Louisiana Bill Proposes Higher Online Betting Tax

Louisiana lawmakers are moving forward with a proposal that would nearly double the tax on online sports betting. House Bill 639, brought forward by Representative Neil Riser, gained support from the House Appropriations Committee with a 20-1 vote. The measure seeks to raise the tax rate on mobile wagers from 15 percent to 32.5 percent.

Good to know

• Louisiana could more than triple its tax revenue from online sports betting.
• The proposed tax rate would match that of video poker terminals.
• A quarter of the mobile betting tax revenue would go to college sports programs.

Under the proposal, the state would apply the same rate to online sports bets and retail video draw poker machines. If passed, the new tax structure could push Louisiana’s annual betting tax revenue to around $190 million, up from an estimated $59 million. A legislative fiscal report projects that $35 million of the new income would go into various state funds.

One key beneficiary would be the SPORT Fund, which is designed to assist NCAA Division I athletic departments and public university student-athletes across the state. Lawmakers plan to allocate 25 percent of mobile betting tax collections to this fund.

Other funds would also receive a boost. Early childhood education, behavioral health services, and local government budgets would gain additional funding. There is also a dedicated share for programs that help individuals dealing with gambling-related issues.

In another move, the Appropriations Committee linked HB 639 to a separate bill, HB 594. That bill proposes a single, flat tax rate on insurance premiums. It already cleared the House Committee on Ways and Means in April 2025, with several changes along the way.