Louisiana approves online betting tax hike from 15% to 21.5%

Louisiana is set to become the third US state this year to raise its online sports betting tax rate, following strong Senate support for HB 639.

The Bill, which was introduced by State Representative Neil Riser and already approved by the House, increases the tax rate from 15% to 21.5% and now awaits the Governor’s signature.

Senator Stewart Cathey stated that the new rate brings online sportsbooks in line with brick-and-mortar casinos, which already pay the same 21.5% rate for casino gaming. Retail sportsbook tax rates, currently set at 10%, will remain unchanged.

The original proposal had suggested raising the rate to 32%, but lawmakers revised it downward before passage in the House. Cathey also clarified that 25% of the new revenue will be allocated to the newly created Sport Fund, designed to support D-1 university programs. This includes scholarships, insurance, and facility improvements, but excludes any direct athlete payments.

“It is specifically in the legislation that it cannot be used to fund NIL or to make direct payments to athletes,” Cathey said.

Good to know: The Sports Gaming Licensing Association released a statement claiming Louisiana lawmakers were misled by inaccurate claims during the legislative process

Louisiana joins Maryland and Illinois as the third state to approve a tax hike on online sports betting.

Maryland’s budget raised its tax to 20%, while Illinois implemented a progressive tax rate with a ceiling of 40%.

Carlos Mendez

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Odds tell a story long before the result does. When bettors learn to read that story properly, betting becomes a matter of discipline and value rather than emotion or guesswork.

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