In an unexpected move, Louisiana is now considering a substantial tax increase on sports betting through new legislation proposed for 2024.

Earlier this week, Representative Roger Wilder III (R-Livingston Parish) introduced House Bill 22 (HB 22), which seeks to raise the state’s sports betting tax rate from 15% to 51%—more than tripling the current rate. According to the bill, a “fifty-one percent tax upon the net gaming proceeds from sports wagering offered to consumers within this state” would apply to digital bets made via websites or mobile apps.

Since its launch in early 2022, mobile sports betting has seen considerable growth in Louisiana, a state already known as the casino hub of the Southeast. Currently, Louisiana ranks 15th in sports betting handle among U.S. states, though this could change as larger states like Florida and North Carolina continue to report new data.

Louisiana’s Tax Proposal Similar to New York’s

While it’s uncertain if Wilder was directly inspired by New York or Vermont, these are the only other states with a 51% sports betting tax. In New York, mobile sportsbook operators have criticized the high tax rate, but the state’s large population allows it to maintain substantial leverage—an advantage Louisiana does not have.

Wilder’s proposal may also ruffle feathers among operators by eliminating promotional play allowances, a popular tool for customer acquisition in the betting industry. As stated in the bill, the legislation would “repeal the provision authorizing promotional play and amend the definition of ‘net gaming proceeds.’”

Notably, the tax hike would not impact Louisiana’s pari-mutuel industry, including horseracing and related bets.

A Surprise Move That May Set a Precedent

Louisiana’s proposal follows Illinois’ recent adjustment to its sports betting tax, implementing a graduated system that raises taxes for top operators like DraftKings and FanDuel. This change has prompted speculation that other states could also increase their sports betting taxes to maximize revenue.

Previously, industry experts thought Michigan or New Jersey might lead any potential tax hikes. The introduction of Wilder’s bill, however, suggests Louisiana could be an unexpected pioneer.

At this stage, the fate of HB 22 is uncertain, though Louisiana’s geographic advantage—none of its neighboring states permit mobile betting—could work in favor of Wilder’s proposed legislation.

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