Louisiana House Approves Revised Online Betting Tax Bill

The Louisiana House advanced a key change to online sports betting taxes by passing an amended version of House Bill 639. Rep. Neil Riser introduced the bill, proposing a tax hike on mobile sports wagering from 15% to 21.5%. This revision marks a reduction from the initial proposal, which suggested raising the rate to 32.5%.

Legislators from the Louisiana House passed the updated proposal 74-15, showing strong support for the revised online sports betting tax bill. HB 639 will now head to the Senate for further consideration and debate. Moreover, the bill is connected to HB 594, which proposes implementing a flat tax on insurance premiums.

The original bill proposed a 32.5% tax, matching the rate for video poker at truck stops. However, industry concerns over sustainability led lawmakers to lower the rate. Now, the revised 21.5% tax applies only to net proceeds from digital sports betting platforms, like the best online sportsbooks. In contrast, in-person retail betting remains taxed at the existing 10% rate.

Lawmakers included the tax hike to help address Louisiana's $338.9 million budget deficit for fiscal year 2026. Importantly, the plan avoids raising income or sales taxes while tackling the shortfall.

HB 639 Aimed at Collegiate Athletics

A key element of the revised bill the Louisiana House has approved is reallocating online sportsbook betting tax revenue. Under HB 639, 25% will fund the new Supporting Programs, Opportunities, Resources, and Teams (SPORT) Fund.

This fund supports NCAA Division I athletic programs at Louisiana public universities like LSU, UL Lafayette, and Southern. Each eligible school will receive about $1.7 million annually from the fund. Though minor for LSU, the amount greatly benefits smaller schools with tighter athletic budgets.

Additionally, 3% of tax revenue will support students with disabilities through the Postsecondary Inclusive Education Fund. Other allocations remain unchanged – 25% to early childhood education, 10% to local governments, and 3% to addiction recovery.

The rest of the revenue will go to Louisiana's general fund.