Louisiana State Rep. Roger Wilder III has introduced a bill that seeks to raise the state’s tax rate on sports betting revenues from 15 to 51 percent.
“There is hereby levied a fifty-one percent tax upon the net gaming proceeds from sports wagering offered to consumers within this state pursuant to this Title electronically through a website or mobile application,” says the text of the bill.
If approved, Louisiana would move from one of the more moderate tax rates to join New York, New Hampshire and Rhode Island, the highest-taxing states, which all impose a 51 percent tax on sports betting revenue. The lowest rate of 6.75 percent can be found in Nevada and Iowa.
House Bill 22 also “repeals the provision authorizing promotional play,” a popular customer acquisition tool used by online sportsbooks.
Louisiana approved legal sports betting in November 2020, with online sports betting launching in January 2022. The state is home to eight online sportsbooks, including DraftKings, FanDuel, Caesars, BetMGM, bet365, Fanatics, ESPN Bet and BetRivers. The latest figures published by the Louisiana Gaming Control Board show that they collected $49.9 million in revenue in September, reflecting a 33 percent year-over-year increase.
Under the 15 percent tax rate, the online sportsbooks contributed roughly $7.1 million in taxes for the month.
