2021 Regular Session ENROLLED SENATE BILL NO. 209 BY SENATOR SMITH Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. 1 AN ACT 2 To amend and reenact R.S. 4:143(7), 148, 149, 166.7, 213, and 214(A)(4) and to enact R.S. 3 4:143(17) through (19), 211(8), 214(K) and (L), 216(E), 217(E) and 228, relative to 4 horse racing; to provide relative to pari-mutuel wagering; to provide for definitions; 5 to provide for rules, regulations, and conditions; to provide for exotic wagering; to 6 provide for allocation of proceeds during and for a race meeting; to provide for terms 7 and conditions; to provide for offtrack wagering facilities; to provide for historical 8 horse racing; to provide for commissions on wagers; to provide for purse 9 supplements; to provide for limitations of offtrack wagering facility locations; and 10 to provide for related matters. 11 Be it enacted by the Legislature of Louisiana: 12 Section 1. R.S. 4:143(7), 148, 149, 166.7, 213 and 214(A)(4) are hereby amended 13 and reenacted and R.S. 4:143(17) through (19), 211(8), 214(K) and (L), 216(E), 217(E) and 14 228 are hereby enacted to read as follows: 15 §143. Definitions 16 Unless the context indicates otherwise, the following terms shall have the 17 meaning ascribed to them below: ACT No. 437 Page 1 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 209 ENROLLED 1 * * * 2 (7) "Meeting or race meeting" means the whole consecutive period (Sundays 3 excluded) for which a license to race conduct live races has been granted to any one 4 association by the commission. 5 * * * 6 (17) "Historical horse racing" means a form of horse racing that creates 7 pari-mutuel pools from wagers placed on horse races previously run at a 8 pari-mutuel facility licensed in the United States; concluded with official results; 9 and concluded without scratches, disqualifications, or dead-heat finishes 10 through machines permitted and authorized by the commission. 11 (18) "Pari-mutuel wagering", "pari-mutuel system of wagering", or 12 "mutuel wagering" means any method of wagering previously or hereafter 13 approved by the commission in which one or more patrons wager on a horse 14 race or races, whether live, simulcast, or previously run. Wagers shall be placed 15 in one or more wagering pools, and wagers on different races or sets of races 16 may be pooled together. Patrons may establish odds or payouts, and winning 17 patrons share in amounts wagered including any carryover amounts, plus any 18 amounts provided by an association less any deductions required, as approved 19 by the commission and permitted by law. Pools may be paid out incrementally 20 over time as approved by the commission. 21 (19) "Races" or "racing" means live racing conducted by a licensee in 22 this state, unless otherwise specifically described. 23 * * * 24 §148. Rules, regulations and conditions 25 The commission shall make rules, regulations and conditions for the holding, 26 conducting and operating of all race tracks, race meets and races held in this state, 27 historical horse racing, and for the conduct of the racing industry of this state under 28 this Part. Special rules, regulations and conditions may be promulgated separately 29 for thoroughbred racing and for quarter horse racing. The rules, regulations and 30 conditions shall be consistent with this Part and provide for and deal with all matters Page 2 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 209 ENROLLED 1 necessary to the holding of such race meetings and pari-mutuel wagering. 2 * * * 3 §149. Wagering; rules and regulations 4 The commission may prescribe rules and regulations under which shall be 5 conducted all horse races upon the results of which there is wagering. The 6 commission shall, as may be necessary, prescribe additional special rules and 7 regulations applicable separately to thoroughbreds and quarter horses. The 8 commission shall make rules governing, permitting, and regulating the wagering on 9 horse races under the form of mutuel wagering by patrons, known as pari-mutuel 10 wagering, whether on live or historical horse races. Only those persons receiving 11 a license from the commission may conduct this type of wagering, and shall restrict 12 this form of wagering to a space within the race meeting grounds or an offtrack 13 wagering facility. All other forms of wagering on the result of horse races are 14 illegal, and all wagering on horse races outside the enclosure where horse races have 15 been licensed by the commission is illegal. 16 * * * 17 §166.7. Exotic wagering, allocation of proceeds during and for a race meeting; 18 concurrence required 19 A. Notwithstanding any provision of this Chapter to the contrary, during and 20 for any race meeting, the commission, with the concurrence of the association 21 conducting the race meeting and the Horsemen's Benevolent and Protective 22 Association, may provide that the takeout deducted from pick-three, pick-four, pick- 23 five, and pick-six, and pick (n) wagers is an amount of not less than twelve percent 24 and not more than twenty-five percent. Absent such an agreement, the takeout shall 25 remain at twenty-five percent. 26 B. For the purposes of this Part, "pick (n)" means a form of pari-mutuel 27 wagering where "(n)" is a varying number of races exceeding three races. 28 Bettors select the first horse in each of (n) consecutive races designated as the 29 pick (n) by the permit holder. The sale of pick (n) tickets other than from 30 pari-mutuel machines shall be deemed illegal and is prohibited. Page 3 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 209 ENROLLED 1 * * * 2 §211. Definitions 3 Unless the context indicates otherwise, the following terms shall have the 4 meaning ascribed to them below: 5 * * * 6 (8) "Net Commission" means the commission retained by a licensee on 7 pari-mutuel wagers on historical horse races, less breakage, settlements, and 8 taxes applicable to such wagers. 9 * * * 10 §213. Offtrack wagering facilities; establishment 11 In addition to the rights granted in R.S. 4:149.2, any association licensed by 12 the commission may accept and transmit wagers as provided in this Chapter conduct 13 pari-mutuel wagering and engage in all necessary activities to establish appropriate 14 offtrack wagering facilities to accomplish this purpose. Such activities shall include, 15 but not be limited to: 16 (1) Live simulcast of races from the host track. 17 (2) Historical horse racing on the premises of offtrack wagering facilities 18 via dedicated machines or personal mobile devices. 19 (3) Construction or leasing of offtrack wagering facilities. 20 (3)(4) Sale of goods and beverages. 21 (4)(5) Advertising and promotion. 22 (5)(6) All other related activities. 23 §214. Offtrack wagering facilities; licensing; criteria; management; appeal of license 24 suspension or revocation; limitation on facilities with historical 25 horse racing 26 A. License approval shall be subject to the criteria established by R.S. 4:159. 27 Licensure shall be subject to the following conditions: 28 * * * 29 (4) Not more than two offtrack wagering facilities may be licensed in any 30 parish, except for Orleans and Jefferson. For the purposes of this Paragraph, a Page 4 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 209 ENROLLED 1 pari-mutuel facility as that term is defined in R.S. 4:211 shall not be included 2 in the count of licensed offtrack wagering facilities for the parish in which it is 3 located. 4 * * * 5 K.(1) No primary licensee may operate more than five offtrack wagering 6 facilities in which historical horse racing is permitted. 7 (2) Notwithstanding Paragraph (1) of this Subsection, any primary 8 licensee that operates more than five offtrack wagering facilities as of July 1, 9 2021, may conduct historical horse racing at all of its licensed facilities. 10 However, historical horse racing shall not be authorized at any future offtrack 11 wagering facility for that primary licensee if the primary licensee is operating 12 more than five offtrack wagering facilities. If any of the primary licensee's 13 existing licensed offtrack wagering facilities on July 1, 2021, cease to be a 14 licensed offtrack wagering facility for reasons other than force majeure, the 15 number of offtrack wagering facilities allowed to conduct historical horse racing 16 for that primary licensee shall be reduced by the number of its offtrack 17 wagering facilities that cease to be licensed until such time as the primary 18 licensee is reduced to no more than five licensed offtrack wagering facilities 19 allowed to conduct historical horse racing. 20 (3) Each primary licensee or licensed offtrack wagering facility shall not 21 place more than fifty historical horse racing machines into service at any given 22 time. 23 (4) In addition to the requirements of Paragraph (3) of this Subsection, 24 an application from an eligible facility to conduct historical horse racing in 25 Orleans Parish may be approved by the commission only after the Amended 26 and Renegotiated Casino Operating Contract entered into pursuant to R.S. 27 27:201 et seq., on October 30, 1998, as amended, is amended to provide that the 28 conducting of historical horse racing at the eligible facility in Orleans Parish 29 shall not constitute an exclusivity violation or prohibited land-based gaming as 30 defined in such contract and such amendment to the contract is approved by the Page 5 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 209 ENROLLED 1 Joint Legislative Committee on the Budget as required by the provisions of 2 Section B of Act No. 1 of the 2001 First Extraordinary Session. 3 L. No historical horse racing may be conducted via a machine or website 4 or mobile application beyond the property of the pari-mutuel facility or offtrack 5 wagering facility. The commission shall promulgate rules relative to the 6 enforcement of this restriction. 7 * * * 8 §216. Commissions on wagers 9 * * * 10 E. Notwithstanding, and in lieu of, any other provisions of law, historical 11 horse races and wagers thereon shall be subject to the following provisions: 12 (1) Commissions on wagers on historical horse races made at offtrack 13 wagering facilities shall not exceed twelve percent of all wagers and shall be set 14 by the licensee and approved by the commission. The offtrack wagering facility 15 where the wager is made may either retain the breakage on such wagers or 16 include the breakage in the applicable historical horse racing pari-mutuel pool 17 or pools. Commissions shall be deducted and retained by the licensee of the 18 offtrack wagering facility where the wager is made. 19 (2) The licensee shall disburse twenty percent of the net commission to 20 supplement horsemen's purses in accordance with the provisions of R.S. 21 4:217(E). 22 (3) R.S. 4:149.3, 149.5, 161, 161.1, 161.2, 162, 163.1, 165, 166, 166.1 23 through 166.7, 167, 177, 183, 218, and 220 shall not apply to historical racing or 24 the licensee with respect to historical racing. 25 §217. Purse supplements; designation and distribution 26 * * * 27 E. Notwithstanding, and in lieu of, any other provision of law, the monies 28 designated for purses under the provisions of R.S. 4:216(E) from wagers placed 29 at offtrack wagering facilities on historical horse races shall be distributed in 30 the same manner as set forth in R.S. 27:438(B) as in effect at the time of any Page 6 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 209 ENROLLED 1 such distribution, and if R.S. 27:438(B)(2)(a) becomes effective, any such 2 quarter horse purse supplements shall be included in the calculation of the 3 applicable maximum of one million dollars per state fiscal year and the 4 settlement amount as set forth therein. 5 * * * 6 §228. Offtrack wagering facility locations; prohibited distances; prohibited 7 structures 8 A. No license shall be granted to any offtrack wagering facility located, 9 at the time application is made for a license to operate offtrack wagering 10 facilities, within one mile from any property on the National Register of Historic 11 Places, any public playground, any residential property, or a building used 12 primarily as a church, synagogue, public library, or school. The measurement 13 of the distance shall be a straight line from the nearest point of the proposed 14 offtrack wagering facility to the nearest point of the property on the National 15 Register of Historic Places, the public playground, residential property, or a 16 building used primarily as a church, synagogue, public library, or school. 17 B. After an application is filed with the commission, the subsequent 18 construction, erection, development, or movement of a property identified in 19 Subsection A of this Section which causes the location of a offtrack wagering 20 facility to be within the prohibited distance shall not be cause for denial of an 21 initial or renewal application or revocation of a license. 22 C. The prohibition in Subsection A of this Section shall not apply to the 23 location of an offtrack wagering facility which applied for a license or was 24 issued a license on or before July 1, 2021, or which applied for or was issued a 25 valid building permit on or before July 1, 2021, and subsequently issued a 26 license. Such location shall be eligible for an offtrack wagering facility license 27 without reference to the prohibition in Subsection A of this Section unless after 28 having obtained a license, an offtrack wagering facility has not been licensed at 29 that location for thirty-six consecutive months and application for licensing is 30 not made within that thirty-six-month period. Page 7 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 209 ENROLLED 1 D.(1) For locations on which an offtrack wagering facility has not been 2 completely constructed, if application for licensing was made on or before July 3 1, 2021, the prohibited distance shall be one mile from any property on the 4 National Register of Historic Places, any public playground, residential 5 property, or a building used primarily as a church, synagogue, public library, 6 or school. 7 (2) The measurement of the distances shall be a straight line from the 8 nearest point of the offtrack wagering facility to the nearest point of the 9 property on the National Register of Historic Places, the public playground, 10 residential property, or a building used primarily as a church, synagogue, 11 public library, or school. 12 E. If a parish or municipality does not have a zoning ordinance which 13 designates certain property within its jurisdiction as residential property, the 14 governing authority of the parish or municipality shall have the authority to 15 designate to certain areas of its jurisdiction as residential districts for the 16 purpose of this Section. 17 F. If application for licensing is made after July 1, 2021, the prohibition 18 in Subsection A of this Section shall apply. 19 G. "Residential property" shall mean any property which is wholly or 20 partly used for or intended to be used for living or sleeping by human occupants 21 and which includes one or more rooms, including a bathroom and complete 22 kitchen facilities. Residential property shall include a mobile home or 23 manufactured housing, if it has been in its present location for at least sixty 24 days. Residential property shall not include any hotel or motel. 25 Section 2. The Louisiana State Law Institute is hereby authorized and directed to 26 arrange in alphabetical order and renumber the definitions provided for in R.S. 4:143. 27 Section 3. This Act shall become effective upon signature by the governor or, if not 28 signed by the governor, upon expiration of the time for bills to become law without signature 29 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If 30 vetoed by the governor and subsequently approved by the legislature, this Act shall become Page 8 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 209 ENROLLED 1 effective on the day following such approval. PRESIDENT OF THE SENATE SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 9 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.