LSU and other public universities across Louisiana are on track to benefit in a major way from the state’s updated sports gambling tax. A new bill will raise the tax on online sports betting profits from 15% to 21.5%, a move expected to generate millions in additional revenue.
A quarter of this new tax revenue — projected at $24.3 million — will be split evenly among Louisiana’s 11 public universities that compete in Division I football. While the funds won’t be used for direct NIL (Name, Image, and Likeness) payments, they must support initiatives that benefit student-athletes. This includes scholarships, facility upgrades, insurance programs, and other resources that can ease the financial burden on athletic departments as they adapt to revenue-sharing changes.
Meanwhile, LSU continues to establish itself as a powerhouse in the NIL landscape. The Tigers currently boast the nation’s No. 2 recruiting class for 2026, according to On3 Sports, led by five-star wide receiver Tristen Keys. Keys recently made headlines by signing a major NIL deal with Adidas — an interesting twist given LSU’s current apparel deal with Nike. His visit to Tennessee, a school rumored to be switching from Nike to Adidas in 2025, adds another layer to the growing intrigue around NIL and brand alignments in college sports.