Louisiana Proposes 51% Online Sports Betting Tax

Louisiana is considering a substantial increase in its sports betting tax rate from 15% to 51% through House Bill 22 (HB22), introduced by Representative Roger Wilder III. If passed, the bill would eliminate the deduction of promotional credits, which operators used to lower their taxable revenue, a practice that cost the state $44.4 million in the 2023-24 fiscal year. This proposed tax hike would align Louisiana with New York and Vermont as having the highest sports betting taxes in the U.S., although industry experts warn it could stifle growth and deter investment. Critics argue the significant increase could harm Louisiana's competitive position as larger states like Florida and North Carolina continue to expand their sports betting markets. The bill faces strong opposition and would require a two-thirds majority in both the House and Senate to become law, amid broader fiscal reforms pushed by Governor Jeff Landry to address a $700 million budget shortfall. The move reflects a national trend of states reevaluating their sports betting tax structures as they seek to enhance revenue.