Requests the Louisiana Gaming Control Board to report on the fiscal impact of the promotional play exception to the definitions of net gaming proceeds, gross revenue, and net slot machine proceeds.
SCR29 highlights a significant anomaly where Louisiana taxes gaming operators on their own promotional funds distributed to patrons. This has been identified as a disincentive for licensees to employ promotional play effectively, which is recognized as a crucial marketing strategy for driving business. The resolution calls for a comprehensive evaluation of how changes in the taxation definition may influence gaming revenue and, by extension, state tax collections derived from this sector. It emphasizes a data-driven approach, requesting the Gaming Control Board to utilize fiscal data from various years to ascertain the broader implications for tax revenue and operations within the gaming industry.
Senate Concurrent Resolution No. 29 (SCR29) is a legislative measure from the Louisiana legislature urging the Louisiana Gaming Control Board to report on the fiscal impact of the promotional play exception concerning the definitions of net gaming proceeds, gross revenue, and net slot machine proceeds. This resolution emerges in response to the unique circumstances within the state’s gaming industry, particularly impacted by the COVID-19 pandemic and its associated economic challenges. By addressing how promotional play is taxed, the legislation aims to enhance the competitiveness of Louisiana's gaming sector against neighboring states.
The sentiment surrounding SCR29 appears to lean towards optimism from the gaming industry stakeholders, who view it as an opportunity to alleviate current tax burdens that might inhibit revenue growth. Legislators advocating for the resolution anticipate that analyzing the data and regulatory amendments could foster a more favorable business environment for licensed gaming operators in the state. However, there may also be concerns regarding how such shifts affect public revenue and the balance of regulatory compliance, suggesting heightened scrutiny for future debates on legislative changes.
While SCR29 appears largely favorable among legislators, its implications on state gaming laws can stir discussions around potential disparities between local operators and those in adjacent states. The threshold for how promotional play is defined under tax law remains a point of contention, as there may be differing views on the potential impact of loosening restrictions. The resolution aims to clarify these definitions, but as it progresses, there may be debates around ensuring fairness and preventing any unintended consequences that could emerge from altering tax structures in the gaming realm.