Louisiana proposes tax shift on online sports betting to fund education programs

A new legislative proposal, House Bill 639, introduced in Louisiana on April 16, 2025, aims to reshape the landscape of online sports wagering in the state by adjusting tax rates and reallocating revenue to support educational initiatives. This bill seeks to change the current 15% tax on online sports betting to align with the tax rate applied to video draw poker devices at qualified truck stop facilities, potentially increasing the revenue generated from this growing sector.

One of the key provisions of House Bill 639 is the establishment of the Supporting Programs, Opportunities, Resources, and Teams Fund (SPORT Fund). This fund will receive 25% of the revenue generated from the revised online sports wagering tax, while an additional 3% will be allocated to the Louisiana Postsecondary Inclusive Education Fund. The SPORT Fund is designed to provide financial support to eligible universities and student athletes, ensuring that the funds are used to enhance educational opportunities rather than displacing existing scholarships or awards.

The bill has sparked discussions among lawmakers and stakeholders regarding its potential impact on both the sports betting industry and educational funding. Proponents argue that the reallocation of funds could significantly benefit student athletes and educational programs, fostering a more inclusive environment for higher education in Louisiana. However, some critics express concerns about the implications of changing the tax structure and the long-term sustainability of the funding model.

As the bill moves through the legislative process, it is expected to undergo further scrutiny and debate. Experts suggest that if passed, House Bill 639 could not only boost state revenue from online sports wagering but also create new opportunities for students, aligning with broader goals of enhancing educational access and support in Louisiana.

In conclusion, House Bill 639 represents a significant shift in how Louisiana approaches online sports wagering and its associated revenues. By directing funds toward educational initiatives, the bill aims to create a more supportive environment for student athletes while addressing the growing demand for funding in higher education. The outcome of this legislation could have lasting effects on both the sports betting industry and the educational landscape in the state.