Online gambling Louisiana — a guide to Louisiana gambling laws

Written by Denise Mathey

Denise Mathey

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Denise Mathey is a seasoned iGaming writer with over a decade of experience. She started her career in content creation writing detailed business articles for platforms like Chambers of Commerce, where she guided entrepreneurs through starting business entities in various US states.

Denise’s expertise has also focused heavily on iGaming over the last few years, reviewing online casinos, sportsbooks, and sweepstakes platforms for top iGaming publications. Her passion for simplifying complex gambling laws and betting strategies helps players find the best gaming destinations for a safe and enjoyable betting experience.

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Louisiana online gambling is a bit of a mixed bag. Remote sports betting is going on to a strong start, but everything else is awaiting regulation, including online casinos. 

I’ve done a deep dive into what’s legally available in the state, and what’s taxable. I’ve also included a guide to help you pay your Louisiana gambling taxes. 

If you have a specific area of interest, the cards below will help you zoom in to your topic. Or keep scrolling for a more detailed guide to Louisiana gambling laws.

• Overview
• Louisiana taxes
• Tax rates
• Income tax rates
• Paying gambling taxes
• Tax breakdown
• Undisclosed winnings
• What’s legal?
• Louisiana sports betting
• Social casinos
• Louisiana poker
• Other gambling types
• Land-based gambling
• Gambling regulators
• Taxation and gambling
• FAQs

Louisiana online gambling taxes

Online gambling in Louisiana (LA) is partially legal. This means that while some forms of gambling are regulated, others are not. For one, Louisiana does not have any state-regulated online casinos, meaning you cannot gamble at an online casino if you’re based in LA. Online poker is also currently illegal in the state. 

While sports betting was legalized in 2022, you must be physically located in a legal parish to place online sports bets. What’s more, the state uses geofencing technology, so if you’re found attempting to place a bet from a parish that hasn’t approved online sports betting, your bet will be blocked.

Restricted parishes are Caldwell, Catahoula, Franklin, Jackson, LaSalle, Sabine, Union, West Carroll, and Winn. You don’t need to be a resident of a legal parish, but you must be physically present in one when placing your bet.

Daily fantasy sports (DFS) is completely legal in all Louisiana parishes except for the ones mentioned above. You can place DFS bets via state-regulated sites like DraftKings and FanDuel.

All gambling winnings in Louisiana were taxed according to individual income tax rates ranging from 1.85% to 4.25%, dependent on your income level. I say “were” because, as of January 1, 2025, all gambling winnings in the state are taxed at a flat 3% state income tax rate. This comes as a huge benefit to gamblers in Louisiana, as it reduces the overall tax liability.

Is the tax rate different for each type of gambling?

No, as of January 1, 2025, the tax rate is the same, regardless of whether you win money from online sports betting, daily fantasy sports, or the Louisiana Lottery.

What this means for LA gamblers

• Low tax burden: Before the flat 3% income tax rate came into effect, the highest income tax rate in Louisiana was 4.25%. Thanks to this change, Louisiana players now keep more of their winnings compared to before.
• Simplified tax calculations: Since there’s no longer a tiered tax system, it’s easier to calculate tax on winnings at a flat 3% rate.
• Applies to all winnings: Whether you place a sports bet, win on a DFS contest, or hit a Louisiana Lottery jackpot, 3% is the final state tax owed on your winnings.

Examples of how the rate applies

These example scenarios include what your total state tax on gambling winnings would have been prior to the implementation of the 3% flat state income tax rate:

• Example 1: Sports betting winnings
  
  You win $1,000 from an online sports bet on DraftKings Sportsbook. Before 2025, you would owe $42.50 in state tax (4.25%). Now, with the 3% flat tax, you owe just $30, saving $12.50.

• Example 2: DFS contest winnings
  
  You enter a FanDuel DFS contest and win $10,000. Under the old 4.25% rate, you would have owed $425 in state tax. Now, at 3%, you only owe $300, saving you $125.

• Example 3: Lottery winnings
  
  You hit a $50,000 Louisiana Lottery jackpot. Before 2025, your state tax bill would have been $2,125 at 4.25%. Now, at 3%, it drops to $1,500, saving you $625.

How does your income affect taxes in Louisiana?

Due to the implemented flat 3% state income tax rate on all individual income, including money won from gaming online, your income no longer affects gambling taxes.

However, federal taxes still apply to money won online, and this is taxed at the 24% federal income tax rate. So, while Louisiana’s flat tax rate of just 3% makes the tax process simpler for LA players and also reduces tax liability, federal tax obligations still apply.

How to pay gambling taxes in Louisiana?

To comply with Louisiana state income taxes on gambling winnings, follow these steps:

1. Report LA gambling winnings

On your Louisiana Individual Income Tax Return, you need to include all gambling winnings as income on Form IT-540. If you’re not a resident of Louisiana but won money from gambling in the state, you’ll need to report your winnings on Form IT-540B.

2. Be aware of withholding requirements

Legal Louisiana online gambling establishments are required to withhold 3% in state taxes from certain gambling winnings.

If you win more than $600 from an online sports bet, the sportsbook will withhold 3% of your winnings for state taxes. Form W-2G will be sent to the Internal Revenue Service (IRS) and you, detailing the amount won as well as the amount withheld.

Note: While Form W-2G is an IRS document, the information it contains is necessary for accurately reporting your income on your Louisiana state tax return.

If you win more than $5,000 in the Louisiana online lottery, a 3% deduction for state taxes will apply. Additionally, 24% will be deducted for federal taxes.

3. File your Louisiana state taxes

You may mail hard copies of the above-mentioned Louisiana state tax forms to:

Louisiana Department of Revenue

• P.O. Box 3550
• Baton Rouge, LA 70821-3550

Alternatively, use the electronic filing option known as the Louisiana Taxpayer Access Point (LaTAP).

Tax breakdown for players in Louisiana

Below is a breakdown of the tax implications for various legal online gambling activities in Louisiana:

Online sports betting

• Federal tax: Winnings over $600 are subject to a 24% federal tax.
• State tax: A 3% state tax applies to all winnings, regardless of the amount.
• Withholding threshold: Operators are required to withhold taxes if winnings exceed $600 and are at least 300 times the wager.
• Tax forms: Winners will receive a Form W-2G for federal reporting purposes.

Daily fantasy sports (DFS)

• Federal tax: Winnings over $600 are subject to a 24% federal tax.
• State tax: A 3% state tax applies to all winnings.
• Withholding threshold: Operators must withhold taxes on winnings exceeding $600 if they are at least 300 times the wager.
• Tax forms: A Form W-2G will be issued for applicable winnings.

Louisiana Lottery

• Federal tax: Prizes over $5,000 are subject to a 24% federal tax.
• State tax: A 3% state tax is withheld on prizes exceeding $5,000.
• Withholding threshold: Taxes are withheld on winnings over $5,000.
• Tax forms: Winners will receive a Form W-2G for reporting purposes.

Note: Winnings over $600 are reported to tax authorities, but automatic tax withholding by the Louisiana Lottery Corporation applies only to prizes exceeding $5,000.

What happens if you don’t report your winnings in LA?

Failure to report gambling taxes in Louisiana could lead to penalties and interest charges imposed by the IRS. Additionally, the Louisiana Department of Revenue may complete an assessment, and further state penalties, as well as interest for late payment, will apply. 

Even if taxes are withheld by online gambling establishments, you’ll still need to report the full amount of money won online on your tax returns. So, it’s always in your best interest to report any and all money won from gambling to ensure that you remain compliant.

Louisiana gambling sites by type — what’s legal?

It’s the big question on everyone’s mind: is gambling legal in Louisiana? Well, yes and no. Thanks to Louisiana gambling laws, it is important to understand that online gambling in Louisiana is only legal in the parishes that voted for it in the 2020 referendum.

Therefore, until further notice, only 55 of the 64 Louisiana parishes have legal online gambling. If you’re curious, here are the 9 Louisiana parishes that you can’t bet in:

• Jackson
• Sabine
• Caldwell
• Franklin
• La Salle
• West Carroll
• Winn
• Union
• Catahoula

As for the parishes that you can bet in, there are still some caveats. Online casino gambling is still illegal, as is online poker. Online sports betting is legal, though you do need to physically be in the parish to make the bet.

The gambling age for Louisiana is 21, so you’ll also need to make sure you’re that age or older before you can make online bets. I’ve prepared this simple table for you guys to help keep track of everything.

Louisiana online betting sites Legal since 2022

The Pelican State is lacking in online gambling options, however, Louisiana gambling laws do allow for remote sports betting. Not only that, but Louisiana has some pretty good options in this department.

Louisiana legalized sports betting on 28th January 2022, and since then quite a few sportsbooks have rushed to the state. These include established brands like Fanduel, BetRivers, Caesars, and the ever-present BetMGM. These sportsbooks are some of the most trusted on the market, with BetMGM especially seemingly on a mission to be available in every state in the USA. 

If you’re looking for something a bit different, you can also try out DraftKings or WynnBET. These sites may not be as well known as their contemporaries, but they’re both eager to impress, with DraftKings offering daily boosted odds and WynnBET having low wagering requirements.

• Plenty of sports
• Safe and trusted brands
• Great promotions

•  Lacking in options

Social casinos The best alternative to Louisiana online casinos

As stated above, online casinos are still illegal in Louisiana. This means that if you’re caught playing at an unlicensed online casino in Louisiana, it’s not just the casino that could get in trouble. You will be subject to a fine, or even possible imprisonment.

To make matters worse, unlicensed casinos would not have gone through the rigorous safety testing of the state and could be very dangerous for you. So if you don’t want your identity stolen and end up in jail, I suggest staying off the unlicensed casinos. 

Instead, you can go with the legal alternative, which is social casinos. Social casinos are just like normal casinos, except totally free. Instead of using real money, these casinos will let you place bets with a fake virtual currency. They’re great for a bit of light-hearted fun, as well as trying out casino games before betting real money on them in a different state.

• Free to play
•  Legal in the state

• Very few options
• Few host live casino

Online poker Not legal yet

Just like online casinos, online poker is also strictly illegal. Also just like online casinos, trying to play online poker for real money in the Pelican State will land you with a fine at best, and jail time at worst. Our recommendation: don’t try it. 

What is worth trying though is good old sweepstakes poker. Here fake virtual currency is used, so no one is breaking any laws, and you’re not losing any real cash.

LA has a particularly excellent social poker site with Global Poker. Not only does this site have real-time games and a range of poker types to choose from, but it also has a diverse list of casinos and card games if you want a bit of variety.

• Free to use
• Safe and trusted site

• Real money online poker is illegal

Other forms of gambling in Louisiana

With so many online options being illegal in Louisiana, we wouldn’t blame you if you lost hope in the state. However, I’m here to tell you that there are other options out there.

If it’s sports you’re looking for, then Louisiana has you covered with its daily fantasy sports. Louisiana also has a history of horse race betting, with legal bets going as far back as 1997. The lottery and charitable gaming have also been legal in Louisiana for years, each with its colorful history. 

Daily Fantasy Sports

This is the most modern of legal alternatives, having been legalized in 2018 with licenses issued in 2020. The aim of this is simple: draft a slate of players for a single day, or a single game, and compete against other players. DraftKings has a great selection for this, so you can bet on your fantasy sports alongside the rest of your sportsbook betting here.

Racetracks and Racinos

Horse racing is a large part of Louisiana history, with the Fair Grounds Race Course opening as far back as 1838. This track, as well as the 3 other horse tracks in Louisiana, are often referred to as ‘racinos’, due to them having several slot machines on the premises as well. Still, if it’s proper horse betting you’re after, Louisiana won’t leave you disappointed. There are plenty of horse race betting platforms in Louisiana, including TVG which

Lottery

Louisiana lottery has had one hell of a history, coming full force in 1866 with tickets sold in almost every state, being banned in 1895, and brought back again almost 100 years later in 1993. For years corruption and scandal plagued the state lottery, but that doesn’t mean we still can’t enjoy it whilst it’s here. The Louisiana lottery offers three types of games: scratch-offs, Fast Play, and draw-style. All these are sold through roughly 2,900

Charitable gaming

Louisiana may be behind on online gambling, but it certainly did not lag here. Charitable gaming in The Pelican State has been around since 1968, helping to raise hundreds of thousands for charity since then. The Office of Charitable Gaming issues these licenses in Louisiana, allowing nonprofit organizations to offer bingo, keno, raffles, pull-tabs, and even casino nights for charity. So if you feel like gam

Offline gambling in Louisiana

Oddly enough, whilst online gambling is strictly illegal in Louisiana, offline gambling is plentiful. There are a ton of land-based options for gambling in Louisiana, including commercial casinos, tribal casinos, riverboats, and even racinos. 

By far the main type of offline casinos in Louisiana are riverboat casinos, presumably as some kind of practical joke played on us writers who need to write about ‘land-based casinos’. Plenty of riverboat casinos have set themselves up along the Mississippi and Red River, and some have set up premises ashore. All of them, as well as the tribal and commercial casinos, also offer live table games. 

Louisiana gambling and safety

At Time2Play, safety always comes first. We get that everyone is eager to gamble, but it’s important to make sure that the site you’re betting on promotes safe and responsible gambling. Otherwise, there could be some harsh consequences.

Whenever you go on an online gambling site in the state of Louisiana, always make sure that it has been licensed by the Louisiana Gaming Control Board (LGCB). The LGCB is the supreme licenser in Louisiana and has been so since the 1990s, and has the first and final say on all gaming licenses in the state. 

These licensers have one job: to make sure that the gambling operators are safe and fair. If the security is not up to standard then the LGCB will refuse to hand out a license. Any site we recommend will have the LGCB license, however, if you’re curious to check out for yourself, then simply go to the header or footer of the online gambling site. There will usually be a bit of text showing that the site is licensed, as well as a few seals of trusts. 

The LGCB also operates through a few auditors, who do all the dirty work. The Louisiana State Police for instance perform all the audits themselves, whilst the Office of Charitable Gaming hands out permits for charitable gaming events.

There’s also the Louisiana Association on Compulsive Gambling that you can check out if you feel you’re developing a problem, or the CORE centre operated by the Department of Health that specializes in recovering from problem gambling.

Taxation and gambling in Louisiana: how the state benefits from gambling

As old Ben Franklin said himself, nothing in this world is constant except death and taxes. Even sportsbooks and casinos couldn’t escape the long reach of the tax collector. Perhaps though, this is a good thing. 

With the large amount of revenue that these institutions bring in, it’s not so bad that a percentage of it goes to the state. This money is then used to found several public projects, effectively putting the taxpayer’s money back to them in schools, hospitals, and parks. Unfortunately, it’s hard to track exactly how much money went where, but we can see how much these institutions are being taxed.

With casinos, it depends on whether it’s a tribal or riverboat casinos. Tribal casinos simply have to give annual donations of $7 million to parishes, however, riverboat casinos must hand 15% of their revenues to the state in tax. This number can go up to 17% and even 20% depending on how much revenue the riverboat casino made that month, so it’s not exactly a set deal.

Sportsbooks are thankfully a bit more concrete, with retail sportsbooks being taxed at 10% and mobile sportsbooks taxed at 15%. Hopefully, all this money coming in with incentivizing the state to legalize online casinos and poker, as well as bring in some nice public benefits for all you Louisiana citizens.

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