Louisiana Sports Betting Taxes Could More Than Triple Under New Bill
Louisiana sports betting providers have so far been subject to a modest 15% tax on their revenue.
One lawmaker is ready to flip that percentage to 51%. Louisiana Rep. Roger Wilder has filed a bill that, if passed, would more than triple the tax that sportsbooks pay the state.
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Why is Louisiana considering a 51% sports wagering tax?
It all comes down to money. Louisiana is facing a $700 million gap in its 2025 budget. The culprit? A 0.45% sales tax that expires in June. With that sales tax slated to expire, lawmakers need to find other ways to generate tax revenue.
Nonpartisan think tank Invest in Louisiana proposed a simple solution: extend the 0.45% sales tax. Of course, extending the tax rate would not sit well with voters who say they’re already dealing with a high cost of living.
In Wilder’s opinion, the best option to make up for the budget shortfall is to raise the state’s sports wagering tax a massive 36 percentage points. Wilder filed a bill earlier this week that would change the language of existing gambling law to include the new 51% tax rate.
What would a higher tax rate mean for operators and bettors?
Operators
Simply put, sportsbook operators would more than triple the amount of taxes they pay. If you apply the proposed tax rate to mobile sports betting revenue over the past nine months, mobile sportsbooks’ tax bills would have jumped from $42.2 million to $140.4 million:
| Net revenue before taxes | Total tax payment at 15% | Total tax payment at 51% | |
|---|---|---|---|
| September | $47,243,081 | $7,112,215 | $24,093,971 |
| August | $22,740,765 | $3,430,226 | $11,597,790 |
| July | $22,459,969 | $3,359,950 | $11,454,584 |
| June | $24,811,391 | $3,734,082 | $12,653,809 |
| May | $31,242,416 | $5,523,167 | $15,933,632 |
| April | $35,143,718 | $5,268,295 | $17,923,296 |
| March | $31,668,933 | $4,743,389 | $16,151,156 |
| February | $24,260,572 | $3,637,638 | $12,372,892 |
| January | $35,668,766 | $5,341,123 | $18,191,071 |
| Total | $275,239,611 | $42,150,085 | $140,372,202 |
Bettors
If the 51% bill passes, bettors could see Louisiana sportsbooks adjust their promo offerings. For example, books may choose to reduce the dollar value of new-customer offers. Additionally, they may be more discerning about what offers they give to current customers.
That means bettors who tend to bet lower amounts and infrequently may see fewer promo offers than they have before.
