House in Louisiana approves higher tax rate for online sports betting
Larry Henry dives into the latest gaming news swirling around Louisiana's House of Reps.
In an unexpected turn of events, Larry's home state is shaking up its online sports betting industry. On May 20, in a 73-15 vote, the bill to enhance the tax on online sports wagers, House Bill 639, proposed by Rep. Neil Riser, made its way past the House, now heading for the Senate.
HB 639, initially suggesting a whopping 32.5% online sports betting tax, got a dramatic makeover during negotiations with the commercial sports betting industry, bringing the proposed tax to a more manageable 21.5%[2][3]. If approved by the Senate, this bill will arrive on Gov. Jeff Landry's desk for the final approval.
Louisiana's legislative session wraps up on June 12 at the Capitol in Baton Rouge, and it's unclear whether the 39-member Senate will side with this change. Previously, state Sen. Kirk Talbot, R-River Ridge, told Gambling.com the bill has a 50-50 chance of passing in that chamber[6].
While the tax bill required a two-thirds vote, the 73 yes votes met the threshold[6]. If enacted, this tax hike intends to contribute to addressing Louisiana's projected budget deficit without raising income or sales taxes[7].
In a shift from traditional gaming, sports betting is legal in most parishes at brick-and-mortar casinos and online using cellphones and computers. The online sports betting bill is tied to House Bill 594 by Rep. Chance Henry, which aims to establish a flat rate of insurance premium tax[2][4]. The insurance premium bill and the online sports betting bill are now awaiting Senate consideration, with 93 House representatives backing the insurance premium bill on May 21[4].
With an increase in taxes on mobile betting, 25% of the revenue produced will be channeled to the Supporting Programs, Opportunities, Resources, and Teams (SPORT) Fund, which supports NCAA Division I athletic departments at Louisiana public universities[2][5].
Stay tuned as Louisiana navigates these legislative changes, and don't forget to catch Larry's coverage of these and other gaming-related news!
[1] Enrichment Data - Overall:- Current Status of House Bill 639: House Bill 639, introduced by Rep. Neil Riser, has been passed by the Louisiana House with significant amendments. The bill now moves to the Senate for further consideration.- Comparison to Initial Proposal: + Initial Proposal: The original draft of HB 639 suggested raising the tax rate to 32.5%, more than doubling the current rate. + Revised Proposal: The amended version, which was passed by the House, increases the tax rate to 21.5%, a more moderate increase compared to the initial proposal.- Key Features: - Revenue Allocation: 25% of the revenue generated from mobile sports betting will be directed to the Supporting Programs, Opportunities, Resources, and Teams (SPORT) Fund, which supports NCAA Division I athletic departments at Louisiana public universities. - Budget Impact: The increased tax aims to contribute to addressing Louisiana's projected budget deficit without raising income or sales taxes.
The latest news in Louisiana's gaming industry revolves around House Bill 639, which was recently passed by the House with significant amendments, now moving to the Senate for further consideration. Notably, the bill proposes a tax increase on online sports betting, initially suggested at 32.5%, but now reduced to a more manageable 21.5% following negotiations with the commercial sports betting industry.
The online sports betting bill is linked to House Bill 594, which aims to establish a flat rate of insurance premium tax, and both bills are awaiting consideration in the Senate. If approved, 25% of the revenue from mobile sports betting will be allocated to the Supporting Programs, Opportunities, Resources, and Teams (SPORT) Fund, supporting NCAA Division I athletic departments at Louisiana public universities.
Keep an eye on the developments in Louisiana's legislative changes, as they may affect the sports betting industry and the state's sports and education sectors. Don't miss Larry's coverage of these and other gaming-related news for updates on these legislative changes.
