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Louisiana lawmakers have decided to increase the tax rate on online sports betting, aligning it with rates paid by traditional casino operators. The move has gained broad support in the state legislature and places Louisiana alongside Maryland and Illinois, which also raised their rates this year.
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Senate approval has pushed Louisiana closer to implementing a higher tax on online sports betting. HB 639, first introduced by Representative Neil Riser, has already cleared the House and now only needs the Governor’s signature to become law.
Under the new law, online sportsbooks will start paying a 21.5% tax, up from the previous 15%. Senator Stewart Cathey, who backed the measure in the Senate, said the update matches what brick-and-mortar casinos already pay for casino gaming.
Retail sportsbooks will not see any changes. Their tax rate will remain at 10%, as lawmakers chose not to touch the in-person market for now.
Originally, the proposal suggested a much higher rate—32%. However, during the legislative process, lawmakers agreed to reduce it to 21.5% before passing it through the House.
One key feature of the bill is how some of the extra money will be used. Senator Cathey explained that 25% of the new online sports betting tax revenue will go to a new Sport Fund aimed at helping Division I university sports programs in Louisiana. That money will help pay for scholarships, insurance, and improvements to facilities.
However, Cathey made it clear that these funds cannot be used for direct athlete compensation or name, image, and likeness (NIL) deals. “It is specifically in the legislation that it cannot be used to fund NIL or to make direct payments to athletes,” Cathey said.
With this change, Louisiana becomes the third state in 2025 to pass an online betting tax hike. Maryland raised its rate to 20% earlier in the year, while Illinois moved to a tiered structure that tops out at 40%.