Provides relative to promotional play wagers. (Item #36) (gov sig) (EN -$11,200,000 RV See Note)
Should SB 5 be enacted, it would modify several definitions under Louisiana law related to gaming. The bill's provisions specifically clarify how promotional play wagers are treated within the gaming revenue calculations, thereby establishing a more consistent approach to fiscal reporting for gaming operators. By excluding these promotional wagers from gross revenue calculations, the bill may have significant implications on how operators report earnings and pay taxes, potentially leading to an increase in reported revenues and adjustments in tax structuring related to gaming profits.
Senate Bill 5, introduced by Senator Johns during the 2020 First Extraordinary Session, amends existing laws regarding the calculation of net gaming proceeds in Louisiana's gaming sector. The primary focus of the bill is to exclude 'promotional play wagers' from the total of cash and property counted towards net gaming proceeds. This change is aimed at providing a clearer framework for calculating actual revenues generated from gaming operations while accounting for various promotional strategies used by casinos and riverboat gaming operators.
The sentiment around SB 5 appears to be largely positive among gaming operators who support the clarity it brings to revenue calculations. They believe that the legislation may enhance their ability to manage promotional strategies effectively without facing punitive financial impacts. On the other hand, concerns were raised regarding whether such exclusions might lead to reduced transparency in the total revenues generated by gaming companies, prompting discussions among some oversight groups about the importance of maintaining strict accountability in gaming revenues.
One of the notable points of contention regarding SB 5 is the ongoing debate about the balance between promoting business interests and ensuring thorough oversight of gaming revenues. Critics may argue that while the bill could benefit gaming operators by enhancing their fiscal position, it risks diluting the integrity of revenue reporting in the gaming industry. Additionally, advocates for consumer protection and transparency express concern that the legislature should closely monitor the long-term effects of such legislative changes on both state revenue and consumer trust in gambling practices.