Provides with respect to certain receipts generated from slot machine gaming activity at live pari-mutuel wagering facilities. (7/1/14)
The bill reinforces existing laws regulating slot machine operations while introducing a new obligation for gaming facilities to contribute a larger share of their revenues to horse racing. This can have a significant impact on state laws concerning taxation and revenue allocation, particularly as it ties gaming operations directly to the funding of a traditional economic sector such as horse racing. However, the contribution requirement also has a termination date set for July 1, 2017, which may limit the long-term sustainability of the support it provides.
Senate Bill 616, also known as the Slot Machine Gaming Act, aims to regulate receipts generated from slot machine gaming activities at live pari-mutuel wagering facilities, specifically in Orleans Parish. The bill stipulates that as a condition for licensing, the owner of such facilities must contribute 33% of their net slot machine proceeds for the support of thoroughbred horse racing purses. This measure is intended to bolster the racing industry, which may have faced financial challenges, ensuring that it maintains its viability and can continue to contribute to the state's economic ecosystem.
Sentiment around SB 616 appears to be generally supportive among stakeholders directly involved in the horse racing industry. Proponents argue that the bill will help stabilize purses and promote local racing events, which in turn supports jobs and tourism. However, there may be concerns regarding the additional financial burden placed on gaming operators and whether this could ultimately lead to operational challenges or a shift in the gaming landscape in Louisiana.
While SB 616 seems to garner general support from the horse racing community, opponents may raise points about the fairness of requiring a large percentage of net proceeds towards a specific industry, particularly when compared to other forms of gaming or entertainment. The overarching debate may revolve around the prioritization of state revenues and local economic support, with discussions likely to emerge regarding whether the contributions will effectively aid the horse racing sector without detrimental effects on the gaming facilities that generate the funding.