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Louisiana Betting Tax Rate – What it Means for Bettors

Josh Schwartz

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Publish Date: 03/02/2022

Online sports betting in Louisiana may finally be legal, but you’ll still have to pay taxes on all of your winnings. Take a look below to see how much tax you need to pay for betting in the Pelican State!

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We found that betting tax rates in Louisiana aren’t quite as clear cut as we’d hoped. After all, the amount that you have to pay varies according to how much you win and how much you stake. So keep reading to get the full picture of betting tax rates in Louisiana.

Do you have to pay betting tax in Louisiana?

Yes, you do and the precise amount depends on what you’re wagering on. Here are the tax rates for sports betting and casino gaming in the Pelican State:

Sports betting: You will have to pay a flat rate of 24% in taxes on your winnings from betting on legal online sportsbooks in Louisiana. This tax rate is applicable both at a physical sportsbook and at one of Louisiana’s six legal online sportsbooks. In addition to this, you’ll have to report all winnings of over $600 as long as it is over 300 times your original betting stake.

Casino gaming: This is a little more complicated. Here you’ll only have to pay tax of 24% of your winnings if you win over $1,200 on slot machines or $5,000 by playing poker. Remember that these taxes will only be paid for gaming at one of Louisiana’s physical casinos, because online casino gaming is still outlawed in the Pelican State.

How to pay betting tax in Louisiana

If you win more than the thresholds described above, then the sportsbook or casino may withhold 24% of your winnings, and they’ll issue you a W-2G form stating that you’ve paid the tax. You can then enclose the W-2G form when you do your income tax return.

It’s worth noting that when you play at an online sportsbook, then they are less likely to withhold the tax amount or issue you with a W-2G form. This means that you’ll be duty-bound to report all wins made from your online betting as part of your tax return.

As a result, it’s always a good idea to keep a log of all of the wins gained and losses incurred by your sports betting. This is especially true as any losses incurred can offset your wins. Just remember that the amount you submit cannot be a negative amount.

Thankfully, most decent online sportsbooks have handy features that automatically keep a record of all of your betting activity – whether you’re betting on big events or college sports. This makes it much easier to keep tabs on your wins so that completing your tax return doesn’t become too much of a headache.

We should also note that it’s not just punters who have to pay betting tax. This is because all of the licensed online sportsbooks in Louisiana will have to pay 25% of the tax revenue from mobile sports betting. All of which helps to regulate legal sports betting in the Pelican State!

Still looking for more advice on LA betting? We’ve covered everything from legal sportsbooks to current betting rules in Louisiana.