Louisiana 2019 2019 Regular Session

Louisiana House Bill HB587 Comm Sub / Analysis

                    DIGEST
The digest printed below was prepared by House Legislative Services.  It constitutes no part of the
legislative instrument.  The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent.  [R.S. 1:13(B) and 24:177(E)]
HB 587 Original	2019 Regular Session	Marino
Abstract:  Levies a 12% state tax on the net proceeds of sports wagering and dedicates $100,000
of the avails of the tax to the Compulsive and Problem Gaming Fund and the remainder of
the proceeds to the Early Childhood Education Fund. Authorizes certain permits and imposes
fees for entities involved in the sports wagering gaming industry.
Present federal law overturned the 1992 Professional Amateur Sports Protection Act, a federal
prohibition on professional and amateur single-game sports wagering on May 14, 2018, in the U.S.
Supreme Court case Murphy, governor of New Jersey v. National Collegiate Athletic Association.
As a result, states are now authorized to legalize and regulate sports wagering gaming. 
Present constitution prohibits a law authorizing a new form of gaming, gambling or wagering to be
conducted in a parish unless a referendum election on the issue is held in a parish and the proposition
is approved by the majority of voters.
Proposed law levies a 12% tax on the net proceeds of sports wagering conducted in the state and
requires  that $100,000 of the proceeds collected to be deposited into the Compulsive and Problem
Gaming Fund per year and the remainder of the avails of the tax to be deposited into the Early
Childhood Education Fund. 
Proposed law imposes a sports wagering service provider permit fee of $50,000 which shall be paid
annually. 
Proposed law imposes an initial application fee of $50,000 for a sports wagering certificate.
Proposed law imposes a  fee on the holder of a sports wagering certificate. The certificate shall be
for a term of 5 years and shall cost $100,000. 
Proposed law requires that the tax levied on sports wagering be collected by the division in the office
of state police, which provides investigatory, regulatory, and enforcement services to the La. Gaming
Control Board for the implementation, administration, and enforcement of gaming laws, rules, and
regulations. 
Proposed law retains present law and imposes an annual fee of $15,000 for a manufacturer permit
required by an entity that supplies sports wagering systems. 
Present law imposes an annual fee of $3,000 for a gaming supplier permit required by entities which furnish services to gaming licensees. Proposed law retains present law and imposes the fee on
entities furnishing services to sports wagering service providers or licensees.
Proposed law imposes an annual fee of $50,000 for a sports wagering service provider permit.
Present law imposes an annual fee of $250 for a non-gaming supplier permit required by entities
which furnish services to  gaming licensees. Proposed law retains present law and imposes the fee
on entities furnishing services to sports wagering service providers or licensees.
Present law  imposes a fee for the initial application for a non-key gaming employee which may
work with sports wagering gaming to be $200 and the renewal fee to be $200. Proposed law retains
present law and imposes these fees on non-key gaming employees who may work with sports
wagering service providers or licensees.
Present law imposes a  fee for the initial application for a key gaming employee which may work
with sports wagering gaming to be $500 and the renewal fee to be $200. Proposed law retains present
law and imposes these fees on key gaming employees who may work with sports wagering service
providers or licensees.
Effective if and when Senate Bill No. 153 of this 2019 R.S. is enacted and becomes effective.
(Amends R.S. 27:29.1(D) and (E), 29.2(A) and (B), 29.3(A)(1) and (2), and 29.4(D); Adds R.S.
27:29.2.1, 608, and 609)