BATON ROUGE — Gov. Jeff Landry signed a bill on Tuesday that will raise the state's sports betting tax to help offset the cost of colleges' revenue sharing with athletes.

Just over a week ago, a federal judge approved a $2.8 billion settlement that allows colleges to start directly paying athletes through revenue sharing.

The bill signed Tuesday raises the state's sports betting tax from 15 to 21.5 percent. The sportsbooks pay the tax on their earnings. It does not tax bettors' winnings.

A fourth of the revenue will be divided evenly among the state's 11 Division I public universities. The money is intended for the "benefit of student athletes," according to the law, which covers "scholarships, insurance, medical coverage, facility enhancements, litigation settlement fees and Alston awards."

Most of the rest goes to the state's general fund.

The bill takes effect on August 1.