The start of 2025 is bringing great news for the Louisiana sports betting market.
According to data released by the Louisiana Gaming Control Board, sports betting in Louisiana is enjoying a massive uptick through the first portion of the calendar year. And the increase is not just isolated to any one area of the industry.
Louisiana online sports betting, retail sports betting and even daily fantasy sports betting are all on the come-up so far. The growth is demonstrative, and sweeping, we can’t help but wonder: Is this trend also sustainable?
Massive February Increase Punctuates Louisiana Sports Betting Growth
The folks over at Gaming Intelligence have a full breakdown of the latest Louisiana sports betting numbers:
“Sports betting in Louisiana jumped by 39 percent to $381.2 million in February, with growth in both retail and mobile betting. Mobile betting in Louisiana increased by 41 percent to $355.7 million and retail betting grew by 18 percent to $25.5 million. Net proceeds from sports betting were up by 90 percent in the same month last year to $47.6 million, and were split $45.1 million from mobile betting and $2.5 million from retail betting. Parlay betting accounted for the majority of total net proceeds at $31.1 million, while mobile betting net proceeds from American football was a loss of $1.2 million, suggesting a poor Super Bowl result for Louisiana’s sportsbooks. Louisiana’s strong monthly net proceeds earned the state $7.0 million in betting tax, which was 87 percent higher than February 2024. In Louisiana’s fantasy sports sector, February’s contest revenue rose by 42 percent to $1.0 million and net revenue was up by 38 percent year-on-year to $126,731.”
The $7 million in tax revenue is not just a massive rise compared to 2024. It is one of the most profitable months in Louisiana sports betting history.
Per data from Sportsbook Review, The Bayou State cleared $7 million in revenue just twice last year, in September 2024 and then again in November 2024. Prior to that, Louisiana eclipsed the $7 million marker just once, back in December 2023. That makes February 2025 the fourth most lucrative month in Louisiana sports betting history.
The Bayou State’s Success Comes Amid Market Changes
There is one element flying under the radar amid this news. Over the summer, the state of Louisiana banned college player prop bets in an attempt to prevent student-athletes from incurring harassment as the result of lost wagers. Given how much sportsbooks in the United States depend on prop bets, live wagers and parlay bets to generate revenue, many speculated The Bayou would experience a downtick in business over the coming year.
So much for that.
In fact, the average monthly sports betting revenue for the state is actually up during this time. The rule change went into effect to start August 2024. Since then, The Bayou State is averaging $6.4 million in sports betting tax revenue each month. During the preceding six months, the average revenue came in at $4.6 million. That is almost a 40 percent increase on a month to month basis.
Of course, the timing of the college player prop betting ban matters to the discussion. The rule came into play just as betting on the NFL started to crescendo. So, we are talking about some of the market’s busiest months.
At the same time, the increase goes beyond timing. With this level of increase, a variety of factors are at play. This includes customers placing fewer winning wagers. Still, at this time, it’s reasonable to say the elimination of college player props is not harming the Louisiana sports betting market.
Louisiana’s Increase in Sports Betting Revenue Offsets Failed Tax Rate Proposal
Officials in The Bayou have double the reasons to celebrate the recent growth of Louisiana sports betting. This past November, the House of Representatives proposed a bill that would raise the sportsbook tax rate. As Piper Hutchison of The Illuminator writes, the initiative is currently in deferment:
“Amid pushback from the gambling industry, a Louisiana lawmaker has deferred his bill to increase the sales tax on online sports betting from 15 percent to 51 percent. House Bill 22 by Rep. Roger Wilder, R-Denham Springs, would have increased state revenue by $151 million, according to an analysis of the bill by the nonpartisan Legislative Fiscal Office. The proposal would have helped offset the loss of revenue resulting from flattening the state income tax.”
Recent upticks in sports betting profits are now helping offset both the flat income tax and persisting gambling tax rate. At the current pace, Louisiana sports betting in 2025 will set a record for the largest amount of annual revenue.
What’s more, this increase does more than just make up ground elsewhere. It sets the stage for more successful talks when House Bill 22 is revisited. Remember, Louisiana is not the only place to seek tax hikes. As online sports betting in the USA continues to grow, other states are trying to increase their share of revenue. Not every market is successful. However, states that spit out absurd volume or show massive growth have more leverage over sportsbooks that oppose tax ascensions.
This does not mean online sportsbooks in Louisiana will accept a more than 300 percent increase. But they may be more amenable to revisiting discussions in 2026 if The Bayou State is coming off a banner year of business.
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