Louisiana State Rep. Roger Wilder III has proposed a bill to increase the state’s tax rate on sports betting revenues from 15 to 51 percent. The bill, House Bill 22, aims to levy a fifty-one percent tax on the net gaming proceeds from sports wagering offered through websites or mobile applications in the state. If approved, Louisiana would join New York, New Hampshire, and Rhode Island as the highest-taxing states on sports betting revenue.
In addition to raising the tax rate, the bill also seeks to repeal the provision authorizing promotional play, a customer acquisition tool used by online sportsbooks. Louisiana legalized sports betting in November 2020, with online sports betting launching in January 2022. The state is home to eight online sportsbooks, including popular names like DraftKings, FanDuel, and Caesars.
The latest data from the Louisiana Gaming Control Board shows that the state collected $49.9 million in revenue from online sports betting in September, a 33 percent increase from the previous year. Under the current 15 percent tax rate, online sportsbooks contributed approximately $7.1 million in taxes for the month.
If the bill is passed, Louisiana would significantly increase its tax revenue from sports betting, potentially impacting the operations and profitability of online sportsbooks in the state. The proposal has sparked conversations about the implications of such a substantial tax hike on the sports betting industry in Louisiana.
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