Louisiana lawmakers discuss tax hike for sports betting operators
Legislators in Louisiana have proposed an increase in the state’s sports betting tax from 15% to 32.5%, matching the tax rate on video poker.
House Bill 639, introduced by Rep. Neil Riser, was advanced from Louisiana’s House Appropriations Committee with a 20-1 vote on Monday.
Lawmakers also tied House Bill 594 – legislation introducing a flat tax on insurance premiums – to Riser’s bill.
Proponents of the bill stress that the tax increase will help generate an additional US$2 million for the state’s addiction programs.
Sportsbook operators have pushed back, arguing that Louisiana’s current tax rate was already above the nationwide average of 14%.
Meanwhile, Riser proposes a split from the surplus revenue, with 25% going to the Supporting Programs, Opportunities, Resources and Teams fund, which helps NCAA Division I student athletes in Louisiana.
The legislation proposes that revenue being put towards the Supporting Programs, Opportunities, Resources and Teams fund should be equally split among institutions, including UL Lafayette, UL Monroe, Louisiana Tech, LSU, Grambling, McNeese, Nicholls, Northwestern, Southeastern, Southern, and the University of New Orleans.
Estimates suggest that the Supporting Programs, Opportunities, Resources and Teams fund would receive up to US$31 million annually, with each institution receiving around US$2.8 million.
The only committee member to vote against its advancement was Rep. Jerome Zeringue, who raised concerns regarding the legislation’s fiscal impact on the state. The impact of the joint bills will be made public before it is debated.
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Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
