Louisiana is making headlines as the first state to raise its Louisiana sports betting tax specifically to support college athletics. Governor Jeff Landry recently signed House Bill 639, which increases the tax rate on online sports betting from 15% to 21.5%. Set to take effect August 1, this move is projected to generate an additional $24 million annually for the state’s public universities.
A quarter of the new tax revenue from the Louisiana sports betting tax will be split equally among 11 public universities with NCAA Division I athletic programs, including LSU, Louisiana Tech, and McNeese State. The funds are earmarked for the benefit of student-athletes—covering scholarships, insurance, medical coverage, facility enhancements, and litigation settlement fees, but not direct NIL (Name, Image, Likeness) payments.
This legislation comes as universities prepare for the financial impact of the recent House v. NCAA settlement, which allows schools to share up to $20.5 million annually with athletes—a figure set to rise each year. By reallocating Louisiana sports betting tax revenue, the state aims to help its universities manage these new budget demands without raising tuition or cutting programs.
The law also ensures that the Board of Regents will oversee the distribution of these funds, with each university setting its own criteria for awarding benefits. Most schools are expected to allocate 75% of the funds to football, 15% to men’s basketball, 5% to women’s basketball, and the remaining 5% to other sports.
Louisiana’s innovative approach to the Louisiana sports betting tax not only supports student-athletes but also helps keep its college sports programs competitive in a rapidly evolving landscape. As Rep. Neil Riser, the bill’s sponsor, put it: “We love football in Louisiana—that’s the easiest way to say it.
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