Louisiana 2019 2019 Regular Session

Louisiana Senate Bill SB153 Comm Sub / Analysis

                    The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Dawn Romero Watson.
DIGEST
SB 153 Engrossed	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.
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" 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" 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 defines "designated slot machine gaming area" as the contiguous area of an eligible live
racing facility at which slot machine gaming may be conducted in accordance with present law. 
Provides that it is determined by measuring the area, in square feet, inside the interior walls of the
licensed eligible facility, excluding any space therein in which gaming activities may not be
conducted, such as bathrooms, stairwells, cage and beverage areas, and emergency evacuation routes
of any width that meet or exceed the minimum size required by law.
Proposed law changes "designated slot machine gaming area" to "designated gaming area" and
defines it as the contiguous area of a eligible live racing facility at which gaming may be conducted
in accordance with law, excluding any space therein in which gaming activities may not be
conducted.
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.
Present law provides that no gaming devices other than slot machines and authorized pari-mutuel
wagering devices and equipment shall be in the designated slot machine gaming area. 
Proposed law makes an exception to present law for a Track that has been issued a sports wagering
certificate to have authorized self-service sports wagering machines or self-service kiosks or window
spaces where sports wagers are accepted and any equipment associated therewith to be in the
designated gaming area.
Present law provides that a "gaming position" means a slot machine seat.
Proposed law provides that for a Track that has been issued a sports wagering certificate, "gaming
position" shall also include a self-service sports wagering machine or self-service kiosk or a
wagering window space where sports wagers are accepted.  Provides that each machine or kiosk or
space shall be counted as one position, subject to the rules and regulations of the board.
SPORTS WAGERING 
Proposed law provides for the Louisiana Sports Wagering Control Act and provides for definitions.
Authorizes sports wagering gaming activities to be conducted within approved gaming areas
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 certificate
by the board to conduct sports wagering.
(3)The sports wagering is taking place within the designated gaming area of the Riverboat or
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 or a sports wagering service provider
permittee 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 areas of its Riverboat,
Track, or official gaming establishment to be used for 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 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.
(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 wagering
certificate holder or sports wagering services provider permittee.
(4)Notice requirements pertaining to minimum and maximum wagers.
(5)Compulsive and problem gambling standards pertaining to sports wagering consistent with
present law and proposed law.
(6)Standards prohibiting persons under 21 years of age from participating in sports wagering.
(7)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 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 area of a Riverboat, Track, or Land-Based Casino in which sports
wagering is conducted with all required notices.
(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 permittee 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 permittee 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.
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 that area is determined by the board.  However, requires that electronic
sports wagering be restricted to those areas of a Riverboat, Track or Land-Based Casino that
are restricted to persons at least 21 years of age or older.
(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.
(4)The system of electronic sports wagering through a mobile or other digital platform shall
count as one gaming position, subject to the rules and regulations of the board.
Proposed law provides for the gaming division of state police to collect all state fees, fines, and taxes
imposed or assessed under proposed law and under the rules, regulations, and decisions of the board. 
Provides for the funds to be deposited upon receipt with the state treasurer and credited against the
Bond Security Redemption Fund.  Provides that each fiscal year the state treasurer shall credit one
percent of the net sports wagering proceeds, or $500,000, whichever is greater, to the Compulsive
and Problem Gaming Fund.  After crediting the proceeds to the Compulsive and Problem Gaming
Fund, the remainder of the avails of all taxes collected pursuant to proposed law are to be credited
to the Louisiana Early Childhood Education Fund.
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.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 13:4721, R.S. 14:90(C), 90.3(F), and 90.5(B) and (C), R.S. 27:3(24), 15(B)(1), 29(F),
(H), and (I), 29.2(D), 29.3(D), 44(10), (12), and (14), 58(5), 65(B)(11), 205(12) and (13), 239.1,
353(2) and (4.1), 361(F), 364(A)(1)(c)(ii) and (A)(5), 371(C), 372(B) and (C), and 375(D); adds R.S.
18:1300.24, R.S. 27:3(25) and (26), 15(B)(8)(c), 29.2.1, and 601-608)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Judiciary B to the original bill
1. Makes technical corrections.
2. Removes provisions regarding nongaming supplier permits and key and nonkey
gaming employee permits.
3. Changes the name of the geographic area at the Tracks that is regulated by Gaming
Control Board from "designated slot machine gaming area" to "designated gaming
area."
4. Adds that the system of electronic sports wagering through a mobile or other digital
platform shall count as one gaming position.
5. Deletes proposed law term of a sports wagering certificate.
6. Clarifies that Gaming Control Board determines gaming area and adds that it be
restricted to areas for patrons age 21 or older.
7. Adds dedication of any fees, fines, taxes, or other monies collected by the state from
sports wagering.