Lawmakers in Louisiana are looking to push the state’s online sports betting tax up. If approved, the measure would generate millions in additional tax money.
The measure just passed the House Appropriations Committee with overwhelming support, bringing it closer to getting signed into law.
Louisiana Seeks to Double Its Online Betting Tax
House Bill 639, which is the brainchild of Rep. Neil Riser, comes in the wake of another measure that sought to increase Louisiana’s online sports betting tax. While its predecessor failed, HB 639 has kicked the legislative process off with a bang, securing almost unanimous approval from the House Appropriations Committee.
The only committee member who opposed the bill was Rep. Jerome Zeringue who was concerned about how a flat tax outlined in the bill would function and whether the described model could affect the state’s fiscal policy.
If signed into law, the measure would more than double the Pelican State’s online sports betting tax to 32.5%. For reference, the current tax is 15%.
HB 639 aims to align the online betting tax to the tax on other gaming products, such as video draw poker machines. In addition to that, it would generate millions of dollars in additional tax revenue, allowing Louisiana to fund education, healthcare and various sporting programs.
According to estimates by the Louisiana Legislative Fiscal Office, the 32.5% tax would boost the tax revenue to roughly $190.1 million (currently 59.3 million).
The Tax Would Generate Millions of Dollars for Many Causes
Proponents justified the proposal with the online sports betting industry’s continued success and the value Louisiana can get out of the extra tax money. For context, lawmakers will direct approximately a fifth of this money toward a variety of funds.
Per HB 639, Louisiana will establish the Supporting Programmes, Opportunities, Resources, and Teams Fund (SPORT Fund), which will receive roughly a quarter of the revenue generated from mobile sports betting taxes. The SPORT fund will support student-athletes and other sporting initiatives in Louisiana.
In the meantime, the extra money will help Louisiana support a variety of other initiatives. Under HB 639, The Louisiana Early Childhood Education Fund will receive over $5 million in extra funding every year.
Another key initiative would be supporting problem gambling treatment and helping people struggling with gambling get back in control.
In the meantime, local governments will receive more funding for a variety of initiatives. The bill however does not specify how this money will be distributed.