The Governor of Louisiana has signed a bill into law that will increase the tax rate in the state.
Jeff Landry only had to add his signature to implement the change to the state legislature, which will see the tax rate increase from the current rate of 15% to 21.5%.
The move, which has been called for by fellow legislators and representatives in the state, will see a portion of the funds taken in by betting taxation spread out amongst college environments.
Louisiana betting tax rate goes up.
House Bill 639 was passed, and inserted into that law was Act No. 298, which will take effect on August 1, 2025, and contains the increase that betting operators will have to abide by in the fall.
25% of all the betting tax proceeds will be shared in these sporting environments that are a hotbed of the talent the state prides itself upon. Representative Neil Riser, a key politician in the bill’s saga, said, “We love football in Louisiana – that’s the easiest way to say it.”
This makes the Bayou State the first to change its legislation to directly fund sports from the proceeds of gambling taxation revenue. The state’s 11 Division 1 public universities will receive an equal share of the aforementioned 25% of the tax funds.
Name, image, and likeness (NIL) payments from third-party sponsors will be allowed in the state, which is a key desire for young athletes looking to hit the limelight. It can also be a deal breaker for a prospect deciding on their college of choice.
Senate Bill 181, which would have impacted gambling in the state, was recently shut down by Landry. He said the work of the Louisiana Gaming Control Board (LGCB) was enough of a charge to keep sweepstake wagering in check.
He said, “The (LGBC) Board is already taking active steps to combat illegal gambling in Louisiana,” in response to SB 181 being unsuccessful.
“As such, this bill is a solution in search of a problem that is already being solved by our current system, and some of the language in this bill is overly broad and could be interpreted in an adverse manner, which may harm or impede our current enforcement actions taken against these bad actors,” he concluded.
Featured image: Pixlr AI-generated.
