SLS 18RS-537 ENGROSSED
2018 Regular Session
SENATE BILL NO. 320
BY SENATOR JOHNS
GAMING. Provides for a deduction of fees attributable to qualified wagers. (8/1/18)
1 AN ACT
2 To amend and reenact R.S. 27:44(21) through (25), 205(31) through (34), and 353(10)
3 through (14) and to enact R.S. 27:44(26) and 95, 205(35), 253, 353(15), and 395,
4 relative to Louisiana Gaming Control Law; to provide relative to riverboat gaming;
5 to provide relative to eligible live racing facilities; to provide relative to the
6 Louisiana Economic Development and Gaming Corporation; to define qualified
7 wager and qualified wagering; to provide for the portion of license and franchise fees
8 charged to riverboat gaming licensees attributable to qualified wagering; to provide
9 for a baseline amount; to provide for a deduction from net gaming proceeds; to
10 provide for the portion of taxable net slot machine proceeds attributable to qualified
11 wagering; to provide for a deduction from net slot machine proceeds; to provide for
12 the portion of minimum compensation and annual fee charged to the casino operator
13 attributable to qualified wagering; to provide for a deduction from gross revenues;
14 to allow a licensee to reapply for a new baseline amount; to provide for the Louisiana
15 Gaming Control Board; to provide for rulemaking; to provide for limitations; to
16 provide for an effective date; to provide for restrictions; to provide for definitions;
17 and to provide for related matters.
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1 Be it enacted by the Legislature of Louisiana:
2 Section 1. R.S. 27:44(21) through (25), 205(31) through (34), and 353(10) through
3 (14) are hereby amended and reenacted and R.S. 27:44(26) and 95, 205(35), 253, 353(15),
4 and 395 are hereby enacted to read as follows:
5 §44. Definitions
6 * * *
7 (21) "Qualified wager" or "qualified wagering" means wagers placed by
8 patrons using noncashable vouchers, promotional chips, coupons, electronic
9 credits, electronic promotions, scrips, or any other cash equivalent that is
10 provided to the patron by the licensee.
11 (22) "Racehorse wagering" means wagers placed on horse racing conducted
12 under the pari-mutuel form of wagering at licensed racing facilities that is accepted
13 by a licensed racehorse wagering operator under the provisions of this Chapter.
14 (22)(23) "Racehorse wagering operator" means the licensed racing
15 association whose facility is located closest to the licensed berth of the riverboat on
16 which gaming activities are approved.
17 (23)(24) "Riverboat" means a vessel which:
18 (a) Carries a valid Certificate of Inspection issued by the United States Coast
19 Guard with regard to the carriage of passengers on designated rivers or waterways
20 within or contiguous to the boundaries of the state of Louisiana.
21 (b) Carries a valid Certificate of Inspection from the United States Coast
22 Guard for the carriage of a minimum of six hundred passengers and crew.
23 (c) Has a minimum length of one hundred fifty feet.
24 (d) Is of such type and design so as to replicate as nearly as practicable
25 historic Louisiana river borne steamboat passenger vessels of the nineteenth century
26 era. It shall not, however, be a requirement that the vessel be steam-propelled or
27 maintain overnight facilities for its passengers.
28 (e) Is paddlewheel driven.
29 (24)(25) "Slot machine" means any mechanical, electrical, or other device,
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SLS 18RS-537 ENGROSSED
1 contrivance, or machine which, upon insertion of a coin, token, or similar object
2 therein or upon payment of any consideration whatsoever, is available to play or
3 operate, the play or operation of which, whether by reason of the skill of the operator
4 or application of the element of chance, or both, may deliver or entitle the person
5 playing or operating the machine to receive cash, premiums, merchandise, tokens,
6 or anything of value, whether the payoff is made automatically from the machine or
7 in any other manner.
8 (25)(26) "Supervisor" means the person in charge of the division.
9 * * *
10 §95. Deduction of qualified wagers from net gaming proceeds; procedures;
11 limitations
12 A. On and after July 1, 2020, a licensee may apply to the board to
13 establish a baseline amount of license and franchise fees paid on the portion of
14 net gaming proceeds attributable to qualified wagering. The license and
15 franchise fees paid pursuant to R.S. 27:91(B)(2) and (C) shall be used to
16 determine the baseline amount.
17 B. In any subsequent year and on an annual basis, if the portion of the
18 license and franchise fees attributable to qualified wagering exceeds the baseline
19 amount, a licensee may deduct the difference of the amount of the license and
20 franchise fees paid on qualified wagering and the baseline amount from that
21 year's net gaming proceeds.
22 C. In any subsequent year, if a licensee is unable to utilize the deduction
23 provided in Subsection B of this Section, the licensee may reapply to the board
24 to establish a new baseline amount.
25 D. The board shall prescribe the form and manner of the deduction and
26 shall promulgate rules in accordance with the Administrative Procedure Act to
27 implement the provisions of this Section.
28 * * *
29 §205. Definitions
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1 * * *
2 (31) "Qualified wager" or "qualified wagering" means wagers placed by
3 patrons using noncashable vouchers, promotional chips, coupons, electronic
4 promotions, scrips, or any other cash equivalent that is provided to the patron
5 by the licensee.
6 (32) "Security" means the protection of information that would or could
7 provide an unfair advantage to any individual involved in the operation of the casino
8 gaming; protection and preservation of the integrity of casino gaming games and
9 operations; as well as measures taken to prevent crimes against a gaming operator
10 or the corporation.
11 (32)(33) "Slot machine" means any mechanical, electrical, or other device,
12 contrivance, or machine which, upon insertion of a coin, token, or similar object
13 therein or upon payment of any consideration whatsoever, is available to play or,
14 operate the play or operation of which, whether by reason of the skill of the operator
15 or application of the element of chance, or both, may deliver or entitle the person
16 playing or operating the machine to receive cash, premiums, merchandise, tokens,
17 or any thing of value, whether the payoff is made automatically from the machine
18 or in any other manner.
19 (33)(34) "Suitable" or "suitability requirements" shall have the same meaning
20 as that term defined in R.S. 27:3.
21 (34)(35) "Vendor" means any person who has entered into a major
22 procurement contract with the corporation.
23 * * *
24 §253. Deduction of qualified wagers from gross revenue; procedures;
25 limitations
26 A. On and after July 1, 2020, the casino operator may apply to the board
27 to establish a baseline amount of minimum compensation and licensing fee paid
28 on the portion of gross revenue attributable to qualified wagering. The
29 minimum compensation paid pursuant to R.S. 27:241 and 241.1 and annual
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1 licensing fee paid pursuant to R.S. 27:251 shall be used to determine the
2 baseline amount.
3 B. In any subsequent year and on an annual basis, if the portion of the
4 minimum compensation and licensing fee attributable to qualified wagering
5 exceeds the baseline amount, a licensee may deduct the difference of the amount
6 of the minimum compensation and licensing fee paid on qualified wagering and
7 the baseline amount from that year's gross revenues.
8 C. In any subsequent year, if a licensee is unable to utilize the deduction
9 provided in Subsection B of this Section, the licensee may reapply to the board
10 to establish a new baseline amount.
11 D. The board shall prescribe the form and manner of the deduction and
12 shall promulgate rules in accordance with the Administrative Procedure Act to
13 implement the provisions of this Section.
14 E. The board shall amend the casino operating contract to reflect the
15 provisions of this Section.
16 * * *
17 §353. Definitions
18 * * *
19 (10) "Qualified wager" or "qualified wagering" means wagers placed by
20 patrons using noncashable vouchers, promotional chips, coupons, electronic
21 promotions, scrips, or any other cash equivalent that is provided to the patron
22 by the licensee.
23 (11) "Service technician" means any person other than a licensee or
24 manufacturer who repairs, services, inspects, or examines slot machines.
25 (11)(12) Repealed by Acts 2001, No. 1222, §2, eff. July 2, 2001.
26 (12)(13) "Slot machine gaming" means the use, operation, offering, or
27 conducting of slot machines at an eligible facility in accordance with the provisions
28 of this Chapter.
29 (13)(14) "Taxable net slot machine proceeds" means "net slot machine
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1 proceeds" less the amount of support, payment, or contributions required as provided
2 in R.S. 27:361(B)(4).
3 (14)(15) "Slot machine" means any mechanical, electrical, or other device,
4 contrivance, or machine which, upon insertion of a coin, token, or similar object
5 therein or upon payment of any consideration whatsoever, is available to play or
6 operate, the play or operation of which, whether by reason of the skill of the operator
7 or application of the element of chance, or both, may deliver or entitle the person
8 playing or operating the machine to receive cash, premiums, merchandise, tokens,
9 or anything of value, whether the payoff is made automatically from the machine or
10 in any other manner.
11 * * *
12 §395. Deduction of qualified wagers from net slot machine proceeds;
13 procedures; limitations
14 A. On and after July 1, 2020, a licensee may apply to the board to
15 establish a baseline amount of taxes and contributions paid on the portion of net
16 slot machine proceeds attributable to qualified wagering. The taxes and
17 contributions paid pursuant to R.S. 27:361(B)(4) and 393 shall be used to
18 determine the baseline amount.
19 B. In any subsequent year and on an annual basis, if the portion of the
20 taxes and contributions attributable to qualified wagering exceeds the baseline
21 amount, a licensee may deduct the difference of the amount of the taxes and
22 contributions paid on qualified wagering and the baseline amount from that
23 year's net slot machine proceeds.
24 C. In any subsequent year, if a licensee is unable to utilize the deduction
25 provided in Subsection B of this Section, the licensee may reapply to the board
26 to establish a new baseline amount.
27 D. The board shall prescribe the form and manner of the deduction and
28 shall promulgate rules in accordance with the Administrative Procedure Act to
29 implement the provisions of this Section.
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Ashley Menou.
DIGEST
SB 320 Engrossed 2018 Regular Session Johns
Present law defines "net gaming proceeds" as the total of all cash and property received by
the licensee from gaming operations, less the total of all cash paid out as winnings to
patrons.
Riverboat Gaming Licensee
Present law provides for license and franchise fees to be charged to all riverboat gaming
licensees for the right to conduct gaming activities on a riverboat. Further provides for the
fees to be a percentage of the net gaming proceeds.
Proposed law retains present law.
Proposed law defines "qualified wager" or "qualified wagering" as wagers placed by patrons
using noncashable vouchers, promotional chips, coupons, electronic credits, electronic
promotions, scrips, or any other cash equivalent that is provided to the patron by the
licensee.
Proposed law provides that on and after July 1, 2020, a riverboat gaming licensee may apply
to the board to establish a baseline amount of license and franchise fees paid on the portion
of net gaming proceeds attributable to qualified wagering.
Proposed law provides that in any subsequent year, if the portion of the license and franchise
fees attributable to qualified wagering exceeds the baseline amount, a licensee may deduct
the difference of the amount of the license and franchise fees paid on qualified wagering and
the baseline amount from that year's net gaming proceeds.
Proposed law provides that in any subsequent year if the license and franchise fees paid on
qualified wagering do not exceed the baseline amount, the licensee may reapply to the board
to establish a new baseline amount.
Proposed law provides that the board shall prescribe the form and manner of the deduction
and shall promulgate rules to implement the provisions of proposed law.
Land-Based Casino Operations
Present law, regarding land-based casino operations, defines "gross revenue" as the total of
all value received by the casino gaming operator from gaming operations, including cash,
checks, vouchers, instruments and anything received in payment for credit extended to a
patron for purposes of gaming, and compensation received for conducting any game in
which the casino gaming operator is not party to a wager, less the total of all value or
amounts paid out as winnings to patrons and credit instruments or checks which are
uncollected as determined by rule of the corporation.
Present law provides that the casino operator must pay to the La. Economic Development
and Gaming Corporation (the corporation) a minimum compensation of the greater of 18.5%
of gross revenues or 100 million dollars annually. Further, the casino operator must pay to
the board a minimum compensation of the greater of 18.5% of gross revenues or 60 million
dollars annually.
Present law provides for an annual licensing fee to be set forth in rules promulgated by the
corporation.
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Proposed law retains present law.
Proposed law provides that on and after July 1, 2020, the casino operator may apply to the
board to establish a baseline amount of minimum compensation and licensing fee paid on
the portion of gross revenue attributable to qualified wagering.
Proposed law provides that in any subsequent year, if the portion of the minimum
compensation and licensing fee attributable to qualified wagering do not exceed the baseline
amount, the licensee may deduct that difference of the amount of the minimum
compensation and licensing fee paid on qualified wagering and the baseline amount from
that year's gross revenues.
Proposed law provides that in any subsequent year, if the minimum compensation and
licensing fee paid on qualified wagering do not exceed the baseline amount, the licensee may
reapply to the board to establish a new baseline amount.
Proposed law provides that the board shall prescribe the form and manner of the deduction
and promulgate rules to implement the provisions of proposed law. Further provides that the
board shall amend the casino operating contract to reflect the provisions of proposed law.
Pari-Mutuel Wagering Facilities
Present law, regarding pari-mutuel wagering facilities (eligible facilities), defines "net slot
machine proceeds" as the total of all cash and property received by a licensee from slot
machine gaming operations minus the amount of cash or prizes paid to winners. Further
defines "taxable net slot machine proceeds" as the "net slot machine proceeds" less the
amount of required support, payment, or contributions.
Present law requires eligible facilities to contribute to the horse breeding industry and
support pari-mutuel wagering facilities by contributing annually from the net slot machine
proceeds.
Present law provides that an 18.5% license tax shall be levied upon taxable net slot machine
proceeds.
Proposed law retains present law.
Proposed law provides that on and after July 1, 2020, a licensee may apply to the board to
establish a baseline amount of taxes and contributions paid on the portion of net slot machine
proceeds attributable to qualified wagering.
Proposed law provides that in any subsequent year, if the portion of the taxes and
contributions attributable to qualified wagering exceeds the baseline amount, a licensee may
deduct the difference of the amount of taxes and contributions paid on qualified wagering
and the baseline amount from that year's net slot machine proceeds.
Proposed law provides that in any subsequent year if the amount of taxes and contributions
paid on qualified wagering do not exceed the baseline year, the licensee may reapply to the
board to establish a new baseline amount.
Proposed law provides that the board shall prescribe the form and manner of the deduction
and shall promulgate rules to implement the provisions of proposed law.
Effective August 1, 2018.
(Amends R.S. 27:44(21)-(25), 205(31)-(34), and 353(10)-(14); adds R.S. 27:44(26), 95,
205(35), 253, 353(15), 395)
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Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Judiciary B to the
original bill
1. Adds the definition of "qualified wagering" to the provisions of present law
regarding land-based casino operations.
2. Allows the casino operator to apply to the board to establish a baseline
amount of minimum compensation and licensing fee paid on the portion of
gross revenue attributable to qualified wagering.
3. Allows a deduction of the difference of the amount of minimum
compensation and licensing fee paid on qualified wagering and the baseline
amount from gross revenues if the portion of the minimum compensation and
licensing fee attributable to qualified wagering exceeds the baseline amount
in any subsequent year.
4. Allows the casino operator to reapply to the board to establish a new baseline
amount if unable to utilize the deduction in a subsequent year.
5. Requires the board to amend the casino operating contract to reflect the
provisions of proposed law.
6. Adds the definition of "qualified wagering" to the provisions of present law
regarding pari-mutuel wagering facilities.
7. Allows a licensee operating an eligible pari-mutuel wagering facility to apply
to the board to establish a baseline amount of taxes and contributions paid on
the portion of net slot machine proceeds attributable to qualified wagering.
8. Allows a deduction of the difference of the amount of taxes and contributions
paid on qualified wagering and the baseline amount from net slot machine
proceeds if the portion of taxes and contributions attributable to qualified
wagering exceeds the baseline amount in any subsequent year.
9. Allows the eligible facility to reapply to the board to establish a new baseline
amount if unable to utilize the deduction in a subsequent year.
10.Requires the board to prescribe the form and manner of the deduction and
promulgate rules to implement the provisions of proposed law.
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