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)]
CONFERENCE COMMITTEE REP ORT DIGEST
HB 600 2019 Regular Session Talbot
Keyword and oneliner of the instrument as it left the House
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
Report adopts Senate amendments to:
1. Establish an annual fee for a fantasy sports contest license or permit and base the amount of
the fee on the licencee's annual revenue.
2. Make technical changes.
Report rejects Senate amendments which would have:
1. Relative to fantasy sports contests, imposed an initial fee for a fantasy sports contest license
or permit for an operator never licensed in Louisiana, and distributed the tax levied on net
fantasy sports contest revenue as follows:
(a)2% to the Compulsive and Problem Gaming Fund.
(b)3% to the locals.
(c)The remainder of the collection to the Early Childhood Education Fund.
2. Provided relative to the contingent effectiveness and implementation of proposed law
regarding fantasy sports contests.
3. Incorporated the Reengrossed version of House Bill No. 587 of the 2019 R.S. as amended
by the set of House Floor Amendments by Representative Marino (#3091) which would have
done all of the following:
(a)Provided relative to the issuance of sports wagering service provider permits. (b)Provided relative to the issuance of manufacturer permits.
(c)Provided relative to the issuance of gaming and non-gaming supplier permits.
(d)Provided relative to the issuance of key and non-key employee permits.
(e)Created the Sports Wagering Enforcement Subfund and provided for the
collection and disposition of fees.
(f)Provided relative the a sports wagering certificate fee.
(g)Levied a 13% tax on the net sports wagering proceeds offered to consumers
within Louisiana.
(h)Provided for the disposition of the 13% tax.
(i)Provided for effectiveness.
Report amends the bill to:
1. Increase the tax levied on the net revenue of fantasy sports contests offered to consumers
within Louisiana from 15% to 18.5%.
2. Require that the 18.5% tax collected be disbursed as follows:
(a) An amount from the collections shall be appropriated to the Department of
Public Safety and Corrections and to the Department of Justice for regulatory,
administrative and investigative purposes related to fantasy sports contests.
(b)2/37ths of the avails of the tax shall be credited to the Compulsive and
Problem Gaming Fund.
(c)10/37ths fo the avails of the tax shall be remitted to local governing
authorities in which fantasy sports contests are permitted.
(d)The remainder of the tax collected shall be credited to the Louisiana Early
Childhood Education Fund.
Digest of the bill as proposed by the Conference Committee
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.
(2)Provides an exception to crimes in present law for gaming and gambling by computer for
fantasy sports contests.
Proposed law levies a 18.5% tax on the net revenue of fantasy sports contests conducted in the stat.
Proposed law distributes the tax as follows: an amount of the avails may be appropriated for the
Dept. of Public Safety and Corrections and to the Dept. of Justice for regulatory, administrative, and
investigative expenses; 2/37ths of the avails of the tax go to the Compulsive and Problem Gaming
Fund; 10/37ths of the tax go to local governing authorities in which the taxable conduct occurred;
and the remainder of the avails go to the La. Early Childhood Education Fund. 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 that the annual fee for a fantasy sports contest license or permit is $5,000 if
the licensee's annual revenue is less than $100,000; $15,000 if the licensee's annual revenue is
$100,000 or more but less than $300,000; and $40,000 if the licensee's annual revenue is more than
$300,000
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 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)