State-Level Gaming Legality and Regulation in Louisiana
Louisiana's gaming industry is regulated under the comprehensive framework of Title 27 of the Louisiana Revised Statutes. The primary regulatory body is the Louisiana Gaming Control Board (LGCB), an
independent agency that oversees the licensing of all operators, ensures the integrity of gaming operations, and is responsible for the collection and distribution of tax revenue.
This oversight is supported by the Louisiana State Police Gaming Enforcement Division, which works to prevent illegal gaming activities and enforce state law. The state's approach reflects a strategic effort to generate revenue for public programs while maintaining strict oversight of all legal gambling activities.
Gambling Taxes in Louisiana
Louisiana has a multi-tiered tax system that applies to both gaming operators and players. For individuals, all gambling winnings are subject to state income tax. Payouts that exceed certain thresholds, such as a minimum of $1,200 from a slot machine or $5,000 from other winnings, are reported to the state and federal government. Effective January 1, 2025, Louisiana has adopted a flat state income tax rate of 3%, which applies to all winnings.
For operators, tax rates vary by the type of gaming. As of August 1, 2025, a new legislative change, House Bill 639, has raised the tax rate for online sports betting platforms from 15% to 21.5% of their net gaming proceeds. This brings the tax rate for mobile sports betting in line with the rate for land-based and riverboat casinos, which also stand at 21.5%. The tax rate for retail sports betting remains at a lower 10%.
A significant portion of the tax revenue generated from gaming is statutorily dedicated to specific state initiatives. A portion of the funds from mobile sports betting is now directed to the newly created Supporting Programs, Opportunities, Resources, and Teams (SPORT) Fund, which benefits student-athletes and athletic departments at public universities. Other funds are allocated to early childhood education, local governments, and programs for problem gambling, reflecting the state's strategic use of gaming revenue.