21.50% Louisiana Online Sports Betting Tax from August 2025

by Amelia Walker, June 23, 2025

Louisiana Governor Jeff Landry has signed House Bill 639 into law, effectively raising the online sports betting tax in the state from 15% to 21.50%.

More on the Louisiana Online Sports Betting Tax Increase

House Bill 639 (now Act No. 298) received overwhelming support, passing the House with a 74-16 vote before receiving 35 votes in favor and 3 against in the Louisiana Senate. Finally, the Pelican State’s Governor, Jeff Landry, signed the bill into law.

From August 1st, 2025, the online sports betting tax will jump from 15% to 21.50%. The additional revenue will be allocated toward supporting college athletics at public universities in the state. 25% of the generated amount will be equally distributed between the 11 public universities with Division I football programs.

Many smaller colleges and universities, including those in Louisiana, are facing financial pressure in their athletic departments. While top Division I football schools generate most of their revenue from media rights and donors, smaller programs rely heavily on institutional support and student fees, sometimes up to 81%, to keep their sports teams above water.

Louisiana’s smaller universities have struggled to remain competitive, often shifting money from general funds to athletics. With the state collecting millions in sports betting taxes, lawmakers argue it’s fair to redirect some of that revenue back to support student-athletes and help stabilize university budgets.

We love football in Louisiana – that’s the easiest way to say it.”

Republican State Representative Neil Riser

Among other things, the money will fund scholarships, medical coverage, insurance, and facility improvements. But that’s not the only reason behind the tax hike in Louisiana. The state will also use part of the generated revenue to address the substantial $338.9 million budget deficit projected for the 2026 fiscal year.

So, starting from August 1st, the 8 licensed online sportsbooks (bet365, BetMGM, BetRivers, Caesars Sportsbook, DraftKings, ESPN Bet, Fanatics, and FanDuel) in Louisiana will be charged a higher 21.50% tax. The tax for retail sports betting venues remains unchanged at its current rate of 10%.

Is There a Trend Toward Raising Sports Betting Taxes in 2025?

This year, Louisiana is not the only state to consider or implement a sports betting tax hike. In fact, we’re observing a trend in this direction. Starting July 1st, sportsbooks in Illinois must pay $0.25 for each of the first 20 million wagers placed annually and $0.50 for every wager beyond that threshold.

While the Prairie State is expected to generate about $36 million in additional revenue, leading sportsbooks such as DraftKings and FanDuel have already announced a $0.50 surcharge on every bet placed from September 1st, 2025. Gamblers will cover this extra cost, which is far from ideal.

North Carolina also votes on Senate Bill 257, which proposes a significant tax increase from 18% to 36%, effective October 1st, 2025. The bill has passed the Senate and awaits House approval. Moreover, House Bill 352 was enacted in Maryland in May this year, raising the mobile sports betting tax from 15% to 20%.