Louisiana appears to be the newest state heading toward a tax hike for sports betting operators.
The Louisiana Senate passed House Bill 639 Sunday, 35-3, which raises the Louisiana sports betting tax rate to 21.5% from 15%. It now heads to Gov. Jeff Landry.
Earlier this year, Maryland Gov. Wes Moore signed a new budget that included a hike to 20% from 15%.
Louisiana sports betting tax jump
Rep. Neil Riser sponsored HB 639, which made its way to the House floor in May. The House passed it May 20, 74-16.
The bill would have more than doubled the rate to 32.5% initially. However, lawmakers lowered the rate during the legislative process. A fiscal note estimates the tax increase will add $6.2 million annually to the tax haul.
Riser’s bill dedicates 25% of the mobile sports betting tax to supporting NCAA Division I athletic programs in the state.
The Senate Committee on Revenue and Fiscal Affairs and the Committee on Finance both reported the bill favorably. Last week, it passed through the Legislative Bureau without amendments and went on to its third Senate reading.
Active LA gambling session
Louisiana lawmakers briefly considered online casino earlier this session.
Earlier this month, lawmakers passed a prohibition on sweepstakes casinos, which also now awaits Landry’s signature.
Louisiana regulators have also amped up their pressure against the unregulated market.
Tax hike legislation
Along with Maryland’s tax rate increase, Illinois lawmakers added a per-bet tax to sports betting. That’s on top of a tiered tax rate the legislature passed last year.
Ohio Gov. Mike DeWine proposed doubling the tax rate, to 40% from 20%, in his budget. Lawmakers did not go along with it, as DeWine previously doubled it to 20% from 10% in 2023. A legislator did propose a 2% handle tax.
Multiple other states, including New Jersey and Indiana, had tax rate increase proposals.
