www.thecentersquare.com – By John A. Pappas | iDevelopment and Economic Association – (The Center Square – ) 2025-05-07 14:24:00
Louisiana’s legal sports betting market has generated nearly \$68 million in tax revenue over the past year, contributing to the state’s economic growth. However, House Bill 639 threatens this progress by proposing a tax increase from 15% to 32.5%, which would make Louisiana one of the highest-taxed sports betting markets in the country. The bill risks discouraging investment, reducing consumer benefits, and pushing bettors to unregulated offshore sites. Advocates suggest that legalizing online casino gaming could generate significantly more revenue. The bill could undermine Louisiana’s tradition of fostering economic growth and responsible governance.
Louisiana’s legal sports betting market is working – and working well. Over the past 12 months, it has generated nearly $68 million in tax revenue, drawn investment from national and local companies, and created a safe, competitive environment for consumers.
That progress is now at risk.
House Bill 639 would more than double the tax rate on sports betting – from 15% to 32.5% – making Louisiana one of the highest-taxed markets in the country. As the leading trade association representing online gaming operators and suppliers, including those licensed right here in Louisiana, we believe this bill is not just bad policy – it’s bad economics.
Our members – ranging from small startups to major platforms – entered the market under a fair and stable regulatory framework. HB 639 changes the rules midstream. It penalizes companies for investing in the state and could discourage further growth just as the market is beginning to hit its stride.
Louisiana saw record betting activity around Super Bowl LVIII, a testament to what a well-calibrated system can deliver. But raising taxes now sends the wrong message to businesses and bettors alike. Higher taxes mean fewer promotions, worse odds for consumers, and less incentive for legal operators to expand. It also risks driving people back to unregulated offshore betting sites – where there are no tax revenues, no consumer protections, and no local economic benefit.
If lawmakers are looking for a meaningful and sustainable way to raise new revenue, legalizing online casino gaming is a far better path. A 2024 study by Vixio and Light & Wonder estimated that iGaming, taxed at the same 32.5% rate, could generate up to $250 million annually, nearly four times the amount collected from sports betting today.
Louisiana has long embraced policies that promote economic growth and responsible governance. HB 639 threatens to reverse that tradition. We urge lawmakers to maintain a stable business environment and pursue smarter, more forward-looking strategies for growth.
John A. Pappas is State Advocacy Director at iDevelopment and Economic Association
Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.
Political Bias Rating: Center-Right
This article presents a clear ideological stance against House Bill 639, which would increase the tax rate on sports betting in Louisiana. The language emphasizes economic growth, market stability, and business interests, which are often associated with center-right positions. The article frames the bill as harmful to business investment and consumer interests, highlighting the negative effects of higher taxes on both companies and consumers. It advocates for a more market-friendly alternative, the legalization of online casino gaming, further reinforcing a pro-business, free-market perspective. However, the article avoids partisan rhetoric, maintaining a focus on economic arguments rather than aligning with a specific political party.
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