The settlement in the House vs NCAA case earlier this month that officially allows schools to directly pay student-athletes is set to be one of the biggest changes we have ever seen in collegiate sports. And coincidentally, the state of Louisiana has acted quickly in helping all of the public schools in the state get as much funding for their NIL collectives as possible.
In the ever-evolving landscape of collegiate sports, states have been adjusting legislation in preparation of this court ruling. For example, Arkansas has already passed legislation that waives state income taxes on NIL payments made to athletes by higher education institutions.
Louisiana is set to follow suit in making the NIL collectives of universities in the state stretch further in comparison to schools in other states. According to David A. Lieb of the Associated Press, lawmakers passed a bill at the recent annual state session that would raise the state’s 15% sports gambling tax to 21.5%, pending approval by Louisiana Governor Jeff Landry.
Expectations are that this increase in taxes will result in over $24 million in additional revenue, which will be spread across “the state’s most prominent institutions”.
As per the House vs NCAA settlement, all Division-1 schools will be allowed to allocate a max of $20.5 million to their student athletes.
So clearly, this increase in revenue in Louisiana should certainly help schools in the state reach that number, which Neil Riser, a Republican state representative, alluded to while discussing his decision to sponsor the legislation in a conversation with the Associated Press.
“We love football in Louisiana,” said Riser. “That’s the easiest way to say it. 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.”
Should Governor Landry sign off on the legislation, Louisiana would become the second state to allocate sports gambling taxes to universities. North Carolina did so similarly upon officially legalizing sports gambling last year, using a portion of the state’s 18% gaming taxes to the athletic departments of 13 public universities in the state.