In an unexpected move, Louisiana is considering a dramatic increase in its sports betting tax, stunning industry observers. On Monday, Rep. Roger Wilder III (R-Livingston Parrish) introduced House Bill 22 (HB 22), which, if passed, would more than triple the state’s sports betting tax rate from the current 15% to a staggering 51%.
The bill’s text specifically imposes “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.”
Mobile sports betting, which launched in Louisiana in early 2022, has grown rapidly in a state already known as the casino capital of the Southeast. Despite this growth, Louisiana ranks 15th in sports wagering handle—a position that’s likely to drop as larger states like Florida and North Carolina report more data.
Wilder’s proposal bears similarities to the tax rates in New York and Vermont, the only other states with sports betting taxes set at 51%. While New York’s tax scheme has drawn significant criticism from mobile sportsbook operators, the Empire State’s large population provides a leverage point not available to Louisiana.
In addition to the tax increase, Wilder’s bill seeks to eliminate the provision for promotional play—a key tool for customer acquisition in the industry. According to the bill, it “repeals the provision authorizing promotional play and amends the definition of ‘net gaming proceeds.'”
The proposal does not affect Louisiana’s pari-mutuel industry, including bets on horseracing and winning wagers.
Earlier this year, Illinois revised its sports betting tax structure, implementing a graduated levy system that resulted in significant tax hikes for major operators like DraftKings and FanDuel. This move ignited speculation that other states might follow suit to boost revenue, though the general consensus was that states like Michigan or New Jersey, not politically aligned with Louisiana, would be next.
Wilder’s unexpected proposal could catch the sports betting industry off guard, particularly given Louisiana’s advantageous geography for sports betting. None of its neighboring states currently permit mobile betting, potentially giving Louisiana a unique edge.
At this time, it remains uncertain whether Wilder’s bill has the momentum to succeed, but it has certainly put the sports betting industry on high alert.
