SLS 19RS-35 ORIGINAL 2019 Regular Session SENATE BILL NO. 153 BY SENATOR MARTINY Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. GAMING. Provides relative to sports wagering. (See Act) 1 AN ACT 2 To amend and reenact R.S. 13:4721, R.S. 14:90(C) and 90.3(F), R.S. 27:3(24), 15(B)(1), 3 29(F), (H), and (I), 29.2(D), 29.3(A) and (D), 29.4(D), 44(10), (12), and (14), 58(5), 4 65(B)(11), 205(12) and (13), 239.1, 361(F), and 371(C), and to enact R.S. 5 18:1300.24, and R.S. 27:3(25) and (26), 15(B)(8)(c), and 29.2.1, and Chapter 10 of 6 Title 27 of the Louisiana Revised Statues of 1950, to be comprised of R.S. 27:601 7 through 607, relative to sports wagering; to require an election to authorize sports 8 wagering; to provide for definitions; to provide regarding permits; to provide 9 regarding sports wagering certificates; to provide regarding the duties and powers 10 of the Gaming Control Board; to provide regarding rulemaking; to provide regarding 11 prohibited wagers; to provide for an effective date; and to provide for related 12 matters. 13 Notice of intention to introduce this Act has been published. 14 Be it enacted by the Legislature of Louisiana: 15 Section 1. R.S. 27:3(24), 15(B)(1), 29(F), (H), and (I), 29.2(D), 29.3(A) and (D), 16 29.4(D), 44(10), (12), and (14), 58(5), 65(B)(11), 205(12) and (13), 239.1, 361(F), and 17 371(C) are hereby amended and reenacted and R.S. 27:3(25) and (26), 15(B)(8)(c), and Page 1 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL 1 29.2.1, and Chapter 10 of Title 27 of the Louisiana Revised Statutes of 1950, comprised of 2 R.S. 27:601 through 607, are hereby enacted to read as follows: 3 §3. Definitions 4 For the purposes of this Title, the following terms have the following 5 meanings, unless the context clearly indicates otherwise: 6 * * * 7 (24) "Sports wagering service provider" means a person who has entered 8 into a contract with the holder of a sports wagering certificate issued pursuant 9 to the provisions of Chapter 10 of this Title to manage, administer, or control 10 sports wagering for the certificate holder. 11 (25) "Sports wagering service provider permit" means the permit of a 12 sports wagering service provider. 13 (26) "Suitable", "suitability", or "suitability requirements" means the criteria 14 provided for in R.S. 27:28. 15 * * * 16 §15. Board's authority; responsibilities 17 * * * 18 B. The board shall: 19 (1) Have all regulatory authority, control, and jurisdiction, including 20 investigation, licensing, and enforcement, and all power incidental or necessary to 21 such regulatory authority, control, and jurisdiction over all aspects of gaming 22 activities and operations as authorized pursuant to the provisions of the Louisiana 23 Riverboat Economic Development and Gaming Control Act, the Louisiana 24 Economic Development and Gaming Corporation Act, the Video Draw Poker 25 Devices Control Law, the Sports Wagering Control Law, and the Louisiana 26 Fantasy Sports Contests Act, except as otherwise specified in this Title. Further, the 27 board shall have all regulatory, enforcement, and supervisory authority which exists 28 in the state as to gaming on Indian lands as provided in the provisions of Act No. 888 29 of the 1990 Regular Session of the Legislature and Act No. 817 of the 1993 Regular Page 2 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL 1 Session of the Legislature. 2 * * * 3 (8) 4 * * * 5 (c) Adopt, pursuant to the Administrative Procedure Act and as 6 specifically provided for in R.S. 27:605, all rules necessary to implement, 7 administer, and regulate sports wagering as authorized by Chapter 10 of this 8 Title. 9 * * * 10 §29. Permit required; terms; disposition of fees 11 * * * 12 F. The term of a permit issued pursuant to the provisions of R.S. 27:29.1, 13 29.2, 29.2.1, 29.3, and 86 shall be for five years. 14 * * * 15 H. The division shall collect all fees assessed pursuant to the provisions of 16 R.S. 27:29.1, 29.2, 29.2.1, 29.3, and 29.4. The division shall deposit the fees in 17 accordance with the provisions of R.S. 27:92. 18 I. The failure to remain current in the payment of any fee assessed pursuant 19 to the provisions of R.S. 27:29.1, 29.2, 29.2.1, 29.3, or 29.4 shall result in the 20 suspension of the permit. 21 * * * 22 §29.2. Gaming supplier permits 23 * * * 24 D. A supplier shall furnish to the board a list of any gaming equipment and 25 supplies offered by the supplier for sale or lease in connection with games authorized 26 under this Title. A supplier shall keep books and records for the furnishing of gaming 27 equipment and supplies to gaming operations separate and distinct from any other 28 business that the supplier might operate. A supplier shall file a quarterly return with 29 the board listing all sales and leases. A supplier shall permanently affix its name to Page 3 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL 1 all its gaming devices, equipment, and supplies for gaming operations unless 2 otherwise authorized by the board. Any supplier's gaming devices, equipment, or 3 supplies which are used by any person in unauthorized gaming operations shall be 4 forfeited to the board. The holder of a license as defined in R.S. 27:44(14), R.S. 5 27:353(5), and 27:44(15) or 353(5), the casino gaming operator, or a sports 6 wagering service provider as defined in R.S. 27:602(15) may own its own gaming 7 devices, equipment, and supplies. Each supplier, the holder of a license as defined 8 in R.S. 27:44(14), R.S. 27:353(5), and 27:44(15) or 353(5), the casino gaming 9 operator, and each sports wagering service provider as defined in R.S. 10 27:602(15) shall file an annual report with the board listing its inventories of gaming 11 devices, equipment, and supplies. 12 * * * 13 §29.2.1. Sports wagering service provider permits 14 A.(1) The board shall issue a sports wagering service provider permit to 15 any suitable person who desires to contract to manage, administer, and control 16 sports wagers for a holder of a license as defined in R.S. 27:44(15) or 353(5) or 17 the casino gaming operator. 18 (2) A person shall not contract to manage, administer, or control sports 19 wagers unless the person possesses a sports wagering service provider permit. 20 B. A sports wagering service provider shall keep books and records for 21 the management, administering, and controlling of sports wagering authorized 22 under this Title and for services for which it is contracted by a licensee or 23 operator. The keeping of books and records shall be separate and distinct from 24 any other business the sports wagering service provider might operate. A sports 25 wagering service provider shall file a quarterly return with the board listing all 26 of its contracts and services related to sports wagering authorized under this 27 Title. 28 * * * 29 §29.3. Non-gaming supplier permit Page 4 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL 1 A.(1) The division shall issue a non-gaming supplier permit to any suitable 2 persons who furnish person who furnishes services or goods and receive receives 3 compensation or remuneration for providing such goods or services to the holder of 4 a license as defined in R.S. 27:44 and or 353, or the casino gaming operator, or a 5 sports wagering service provider as defined in R.S. 27:602. The board shall 6 promulgate rules establishing the threshold amount of goods and services for which 7 a non-gaming supplier permit is required. Such services include but are not limited 8 to industries offering goods or services whether or not directly related to gaming 9 activity, including junket operators and limousine services contracting with the 10 holder of a license as defined in R.S. 27:44 and or 353, or the casino gaming 11 operator, or a sports wagering service provider as defined in R.S. 27:602; 12 suppliers of food and nonalcoholic beverages,; gaming employee or dealer training 13 schools,; garbage handlers,; vending machine providers,; linen suppliers,; or 14 maintenance companies. Any employee or dealer training school, other than 15 employee or dealer training schools conducted by a licensee, or the casino gaming 16 operator, shall be conducted at an institution approved by the Board of Regents or 17 the State Board of Elementary and Secondary Education. 18 (2) Any person who, directly or indirectly, furnishes services or goods to the 19 holder of a license as defined in R.S. 27:44 and or 353, or the casino gaming 20 operator, or a sports wagering service provider as defined in R.S. 27:602, 21 regardless of the dollar amount of the goods and services furnished, or who has a 22 business association with the holder of a license as defined in R.S. 27:44 and or 353, 23 or the casino operator, or a sports wagering service provider as defined in R.S. 24 27:602, may be required by the board or division, where applicable, to be found 25 suitable or apply for a non-gaming supplier permit. Failure to supply all information 26 required by the board or division, where applicable, may result in a finding of 27 unsuitability or denial of a non-gaming supplier permit. 28 * * * 29 D. The holder of a license as defined in R.S. 27:44 or 353, or the casino Page 5 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL 1 gaming operator, or a sports wagering service provider as defined in R.S. 27:602 2 shall ensure that all persons required to be licensed or permitted, or persons 3 performing regulated tasks who are supplied by contractual agreement or otherwise, 4 are properly licensed or permitted pursuant to this Title. 5 * * * 6 §29.4. Key and non-key gaming employee permit 7 * * * 8 D. The holder of a key or non-key gaming employee permit issued under this 9 Title shall be authorized to work in the capacity for which permitted for the holder 10 of a license as defined in R.S. 27:44(14), R.S. 27:353(5) or 27:44(15) or 353(5), the 11 casino gaming operator, or a sports wagering service provider as defined in R.S. 12 27:602(15). 13 * * * 14 §44. Definitions 15 When used in this Chapter, the following terms shall mean: 16 * * * 17 (10)(a) "Game" means any banking or percentage game which is played with 18 cards, dice, or any electronic, electrical, or mechanical device or machine for money, 19 property, or any thing of value. "Game" does not include a lottery, bingo, pull tabs, 20 raffles, electronic video bingo, cable television bingo, dog race wagering, or any 21 wagering on any type of sports event, including but not limited to football, 22 basketball, baseball, hockey, boxing, tennis, wrestling, jai alai, or other sports contest 23 or event. Game "Game" shall also include racehorse wagering. 24 (b) Notwithstanding any provision of Subparagraph (a) of this 25 Paragraph to the contrary, "game" shall include sports wagering as authorized 26 in Chapter 10 of this Title with a licensee to whom the board has issued a sports 27 wagering certificate as defined in R.S. 27:602. 28 * * * 29 (12)(a) "Gaming device" or "gaming equipment" means any equipment or Page 6 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL 1 mechanical, electro-mechanical, or electronic contrivance, component, or machine, 2 including a slot machine, used directly or indirectly in connection with gaming or 3 any game, which affects the result of a wager by determining wins or losses. 4 (b) For a licensee to whom the board has issued a sports wagering 5 certificate as defined in R.S. 27:602, "gaming device" or "gaming equipment" 6 shall also include any equipment or mechanical, electro-mechanical, or 7 electronic contrivance, component, or machine used directly or indirectly in 8 connection with sports wagering. 9 * * * 10 (14)(a) "Gaming position" means a gaming device seat or a space at a table 11 game. Each gaming device seat shall be counted as one position and each space at 12 a table game shall be counted as one position, subject to the rules and regulations of 13 the board. The board shall specifically provide by rule for the counting of gaming 14 positions for devices and games where seats and spaces are not readily countable. 15 (b) For a licensee to whom the board has issued a sports wagering 16 certificate as defined in R.S. 27:602, "gaming position" shall also include a self- 17 service wagering machine or self-service kiosk or a wagering window space 18 where a sports wager is accepted and each space, machine, or kiosk where a 19 sports wager is accepted shall be counted as one position, subject to the rules 20 and regulations of the board. 21 * * * 22 §58. Division responsibilities 23 The division shall: 24 * * * 25 (5) Require all licensees to utilize a cashless wagering system, except for 26 racehorse wagering, sports wagering, and the play of slot machines, whereby all 27 players' money is converted to tokens, electronic cards, or chips used only for 28 wagering in the gaming establishment. 29 * * * Page 7 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL 1 §65. Licenses to conduct gaming activities upon riverboats; limitations 2 * * * 3 B. Gaming shall be conducted aboard riverboats, subject to the following 4 requirements: 5 * * * 6 (11) Except for racehorse wagering, sports wagering, and the play of slot 7 machines, gaming wagers may be made only with tokens, chips, vouchers, coupons, 8 or electronic cards issued by the licensee. Such tokens, chips, vouchers, coupons, or 9 electronic cards may be used while aboard the riverboat only for the purpose of 10 making wagers on gaming games. Electronic cards may be used which are affixed 11 with a magnetic storage media, a "smart card" or those containing an integrated 12 circuit chip, but excluding credit cards issued by any other entity or institution or 13 cards which automatically withdraw funds from a credit, savings, or checking 14 account held at a depository institution as defined by Section 3 of the Federal 15 Deposit Insurance Act, which includes any credit union. 16 * * * 17 §205. Definitions 18 When used in this Chapter, the following terms have these meanings: 19 * * * 20 (12)(a) "Game" means any banking or percentage game located exclusively 21 within an official gaming establishment which is played with cards, dice, or any 22 electronic, electrical, or mechanical device or machine for money, property, or any 23 thing of value. Game "Game" does not include lottery, bingo, charitable games, 24 raffles, electronic video bingo, pull tabs, cable television bingo, wagering on dog or 25 horse races, sports betting, or wagering on any type of sports event, inclusive but not 26 limited to football, basketball, baseball, hockey, boxing, tennis, wrestling, jai alai, 27 or other sports contest or event. 28 (b) Notwithstanding any provision of Subparagraph (a) of this 29 Paragraph to the contrary, "game" shall include sports wagering as authorized Page 8 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL 1 in Chapter 10 of this Title if the board has issued the casino gaming operator 2 a sports wagering certificate. 3 (13)(a) "Gaming device" means any equipment or mechanical, 4 electromechanical, or electronic contrivance, component, or machine used directly 5 or indirectly in connection with gaming or any game which affects the result of a 6 wager by determining win or loss. The term includes a system for processing 7 information which can alter the normal criteria of random selection, which affects 8 the operation of any game, or which determines the outcome of a game. The term 9 does not include a system or device which affects a game solely by stopping its 10 operation so that the outcome remains undetermined. 11 (b) If the casino gaming operator has been issued a sports wagering 12 certificate by the board to conduct sports wagering in accordance with Chapter 13 10 of this Title, "gaming device" or "gaming equipment" shall also include any 14 equipment or mechanical, electro-mechanical, or electronic contrivance, 15 component, or machine used directly or indirectly in connection with sports 16 wagering. 17 * * * 18 §239.1. Wagering at the official gaming establishment 19 Wagering A. Except as provided in Subsection B of this Section, wagering 20 at the official gaming establishment may be made with tokens, chips, vouchers, 21 coupons, or electronic cards issued by the casino gaming operator or an approved 22 casino manager acting on behalf of the casino gaming operator. Electronic cards may 23 be used which are affixed with a magnetic storage media, a "smart card" or those 24 containing an integrated circuit chip, but excluding credit cards issued by any other 25 entity or institution or cards which automatically withdraw funds from a credit, 26 savings, or checking account held at a depository institution as defined by Section 27 3 of the Federal Deposit Insurance Act, which includes any credit union. 28 B. Notwithstanding any provision of Subsection A of this Section to the 29 contrary, if the casino gaming operator is issued a sports wagering certificate Page 9 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL 1 by the board to conduct sports wagering in accordance with Chapter 10 of this 2 Title, sports wagers at the official gaming establishment shall be made in cash 3 or through a patron's verified wagering account. 4 * * * 5 §361. Conduct of slot machine gaming; temporary conduct 6 * * * 7 F.(1) Wagering at an eligible live racing facility may be made with tokens, 8 chips, vouchers, coupons, or electronic cards issued by the licensed eligible facility 9 or an approved facility manager acting on behalf of the facility. Electronic cards may 10 be used which are affixed with a magnetic storage media, a "smart card" or those 11 containing an integrated circuit chip, but excluding credit cards issued by any other 12 entity or institution or cards which automatically withdraw funds from a credit, 13 savings, or checking account held at a depository institution as defined by Section 14 3 of the Federal Deposit Insurance Act, which includes any credit union. 15 (2) Notwithstanding any provision of Subsection A of this Section to the 16 contrary, if the holder of a license as defined in R.S. 27:353(5) is issued a sports 17 wagering certificate by the board to conduct sports wagering in accordance with 18 Chapter 10 of this Title, sports wagers at the eligible facility may be made in 19 cash or through a patron's verified wagering account. 20 * * * 21 §371. Prohibition on operation of video draw poker devices; prohibition on any 22 other type of game 23 * * * 24 C. Nothing Except in the game of sports wagering in a designated slot 25 machine gaming area where the holder of a license defined in R.S. 27:353(5) 26 possesses a valid sports wagering certificate issued by the board, nothing in this 27 Chapter shall be construed to permit the operation or play of any type of game the 28 play of which requires the participation of an employee of the licensee. 29 * * * Page 10 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL 1 CHAPTER 10. SPORTS WAGERING CONTROL ACT 2 §601. Title 3 This Chapter shall be cited and referred to as "The Louisiana Sports 4 Wagering Control Act". 5 §602. Definitions 6 Unless the context clearly indicates otherwise, when used in this Chapter, 7 the following terms shall mean: 8 (1) "Applicant" means a person who has submitted an application to the 9 board seeking a certificate or permit, or the renewal thereof. 10 (2) "Application" means the forms and schedules prescribed by the 11 board upon which an applicant seeks a certificate or permit or the renewal 12 thereof. Application also includes information, disclosure statements, and 13 financial statements submitted by an applicant as part of an application. 14 (3) "Board" has the same meaning as that term has in R.S. 27:3. 15 (4) "Division" has the same meaning as that term has in R.S. 27:3. 16 (5) "Game" means a wager on a sports event or sporting event approved 17 by the board. 18 (6) "Gaming activities" or "gaming operations" means the use, 19 operation, or conducting of any sports wagering at a riverboat, eligible facility, 20 or official gaming establishment including all activities related to and integral 21 to the operation and profitability of the licensee or casino gaming operator, 22 including accounting procedures and internal controls. 23 (7) "Gaming device" or "gaming equipment" means any equipment or 24 mechanical, electro-mechanical, or electronic contrivance, component, or 25 machine, used directly or indirectly in connection with a sports wagering 26 system. 27 (8) "Gaming position" means a sports wagering self-service machine or 28 self-service kiosk or a wagering window space where a sports wager is accepted. 29 Each self-service machine or self-service kiosk shall be counted as one position Page 11 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL 1 and each wagering window space where a sports wager is accepted shall be 2 counted as one position, subject to the rules and regulations of the board. 3 (9) "Net sports wagering proceeds" means the total of all cash and 4 property, including checks whether collected or not, received by the sports 5 wagering certificate holder from sports wagering operations, less the total of all 6 cash paid out as winnings to patrons. 7 (10) "Permit" has the same meaning as that term has in R.S. 27:3. 8 (11) "Permittee" has the same meaning as that term has in R.S. 27:3. 9 (12) "Person" has the same meaning as that term has in R.S. 27:3. 10 (13)(a) "Sports event" or "sporting event" means any professional sport 11 or athletic event, any Olympic or international sports competition event, any 12 collegiate sport or athletic event, or any portions thereof, including but not 13 limited to the individual performance statistics of athletes in a sports event or 14 combination of sports events. "Sports event" or "sporting event" shall not 15 include a prohibited event or fantasy sports activity. 16 (b) "Professional sport or athletic event" as used in Subparagraph (a) of 17 this Paragraph means an event at which two or more persons participate in a 18 sport or athletic event and receive compensation in excess of actual expenses for 19 their participation in such event. 20 (c) A prohibited event shall include all high school sports events, 21 electronic sports, and competitive video games. 22 (14)(a) "Sports wagering" means the business of accepting wagers on a 23 sports event approved by the board, provided all of the following conditions are 24 met: 25 (i) The outcome of the sports event can be verified. 26 (ii) The outcome of the sports event can be generated by a reliable and 27 independent process. 28 (iii) The outcome of the sports event is not affected by any wager placed. 29 (iv) The sports event is conducted in conformity with applicable laws, Page 12 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL 1 rules, and regulations, including the rules governing the sports event. 2 (b) The term "sports wagering" may also include proposition wagers on 3 novelty occurrences or nonoccurrences, or individual players over a broad 4 spectrum of possibilities within a sports event that are not dependent on the 5 final outcome of the sports event as approved by the board. 6 (15) "Sports wagering certificate" means a certificate issued by the 7 board to the holder of a license as defined in R.S. 27:44 or 353 or the casino 8 gaming operator that authorizes the conducting of sports wagering by the 9 licensee or operator at its licensed facility located in a parish that approved 10 sports wagering at an election called for that purpose. 11 (16) "Sports wagering service provider" has the same meaning as that 12 term has in R.S. 27:3. 13 (17) "Sports wagering system" means the methodology and equipment 14 approved by the board for accepting and recording sports wagers. 15 (18) "Suitable", "suitability", or "suitability requirements" have the 16 same meaning as those terms have in R.S. 27:3. 17 §603. Sports wagering gaming activities 18 A. Gaming activities relative to sports wagering may be conducted by 19 persons in specified locations provided all of the following requirements are 20 met: 21 (1) A majority of the qualified electors in the parish voting at a 22 proposition election called for that purpose in accordance with R.S. 18:1300.24 23 where the sports wagering is taking place voted in favor of permitting sports 24 wagering. 25 (2) The holder of a license defined in R.S. 27:44 or 353 or the casino 26 gaming operator has been awarded a sports wagering certificate by the board 27 to conduct sports wagering within the designated gaming area, designated slot 28 machine gaming area, or the official gaming establishment. 29 (3) The sports wagering is taking place within the designated gaming Page 13 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL 1 area, designated slot machine gaming area, or the official gaming establishment 2 of the holder of a license as defined in R.S. 27:44 or 353 or the casino gaming 3 operator, as appropriate. 4 (4) The gaming activities relative to sports wagering are being conducted 5 in accordance with this Chapter and all rules, regulations, and requirements of 6 the board. 7 B. (1) A sports wagering certificate holder may accept wagers on an 8 approved sports event at a wagering window or through self-service wagering 9 machines or self-service kiosks. 10 (2) Each machine, kiosk, or window shall be counted as a single gaming 11 position. 12 §604. Sports wagering certificate; requirements 13 A. The securing of a sports wagering certificate required under the 14 provisions of this Chapter shall be a prerequisite for conducting, operating, or 15 performing any activity regulated pursuant to this Chapter. 16 B. Beginning January 1, 2020, in any parish in which sports wagering 17 has been approved by the voters, a holder of a license as defined in R.S. 27:44 18 or 353 or the casino gaming operator desiring to obtain a sports wagering 19 certificate for its riverboat, eligible facility, or official gaming establishment 20 located in the parish shall make application to the board on a form and in a 21 manner prescribed by the board. The application forms shall be provided by the 22 board and shall contain such information as required by this Chapter and by 23 rules and regulations promulgated by the board. No application shall be 24 accepted unless the board determines that all relevant requirements of this 25 Chapter have been met. 26 C. No certificate to conduct sports wagering shall be issued unless the 27 board finds: 28 (1) That the applicant is capable of conducting sports wagering, which 29 means that the applicant can demonstrate the capability through training, Page 14 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL 1 education, business experience, or a combination thereof, to operate sports 2 wagering. 3 (2) That the applicant's submission of a detailed plan of design of the 4 gaming area for sports wagering and the number of gaming positions that it 5 intends to dedicate to sports wagering, are acceptable. 6 D. Only after the application is approved by the board and the board has 7 received payment of applicable fees and issued the sports wagering certificate 8 to the licensee or operator may the licensee or casino gaming operator conduct 9 sports wagering. 10 E. A sports wagering certificate shall not be transferrable; however, the 11 holder may contract with a sports wagering service provider to manage, 12 administer, or control sports wagers provided the sports wagering service 13 provider has been issued a permit as provided in R.S. 27:29.2.1. 14 F. The term of a sports wagering certificate shall be concurrent with the 15 term of the applicant's license and eligible for renewal consistent with the 16 applicant's license or contract. 17 §605. Gaming Control Board; duties and powers 18 A. The board shall adopt, pursuant to the Administrative Procedure Act, 19 all rules necessary to implement, administer, and regulate sports wagering as 20 authorized by this Chapter. At a minimum, the rules shall include the 21 following: 22 (1) Standards and procedures to govern the conduct of sports wagering 23 including but not limited to standards and procedures for the approval of a 24 sports event for wagering under the provisions of this Chapter and the approval 25 of the system of wagering, including the manner in which wagers are received; 26 payouts are remitted; point spreads, lines, and odds are determined; and 27 disputes are resolved. 28 (2) The method for calculating gross sports wagering revenue and 29 standards for the daily counting and recording of cash and cash equivalents Page 15 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL 1 received in the conduct of sports wagering, including ensuring that internal 2 controls are followed, financial books and records are maintained, and audits 3 are conducted. 4 (3) The amount of cash reserves to be maintained to cover winnings by 5 the sports wagering certificate holder and sports wagering service provider 6 permittee. 7 (4) Maximum wagers which may be accepted by the sports wagering 8 certificate holder or sports wagering service provider permittee from any one 9 patron on any one sports event. 10 (5) Notice requirements pertaining to minimum and maximum wagers 11 on sports wagering. 12 (6) Compulsive and problem gambling standards pertaining to sports 13 wagering consistent with this Title. 14 (7) Standards prohibiting persons under twenty-one years of age from 15 participating in sports wagering. 16 (8) Requirements that each sports wagering certificate holder and sports 17 wagering service provider permittee shall: 18 (a) Provide written information to sports wagering patrons about sports 19 wagering rules, payouts or winning wagers, and other information as the board 20 may require. 21 (b) Provide specifications approved by the board to integrate and update 22 the casino's or eligible facility's surveillance system to cover all areas where 23 sports wagering is conducted. The specifications shall include provisions 24 providing the board and other persons authorized by the board with onsite 25 access to the surveillance system or its signal. 26 (c) Designate one or more locations within the designated gaming area, 27 designated slot machine gaming area, or official gaming establishment to 28 conduct sports wagering. 29 (d) Ensure that visibility of each sports wagering area in the casino or Page 16 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL 1 eligible facility is not obstructed in any way that could interfere with the ability 2 of the sports wagering certificate holder and the board and other persons 3 authorized under this Title or by the board to oversee the surveillance of the 4 conduct of sports wagering. 5 (e) Integrate the casino's or eligible facility's count room to ensure 6 maximum security of the counting and storage of cash and cash equivalents. 7 (f) Equip each designated gaming area, designated slot machine gaming 8 area, or official gaming establishment within the casino or eligible facility with 9 a sign indicating the permissible sports wagering minimum and maximum 10 wagers. 11 (g) Ensure that no person under twenty-one years of age participates in 12 sports wagering. 13 B. Provided the board has initiated rulemaking pursuant to the 14 provisions of R.S. 49:953(A), the board may adopt initial administrative rules 15 as required by this Section pursuant to the provisions of R.S. 49:953(B) without 16 a finding that an imminent peril to the public health, safety, or welfare exists. 17 §606. Limitations 18 A. No persons under the age of twenty-one shall be allowed to place a 19 sports wager, nor shall a sports wagering certificate holder or sports wagering 20 service provider permit holder knowingly accept a wager from a person under 21 twenty-one years of age. 22 B. No person shall place a wager nor shall a sports wagering certificate 23 holder or sports wagering service provider permit holder knowingly accept a 24 wager from any person who may control the outcome of the sports event on 25 which the wager is attempting to be placed. 26 §607. Electronic sports wagering 27 A sports wagering certificate holder or sports wagering service provider 28 permittee may accept wagers made electronically using a mobile or other digital 29 platform. Electronic wagering shall be subject to the following requirements: Page 17 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL 1 (1) Prior to the acceptance of any electronic wager, a patron shall have 2 established a wagering account through the holder or permittee and an initial 3 verification of the account must be completed by the holder or permittee. 4 (2) Electronic sports wagers shall be placed only in the gaming area of 5 the riverboat, eligible facility, or official gaming establishment as determined 6 by the board. 7 (3) The holder or permittee maintains geo-fencing or geo-location 8 services and bears all costs and responsibilities associated therewith as required 9 by the board. 10 Section 2. R.S. 13:4721 is hereby amended and reenacted to read as follows: 11 §4721. Gambling houses; definition; declared public nuisances 12 A. For the purposes of this Sub-part, Subpart, or for the purposes of any 13 action or prosecution hereunder, a gambling house is either: 14 (1) any Any place whatever whatsoever where any game of chance of any 15 kind or character is played for money, for wagers, or for tokens, and where the 16 conduct of such place operates, directly or indirectly, to the profit of one or more 17 individuals and not exclusively to the direct profit of the actual participants in such 18 game; and. 19 (2) any Any place whatsoever where races, athletic contests, and sports, and 20 games are not actually held and where opportunity is afforded for wagering upon 21 races, athletic contests, sports, and games of chance. 22 B. All gambling houses as herein defined are declared to be public nuisances, 23 and the owner owners thereof, and the agent agents for such owner, owners, or the 24 lessee, sublessee lessees, sublessees, or other occupants thereof are declared to be 25 guilty of maintaining a public nuisance. 26 C. The provisions of this Subpart shall not apply to any place where 27 sports wagering activities are being conducted by a sports wagering certificate 28 holder in accordance with Chapter 10 of Title 27. 29 Section 3. R.S. 14:90(C) and 90.3(F) are hereby amended and reenacted to read as Page 18 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL 1 follows: 2 §90. Gambling 3 * * * 4 C. The conducting or assisting in the conducting of gaming activities or 5 operations, including sports wagering, upon a riverboat, at the official gaming 6 establishment, by operating an electronic video draw poker device, by a charitable 7 gaming licensee, or at a pari-mutuel wagering facility, conducting slot machine 8 gaming at an eligible horse racing facility, or the operation of a state lottery which 9 is licensed for operation and regulated under the provisions of Chapters 4 and 11 of 10 Title 4, Chapters 4, 5, 7, and 8, and 10 of Title 27, or Subtitle XI of Title 47 of the 11 Louisiana Revised Statutes of 1950, is not gambling for the purposes of this Section, 12 so long as the wagering is conducted on the premises of the licensed establishment. 13 * * * 14 §90.3. Gambling by computer 15 * * * 16 F. The conducting or assisting in the conducting of gaming activities or 17 operations, including sports wagering, upon a riverboat, at the official gaming 18 establishment, by operating an electronic video draw poker device, by a charitable 19 gaming licensee, or at a pari-mutuel wagering facility, conducting slot machine 20 gaming at an eligible horse racing facility, or the operation of a state lottery which 21 is licensed for operation and regulated under the provisions of Chapters 4 and 11 of 22 Title 4, Chapters 4, 5, 6, and 7, and 10 of Title 27, or Subtitle XI of Title 47 of the 23 Louisiana Revised Statutes of 1950, shall not be considered gambling by computer 24 for the purposes of this Section, so long as the wagering is done on the premises of 25 the licensed establishment. 26 * * * 27 Section 4. R.S. 18:1300.24 is hereby enacted to read as follows: 28 §1300.24. Sports wagering gaming election; procedure 29 A. At the statewide election occurring on October 12, 2019, a proposition Page 19 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL 1 shall appear on the ballot in every parish to determine whether sports wagering 2 shall be permitted in the parish in accordance with the provisions of Title 27 of 3 the Louisiana Revised Statutes of 1950. 4 B. The ballot for the election shall state as follows: 5 "PROPOSITION TO AUTHORIZ E SPORTS WAGERING. 6 Shall sports wagering be permitted in the parish of ______________? 7 YES ( ) NO ( )" 8 C.(1) If a majority of the qualified electors in the parish voting on the 9 proposition vote in favor of permitting sports wagering in the parish, then such 10 wagering, in accordance with the provisions of Title 27 of the Louisiana Revised 11 Statutes of 1950, shall be permitted. 12 (2) If a majority of the qualified electors in the parish voting on the 13 proposition vote against permitting sports wagering in the parish, then such 14 wagering shall not be permitted. 15 D. Except as otherwise provided in this Section, the election shall be 16 conducted as provided in Chapter 6-B of this Title including but not limited to 17 the provisions providing for notice to the public as provided by law. 18 Section 5. Sections 1, 2, and 3 of this Act shall take effect and become operative if 19 and when laws become operative and effective regarding permit and certificate fees for the 20 conducting of sports wagering and regarding taxes on net sports wagering proceeds. 21 Section 6. Sections 4 and 5 of this Act and this Section shall become effective upon 22 signature by the governor or, if not signed by the governor, upon expiration of the time for 23 bills to become law without signature by the governor, as provided by Article III, Section 24 18 of the Constitution of Louisiana. If vetoed by the governor and subsequently approved 25 by the legislature, this Act shall become effective on the day following such approval. Page 20 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Dawn Romero Watson. DIGEST SB 153 Original 2019 Regular Session Martiny Proposed law provides for a statewide election (decided on a parish-by-parish basis) to authorize the wagering in Louisiana on sports events. Provides that if approved by the voters of a particular parish, a licensed riverboat (Riverboat) or live horse racing facility with a licensed slot machine gaming area (Track) or the land-based casino gaming operator (Land- Based Casino) located in that parish may offer sports wagering. Requires the Riverboat, Track, or Land-Based Casino to apply to the Gaming Control Board (board) for a sports wagering certificate and be approved for such before conducting sports wagering. Present law provides for manufacturer, gaming supplier, nongaming supplier, and key and nonkey gaming employee permits for manufacturers and suppliers who seek to do business and individuals who seek employment with Riverboats, Tracks, or the Land-Based Casino. Requires the manufacturer, supplier, or employee to secure the permit from the board before performing any activity for which a permit is required. Proposed law adds sports wagering service provider to the list of present law permittees and defines a sports wagering service provider as a person who contracts with the holder of a sports wagering certificate to manage, administer, and control sports wagers for a Riverboat, Track, or the Land-Based Casino. RIVERBOATS Present law defines "game". Provides, among other exclusions, that "game" does not include any wagering on any type of sports event including but not limited to football, basketball, baseball, hockey, boxing, tennis, wrestling, jai alai, or other sports contest or event. Provides "game" shall also include racehorse wagering. Proposed law retains present law and adds that, for Riverboats to whom the board has issued a sports wagering certificate, "game" shall also include sports wagering as authorized in proposed law. Present law defines "gaming device" or "gaming equipment" as any equipment or mechanical, electro-mechanical, or electronic contrivance, component, or machine, including a slot machine, used directly or indirectly in connection with gaming or any game, which affects the result of a wager by determining wins or losses. Proposed law retains present law and adds that, for Riverboats to whom the board has issued a sports wagering certificate, "gaming device" or "gaming equipment" shall also include any equipment or mechanical, electro-mechanical, or electronic contrivance, component, or machine used directly or indirectly in connection with sports wagering. Present law defines "gaming position" as a gaming device seat or a space at a table game. Each gaming device seat shall be counted as one position and each space at a table game shall be counted as one position, subject to the rules and regulations of the board. The board shall specifically provide by rule for the counting of gaming positions for devices and games where seats and spaces are not readily countable. Proposed law retains present law and adds that, for Riverboats to whom the board has issued a sports wagering certificate, "gaming position" shall also include a self-service wagering machine or self-service kiosk or wagering window space where a sports wager is accepted and each space, machine, or kiosk where a sports wager is accepted shall be counted as one position, subject to rules and regulations of the board. Page 21 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL Present law requires Riverboats to utilize a cashless wagering system except for racehorse wagering and the play of slot machines. Proposed law retains present law and adds sports wagering to the exception. LAND-BASED CASINO Present law defines "game". Provides, among other exclusions, that "game" does not include wagering on any type of sports event, inclusive but not limited to football, basketball, baseball, hockey, boxing, tennis, wrestling, jai alai, or other sports contest or event. Proposed law retains present law and adds that, if the Land-Based Casino has been issued a sports wagering certificate by the board, "game" shall also include sports wagering as authorized in proposed law. Present law defines "gaming device" or "gaming equipment" as any equipment or mechanical, electro-mechanical, or electronic contrivance, component, or machine used directly or indirectly in connection with gaming or any game, which affects the result of a wager by determining wins or losses. Proposed law retains present law and adds that if the Land-Based Casino has been issued a sports wagering certificate, "gaming device" or "gaming equipment" shall also include any equipment or mechanical, electro-mechanical, or electronic contrivance, component, or machine used directly or indirectly in connection with sports wagering. Present law requires wagering at the official gaming establishment to be made with tokens, chips, vouchers, coupons, or electronic cards issued by the Land-Based Casino. Proposed law retains present law and adds that if the Land-Based Casino is issued a sports wagering certificate, sports wagers at the official gaming establishment shall be made in cash or through a patron's verified wagering account. TRACKS Present law provides that wagering at the Track may be made with tokens, chips, vouchers, coupons, or electronic cards issued by the Track. Excludes the use of debit cards which automatically withdraw funds from a credit, savings, or checking account. Proposed law retains present law and adds that sports wagers at an eligible facility may be made in cash or through a patron's verified wagering account. Present law prohibits the operation or play of any type of game at the Tracks the play of which requires the participation of any employee of the licensee. Proposed law makes an exception to present law for Tracks with a sports wagering certificate. SPORTS WAGERING Proposed law provides for the Louisiana Sports Wagering Control Act and provides for definitions. Authorizes sports wagering gaming activities to be conducted by persons in specified locations provided all of the following requirements are met: (1)A majority of the qualified electors voting at a proposition election called for that purpose in a parish where the sports wagering is taking place voted in favor of permitting sports wagering. (2)The Riverboat, Track, or Land-Based Casino has been awarded a sports wagering Page 22 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL certificate by the board to conduct sports wagering. (3)The sports wagering is taking place within the designated gaming area of the Riverboat, designated slot machine gaming area of the Track, or the official gaming establishment of the Land-Based Casino. (4)The gaming activities relative to sports wagering are being conducted in accordance with proposed law and all rules, regulations, and requirements of the board. Proposed law provides that a sports wagering certificate holder may accept wagers on an approved sports event at a wagering window or through self-service wagering machines or self-service kiosks. Provides that each machine, kiosk, or window shall be counted as a single gaming position. Proposed law provides a procedure for applying for a sports wagering certificate and requires an eligible Riverboat, Track, or Land-Based Casino to be awarded a certificate before conducting, operating, or performing any activity regulated pursuant to proposed law. Proposed law provides that beginning January 1, 2020, in parishes in which sports wagering has been approved by the voters, a Riverboat, Track, or Land-Based Casino may apply to the board for a certificate on a form and in a manner prescribed by the board. Provides that no certificate to conduct sports wagering shall be issued unless the board finds: (1)That the applicant is capable of conducting sports wagering. (2)That the applicant's submission of a detailed plan of design of the gaming area for sports wagering and the number of gaming positions that it intends to dedicate to sports wagering are acceptable. Proposed law provides that only after the application is approved by the board and the board has received payment of applicable fees and issued the sports wagering certificate to the licensee or operator may the licensee or casino gaming operator conduct sports wagering at its facility. Proposed law provides that a sports wagering certificate shall not be transferrable; however, the holder may contract with a permitted sports wagering service provider to manage, administer, or control sports wagers. Proposed law provides that the term of a sports wagering certificate shall be concurrent with the term of the applicant's license and eligible for renewal consistent with the applicant's license or contract. Proposed law requires the board to adopt all rules necessary to implement, administer, and regulate sports wagering as authorized by proposed law. Provides that at a minimum, the rules shall include the following: (1)Standards and procedures to govern the conduct of sports wagering including but not limited to standards and procedures for the approval of a sports event for wagering, and the system of wagering, including the manner in which wagers are received; payouts are remitted; point spreads, lines, and odds are determined; and disputes are resolved. (2)The method for calculating gross sports wagering revenue and standards for the daily counting and recording of cash and cash equivalents received in the conduct of sports wagering, including ensuring that internal controls are followed, financial books and records are maintained, and audits are conducted. (3)The amount of cash reserves to be maintained to cover winnings by the sports Page 23 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL wagering certificate holder or sports wagering services provider permittee. (4)Maximum wagers which may be accepted by the sports wagering certificate holder or sports wagering service provider permittee, as appropriate, from any one patron on any one sports event. (5)Notice requirements pertaining to minimum and maximum wagers. (6)Compulsive and problem gambling standards pertaining to sports wagering consistent with present law and proposed law. (7)Standards prohibiting persons under 21 years of age from participating in sports wagering. (8)Requirements that each sports wagering certificate holder and each sports wagering service provider permittee shall: (a)Provide written information to sports wagering patrons about sports wagering rules, payouts or winning wagers, and other information as the board may require. (b)Provide specifications approved by the board to integrate and update the casino's or eligible facility's surveillance system to cover all areas where sports wagering is conducted. (c)Designate one or more locations within the designated gaming area, designated slot machine gaming area, or official gaming establishment to conduct sports wagering. (d)Ensure that visibility of each sports wagering area in the casino or eligible facility is not obstructed in any way that could interfere with the ability of the sports wagering certificate holder and the board and other persons authorized under present law or by the board to oversee the surveillance of the conduct of sports wagering. (e)Integrate the casino's or eligible facility's count room to ensure maximum security of the counting and storage of cash and cash equivalents. (f)Equip each designated gaming area or designated slot machine gaming area within the casino or eligible facility with a sign indicating the permissible sports wagering minimum and maximum wagers. (g)Ensure that no person under 21 years of age participates in sports wagering. Proposed law provides that if the board has initiated regular rulemaking, the board may adopt initial emergency administrative rules without a finding that imminent peril to the public health, safety, or welfare exists. Proposed law prohibits: (1)A person under the age of 21 from placing a sports wager and a sports wagering certificate holder or sports wagering service provider permit holder from knowingly accepting a wager from a person under 21 years of age. (2)A person from placing a wager and a sports wagering certificate holder or sports wagering service provider permit holder from knowingly accepting a wager from any person who may control the outcome of the sports event on which the wager is attempting to be placed. Page 24 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 153 SLS 19RS-35 ORIGINAL Proposed law authorizes electronic or mobile sports wagering provided: (1)Prior to the acceptance of any electronic wager, a patron shall have established a wagering account through the sports wagering certificate holder or sports wagering service provider permittee and an initial verification of the account is completed by the holder or permittee. (2)Electronic sports wagers are placed only in the gaming area of the Riverboat, Track, or Land-Based Casino as determined by the board. (3)The sports wagering certificate holder or sports wagering service provider permittee maintains geo-fencing or geo-location services and bears all costs and responsibilities associated therewith as required by the board. ELECTION Proposed law provides for a statewide election on October 12, 2019, on a proposition to determine whether sports wagering may be permitted in the parish. Provides that if the majority of the qualified electors voting disapprove the proposition, sports wagering shall not be allowed in that parish. Provides that if the majority of qualified electors voting approve the proposition, sports wagering may be conducted in the parish in accordance with proposed law. Provides that proposed law shall not take effect and become operative until laws become operative and effective regarding permit and certificate fees for conducting sports wagering and regarding taxes on net sport wagering proceeds. Effective upon signature of the governor or lapse of time for gubernatorial action. (Amends R.S. 13:4721, R.S. 14:90(C) and 90.3(F), R.S. 27:3(24), 15(B)(1), 29(F), (H), and (I), 29.2(D), 29.3(A) and (D), 29.4(D), 44(10), (12), and (14), 58(5), 65(B)(11), 205(12) and (13), 239.1, 361(F), and 371(C); adds R.S. 18:1300.24, R.S. 27:3(25) and (26), 15(B)(8)(c), 29.2.1, and 601-607) Page 25 of 25 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.