Louisiana Eyes 32.5% Betting Tax to Fund College Sports

A Big Tax Hike for Athletics

Louisiana lawmakers are pushing House Bill 639, introduced by Rep. Neil Riser, to more than double the state’s online sports betting tax from 15% to 32.5%, matching the rate on video poker machines.

The bill, approved 20-1 by the House Appropriations Committee on April 28, 2025, aims to generate $68 million more annually, with a chunk supporting college sports.

The plan hinges on House Bill 594, which sets a flat insurance premium tax, with HB 639 only taking effect if HB 594 passes. Rep. Jerome Zeringue cast the lone dissenting vote, citing fiscal concerns about the linked insurance bill.

Lawmakers see the hike as a way to address gambling’s social costs, boosting addiction programs by $2 million.

SPORT Fund to Boost Universities

A key feature of HB 639 is the Supporting Programs, Opportunities, Resources, and Teams (SPORT) Fund, set to receive 25% of the tax revenue, or over $31 million yearly.

The fund will equally support 11 NCAA Division I public universities, including LSU, Grambling, and UL Monroe, with each getting about $2.8 million annually. Smaller programs like Nicholls and Southern could see major benefits.

The SPORT Fund will cover scholarships, medical care, facility upgrades, and legal settlements for student-athletes, without replacing existing awards, managed by the Board of Regents.

Another 3% of revenue will go to the Louisiana Postsecondary Inclusive Education Fund for students with disabilities. Existing allocations, 25% for early childhood education, 10% for local governments, and 3% for addiction programs, stay intact, with leftovers to the state’s General Fund.