected a 32.5% rate could push revenue to $190 million annually by 2030. New revenue forecasts based on the 21.5% rate have not yet been released.
The revised bill outlines new uses for the additional revenue. Lawmakers allocated 25% of the mobile betting tax income to a college sports fund for Louisiana’s public universities. Another 3% will go toward services for higher education students with disabilities.
The remainder of the revenue is expected to support public education, local governments, and the general fund. These targeted allocations are part of a shift in strategy—focusing gambling revenue on education and social services rather than general spending.
Supporters argue that this approach avoids politically sensitive increases to income or sales taxes. Given the rapid growth of online sports betting in Louisiana, lawmakers view it as a reliable source of new funding.
House Bill 639 is now with the Senate, where legislators may suggest further amendments and revise financial estimates before a final vote.
In related news to the state, a few weeks back, the Louisiana Senate unanimously passed a bill with a 39-0 vote to ban sweepstakes gambling across the state.