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.
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)
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.