Betting Taxes Bill Approved in Louisiana with an Altered Tax Rate of 21.5%
Louisiana's lawmakers are getting creative to address upcoming budget shortfalls, and they're turning their attention to online sports gambling as a potential solution. House Bill 639, which recently passed in the House, is pinning hopes on raising tax revenue from mobile sportsbooks without resorting to broader tax hikes.
Originally, the proposed online sports betting tax rate stood at a whopping 32.5%, but the House bucked that idea. Instead, they're raising the tax from 15% to 21.5%, a reduction from the original proposal that still gains traction in easing the state's projected $338.9 million deficit for fiscal year 2026. Retail sports betting tax rates remain unchanged at 10%.
The bill's new tax rate has yet to prompt revised revenue forecasts, but analysts previously believed a 32.5% rate could yield approximately $190 million annually by 2030[1].
Betcha a Million💸 Get a 100% Bonus up to $500 on your 1st deposit! Sign Up Now
Where's the Cash Headed?
The bill outlines specific ways to disperse the extra cash. A quarter of the mobile betting tax income will trickle into the Supporting Programs, Opportunities, Resources, and Teams (SPORT) Fund, designed to aid college athletics at Louisiana's public universities[1][2]. Additionally, a scant 3% will go toward enhancing services for higher education students with special needs[1].
The remaining funds will primarily support public education, local governments, and the general fund. This redirection of gaming revenue toward education and social programs is a strategic move to avoid politically charged increases in income or sales taxes. As online sports betting in Louisiana skyrockets, legislators view it as a dependable source of fresh funding[2].
House Bill 639 is now in the Senate's capable hands, where they might propose additional adjustments before casting their final vote[2].
BitStarz Casino🌟 Up to 5BTC Plus 200 Free Spins on 1st Deposit! Register Now
On another Louisiana gaming front, the state Senate recently approved a bill with a 39-0 vote to outlaw sweepstakes gambling across the state[1].
The innovative House Bill 639, aims to divert a portion of the revenue generated from mobile sports betting towards education, social programs, and local governments. Interestingly, a substantial part of the mobile betting tax income will be funneled into the SPORT Fund, allocated for college athletics at Louisiana's public universities.
Given the potential revenue from sports-betting, some legislators view it as a reliable source of funding to address Louisiana's projected budget shortfalls in the future, without resorting to broader tax hikes infinance or sales taxes.
