Louisiana Gov. Jeff Landry signs bill to raise state sports betting tax, help offset schools' revenue-sharing costs

Louisiana Gov. Jeff Landry has signed a bill to raise the state’s sports betting tax. A portion of the revenue will go to the state’s colleges to help offset revenue-sharing costs upon House v. NCAA settlement implementation.

HB 639 was proposed in April and went through the state House of Representatives and Senate before heading to Landry’s desk June 10. It features a provision to raise Louisiana’s tax on sports betting from 15% to 21.5%. The law also states 25% of the dollars – an estimated $24 million – collected under the tax increase will be split equally among 11 of the state’s public universities to go toward revenue-sharing. It will take effect Aug. 1.

Under the House v. NCAA settlement, schools will be able to directly share up to $20.5 million with athletes. That figure will increase annually. The law is a way for the state to help offset those costs as universities prepare for the budget increases.

“Monies in the fund shall be appropriated to the Board of Regents for distribution to athletic departments at public universities that are members of conferences that compete in NCAA Division One athletics at the Football Bowl Subdivision and Football Championship Subdivision levels in Louisiana for the benefit of student athletes,” the law states.

“For the purposes of this Section, ‘benefit’ means scholarships, insurance, medical coverage, facility enhancements, litigation settlement fees, and Alston awards. Each university shall establish eligibility criteria for benefits awarded pursuant to the provisions of this Section.”

‘Without the athletes, we wouldn’t have the revenue’

At most schools, football is expected to receive 75%, followed by men’s basketball (15%), women’s basketball (5%) and the remainder of sports (5%) after Judge Claudia Wilken approved the House v. NCAA settlement earlier this month. LSU is expected to follow a similar model, The Advocate reported.

According to bill co-sponsor Neil Riser (R), the law is a way for the state to support its schools and athletics programs. The athletes and revenue go hand-in-hand, in his eyes, and Louisiana will now help play a role in making sure there’s success on both fronts.

“Without the athletes, we wouldn’t have the revenue. I just felt like it’s fairness that we do give something back and, at the same time, help the general funds of the universities,” Riser said, via the AP.