Summary
- The tax on sports betting in Louisiana is set to increase to 21.5%, pending the Governor's signature.
- The initial proposal aimed to raise the tax to 32.5%.
- Tax hikes on sports betting are becoming more frequent in the United States.
Louisiana has shown strong support for Representative Neil Riser and his proposed legislation, House Bill 639, which is on the verge of becoming law. After two decisive votes with overwhelming majorities in both the House and the Senate, the bill is now on its way to Governor Jeff Landry's desk, where it is expected to be signed into law.
The governor’s signature is all it takes for Louisiana to pass its new tax rate
The proposal aims to raise the tax on online sports betting from 15% to 21.5%. This isn't a standalone case, as states like Maryland and New Jersey have also recently adjusted their tax rates. While lawmakers initially considered increasing the tax to 32.5%, they settled on the lower rate after determining that the higher one was too divisive. Nonetheless, the trend toward higher taxes is evident. The legislators expect this change to generate an additional $77 million, with $20 million allocated to the Supporting Programs, Opportunities, Resources, and Teams Fund. Most of this revenue will support state and sports initiatives. However, it overlooks groups directly affected by gambling addiction. Peter Robins-Brown, executive director of Louisiana Progress, argues for more funding to address the negative consequences of widespread gambling legalization in the state. He emphasizes that it disproportionately affects working-class and marginalized communities, making them more vulnerable to gambling-related issues.
Not enough money for problem gambling amid push for higher taxes
He claims that mobile gambling has intensified various social and cultural issues, contributing to domestic violence, bankruptcies, and addiction. New tax revenue should primarily be used to tackle these issues before we consider allocating more funds to college sports, Robins-Brown stated in a release circulated by media outlets. In general, the United States has seen a rise in sports betting tax revenue. Internationally, legislators have also sought to extract more from the industry. In Brazil, for example, an unpopular financial transactions tax was recently abolished and replaced with a new levy on the sports betting sector.
