HLS 19RS-1197 REENGROSSED
2019 Regular Session
HOUSE BILL NO. 600
BY REPRESENTATIVE TALBOT
TAX/GAMING: Levies a state tax on the net gaming proceeds of fantasy sports contests,
and authorizes a fee for issuance of certain licenses or permits
1 AN ACT
2To enact R.S. 27:302(3) and (4), 306, and 307, relative to the taxation of fantasy sports
3 contests; to levy a state tax on certain fantasy sports contests; to authorize a fee for
4 issuance of certain licenses or permits; to provide for definitions; to provide for
5 certain requirements and limitations; to provide for certain conditions; to provide for
6 the disposition of the avails of certain taxes, fees, and fines; to provide for certain
7 penalties; to provide for an effective date; and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 27:302(3) and (4), 306, and 307 are hereby enacted to read as
10follows:
11 §302. Definitions
12 For purposes of this Chapter:
13 * * *
14 (3) "Net revenue" means for all fantasy sports contests, the amount equal to
15 the total entry fees collected from all participants entering such fantasy sports
16 contests, less the winnings paid to participants in the contests.
17 (4) "Operator" or "licensee" means any person holding or applying for a
18 gaming license or permit that allows the licensee or permittee to administer, conduct,
19 control, or manage fantasy sports contests.
20 * * *
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HB NO. 600
1 §306. Taxation and fees
2 A. There is hereby levied a tax of fifteen percent upon the net revenue of
3 fantasy sports contests offered to consumers within this state, which shall be due and
4 payable monthly. Five percent of the net sports wagering proceeds shall be remitted,
5 by proportionate distribution, to each parish governing authority in which the taxable
6 conduct occurred.
7 B. The annual fee for a fantasy sports contest license or permit shall be
8 fifteen thousand dollars. This fee is required to be submitted to the division on the
9 anniversary date of the issuance of the license or permit.
10 C. The division shall collect all fees, fines, and state taxes imposed or
11 assessed under the provision of this Chapter and under the rules and regulations of
12 the board.
13 D. All fees, fines, revenues, state taxes, and other monies collected by the
14 division shall be forwarded upon receipt to the state treasurer for immediate deposit
15 into the state treasury. Funds so deposited shall first be credited to the Bond Security
16 and Redemption Fund in accordance with Article VII, Section 9(B) of the
17 Constitution of Louisiana. After complying with the provisions of the Bond Security
18 and Redemption Fund, the state treasurer shall deposit, each month, the remainder
19 of the avails of the taxes collected pursuant to this Section into the Louisiana Early
20 Childhood Education Fund as established in R.S. 17:407.30.
21 E. An amount shall be allocated to the Department of Public Safety and
22 Corrections and to the Department of Justice, pursuant to legislative appropriation,
23 for regulatory, administrative, investigative, enforcement, legal, and other such
24 expenses as may be necessary to carry out the provisions of this Chapter and for
25 activities associated with the enforcement of laws and regulations governing fantasy
26 sports contests.
27 * * *
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HB NO. 600
1 §307. Civil penalty
2 Any fantasy sports contest operator who violates any procedure implemented
3 pursuant to this Chapter shall be liable for a civil penalty of not more than one
4 thousand dollars for each violation, not to exceed fifty thousand dollars for violations
5 arising out of the same transaction or occurrence, which shall accrue to the state and
6 may be recovered in a civil action brought by the board.
7 Section 2. This Act shall become effective on July 1, 2019.
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 600 Reengrossed 2019 Regular Session Talbot
Abstract: Authorizes a 15% state tax on net gaming proceeds from fantasy sports contests
and dedicates the tax to the La. Early Childhood Education Fund and to parish
governing authorities in which fantasy sports contests occurred.
Present law establishes the "Louisiana Fantasy Sports Contests Act" that authorizes the
electors in the state to determine whether fantasy sports contests are permitted in a particular
parish.
Present law defines a "fantasy sports contest" to mean any fantasy or simulation sports game
or contest played through the internet or mobile device with all of the following elements:
(1)Participants create a simulation sports team based on the current membership of
actual amateur or professional sports organizations.
(2)All prizes and awards offered to winning participants are established in advance of
the game or contest and the value of the prizes is not determined by the number of
participants or the amount of fees paid by participants.
(3)All winning outcomes reflect the relative knowledge and skill of the participant and
are determined by accumulated statistical results of the performance of the
individuals.
(4)No winning outcome is based on the score, point-spread, or any performance or
performances of any single real-world team or any combination of teams or on a
single performance of an individual athlete in any single real-world sporting or other
event.
Present law requires the La. Gaming Control Board to adopt rules necessary to implement,
administer, and regulate fantasy sports contests in this state if the electors of a parish
approved fantasy sports contests in the parish. Upon adoption of rules by the La. Gaming
Control Board and the enactment of laws to provide for the licensing, regulation, and
taxation of revenue relative to fantasy sports contests, present law provides the following:
(1)Authorizes fantasy sports contests only in those parishes that approved the
proposition to permit fantasy sports contests in the parish.
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HB NO. 600
(2)Provides an exception to crimes in present law for gaming and gambling by
computer for fantasy sports contests.
Proposed law levies a 15% tax on the net revenue of fantasy sports contests conducted in the
state and requires 10% of the net revenue of fantasy sports contests deposited into the La.
Early Childhood Education Fund and 5% of the net sports wagering proceeds to be remitted,
by proportionate distribution, to each parish governing authority in which the taxable
conduct occurred. Proposed law further requires all fees, fines and other monies collected
pursuant to proposed law to be deposited into the La. Early Childhood Education Fund.
Proposed law provides for a $15,000 fantasy sports contest license or permit fee.
Proposed law defines net revenue as an amount equal to the total entry fees collected from
all participants entering fantasy sports contests, less the winnings paid to participants in the
contests.
Proposed law requires the tax levied on fantasy sports contests to be collected by the
division. Proposed law authorizes the legislature to appropriate money to be allocated to the
Dept. of Public Safety and Corrections and to the Dept. of Justice for regulatory,
administrative, investigative, enforcement, and legal expenses related to fantasy sports
contests.
Proposed law imposes a civil penalty for certain gaming violations. The penalty shall not
exceed $1,000 for each individual violation, with a cap of $50,000 for violations arising out
of the same transaction or occurrence.
Effective July 1, 2019.
(Adds R.S. 27:302(3) and (4), 306, and 307)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Change the term used in calculating the tax from net gaming proceeds, defined
as total of all cash and property, including checks received by an operator or
licensee, whether collected or not, from gaming operations, less the total of all
cash paid out as winnings to net revenue defined as the amount equal to the total
entry fees collected from all participants entered minus the winnings paid to
participants.
2. Change the disposition of the avails of the tax from deposit into the state general
fund each month, to deposit into the La. Early Childhood Education Fund.
Further requires all fees and fines to be deposited into the La. Early Childhood
Education Fund.
3. Impose a civil penalty for operators, holding or applying for a gaming license or
permit, that violate any gaming regulation procedures of no more than $1,000 for
each violation, not to exceed $50,000 for violations arising out of the same
transaction or occurrence. Authorizes these fines to be recovered in a civil action
by the La. Gaming Control Board.
4. Make technical changes.
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HB NO. 600
The House Floor Amendments to the engrossed bill:
1. Increase the tax levied on the net revenue of fantasy sports contests from 10% to
15% and increase the annual fee for a fantasy sports contest or license from
$10,000 to $15,000.
2. Require 5% of the net sports wagering proceeds to be remitted, by proportionate
distribution, to each parish governing authority in which the taxable conduct
occurred.
3. Authorize the legislature to appropriate money to the Dept. of Public Safety and
Corrections and to the Dept. of Justice for regulatory, administrative,
investigative, enforcement, legal and other expenses related to administration of
sports wagering activities.
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