In a move that’s stirring up the digital landscape of Louisiana’s gaming industry, the state’s lawmakers have taken a decisive step to increase the tax rate for online sportsbooks from 15% to an eye-catching 21.5%. This legislative change is on the brink of becoming law, pending the signature of Governor Jeff Landry. The adjustment aims not just to augment state revenue but also to funnel substantial support towards student-athletes through a novel financial conduit.

The legislation, known as House Bill 639 and spearheaded by Rep. Neil Riser (R-Columbia), sailed through both chambers of the legislature with commendable margins. After initial proposals suggested an even steeper increase to 32.5%, a compromise was reached at the current rate, reflecting a keen legislative process aimed at balancing industry competitiveness with public benefit.

Critics from within the sportsbook sector have voiced concerns, arguing that this heightened tax burden could impinge upon their ability to offer competitive odds and promotions. This, they fear, might inadvertently push bettors towa

rds unregulated offshore platforms. Nonetheless, Louisiana’s legislators are standing firm on their resolution, driven by a broader vision for funding student-athlete programs.

Should Governor Landry affix his signature to HB639, a quarter of the tax revenues collected from online sportsbook operations will be earmarked for the Supporting Programs, Opportunities, Resources, and Teams Fund—or SPORT Fund for short. This initiative is poised to bolster athletic departments across public universities in Louisiana that partake in NCAA Division I athletics across both Football Bowl Subdivision and Football Championship Subdivision levels.

This financial infusion is set to benefit a broad spectrum of institutions within the state—from flagship powerhouses like Louisiana State University (LSU) to smaller yet vibrant campuses such as McNeese State University, Grambling State University, and Southern University. A total of twelve schools stand to gain from distributions aimed at supporting scholarships, medical coverage for athletes, facility upgrades among other crucial needs without supplanting existing awards or scholarships.

Estimates project that eligible institutions could receive around $2 million annually from the SPORT Fund—a significant boost that underscores the potential impact of this legislative action on college athletics throughout Louisiana.

Furthermore, HB639 allocates an additional 3% slice of online sports betting tax receipts towards enhancing inclusive education programs at colleges and universities across the state. This commitment builds upon previous legislation signed into law by Governor John Bel Edwards (D), reinforcing Louisiana’s dedication to expanding educational opportunities for students with intellectual or developmental disabilities.

As these changes loom over Louisiana’s online betting scene, questions linger about how adjustments in operational costs might influence consumer behavior—particularly concerning offshore betting platforms. Yet what remains clear is Louisiana’s intent: leveraging its burgeoning online sports betting market as a catalyst for educational and athletic advancement within its borders.