Louisiana to Allocate $24 Million from Sports Betting to Boost College Football
Louisiana is poised to transform the funding landscape for its college football programs, directing revenue from a newly proposed tax hike on online sports betting into athletic departments. The initiative, awaiting Gov. Jeff Landry’s signature, will increase the tax rate from 15% to 21.5%, introducing an estimated $24.3 million annually for the state’s 11 public universities with Division I football teams.
The legislation, spearheaded by Rep. Neil Riser, garnered overwhelming support and is seen as a timely response to the NCAA’s recent settlement allowing direct payments to athletes. A quarter of the revenue generated by the increased tax will be distributed evenly among the universities, equating to approximately $2.2 million for each institution. This financial boost is especially crucial for smaller programs like McNeese and UL Monroe as they aim to compete with larger, wealthier schools such as LSU.
Although the funds will not directly support name, image, and likeness (NIL) deals, they are expected to enhance student-athlete resources, including scholarships and facility upgrades, potentially freeing up budget space for NIL initiatives. As other states watch closely, Louisiana officially becomes the second state, after North Carolina, to earmark sports betting revenue for college athletics.
While the move has drawn criticism regarding possible gambling-related social issues, proponents argue it could significantly level the competitive playing field in college football. With Louisiana’s rich football culture and substantial betting revenue since 2021, this initiative positions the state as a forerunner in innovative "college-athlete friendly" policies. As similar measures are considered in other states, Louisiana’s $24 million infusion may set a precedent for future funding structures in collegiate sports nationwide.
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