Louisiana Governor Jeff Landry has rejected Senate Bill 181, which aimed to ban sweepstakes casinos in the state.With proposed harsh penalties, fines up to $100,000, and...
Louisiana Senate Approves Sports Betting Tax Hike
The Louisiana Senate approved House Bill 639, raising the tax rate on online sports betting from 15% to 21.5%. The legislation now moves to Governor Jeff Landry for final approval.
The Bill was approved in a 35-3 vote. Senator Stewart Cathey, who introduced the bill in the Senate, stated that it was developed in agreement with the industry. Retail sportsbooks will continue with a 10% tax.
25% of the new revenue will be directed to the newly developed SPORT Fund (Supporting Programs, Opportunities, Resources and Teams) for Division I universities, covering scholarships, insurance, medical expenses, and facility improvements. Still, the new revenue won’t pay college athletes.
Senator Stewart Cathey stated:
“It is specifically in the legislation that it cannot be used to fund NIL (names, images, and likeness) or to make direct payments to athletes. Absolutely not, I’m fundamentally opposed to that.”
If the bill gets its final approval, Louisiana will become the 3rd US state to raise its online sports betting tax, following Maryland and Illinois. Several other states, including New Jersey and Ohio, also consider adjustments to their tax structures.
In Illinois, Flutter Entertainment, the parent company of FanDuel, decided to implement a $0.50 transaction fee on all bets starting September 1. Flutter CEO Peter Jackson criticizes the policy shift and has agreed to remove the transaction fee if Illinois reverses its decision.
Rival operator DraftKings also considers its response to the tax changes. Last year, DraftKings backed away from the proposed surcharge in high-tax states after FanDuel initially chose not to impose one.
Louisiana's House of Representatives passed an updated version of House Bill 639, which aims to increase the sports betting tax rate to 21.5%.Initially, the bill proposed...
