GAMING: Provides relative to the dedication of revenue from sports wagering. (7/1/27) (EG SEE FISC NOTE SD RV See Note)
Summary
SB 135 revises how Louisiana distributes revenue from the tax on sports wagering net gaming proceeds. The bill amends the statutory dedication formula for two existing funds: the Louisiana Early Childhood Education Fund and the Supporting Programs, Opportunities, Resources, and Teams Fund (SPORT Fund). Under the bill, 25% of the relevant sports wagering tax collections would continue to be dedicated to each fund, but the Early Childhood Education Fund would no longer be subject to the current $20 million cap, while the SPORT Fund would become subject to a new $20 million cap.
The bill also clarifies that the Early Childhood Education Fund receives 25% of net mobile sports wagering proceeds, and it makes technical changes to the existing dedication language. The effective date is delayed until July 1, 2027, giving the state time before the revised allocation structure takes effect. Overall, the measure changes the flow of gaming tax revenue rather than creating a new tax or new wagering authority.
Impact
SB 135 amends R.S. 27:625(G)(2) and (8), changing the statutory dedication of sports wagering tax revenue. Its main legal effect is to remove the $20 million ceiling from deposits to the Louisiana Early Childhood Education Fund and to impose a $20 million cap on deposits to the SPORT Fund. The bill also ties the Early Childhood Education Fund more explicitly to 25% of net mobile sports wagering proceeds. These changes affect state budget allocations and the funding levels of early childhood education programs and youth/sports-related initiatives supported by the SPORT Fund.
Sentiment
The bill appears to have received strong support in the Senate, passing final passage by a vote of 32-2. The available record does not include committee transcript debate, but the vote suggests broad agreement with the revenue reallocation. The later effective date may also indicate an effort to provide a transition period and reduce immediate fiscal disruption.
Contention
The main policy issue is how sports wagering revenue should be divided between early childhood education and the SPORT Fund. Supporters likely favor removing the cap on the Early Childhood Education Fund to allow that program to receive more revenue as sports wagering collections grow, while also setting a cap on the SPORT Fund to limit its share. Any opposition would likely center on whether the new cap on the SPORT Fund reduces funding for programs it supports or whether removing the Early Childhood cap shifts too much revenue away from other priorities. The narrow 32-2 Senate vote suggests limited but real disagreement over the proper allocation of gaming proceeds.
Provides relative to the disposition of certain state revenues through repeal of the Revenue Stabilization Trust Fund and dedication of certain revenues to the Budget Stabilization Fund. (EG SEE FISC NOTE GF RV See Note)