Sports gambling tax could double in Louisiana to fund college athletics

A proposal in Louisiana aims to more than double the sports gambling tax from 15% to 32. 5%, with some revenue dedicated to Division I athletics programs. The House Appropriations Committee supported House Bill 639, introduced by Rep. Neil Riser, R-Columbia, aligning the new rate with video poker taxes. This increase has backing from various political groups who believe the revenue will help address gambling-related issues, potentially raising an additional $2 million for addiction programs.

Riser's bill also proposes changing how tax revenue is allocated, directing 25% into a new fund called Supporting Programs, Opportunities, Resources and Teams (SPORT), which would benefit student-athletes at Louisiana’s public universities competing in NCAA Division I. The universities affected include UL Lafayette, UL Monroe, Louisiana Tech, LSU, and others. The bill is connected to House Bill 594 by Rep. Chance Henry, R-Crowley, which involves a flat tax on insurance premiums; Riser’s bill can only proceed if Henry's is approved.

Only Rep. Jerome “Zee” Zeringue, R-Houma, opposed Riser's bill, worrying about the budget impact of Henry's measure. The fiscal implications will be clarified in a future fiscal note before further legislative debate. Despite objections from sports gambling companies regarding the tax increase, college athletics leaders show strong support, as the funds could provide crucial financial assistance, especially for smaller schools. The proposed changes will maintain revenue shares for early childhood education, local governments, and addiction recovery, with an additional 3% supporting programs for students with disabilities.