Sports Betting Taxes in Louisiana
Sports betting winnings are taxable income in Louisiana. The state taxes operators at 21.5% (online) and 10% (retail), and individual bettors owe both federal and Louisiana state income tax on net winnings. This guide explains what you'll need at tax time.
Federal tax on winnings
The IRS treats sports betting winnings as ordinary income, taxed at your marginal rate. Sportsbooks issue a Form W-2G when a single payout is $600+ and at least 300x the wager; automatic federal withholding of 24% applies above $5,000. Even if no W-2G is issued, all winnings are technically reportable.
Louisiana state tax
Louisiana state income tax ranges from 1.85% to 4.25% depending on income bracket (2025 brackets). Sports betting winnings count as ordinary income on your LA-1 return. Operators do not typically withhold Louisiana state tax; you're responsible for declaring it.
Deducting losses
You can deduct gambling losses up to the amount of your winnings; but only if you itemize deductions on Schedule A. The standard deduction (~$15,000 for individuals in 2025) means most casual bettors won't benefit from itemizing.
Operator tax (informational)
Louisiana taxes sportsbooks at 21.5% of adjusted gross revenue (raised from 15% via HB 639 in 2025) for online operators and 10% for retail. This doesn't directly affect bettors but explains why odds in Louisiana can occasionally be marginally worse than in lower-tax states.
Record-keeping
Every Louisiana sportsbook lets you export your wager history. Save these exports at year-end; they're your primary documentation for federal and state filings.
FAQ
Do Louisiana sportsbooks withhold federal tax automatically?
Only on payouts over $5,000 that meet IRS thresholds. Smaller winnings are reported but not withheld; you're responsible for paying tax owed.
What if I win at a retail sportsbook in Louisiana?
Retail wins above thresholds trigger the same W-2G issuance. The casino cashier handles the paperwork at payout.