Online sports betting operators in the Pelican State can start bracing for a tax hike.
Key Takeaways
- Online sportsbooks are expected to see the operator tax rate increase from 15% to 21.5%.
- The bill passed the Senate and is awaiting Gov. Jeff Landry’s signature to become law.
- The state’s increased revenue will address a $338.9-million budget deficit and help fund college athletics.
Louisiana has joined a growing list of U.S. states looking to get more out of sportsbooks. The state’s Senate passed legislation on Sunday that raises the rate from 15% to 21.5% on mobile operators, although retail sportsbooks won’t be taxed above their current 10% rate.
House Bill 639 only needs a signature from Gov. Jeff Landry to become law and help address the Pelican State’s projected $338.9 million 2026 fiscal-year budget deficit.
The bill got through on a 35-3 Senate vote and was ordered to return to the House. A motion to reconsider was tabled.
The Pelican State’s coffers have been filled with $22.6 million from the $180 million in revenue produced by Louisiana sports betting in 2025. Under the 21.5% tax rate, the state would’ve generated $38.7 million year-to-date.
New funds
The legislation was first introduced in April by Rep. Neil Riser (R-Columbia) and worked its way through the House before receiving a favorable passing by a vote of 74-16 on May 20. The original bill proposed a tax rate more than double what Louisiana began charging sportsbooks when wagering was legalized in June 2021.
The legislation was amended to lower the rate to 21.5%, and the increase in tax revenue is expected to help fund public college athletics and support students with disabilities.
Six universities will receive 25% of the state’s cut from sports betting as part of the Supporting Programs, Opportunities, Resources, and Teams Fund. Schools can use the money to fund several areas, including scholarships and medical expenses.
A new tax rate isn’t Louisiana’s only gaming bill to work its way through the state this session. SB 181, which bans online sweepstakes gaming companies from operating in the Pelican State, was sent to the governor on June 5 to be signed into law.
Taking a hike
Louisiana is not alone in the desire for more sports betting tax revenue. Illinois introduced a new per-wager tax last week that, on July 1, will charge operators 25 cents on the first 20 million bets placed. The tax rises to 50 cents per wager after that.
Maryland Gov. Wes Moore signed a bill into law last month that raises the Old Line State’s sports betting operator tax from 15% to 20%. New Jersey Gov. Phil Murphy has proposed a 25% tax rate, up from the current 13% in the Garden State.
Ohio mulled over its second hike in two years, but Buckeye State lawmakers pulled back on an increase. North Carolina’s Senate passed a state budget that included a doubling of the tax rate beginning Oct. 1, but it’s been opposed by the House.
