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Louisiana lawmakers have taken a significant step toward restructuring the state’s online sports
betting tax framework with the House’s passage of an amended version of House Bill 639.
The legislation, introduced by Rep. Neil Riser (R-Columbia), proposes raising the tax on mobile
sports wagering from the current 15% to 21.5%, a substantial revision from the original 32.5% increase suggested in earlier drafts.
the Senate for further deliberation. The tax increase is part of broader legislative efforts to address
Louisiana’s projected $338.9 million budget deficit in fiscal year 2026 without increasing income or sales taxes.
A central feature of the revised bill is the planned reallocation of online wagering tax revenue.
Under HB 639, 25% of all revenue generated from mobile Sports Betting will be directed to a newly
formed Supporting Programs, Opportunities, Resources, and Teams (SPORT) Fund. The fund will
support NCAA Division I athletic departments at Louisiana public universities, including LSU, UL Lafayette, Southern, and others.
Each qualifying school is expected to receive approximately $1.7 million annually. While this amount
may represent a modest contribution for larger programs like LSU, which operates with a sports budget
exceeding $200 million, it would significantly bolster funding for smaller schools with more limited athletic budgets.
In addition to the SPORT Fund, 3% of the new tax revenue will go toward the Louisiana Postsecondary
Inclusive Education Fund, which supports students with disabilities in higher education. Other allocations—
such as the 25% for early childhood education, 10% to local governments, and 3% to addiction recovery programs—
will remain unchanged from current law. The remaining revenue will be directed to the state’s general fund.
The original version of the bill called for a 32.5% tax rate, aligning online Sports Betting with the rate already
applied to video poker terminals at truck stops. However, industry concerns about market sustainability
prompted lawmakers to reduce the proposed rate. The revised 21.5% tax applies solely to net proceeds from
digital Sports Betting platforms and excludes in-person retail betting, which remains taxed at 10%.
Louisiana lawmakers have taken a significant step toward restructuring the state’s online sports
betting tax framework with the House’s passage of an amended version of House Bill 639.
The legislation, introduced by Rep. Neil Riser (R-Columbia), proposes raising the tax on mobile
sports wagering from the current 15% to 21.5%, a substantial revision from the original 32.5% increase suggested in earlier drafts.
New tax revenue targets college athletics, disability support:
The updated proposal passed with strong support in a 74-15 House vote and now moves tothe Senate for further deliberation. The tax increase is part of broader legislative efforts to address
Louisiana’s projected $338.9 million budget deficit in fiscal year 2026 without increasing income or sales taxes.
A central feature of the revised bill is the planned reallocation of online wagering tax revenue.
Under HB 639, 25% of all revenue generated from mobile Sports Betting will be directed to a newly
formed Supporting Programs, Opportunities, Resources, and Teams (SPORT) Fund. The fund will
support NCAA Division I athletic departments at Louisiana public universities, including LSU, UL Lafayette, Southern, and others.
Each qualifying school is expected to receive approximately $1.7 million annually. While this amount
may represent a modest contribution for larger programs like LSU, which operates with a sports budget
exceeding $200 million, it would significantly bolster funding for smaller schools with more limited athletic budgets.
In addition to the SPORT Fund, 3% of the new tax revenue will go toward the Louisiana Postsecondary
Inclusive Education Fund, which supports students with disabilities in higher education. Other allocations—
such as the 25% for early childhood education, 10% to local governments, and 3% to addiction recovery programs—
will remain unchanged from current law. The remaining revenue will be directed to the state’s general fund.
The original version of the bill called for a 32.5% tax rate, aligning online Sports Betting with the rate already
applied to video poker terminals at truck stops. However, industry concerns about market sustainability
prompted lawmakers to reduce the proposed rate. The revised 21.5% tax applies solely to net proceeds from
digital Sports Betting platforms and excludes in-person retail betting, which remains taxed at 10%.
