Louisiana explainer

The Louisiana SPORT Fund

Louisiana became the first state to raise betting taxes specifically to bankroll college sports. Here's how the SPORT Fund works and where the money goes.

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What the SPORT Fund is

SPORT = Supporting Programs, Opportunities, Resources and Teams. It was created by House Bill 639 (Act 298), signed by Gov. Jeff Landry on June 20, 2025, effective August 1, 2025. Louisiana was the first state to raise betting taxes specifically to bankroll college sports.

The tax change

HB 639 raised the online sports betting tax from 15% to 21.5% of net gaming revenue. The retail rate stays at 10%. A quarter of online tax revenue flows into the SPORT Fund. The result: May 2026 tax collections hit $9.48 million, up 41% year-over-year, even as revenue dipped slightly.

Where the money goes

The fund supports athletic departments at 11 Division I public universities with football programs — LSU, Louisiana Tech, McNeese, UL Lafayette, UL Monroe, Grambling, Southern, Nicholls, Northwestern State, and Southeastern. Each program receives approximately $2 million annually, administered by the Louisiana Board of Regents.

The law requires the money benefit student-athletes — new scholarships, tuition relief, nutrition, and academic services. It cannot fund existing scholarships; it must create new opportunities. Some schools (e.g. Louisiana Tech) plan to use SPORT Fund money to help meet obligations under the House v. NCAA settlement.

Note: the law has no reporting requirements and no penalties for schools that use the money in ways not allowed — spending is not publicly disclosed. Sources: RG.org, LegalSportsReport, Louisiana Illuminator.

Market context

In May 2026, Louisiana sportsbooks took $317.97 million in wagers (up 5.76% year-over-year) and turned them into $44.8 million in gross gaming revenue at a 14.09% hold. Parlays drove roughly 77% of net proceeds ($33.6 million) — more than triple every individual sport combined.

This page is educational — it explains how the tax works, not advice to wager. Gambling problem? Call 1-800-522-4700.

SPORT Fund FAQ

What is the Louisiana SPORT Fund?

SPORT stands for Supporting Programs, Opportunities, Resources and Teams. It's a fund created by House Bill 639 (Act 298), signed in June 2025, that directs 25% of online sports betting tax revenue to athletic departments at Louisiana's public Division I universities.

How is the SPORT Fund paid for?

Louisiana raised its online sports betting tax from 15% to 21.5% of net gaming revenue (the retail rate stays at 10%). A quarter of that online tax revenue flows into the SPORT Fund.

Which schools get SPORT Fund money?

The fund supports athletic departments at 11 Division I public universities with football programs, including LSU, Louisiana Tech, McNeese, UL Lafayette, UL Monroe, Grambling, Southern, Nicholls, Northwestern State, and Southeastern. Each receives roughly $2 million annually.

What can the SPORT Fund money be used for?

The law requires the money benefit student-athletes — new scholarships, tuition relief, nutrition, and academic services. It cannot fund existing scholarships; it must create new opportunities. The Louisiana Board of Regents administers the distribution.

Is Louisiana the first state to do this?

Yes. Louisiana was the first state to raise betting taxes specifically to bankroll college sports, a model being watched closely as schools absorb the cost of paying athletes directly under the House v. NCAA settlement.