Proposal Aims to Capture More Revenue from Booming Sector
Louisiana lawmakers are set to debate a proposed increase in sports betting tax rates, with the goal of channeling more funds into state infrastructure and public programs as the state’s burgeoning mobile wagering market continues to flourish. Filed in late April 2025, the bill seeks to raise the tax on mobile sports bets from the current 15% to 20%, while keeping the retail (in-person) sports betting tax at its existing 10% rate.
The proposed legislation comes in response to strong market performance since Louisiana launched mobile sports betting in January 2022, with the state reporting over $3 billion in total handle and nearly $400 million in gross gaming revenue since inception. Lawmakers backing the measure argue that the current tax framework does not fully capture the sector’s growing profitability, especially as operator margins and player participation have increased year over year.
Balancing Revenue Goals and Market Competitiveness
Proponents, including State Senator Kirk Talbot, chair of the Senate Judiciary Committee, assert that a modest increase in the mobile tax rate would generate tens of millions in additional annual revenue, earmarked for education, infrastructure upgrades, and problem gambling programs. Talbot remarked, “We’re simply asking highly profitable operators to give back a little more to the communities that make their success possible.”
However, industry stakeholders have expressed caution, warning that an overly aggressive tax hike could discourage operator investment, stifle market innovation, and deter promotional spend that drives customer acquisition. Representatives from leading operators, including DraftKings, FanDuel, and Caesars Sportsbook, have urged lawmakers to consider the competitive pressures Louisiana faces from neighboring states like Mississippi and Arkansas, where tax rates remain relatively lower.
Next Steps and Stakeholder Engagement
The bill is scheduled for committee hearings in early May, with a full Senate vote anticipated later in the month. If approved, the new tax rate could go into effect as early as January 2026.
Lawmakers have indicated they are open to negotiations and amendments in response to industry feedback, with several compromise proposals—including phased increases or dedicated tax credits for operators investing in responsible gambling initiatives—currently under discussion.
Observers will closely watch how Louisiana balances its twin goals of maximizing public benefit while preserving a competitive, sustainable sports betting market.
