RÉSUMÉ DIGEST
ACT 437 (SB 209) 2021 Regular Session Smith
New law provides for historical horse racing and defines "historical horse racing" as a form
of horse racing that creates pari-mutuel pools from wagers placed on horse races previously
run at a pari-mutuel facility licensed in the United States; concluded with official results and
without scratches, disqualifications, or dead-heat finishes through machines permitted and
authorized by the La. State Racing Commission (commission).
Defines "pari-mutuel wagering", "pari-mutuel system of wagering", or "mutuel wagering"
as any method of wagering previously or hereafter approved by the commission in which one
or more patrons wager on a horse race or races, whether live, simulcast, or previously run.
Authorizes wagers to be placed in one or more wagering pools, and wagers on different races
or sets of races may be pooled together. Authorizes patrons to establish odds or payouts, and
winning patrons share in amounts wagered including any carryover amounts, plus any
amounts provided by an association less any deductions required, as approved by the
commission and permitted by law. Provides that pools may be paid out incrementally over
time as approved by the commission.
Defines "net commission" as the commission retained by a licensee on pari-mutuel wagers
on historical horse races, less breakage, settlements, and taxes applicable to such wagers.
Prior law authorized an association licensed by the commission to accept and transmit
wagers and engage in all activities to establish appropriate offtrack wagering facilities to
conduct activities which include but are not limited to:
(1)Live simulcast of races from the host track.
(2)Construction or leasing of offtrack wagering facilities.
(3)Sale of goods and beverages.
(4)Advertising and promotion.
(5)All other related activities.
New law retains these provisions but includes historical horse racing on the premises of
offtrack wagering facilities via dedicated machines or personal mobile devices.
New law provides that no primary licensee may operate more than five offtrack wagering
facilities in which historical horse racing is permitted. However, any primary licensee that
operates more than five offtrack wagering facilities as of July 1, 2021, may conduct historical
horse racing at all of its licensed facilities. Provides that historical horse racing is not to be
authorized at any future offtrack wagering facility for that primary licensee if the primary
licensee is operating more than five offtrack wagering facilities.
Provides that if a primary licensee's existing licensed offtrack wagering facilities on July 1,
2021, cease to be a licensed offtrack wagering facility for reasons other than force majeure,
the number of offtrack wagering facilities allowed to conduct historical horse racing for that
primary licensee is to be reduced by the number of its offtrack wagering facilities that cease
to be licensed until the time that the primary licensee is reduced to no more than five licensed
offtrack wagering facilities allowed to conduct historical horse racing.
Limits each primary licensee or licensed offtrack wagering facility to not more than fifty
historical horse racing machines in service at any given time.
New law provides that application from an eligible facility to conduct historical horse racing
in Orleans Parish may be approved by the commission only after the Amended and
Renegotiated Casino Operating Contract entered into pursuant to R.S. 27:201 et seq., on
October 30, 1998, as amended, is amended to provide that the conducting of historical horse
racing at the eligible facility in Orleans Parish shall not constitute an exclusivity violation
or prohibited land-based gaming as defined in the contract and the amendment to the contract is approved by the Joint Legislative Committee on the Budget as required by Section B of
Act No. 1 of the 2001 First Extraordinary Session.
New law prohibits historical horse racing being conducted via a machine or website or
mobile application beyond the property of the pari-mutuel facility or offtrack wagering
facility.
New law requires that historical horse races and wagers are subject to the following
provisions:
(1)Commissions on wagers on historical horse races made at offtrack wagering facilities
shall not exceed 12% of all wagers and shall be set by the licensee and approved by
the commission. The offtrack wagering facility where the wager is made may either
retain the breakage on the wagers or include the breakage in the applicable historical
horse racing pari-mutuel pool or pools. Requires that commissions be deducted and
retained by the licensee of the offtrack wagering facility where the wager is made.
(2)The licensee shall disburse 20% of the net commission to supplement horsemen's
purses.
(3)R.S. 4:149.3,149.5, 161, 161.1, 161.2, 162, 163.1, 165, 166, 166.1 through 166.7,
167, 177, 183, 218, and 220 shall not apply to historical racing or the licensee with
respect to historical racing.
New law requires that the monies designated for purses from wagers placed at offtrack
wagering facilities on historical horse races be distributed in the same manner as set forth in
R.S. 27:438(B) as in effect at the time of any distribution, and if R.S. 27:438(B)(2)(a)
becomes effective, any quarter horse purse supplements shall be included in the calculation
of the applicable maximum of $1 million dollars per state fiscal year and the settlement
amount as set forth.
New law requires the following relative to offtrack wagering facility locations, prohibited
distances, and prohibited structures:
(1)No license shall be granted to any offtrack wagering facility located, at the time
application is made for a license to operate offtrack wagering facilities, within one
mile from any property on the National Register of Historic Places, any public
playground, any residential property, or a building used primarily as a church,
synagogue, public library, or school. Measurement of the distance shall be a straight
line from the nearest point of the proposed offtrack wagering facility to the nearest
point of the property on the National Register of Historic Places, the public
playground, residential property, or a building used primarily as a church, synagogue,
public library, or school.
(2)After an application is filed with the commission, the subsequent construction,
erection, development, or movement of a property which causes the location of a
offtrack wagering facility to be within the prohibited distance shall not be cause for
denial of an initial or renewal application or revocation of a license.
(3)The location limitation does not apply to the location of an offtrack wagering facility
which applied for a license or was issued a license on or before July 1, 2021, or
which applied for or was issued a valid building permit on or before July 1, 2021, and
subsequently issued a license. The location shall be eligible for an offtrack wagering
facility license without reference to the prohibition in Item (1) above unless after
having obtained a license, an offtrack wagering facility has not been licensed at that
location for 36 consecutive months and application for licensing is not made within
that 36-month period.
(4)For locations on which an offtrack wagering facility has not been completely
constructed, if application for licensing was made on or before July 1, 2021, the
prohibited distance in Item (1) above shall be one mile from any property on the
National Register of Historic Places, any public playground, residential property, or
a building used primarily as a church, synagogue, public library, or school. (5)If a parish or municipality does not have a zoning ordinance which designates certain
property within its jurisdiction as residential property, the governing authority of the
parish or municipality may designate certain areas of its jurisdiction as residential.
(6)The location limitation in Item (1) above applies to applications for licensing made
after July 1, 2021.
New law, for purposes of Item (1) above, defines "residential property" as any property
which is wholly or partly used for or intended to be used for living or sleeping by human
occupants and which includes one or more rooms, including a bathroom and complete
kitchen facilities. Residential property does not include a mobile home or manufactured
housing, if it has been in its present location for at least 60 days but does not include any
hotel or motel.
Effective upon signature of the governor (June 21, 2021).
(Amends R.S. 4:143(7), 148, 149, 166.7, 213 and 214(A)(4); adds R.S. 4:143(17)-(19),
211(8), 214(K) and (L), 216(E), 217(E) and 228)