Baton Rouge, LA – The louisiana House of Representatives has taken a critically important step towards reshaping the state’s revenue landscape by advancing House Bill 639. The bill aims to increase taxes on online sports betting, a move designed to address a looming budget shortfall. The House approved the measure after adopting an amendment that tempered the initial proposed tax hike.

Key Provisions of house Bill 639

• Tax Rate Adjustment: As amended, the bill, sponsored by Rep. Neil Riser, R-Columbia, proposes raising the tax rate on mobile sports wagering from 15% to 21.5%. This figure is a compromise,significantly lower than the original proposal of 32.5%.
• Retail Betting Unchanged: The existing 10% tax on in-person retail sports betting will remain unchanged.
• Revenue Allocation: The bill earmarks 25% of the online wagering tax revenue for a newly established college sports fund. This fund would directly support public college athletic departments. Additionally, 3% of the revenue would be dedicated to supporting students with disabilities in higher education.

Addressing the Budget Shortfall

The bill now heads to the Senate for further consideration.It is part of a broader legislative effort to generate recurring revenue to mitigate an anticipated $338.9 million budget shortfall in fiscal year 2026.

Fiscal Impact and Projections

Prior to the amendment, state fiscal analysts projected that the bill could nearly triple sports wagering tax collections, increasing from approximately $59 million to $190 million annually by 2030. However, the revised tax rate necessitates a reassessment of these revenue estimates. The exact impact of the scaled-back rate on future revenue is currently unclear.

Additional Allocations

The legislation also outlines increased contributions from the gaming tax to various sectors,including early childhood education,local governments,and the state’s general fund. These allocations are subject to change, contingent upon the final amended tax rate.