Latest news with #GovJeffLandry
The Independent
17-06-2025
- Business
- The Independent
Louisiana is poised to hike its sports betting tax to help colleges pay their athletes
Louisiana is poised to hike taxes on sports betting to pump more than $24 million into athletic departments at the state's most prominent public universities. Legislation pending before Gov. Jeff Landry would make Louisiana the first state to raise taxes to fund college sports since a judge approved a landmark settlement with the NCAA allowing schools to directly pay athletes for use of their name, image and likeness (NIL). Anticipating the court's approval, Arkansas this year became the first to waive state income taxes on NIL payments made to athletes by higher education institutions. More states seem almost certain to adopt their own creative ways to gain an edge — or at least keep pace — in the rapidly evolving and highly competitive field of college sports. 'These bills, and the inevitable ones that will follow, are intended to make states 'college-athlete friendly,'' said David Carter, founder of the Sports Business Group consultancy and an adjunct professor at the University of Southern California. But 'they will no doubt continue to stoke the debate about the `perceived' preferential treatment afforded athletes.' The new NCCA rules allowing direct payments to college athletes kick in July 1. In the first year, each Division I school can share up to $20.5 million with its athletes — a figure that may be easier to meet for big-time programs than for smaller schools weighing whether to divert money from other purposes. The settlement also continues to allow college athletes to receive NIL money from third parties, such as donor-backed collectives that support specific schools. Louisiana bill sponsor: `We love football' The Louisiana legislation won final approval just two days after a judge approved the antitrust settlement between the NCAA and athletes, but it had been in the works for months. Athletic directors from many of Louisiana's universities met earlier this year and hashed out a plan with lawmakers to relieve some of their financial pressures by dividing a share of the state's sports betting tax revenue. The biggest question for lawmakers was how large of a tax increase to support. The initial proposal sought to double the state's 15% tax on net proceeds from online sports betting. But lawmakers ultimately agreed on a 21.5% tax rate in a compromise with the industry. One-quarter of the tax revenue from online sports wagering — an estimated $24.3 million — would be split equally among 11 public universities in conferences with Division I football programs. The money must be used 'for the benefit of student athletes,' including scholarships, insurance, medical coverage, facility enhancements and litigation settlement fees. The state tax money won't provide direct NIL payments to athletes. But it could facilitate that indirectly by freeing up other university resources. The legislation passed overwhelmingly in the final days of Louisiana's annual session. 'We love football in Louisiana – that's the easiest way to say it,' said Republican state Rep. Neil Riser, who sponsored the bill. Smaller universities are feeling the squeeze Many colleges and universities across the country have been feeling a financial squeeze, but it's especially affected the athletic departments of smaller schools. Athletic departments in the top Division I football conferences take in millions of dollars from media rights, donors, corporate sponsors and ticket sales, with a median of just 7% coming from student fees and institutional and government support, according to the Knight-Newhouse College Athletics Database. But the remaining schools in Division I football bowl conferences got a median of 63% of the revenue from such sources last year. And schools without football teams got a median of 81% of their athletic department revenues from institutional and governmental support or student fees. Riser said Louisiana's smaller universities, in particular, have been struggling financially and have shifted money from their general funds to their sports programs to try to remain competitive. At the same time, the state has taken in millions of dollars of tax revenue from sports bets made at least partly on college athletics. 'Without the athletes, we wouldn't have the revenue. I just felt like it's fairness that we do give something back and, at the same time, help the general funds of the universities,' Riser said. Other states are investing in college sports Louisiana would become the second state behind North Carolina to dedicate a portion of its sports wagering revenues to colleges athletics. North Carolina launched online sports wagering last year under a state law earmarking part of an 18% tax on gross gaming revenue to the athletic departments at 13 public universities. The state's two largest institutions were excluded. But that might be about to change. Differing budget plans passed by the state House and Senate this year both would start allotting sports betting tax revenue to the athletic programs at the University of North Carolina at Chapel Hill and North Carolina State University. The Senate version also would double the tax rate. The proposals come a year after University of North Carolina trustees approved an audit of the athletics department after a preliminary budget projected about $100 million of debt in the years ahead. Other schools also are taking actions because of deficits in their athletic departments. Last week, University of Kentucky trustees approved a $31 million operating loan for the athletics department as it begins making direct NIL payments to athletes. That came after trustees in April voted to convert the Kentucky athletics department into a limited-liability holding company — Champions Blue LLC — to more nimbly navigate the emerging financial pressures. Given the money involved in college athletics, it's not surprising that states are starting to provide tax money to athletic departments or — as in Arkansas' case — tax relief to college athletes, said Patrick Rishe, executive director of the sports business program at Washington University in St. Louis. 'If you can attract better athletes to your schools and your states, then this is more visibility to your states, this is more potential out-of-town economic activity for your state," Rishe said. 'I do think you're going to see many states pursue this, because you don't want to be the state that's left exposed or at a disadvantage.'
Washington Post
17-06-2025
- Business
- Washington Post
Louisiana is poised to hike its sports betting tax to help colleges pay their athletes
Louisiana is poised to hike taxes on sports betting to pump more than $24 million into athletic departments at the state's most prominent public universities. Legislation pending before Gov. Jeff Landry would make Louisiana the first state to raise taxes to fund college sports since a judge approved a landmark settlement with the NCAA allowing schools to directly pay athletes for use of their name, image and likeness (NIL). Anticipating the court's approval, Arkansas this year became the first to waive state income taxes on NIL payments made to athletes by higher education institutions.
Yahoo
17-06-2025
- Business
- Yahoo
Louisiana is poised to hike its sports betting tax to help colleges pay their athletes
Louisiana is poised to hike taxes on sports betting to pump more than $24 million into athletic departments at the state's most prominent public universities. Legislation pending before Gov. Jeff Landry would make Louisiana the first state to raise taxes to fund college sports since a judge approved a landmark settlement with the NCAA allowing schools to directly pay athletes for use of their name, image and likeness (NIL). Anticipating the court's approval, Arkansas this year became the first to waive state income taxes on NIL payments made to athletes by higher education institutions. Advertisement More states seem almost certain to adopt their own creative ways to gain an edge — or at least keep pace — in the rapidly evolving and highly competitive field of college sports. 'These bills, and the inevitable ones that will follow, are intended to make states 'college-athlete friendly,'' said David Carter, founder of the Sports Business Group consultancy and an adjunct professor at the University of Southern California. But 'they will no doubt continue to stoke the debate about the `perceived' preferential treatment afforded athletes.' The new NCCA rules allowing direct payments to college athletes kick in July 1. In the first year, each Division I school can share up to $20.5 million with its athletes — a figure that may be easier to meet for big-time programs than for smaller schools weighing whether to divert money from other purposes. The settlement also continues to allow college athletes to receive NIL money from third parties, such as donor-backed collectives that support specific schools. Louisiana bill sponsor: `We love football' Advertisement The Louisiana legislation won final approval just two days after a judge approved the antitrust settlement between the NCAA and athletes, but it had been in the works for months. Athletic directors from many of Louisiana's universities met earlier this year and hashed out a plan with lawmakers to relieve some of their financial pressures by dividing a share of the state's sports betting tax revenue. The biggest question for lawmakers was how large of a tax increase to support. The initial proposal sought to double the state's 15% tax on net proceeds from online sports betting. But lawmakers ultimately agreed on a 21.5% tax rate in a compromise with the industry. One-quarter of the tax revenue from online sports wagering — an estimated $24.3 million — would be split equally among 11 public universities in conferences with Division I football programs. The money must be used 'for the benefit of student athletes,' including scholarships, insurance, medical coverage, facility enhancements and litigation settlement fees. The state tax money won't provide direct NIL payments to athletes. But it could facilitate that indirectly by freeing up other university resources. Advertisement The legislation passed overwhelmingly in the final days of Louisiana's annual session. 'We love football in Louisiana – that's the easiest way to say it,' said Republican state Rep. Neil Riser, who sponsored the bill. Smaller universities are feeling the squeeze Many colleges and universities across the country have been feeling a financial squeeze, but it's especially affected the athletic departments of smaller schools. Athletic departments in the top Division I football conferences take in millions of dollars from media rights, donors, corporate sponsors and ticket sales, with a median of just 7% coming from student fees and institutional and government support, according to the Knight-Newhouse College Athletics Database. Advertisement But the remaining schools in Division I football bowl conferences got a median of 63% of the revenue from such sources last year. And schools without football teams got a median of 81% of their athletic department revenues from institutional and governmental support or student fees. Riser said Louisiana's smaller universities, in particular, have been struggling financially and have shifted money from their general funds to their sports programs to try to remain competitive. At the same time, the state has taken in millions of dollars of tax revenue from sports bets made at least partly on college athletics. 'Without the athletes, we wouldn't have the revenue. I just felt like it's fairness that we do give something back and, at the same time, help the general funds of the universities,' Riser said. Other states are investing in college sports Advertisement Louisiana would become the second state behind North Carolina to dedicate a portion of its sports wagering revenues to colleges athletics. North Carolina launched online sports wagering last year under a state law earmarking part of an 18% tax on gross gaming revenue to the athletic departments at 13 public universities. The state's two largest institutions were excluded. But that might be about to change. Differing budget plans passed by the state House and Senate this year both would start allotting sports betting tax revenue to the athletic programs at the University of North Carolina at Chapel Hill and North Carolina State University. The Senate version also would double the tax rate. The proposals come a year after University of North Carolina trustees approved an audit of the athletics department after a preliminary budget projected about $100 million of debt in the years ahead. Other schools also are taking actions because of deficits in their athletic departments. Last week, University of Kentucky trustees approved a $31 million operating loan for the athletics department as it begins making direct NIL payments to athletes. That came after trustees in April voted to convert the Kentucky athletics department into a limited-liability holding company — Champions Blue LLC — to more nimbly navigate the emerging financial pressures. Given the money involved in college athletics, it's not surprising that states are starting to provide tax money to athletic departments or — as in Arkansas' case — tax relief to college athletes, said Patrick Rishe, executive director of the sports business program at Washington University in St. Louis. Advertisement 'If you can attract better athletes to your schools and your states, then this is more visibility to your states, this is more potential out-of-town economic activity for your state," Rishe said. 'I do think you're going to see many states pursue this, because you don't want to be the state that's left exposed or at a disadvantage.' David A. Lieb, The Associated Press
Associated Press
17-06-2025
- Business
- Associated Press
Louisiana is poised to hike its sports betting tax to help colleges pay their athletes
Louisiana is poised to hike taxes on sports betting to pump more than $24 million into athletic departments at the state's most prominent public universities. Legislation pending before Gov. Jeff Landry would make Louisiana the first state to raise taxes to fund college sports since a judge approved a landmark settlement with the NCAA allowing schools to directly pay athletes for use of their name, image and likeness (NIL). Anticipating the court's approval, Arkansas this year became the first to waive state income taxes on NIL payments made to athletes by higher education institutions. More states seem almost certain to adopt their own creative ways to gain an edge — or at least keep pace — in the rapidly evolving and highly competitive field of college sports. 'These bills, and the inevitable ones that will follow, are intended to make states 'college-athlete friendly,'' said David Carter, founder of the Sports Business Group consultancy and an adjunct professor at the University of Southern California. But 'they will no doubt continue to stoke the debate about the `perceived' preferential treatment afforded athletes.' The new NCCA rules allowing direct payments to college athletes kick in July 1. In the first year, each Division I school can share up to $20.5 million with its athletes — a figure that may be easier to meet for big-time programs than for smaller schools weighing whether to divert money from other purposes. The settlement also continues to allow college athletes to receive NIL money from third parties, such as donor-backed collectives that support specific schools. Louisiana bill sponsor: `We love football' The Louisiana legislation won final approval just two days after a judge approved the antitrust settlement between the NCAA and athletes, but it had been in the works for months. Athletic directors from many of Louisiana's universities met earlier this year and hashed out a plan with lawmakers to relieve some of their financial pressures by dividing a share of the state's sports betting tax revenue. The biggest question for lawmakers was how large of a tax increase to support. The initial proposal sought to double the state's 15% tax on net proceeds from online sports betting. But lawmakers ultimately agreed on a 21.5% tax rate in a compromise with the industry. One-quarter of the tax revenue from online sports wagering — an estimated $24.3 million — would be split equally among 11 public universities in conferences with Division I football programs. The money must be used 'for the benefit of student athletes,' including scholarships, insurance, medical coverage, facility enhancements and litigation settlement fees. The state tax money won't provide direct NIL payments to athletes. But it could facilitate that indirectly by freeing up other university resources. The legislation passed overwhelmingly in the final days of Louisiana's annual session. 'We love football in Louisiana – that's the easiest way to say it,' said Republican state Rep. Neil Riser, who sponsored the bill. Smaller universities are feeling the squeeze Many colleges and universities across the country have been feeling a financial squeeze, but it's especially affected the athletic departments of smaller schools. Athletic departments in the top Division I football conferences take in millions of dollars from media rights, donors, corporate sponsors and ticket sales, with a median of just 7% coming from student fees and institutional and government support, according to the Knight-Newhouse College Athletics Database. But the remaining schools in Division I football bowl conferences got a median of 63% of the revenue from such sources last year. And schools without football teams got a median of 81% of their athletic department revenues from institutional and governmental support or student fees. Riser said Louisiana's smaller universities, in particular, have been struggling financially and have shifted money from their general funds to their sports programs to try to remain competitive. At the same time, the state has taken in millions of dollars of tax revenue from sports bets made at least partly on college athletics. 'Without the athletes, we wouldn't have the revenue. I just felt like it's fairness that we do give something back and, at the same time, help the general funds of the universities,' Riser said. Other states are investing in college sports Louisiana would become the second state behind North Carolina to dedicate a portion of its sports wagering revenues to colleges athletics. North Carolina launched online sports wagering last year under a state law earmarking part of an 18% tax on gross gaming revenue to the athletic departments at 13 public universities. The state's two largest institutions were excluded. But that might be about to change. Differing budget plans passed by the state House and Senate this year both would start allotting sports betting tax revenue to the athletic programs at the University of North Carolina at Chapel Hill and North Carolina State University. The Senate version also would double the tax rate. The proposals come a year after University of North Carolina trustees approved an audit of the athletics department after a preliminary budget projected about $100 million of debt in the years ahead. Other schools also are taking actions because of deficits in their athletic departments. Last week, University of Kentucky trustees approved a $31 million operating loan for the athletics department as it begins making direct NIL payments to athletes. That came after trustees in April voted to convert the Kentucky athletics department into a limited-liability holding company — Champions Blue LLC — to more nimbly navigate the emerging financial pressures. Given the money involved in college athletics, it's not surprising that states are starting to provide tax money to athletic departments or — as in Arkansas' case — tax relief to college athletes, said Patrick Rishe, executive director of the sports business program at Washington University in St. Louis. 'If you can attract better athletes to your schools and your states, then this is more visibility to your states, this is more potential out-of-town economic activity for your state,' Rishe said. 'I do think you're going to see many states pursue this, because you don't want to be the state that's left exposed or at a disadvantage.'
Yahoo
09-06-2025
- Business
- Yahoo
Louisiana hikes sports gambling tax to subsidize college athletics
The LSU baseball team celebrates after winning the College World Series against Florida, 18-4, on June 26, 2023, at Charles Schwab Field in Omaha, Nebraska. (Jacob Reeder/LSU Sports Information) Louisiana legislators have approved a plan to give most college athletic programs in Louisiana nearly $2 million in state tax revenue annually. House Bill 639 by Rep. Neil Riser, R-Columbia, cleared the Senate on a 35-3 vote Sunday, after previously passing the House 74-15. Gov. Jeff Landry is expected to sign it into law. Riser's bill would increase the tax on sports gambling in Louisiana from 15% to 21.5%. One-fourth of that revenue would go to the Supporting Programs, Opportunities, Resources and Teams (SPORT) Fund to benefit student-athletes at Louisiana's public universities that compete at the NCAA Division I level — UL Lafayette, UL Monroe, Louisiana Tech, LSU, Grambling, McNeese, Nicholls, Northwestern State, Southeastern, Southern and the University of New Orleans. Under the new tax rate, Louisiana would receive about $77 million annually from sports gambling, with about $20 million dedicated to the new fund. Each school would get approximately $1.7 million annually. The money could be used for new scholarships, insurance, medical coverage, facility enhancements, litigation settlement fees and Alston awards, which are education-related awards universities give to college athletes. The $1.7 million allocation is a small drop in the bucket for LSU, which has an athletics budget of over $200 million. But it would be a significant lifeline for schools such as Southern, Nicholls and ULM, which each spend less than $20 million a year on their sports program. The proposed increase in sports gambling taxes has bipartisan support, with both sides saying the revenue should be used to offset the 'social ills' of gambling. The higher rate would generate more money for addiction programs. But the decision to dedicate some of the revenue to college athletics at a time when the state is under budget constraints troubles some progressives. 'Legalized mobile gambling has created or exacerbated many social and cultural problems, including addiction, bankruptcies and even increases in domestic violence,' said Peter Robins-Brown, executive director of Louisiana Progress, an advocacy group for working-class and marginalized communities. 'New tax revenue should be used first and foremost to address some of those problems before we talk about spending more money on college sports.' Currently, the state's split for sports gambling tax revenue calls for 25% to go toward early childhood education, 10% to local governments, 3% to gambling addiction programs and the rest to other priorities and the state general fund. Under Riser's bill, childhood education, local governments and addiction recovery would retain their existing share of tax proceeds. In addition to the 25% for college athletics, another 3% would be dedicated to the Louisiana Postsecondary Inclusive Education Fund to finance programs for students with disabilities. The rest goes into the state general fund for a variety of government needs. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX SUPPORT: YOU MAKE OUR WORK POSSIBLE
