Provides relative to taxation of online sports wagering and video poker and dedicates certain gaming revenues (EN +$34,700,000 SD RV See Note)
If passed, HB 639 will result in significant changes to how tax revenue from online sports wagering is managed in Louisiana. Specifically, the bill establishes two new funds: the Supporting Programs, Opportunities, Resources, and Teams Fund and the Louisiana Postsecondary Inclusive Education Fund. A portion of the tax revenue will be directed towards these funds, which will then be utilized to enhance the support available for student athletes and educational programs. This allocation is designed to foster better resources for athletic departments and ensure that benefits are fairly distributed among various universities within the state.
House Bill 639 aims to amend the existing tax regulations surrounding online sports wagering in Louisiana and establish a framework for allocating the generated tax revenue. The bill proposes a revision of the tax rate on online sports wagering, increasing it to 21.5% on net gaming proceeds. A portion of the tax revenue will be allocated to support university athletic departments and provide benefits to student athletes, creating a more structured financial support system for collegiate sports in Louisiana.
The sentiment surrounding HB 639 appears to be generally positive among supporters, particularly those aligned with the educational and athletic interests. Advocates view the bill as a necessary step to enhance funding for university athletics and support student athletes through various forms of financial aid. However, there may be concerns regarding the potential implications of increased taxation on online gaming operations, which some stakeholders could view as a problematic overreach in the state’s regulation of the gambling industry.
Some points of contention may arise around the distribution of the funds generated from the tax on online sports wagering, particularly in terms of ensuring equitable support across different institutions and sports programs. Additionally, there could be debates regarding the appropriate use of these funds and assurances that they will not replace existing scholarships or funding sources. The overall structure and management of the new funds will likely be scrutinized to ensure transparency and accountability in the allocation process.