News Summary
Louisiana lawmakers have passed a plan to allocate nearly $2 million annually from sports gambling tax revenue to support college athletic programs. Spearheaded by Rep. Neil Riser, the bill will increase the gambling tax to 21.5% and benefit NCAA Division I athletes across multiple universities. While the revenue is a boost for smaller colleges, critics caution against prioritizing athletics over social issues related to gambling. The plan awaits approval from Governor Jeff Landry.
BATON ROUGE, Louisiana – In a significant move to support college athletics in the state, Louisiana legislators have approved a new plan to allocate nearly $2 million annually in state tax revenue to college athletic programs. The plan, established under House Bill 639, is spearheaded by Rep. Neil Riser, R-Columbia, and is expected to receive final approval from Governor Jeff Landry.
The bill passed with overwhelming support, gaining a 35-3 vote in the Senate and a 74-15 vote in the House. The approved plan involves an increase in the tax on sports gambling in Louisiana from 15% to 21.5%. This tax hike aims to generate additional revenue that will directly benefit NCAA Division I student-athletes at various public universities across the state.
Under the new tax framework, Louisiana is projected to collect approximately $77 million annually from sports gambling activities. Of this amount, roughly $20 million is slated for the Supporting Programs, Opportunities, Resources, and Teams (SPORT) Fund, which is designed to support student-athlete programs at universities including UL Lafayette, UL Monroe, Louisiana Tech, LSU, Grambling, McNeese, Nicholls, Northwestern State, Southeastern, Southern, and the University of New Orleans.
Each university is expected to receive around $1.7 million annually from the SPORT Fund. These funds can be allocated for various needs, including scholarships, insurance, medical coverage, facility improvements, litigation fees, and educational awards for student-athletes. While $1.7 million represents a considerable addition for many institutions, it is relatively low when compared to the athletics budget of LSU, which exceeds $200 million. On the other hand, schools like Southern, Nicholls, and ULM, which operate with sports budgets under $20 million annually, may find this allocation significantly impactful.
The bipartisan support for the proposed tax increase highlights a shared recognition of the potential benefits for college athletic programs. Proponents argue that some of the increased tax revenue will be directed towards initiatives aimed at addressing gambling-related issues, such as addiction. Presently, the distribution of sports gambling tax revenue remains unchanged, with 25% allocated for early childhood education, 10% for local governments, and 3% for gambling addiction programs. These areas will continue to receive dedicated funding under the new plan.
The legislation also introduces an additional 3% of tax revenue that will be earmarked for the Louisiana Postsecondary Inclusive Education Fund, which focuses on supporting educational programs for students with disabilities. This adds another layer of social responsibility to the revenue allocation from gambling activities.
Despite the bill’s overwhelming support, there are critics who raise concerns about prioritizing funding for college athletics over addressing the societal consequences of gambling. Issues such as addiction and related social problems remain prevalent, leading some to question whether this new revenue should be funneled into sports programs instead of more pressing social needs.
As the bill awaits the governor’s signature to become law, Louisiana is poised to embark on a new chapter in funding college athletics. With the projected increase in tax revenue from sports gambling, the future of collegiate sports in the state may see significant enhancements, while the implications of such funding strategies continue to be a topic of discussion among lawmakers and the public.
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