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 Engrossed 2019 Regular Session Marino
Abstract: Levies a 15% state tax on the net proceeds of sports wagering and dedicates 1% or
$500,000, whichever is greater, to the Compulsive and Problem Gaming Fund and the
remainder of the proceeds to the Early Childhood Education Fund and parish governing
authorities. 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 15% tax on the net proceeds of sports wagering conducted in the state and
requires that the greater of 1% or $500,000 of the proceeds collected to be deposited into the
Compulsive and Problem Gaming Fund per year and two-thirds of the avails of the tax to be
deposited into the Early Childhood Education Fund and one-third of the avails to be remitted to
parish governing authorities where the gaming occurred.
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)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Increase the rate of the tax levied on net proceeds of sports wagering from 12% to 15%.
2. Increase the amount of money given to the Compulsive and Problem Gaming Fund from
1% of net proceeds of sports wagering not to exceed $100,000 annually to 1% of net
proceeds of sports wagering or $500,000, whichever is greater.
3. Change the disposition of the avails of the tax levied from being deposited into the state
general fund to two-thirds of the avails deposited into the La. Early Childhood Education
Fund and one-third of the avails to the parish governing authority where the taxable
conduct occurred.
4. Make technical changes.