Louisiana Increases Online Sports Betting Tax to 21.5% to Fund College Athletics
Louisiana lawmakers have recently approved a significant tax increase on online sports betting, raising the rate from 15% to 21.5%. The initiative is aimed at generating vital funds to support college athletic programs across the state. Sponsored by Rep. Neil Riser, House Bill 639 successfully navigated the legislative process, passing the Senate with a 35-3 vote after an earlier approval in the House with a tally of 74-15.
The revised tax rate is projected to generate approximately $20 million for various athletic programs at Louisiana’s universities. Although Rep. Riser initially proposed a more ambitious tax increase to 32.5%, the legislative body opted for a more moderate increase, settling on the 21.5% cap.
Alongside the increased tax revenue, lawmakers anticipate an additional $77 million from the new tax structure, with $20 million earmarked for the Supporting Programs, Opportunities, Resources, and Teams Fund established through the bill. This funding will directly benefit college sports, bolstering resources and opportunities for student-athletes across the state.
This legislative move reflects Louisiana’s commitment to enhancing its college athletic programs while tapping into the growing online sports betting market. As the state seeks to strengthen its funding for these programs, stakeholders in the sports community are optimistic about the potential benefits for student-athletes and programs alike.
The approval of House Bill 639 underscores a significant shift in Louisiana’s approach to online sports betting and its financial contribution to higher education athletics. The increased revenue is expected to support not only sporting endeavors but also the educational development of student-athletes as they navigate their college experience.
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