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Louisiana is now very close to a big change. The bill to increase tax on online sports betting in the state is almost final. Just one signature from the governor is pending, and this bill will officially become law.
What is this bill?
This bill was originally introduced as House Bill 639. The initial idea was to increase the online betting tax from 15% to 32.5%. But later this proposal was amended and the new rate was decided as 21.5%. Now this bill has been passed by both the House and the Senate. The Senate passed this bill with a vote of 35-3. It now goes to Governor Jeff Landry for his final signature.
Why was this tax introduced?
This bill was introduced by Rep. Neil Riser. Its main goal is to increase state revenue, especially from legalized gambling.
What is the problem with operators?
When the 32.5% proposal came out, licensed sportsbook operators raised strong objections. They said:
- Such a high tax rate could drive users to illegal offshore betting sites.
- Louisiana’s market will still not be competitive.
- New operators will dare to enter.
In 2021, Louisiana legalized sports betting after 55 out of 64 parishes voted yes. Online betting has grown significantly since then.
Where will the money from the new tax go?
This bill doesn’t just increase taxes – it also decides where that tax money will go:
- 25% will go to the new SPORT Fund – its full form is Supporting Programs, Opportunities, Resources, and Teams Fund. This will support college sports.
- 3% will go to the Louisiana Postsecondary Inclusive Education Fund.
- The remaining money will go into general state revenue.
The Board of Regents will handle the sports fund, and will ensure that the money is properly spent on youth and sports development.
Louisiana is not alone
Many other states in America are also now increasing taxes on online betting:
- Maryland also raised its tax from 15% to 20%.
- Ohio raised its sports betting tax from 10% to 20% in 2023.
- Similar tax hike proposals are being reviewed in several other states.
And a New Law: Sweepstakes Casinos Banned
Another big decision was made recently by Louisiana the state passed a law banning online sweepstakes casinos.
- It was banned through Bill 181.
- These virtual casinos mostly operate offshore and take money from players in the name of virtual coins.
- Players then convert these coins into cash prizes.
- According to lawmakers, this is a disguised form of illegal gambling.
Also Read: Legal Gambling Safety: Why It Matters Most
