Louisiana Raises Sports Betting Taxes to Fund D1 Athletics (Funds not NIL Eligible)

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Louisiana lawmakers have sent legislation that hikes the state’s sports betting tax rate to Gov. Jeff Landry, who is expected to sign the measure into law.

House Bill 639 received overwhelming approval from both sides of the Louisiana State Legislature. It first passed the House 74-16 in May before the Senate approved it by a 35-3 vote on Sunday.

The legislation, sponsored by Rep. Neil Riser (R-20), raises the tax rate on Louisiana sports betting from 15% to 21.5%.

One-fourth of tax revenue from sports wagering will be allocated to the Supporting Programs, Opportunities, Resources and Teams (SPORT) Fund to aid student-athletes at in-state schools and universities.

Schools could collect just under $2M a year
Louisiana’s impending change would net the state about $77 million from sports betting each year. SPORT could see just under $20 million annually.

Each of the state's 11 public institutions competing at the Division I level would collect around $1.8 million.

Schools that would receive contributions from the fund include:

Grambling State University
Louisiana State University
Louisiana Tech University
McNeese State University
Nicholls State University
Northwestern State University
Southeastern Louisiana University
Southern University and A&M College
University of Louisiana at Lafayette
University of Louisiana Monroe
The University of New Orleans


SPORT funding could be used to pay for scholarships, insurance, facility and stadium upgrades, and anything else related to the Athletics Department. It cannot, however, be used to pay student-athletes under NIL.

The $1.8 million amount might not be much to a powerhouse institution such as LSU, but it could have a significant impact at smaller programs like UL-Monroe, which had a budget of about $21 million during the 2024-25 fiscal year.

The bill received bipartisan support due to its focus on improving the public education experience in Louisiana. Having more money to spend on athletics could also entice more students, including those paying out-of-state tuition, to get their degrees from Louisiana schools.

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