Louisiana House Pushes Sports Betting Tax Hike to 21.5%, Eyes Senate Showdown

A Big Win in the House

Louisiana’s House of Representatives won big, passing House Bill 639, with a 73-15 vote. Authored by Rep. Neil Riser, the bill bumps the tax on online sports betting from 15% to 21.5%, surpassing the two-thirds majority needed to advance to the Senate.

Originally set to jack the rate to 32.5%, matching video poker taxes, the House scaled it back after negotiations with betting operators.

The move aims to juice state coffers amid a $338.9 million budget shortfall for 2026.

With online sports betting booming since its 2022 launch, Louisiana sees it as a cash cow to plug budget holes without touching other taxes.

HB 639 dedicates 25% of the tax revenue to the new Supporting Programs, Opportunities, Resources, and Teams Fund, funneling roughly $1.7 million annually to each of 11 NCAA Division I public universities, like LSU and Southern, for athlete scholarships, medical care, and facilities.

Another 3% goes to the Louisiana Post-secondary Inclusive Education Fund for students with disabilities. “The need is high,” Riser said, emphasizing the boost for college sports.

Early estimates at the 32.5% rate projected $190.1 million in annual revenue, up from $59.3 million, but the 21.5% rate clouds those numbers.

Betting Industry Pushes Back

Sportsbook giants like FanDuel and BetMGM aren’t thrilled, arguing the current 15% tax already tops the 14% national average. They warn higher taxes could slash bonuses, worsen odds, and drive bettors to illegal offshore sites.

Bill Pascrell III, a Princeton Public Affairs Group lobbyist, said, “Every casual observer that’s not part of this industry thinks this industry is massively profitable,” urging education on thin margins.

Lawmakers, though, are skeptical, noting many operators lack Louisiana-based staff or infrastructure, unlike local casinos paying 32.5%.

Senate Hurdles and a Linked Bill

HB 639 now faces the Senate, where it hasn’t yet landed in a committee. State Sen. Kirk Talbot pegged its odds at 50-50, noting the two-thirds vote requirement in the 39-member chamber.

The bill’s tied to HB 594, a flat-rate insurance premium tax measure by Rep. Chance Henry, which must pass for HB 639 to take effect. HB 594 cleared the House 93-0, boosting hopes, but with the legislative session ending June 12, time’s tight.