Louisiana is advancing its online sports betting tax hike, with House Bill 639 (HB 639) clearing the House of Representatives on May 20, 2025. The bill reflects a broader national trend as states seek higher taxes on sports wagering.
Revised Tax Rate Compromise
Originally, HB 639 aimed to more than double Louisiana’s online sports betting tax to 32.5%, but after industry pushback, lawmakers settled on a 21.5% tax rate instead. Stakeholders argued that an excessive increase would reduce market competitiveness and potentially drive bettors toward unlicensed gambling platforms.
Currently, Louisiana’s online sports betting tax sits at 15%, and the proposed increase would exclusively affect mobile betting operators.
Tax Revenue Allocation Changes
Beyond raising taxes, HB 639 introduces new funding distribution measures:
- 25% of revenue will go to the newly established Supporting Programmes, Opportunities, Resources, and Teams Fund (SPORT Fund), which supports student-athletes and sports programs at Louisiana universities.
- 3% of revenue will be allocated to the Louisiana Postsecondary Inclusive Education Fund.
- The remaining funds will be directed toward state revenue initiatives.
Next Steps for HB 639
The bill now moves to the Louisiana Senate for further debate. If passed, it will require Governor approval before becoming law.
Other States Raising Sports Betting Taxes
Louisiana’s tax increase follows recent moves in other states:
- Maryland passed House Bill 352, raising its online sports betting tax from 15% to 20%.
- Colorado passed House Bill 1311, eliminating tax deductions for betting operators, with funds redirected to the state’s Water Plan.
With Louisiana joining the wave of tax increases, will other states follow suit? The coming months could see further shifts in online sports betting regulations.
