SLS 21RS-1821 REENGROSSED 2021 Regular Session SENATE BILL NO. 247(Substitute of Senate Bill No. 202 by Senator Cortez) BY SENATORS CORTEZ, JOHNS AND WARD AND REPRESENTATIVE STEFANSKI GAMING. Provides relative to the regulation of sports wagering. (See Act) 1 AN ACT 2 To amend and reenact R.S. 13:4721, R.S. 14:90.5(A), (B), and (C), R.S. 27:15(B)(1), 15.1, 3 24(A)(5) and (6), the introductory paragraph of 27.1(C), 44(9), (11), and (13), 58(5), 4 65(B)(11), 205(11) and (12), 239.1, 353(2) and (5), 361(F), 364(A)(1)(c)(ii) and (5), 5 371(C), 372(B) and (C), and 375(D), and R.S. 46:1816(B)(8), to enact R.S. 14:90(E) 6 and 90.3(K) and R.S. 27:15(B)(8)(c) and Chapter 10 of Title 27 of the Louisiana 7 Revised Statutes of 1950, to be comprised of R.S. 27:601 through 611, and to repeal 8 R.S. 27:24(A)(5)(f), relative to sports wagering; to provide for definitions; to require 9 a license to conduct sports wagering; to provide relative to duties and powers of the 10 Louisiana Gaming Control Board and the gaming division in the office of state 11 police; to provide for requirements and limitations on licensees and permittees; to 12 authorize cash wagers; to require a sports lounge; to provide regarding a 13 computerized wagering platform; to provide for limitations on wagering; to authorize 14 self-service machines; to authorize electronic wagering through established wager 15 accounts; to provide for recordkeeping; to provide for exceptions from criminal law; 16 to provide for an effective date; and to provide for related matters. 17 Be it enacted by the Legislature of Louisiana: Page 1 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 Section 1. R.S. 27:15(B)(1), 15.1, 24(A)(5) and (6), the introductory paragraph of 2 27.1(C), 44(9), (11), and (13), 58(5), 65(B)(11), 205(11) and (12), 239.1, 353(2) and (5), 3 361(F), 364(A)(1)(c)(ii) and (5), 371(C), 372(B) and (C), and 375(D) are hereby amended 4 and reenacted and R.S. 27:15(B)(8)(c) and Chapter 10 of Title 27 of the Louisiana Revised 5 Statutes of 1950, comprised of R.S. 27:601 through 611, are hereby enacted to read as 6 follows: 7 §15. Board's authority; responsibilities 8 * * * 9 B. The board shall: 10 (1) Have all regulatory authority, control, and jurisdiction, including 11 investigation, licensing, and enforcement, and all power incidental or necessary to 12 such regulatory authority, control, and jurisdiction over all aspects of gaming 13 activities and operations as authorized pursuant to the provisions of the Louisiana 14 Riverboat Economic Development and Gaming Control Act, the Louisiana 15 Economic Development and Gaming Corporation Act, the Video Draw Poker 16 Devices Control Law, and the Louisiana Fantasy Sports Contests Act, and the 17 Louisiana Sports Wagering Act, except as otherwise specified in this Title. Further, 18 the board shall have all regulatory, enforcement, and supervisory authority which 19 exists in the state as to gaming on Indian lands as provided in the provisions of Act 20 No. 888 of the 1990 Regular Session of the Legislature and Act No. 817 of the 1993 21 Regular Session of the Legislature. 22 * * * 23 (8) 24 * * * 25 (c) Adopt, pursuant to the Administrative Procedure Act and as 26 specifically provided for in R.S. 27:603, all rules necessary to implement, 27 administer, and regulate sports wagering as authorized by Chapter 10 of this 28 Title. 29 * * * Page 2 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 §15.1. Sports wagering 2 A. In the event of the legalization of sports wagering in any parish as a result 3 of the proposition election held on November 3, 2020, the The Louisiana Gaming 4 Control Board shall have all regulatory authority, control, and jurisdiction, including 5 investigation, licensing, and enforcement, and all power incidental or necessary to 6 such regulatory authority, control, and jurisdiction over all aspects of sports 7 wagering activities and operations, except as otherwise specified in this Title. 8 B. For purposes of this Section, "sports wagering" shall be defined as the 9 business of accepting wagers on any sports event or sports contest by any system or 10 method of wagering. 11 * * * 12 §24. Rulemaking authority; fees and fines, collection 13 A. The board, in accordance with the Administrative Procedure Act and R.S. 14 27:15(B)(8), shall promulgate all rules and regulations necessary to carry out the 15 provisions of this Title, including but not limited to the following: 16 * * * 17 (5) A procedure requiring the withholding of payments of progressive slot 18 machine annuities and cash gaming winnings of persons who have outstanding child 19 support arrearages or owing child support overpayments, prior to the payment of a 20 progressive slot machine annuity, beginning with the second annuity payment, or 21 cash gaming winnings. Progressive slot machine annuities or cash gaming winnings 22 shall only include only payments for which the entity licensed or permitted under 23 Chapters Chapter 1, 4, 5, or 7, or 10 of this Title 27 of the Louisiana Revised 24 Statutes of 1950, is required to file form W2-G, or a substantially equivalent form, 25 with the United States Internal Revenue Service. 26 (a) The board may require that the agency reporting current child support 27 arrearages or overpayments to provide information relating to such arrearages or 28 overpayments in a manner, format, or record approved by the board that gives the 29 entity licensed or permitted under Chapters Chapter 1, 4, 5, or 7, or 10 of this Title Page 3 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 27 of the Louisiana Revised Statutes of 1950, real-time or immediate electronic 2 database access to the information. If the information relating to such arrearages or 3 overpayments by the agency reporting current child support arrearages or 4 overpayments is not available through real-time or immediate electronic database 5 access, the licensee shall not be responsible for withholding cash gaming winnings 6 in accordance with the provisions of this Subparagraph. 7 (b) The board or any entity licensed or permitted under Chapters Chapter 1, 8 4, 5, or 7, or 10 of this Title 27 of the Louisiana Revised Statutes of 1950, including 9 any of its officers, employees, attorneys, accountants, or other agents, shall not be 10 civilly or criminally liable to any person, including any customer, for any disclosure 11 of information made in accordance with this Section, for encumbering or 12 surrendering assets in response to information provided by the Department of 13 Children and Family Services, or for any claims for damages arising from 14 withholding or failing to withhold any progressive slot machine annuities or cash 15 gaming winnings, based upon information provided to it. 16 (c) If any entity licensed or permitted under Chapters Chapter 1, 4, 5, or 7, 17 or 10 of this Title 27 of the Louisiana Revised Statutes of 1950, determines that the 18 winner of a progressive slot machine annuity or cash gaming winnings is a person 19 who has outstanding child support arrearages or owes child support overpayments, 20 the entity licensed or permitted under Chapters Chapter 1, 4, 5, or 7, or 10 of this 21 Title 27 of the Louisiana Revised Statutes of 1950, shall deduct the child support 22 arrearage or child support overpayment from the payment of the progressive slot 23 machine annuity or cash gaming winnings. The deducted amount shall be forwarded 24 to the Department of Children and Family Services within seven days, and the entity 25 licensed or permitted under Chapters Chapter 1, 4, 5, or 7, or 10 of this Title 27 of 26 the Louisiana Revised Statutes of 1950, shall pay the remainder to the person who 27 has outstanding child support arrearages or owes child support overpayments. If the 28 remainder is equal to or less than zero, the person who has an outstanding child 29 support arrearage or child support overpayment shall not receive a payment. Page 4 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 (d) Any entity licensed or permitted under Chapters Chapter 1, 4, 5, or 7, or 2 10 of this Title 27 of the Louisiana Revised Statutes of 1950, may deduct an 3 administrative fee from each payment of a progressive slot machine annuity, 4 beginning with the second annuity payment, or cash gaming winnings, of persons 5 who have outstanding child support arrearages or owe child support overpayments 6 per singular or periodic payment, not to exceed thirty-five dollars. 7 (e) The board shall also require that the entity licensed or permitted under 8 Chapters 1, 4, 5, or 7, or 10 of Title 27 of the Louisiana Revised Statutes of 1950, 9 adopt procedures designed to prevent employees from willfully failing to withhold 10 payments of progressive slot machine annuities or cash gaming winnings from 11 persons who have outstanding child support arrearages or child support 12 overpayments, based upon the information provided by the Department of Children 13 and Family Services that allows the licensee to identify such persons. 14 (6) The administration and enforcement of accumulating unclaimed monies 15 on which the time period for collection has expired, the remittance thereof to the 16 state treasurer, and related matters as required by R.S. 27:94, 252, and 394, and 609. 17 * * * 18 §27.1. Uniform compulsive and problem gambling program 19 * * * 20 C. Within one hundred twenty days from the adoption of the rules provided 21 for in Subsection B of this Section, each holder of a license as defined in R.S. 22 27:44(14), R.S. 27:353(5), and 602, and the casino gaming operator shall submit for 23 approval to the board a comprehensive program that provides policies and 24 procedures that, at a minimum, shall cover the following areas of concern and are 25 designed to: 26 * * * 27 §44. Definitions 28 When used in this Chapter, the following terms shall mean: 29 * * * Page 5 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 (9)(a) "Game" means any banking or percentage game which is played with 2 cards, dice, or any electronic, electrical, or mechanical device or machine for money, 3 property, or any thing of value. "Game" does not include a lottery, bingo, pull tabs, 4 raffles, electronic video bingo, cable television bingo, dog race wagering, or any 5 wagering on any type of sports event, including but not limited to football, 6 basketball, baseball, hockey, boxing, tennis, wrestling, jai alai, or other sports contest 7 or event. Game "Game" shall also include racehorse wagering. 8 (b) Notwithstanding any provision of Subparagraph (a) of this 9 Paragraph to the contrary, "game" shall include wagering on certain sports 10 events through its sports book for a licensee who is also licensed by the board 11 in accordance with Chapter 10 of this Title. 12 * * * 13 (11)(a) "Gaming device" or "gaming equipment" means any equipment or 14 mechanical, electro-mechanical, or electronic contrivance, component, or machine, 15 including a slot machine, used directly or indirectly in connection with gaming or 16 any game, which affects the result of a wager by determining wins or losses. 17 (b) Notwithstanding any provision of Subparagraph (a) of this 18 Paragraph to the contrary "gaming device" or "gaming equipment" shall also 19 include a sports wagering mechanism as that term is defined in R.S. 27:602 if 20 the riverboat gaming operator is also licensed by the board for a sports book in 21 accordance with Chapter 10 of this Title. 22 * * * 23 (13) "Gaming position" means a gaming device seat or a space at a table 24 game. Each gaming device seat shall be counted as one position and each space at 25 a table game shall be counted as one position, subject to the rules and regulations of 26 the board. The board shall specifically provide by rule for the counting of gaming 27 positions for devices and games where seats and spaces are not readily countable. 28 "Gaming position" shall not include a seat or space at a sports wagering 29 mechanism or at a sports wagering window. Page 6 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 * * * 2 §58. Division responsibilities 3 The division shall: 4 * * * 5 (5)(a) Require all licensees to utilize a cashless wagering system, except for 6 racehorse wagering and the play of slot machines, whereby all players' money is 7 converted to tokens, electronic cards, or chips used only for wagering in the gaming 8 establishment. 9 (b) Notwithstanding any provision of Subparagraph (a) of this 10 Paragraph to the contrary, a licensee may accept cash wagers in its sports book 11 if it is also licensed by the board in accordance with Chapter 10 of this Title. 12 * * * 13 §65. Licenses to conduct gaming activities upon riverboats; limitations 14 * * * 15 B. Gaming shall be conducted aboard riverboats, subject to the following 16 requirements: 17 * * * 18 (11)(a) Except for racehorse wagering and the play of slot machines, gaming 19 wagers may be made only with tokens, chips, vouchers, coupons, or electronic cards 20 issued by the licensee. Such tokens, chips, vouchers, coupons, or electronic cards 21 may be used while aboard the riverboat only for the purpose of making wagers on 22 gaming games. Electronic cards may be used which are affixed with a magnetic 23 storage media, a "smart card" or those containing an integrated circuit chip, but 24 excluding credit cards issued by any other entity or institution or cards which 25 automatically withdraw funds from a credit, savings, or checking account held at a 26 depository institution as defined by Section 3 of the Federal Deposit Insurance Act, 27 which includes any credit union. 28 (b) Notwithstanding any provision of Subparagraph (a) of this 29 Paragraph to the contrary, if the riverboat is also licensed by the board for a Page 7 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 sports book in accordance with Chapter 10 of this Title, sports wagers may also 2 be made in cash or through a patron's verified sports wagering account. 3 * * * 4 §205. Definitions 5 When used in this Chapter, the following terms have these meanings: 6 * * * 7 (11)(a) "Game" means any banking or percentage game located exclusively 8 within an official gaming establishment which is played with cards, dice, or any 9 electronic, electrical, or mechanical device or machine for money, property, or any 10 thing of value. Game "Game" does not include lottery, bingo, charitable games, 11 raffles, electronic video bingo, pull tabs, cable television bingo, wagering on dog or 12 horse races, sports betting, or wagering on any type of sports event, inclusive 13 including but not limited to football, basketball, baseball, hockey, boxing, tennis, 14 wrestling, jai alai, or other sports contest or event. 15 (b) Notwithstanding any provision of Subparagraph (a) of this 16 Paragraph to the contrary, "game" shall include sports betting through its 17 sports book if the casino gaming operator is licensed by the board in accordance 18 with Chapter 10 of this Title. 19 (12)(a) "Gaming device" means any equipment or mechanical, 20 electromechanical, or electronic contrivance, component, or machine used directly 21 or indirectly in connection with gaming or any game which affects the result of a 22 wager by determining win or loss. The term includes a system for processing 23 information which can alter the normal criteria of random selection, which affects 24 the operation of any game, or which determines the outcome of a game. The term 25 does not include a system or device which that affects a game solely by stopping its 26 operation so that the outcome remains undetermined. 27 (b) Notwithstanding any provision of Subparagraph (a) of this 28 Paragraph to the contrary, "gaming device" shall also include a sports 29 wagering mechanism as that term is defined in R.S. 27:602 if the casino gaming Page 8 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 operator is also licensed by the board for a sports book in accordance with 2 Chapter 10 of this Title. 3 * * * 4 §239.1. Wagering at the official gaming establishment 5 Wagering A. Except as provided in Subsection B of this Section, wagering 6 at the official gaming establishment may be made with tokens, chips, vouchers, 7 coupons, or electronic cards issued by the casino gaming operator or an approved 8 casino manager acting on behalf of the casino gaming operator. Electronic cards may 9 be used which are affixed with a magnetic storage media, a "smart card" or those 10 containing an integrated circuit chip, but excluding credit cards issued by any other 11 entity or institution or cards which automatically withdraw funds from a credit, 12 savings, or checking account held at a depository institution as defined by Section 13 3 of the Federal Deposit Insurance Act, which includes any credit union. 14 B. Notwithstanding any provision of Subsection A of this Section to the 15 contrary, if the casino gaming operator is issued a license to operate a sports 16 book by the board in accordance with Chapter 10 of this Title, sports wagers at 17 the official gaming establishment may also be made in cash or through a 18 patron's verified sports wagering account. 19 * * * 20 §353. Definitions 21 When used in this Chapter, the following terms shall have these meanings: 22 * * * 23 (2) "Designated slot machine gaming area" means the contiguous area of an 24 eligible live racing facility at which slot machine gaming may be conducted in 25 accordance with the provisions of this Chapter, determined by measuring the area, 26 in square feet, inside the interior walls of the licensed eligible facility, excluding any 27 space therein in which gaming activities may not be conducted, such as bathrooms, 28 stairwells, cage and beverage areas, and emergency evacuation routes of any width 29 that meet or exceed the minimum size required by law. Page 9 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 * * * 2 (5) "Emergency evacuation route" means those areas within the designated 3 slot machine gaming area of a licensed eligible facility which are clearly defined and 4 identified by the licensee as necessary and approved by the state fire marshal or other 5 federal or state regulatory agency for the evacuation of patrons and employees from 6 the facility, and from which and in which no gaming activity may occur. 7 * * * 8 §361. Conduct of slot machine gaming; temporary conduct 9 * * * 10 F.(1) Wagering at an eligible live racing facility may be made with tokens, 11 chips, vouchers, coupons, or electronic cards issued by the licensed eligible facility 12 or an approved facility manager acting on behalf of the facility. Electronic cards may 13 be used which are affixed with a magnetic storage media, a "smart card" or those 14 containing an integrated circuit chip, but excluding credit cards issued by any other 15 entity or institution or cards which automatically withdraw funds from a credit, 16 savings, or checking account held at a depository institution as defined by Section 17 3 of the Federal Deposit Insurance Act, which includes any credit union. 18 (2) Notwithstanding any provision of Paragraph (1) of this Subsection to 19 the contrary, if the holder of a license as defined in R.S. 27:353 is also issued a 20 license to operate a sports book by the board in accordance with Chapter 10 of 21 this Title, sports wagers at the eligible facility may also be made in cash or 22 through a patron's verified sports wagering account. 23 * * * 24 §364. Gaming Control Board; powers and duties 25 A. The board shall: 26 (1) 27 * * * 28 (c) Such rules may include: 29 * * * Page 10 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 (ii) Requiring certain minimum physical security standards be observed in 2 designated slot machine gaming areas. 3 * * * 4 (5) Approve the location, plans, and construction of the designated slot 5 machine gaming area in an eligible facility. 6 * * * 7 §371. Prohibition on operation of video draw poker devices; prohibition on any 8 other type of game 9 * * * 10 C.(1) Nothing in this Chapter shall be construed to permit the operation or 11 play of any type of game the play of which requires the participation of an employee 12 of the licensee. 13 (2) Notwithstanding any provision of Paragraph (1) of this Subsection to 14 the contrary, participation of an employee of the licensee may be permitted if 15 the licensee is also issued a license to operate a sports book by the board in 16 accordance with Chapter 10 of this Title and the employee's participation is in 17 compliance with and regarding activities related to operations regulated by that 18 Chapter. 19 §372. Slot machine gaming Gaming area limitations 20 * * * 21 B.(1) No gaming devices other than slot machines and authorized pari-mutuel 22 wagering devices and equipment shall be in the designated slot machine gaming 23 area. 24 (2) Notwithstanding any provision of Paragraph (1) of this Subsection to 25 the contrary, sports wagering mechanisms as that term is defined in R.S. 27:602 26 may also be authorized in the designated gaming area if the holder of a license 27 as defined in R.S. 27:353 is also issued a license to operate a sports book by the 28 board in accordance with Chapter 10 of this Title. 29 C. As used in this Section, "gaming position" means a slot machine seat. Page 11 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 Each slot machine seat shall be counted as one position, subject to the rules and 2 regulations of the board. The board shall specifically provide by rule for the counting 3 of gaming positions for devices and games where seats and spaces are not readily 4 countable. "Gaming position" shall not include a seat or space at a sports 5 wagering mechanism or at a sports wagering window. 6 * * * 7 §375. Crimes and penalties; false statements; unauthorized slot machines; skimming 8 of slot machine proceeds; payroll check cashing; gambling devices 9 * * * 10 D. Any owner of an eligible facility who has been granted a license to operate 11 slot machine gaming who cashes or accepts for cashing or permits any employee or 12 other person to cash or accept for cashing an identifiable employee payroll check in 13 the designated slot machine gaming area shall, upon conviction, be imprisoned for 14 not more than six months or fined not more than five thousand dollars, or both. 15 * * * 16 CHAPTER 10. SPORTS WAGERING 17 PART I. GENERAL PROVISIONS 18 §601. Title and citation; privilege 19 A. This Chapter shall be cited and referred to as the "Louisiana Sports 20 Wagering Act". 21 B. Any license, permit, approval, or thing obtained or issued pursuant 22 to the provisions of this Chapter is expressly declared by the legislature to be a 23 pure and absolute revokable privilege and not a right, property or otherwise, 24 under the constitution of the United States or of the state of Louisiana. Further, 25 the legislature declares that no holder of any license or permit acquires any 26 vested interest or right therein or thereunder. 27 §602. Definitions 28 For purposes of this Chapter, the following terms shall have the 29 following meanings ascribed to them unless the context clearly indicates Page 12 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 otherwise: 2 (1) "Anti-money laundering standards" or "AML" means the 3 requirements and guidelines provided in the federal Bank Secrecy Act of 1970, 4 as amended, and the Anti-Money Laundering Act of 2020, as amended, for the 5 prevention and detection of money laundering and the financing of terrorism. 6 (2) "Applicant" means a person, business, or legal entity who has 7 submitted an application to the board seeking a license or permit, or the 8 renewal of a license or permit. 9 (3) "Application" means the forms and schedules prescribed by the 10 board upon which an applicant seeks a license or permit, or the renewal of a 11 license or permit. An application shall also include any other information or fee 12 required by the board to be submitted with an application such as disclosure 13 statements, financial statements, and any type of fees. 14 (4) "Board" means the Louisiana Gaming Control Board, as established 15 by R.S. 27:11. 16 (5) "Business or legal entity" shall have the same meaning as that term 17 is defined in R.S. 27:3. 18 (6) "Division" shall have the same meaning as that term is defined in 19 R.S. 27:3. 20 (7) "Electronic sports wagering" means sports wagering via a sports 21 wagering mechanism on a licensee's premises or through a website or mobile 22 application. 23 (8) "License" means a license or authorization to operate, or to contract 24 with a sports wagering platform provider to operate, a sports book in this state 25 in compliance with the provisions of this Chapter. 26 (9) "Licensee" means any person issued a license by the board. 27 (10) "Louisiana State Racing Commission" means the commission 28 established in R.S. 4:144. 29 (11) "Mobile application" means an application on a mobile phone or Page 13 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 other device through which a player is able to register, fund, and place a wager 2 with an operator on a sports event and receive a credit on the player's sports 3 wagering account. 4 (12) "Mobile wagering" means wagering on a sports event through a 5 website or mobile application. 6 (13) "Net gaming proceeds" means the amount equal to the total gross 7 revenue of all wagers placed by patrons less the total amount of all winnings 8 paid out to patrons and the amount of eligible promotional play determined 9 pursuant to R.S. 27:627. 10 (14) "Operator" or "sports wagering operator" means the entity that 11 actually books a sports wager. The operator may be: 12 (a) The licensee who manages and operates a sports book itself. 13 (b) The licensee's contracted sports wagering platform provider, in 14 accordance with the scope of that contract, when the licensee chooses to contract 15 the management and operation of all or a portion of its sports book 16 line-of-business with a platform provider. 17 (15) "Patron" or "player" means an individual who places a wager on 18 a sports event. 19 (16) "Permit" has the same meaning as that term is defined in R.S. 27:3. 20 (17) "Permittee" has the same meaning as that term is defined in R.S. 21 27:3. 22 (18) "Person" has the same meaning as that term is defined in R.S. 27:3. 23 (19) "Representation of value" means tokens, chips, vouchers, coupons, 24 or electronic cards that are issued by the licensee and authorized for use in 25 sports wagering by rules and regulations promulgated by the board. 26 (20) "Sports book" means the offering of sports wagering by an operator 27 on a licensee's premises or through a sports wagering platform. 28 (21) "Sports event" means any professional sport or athletic event, any 29 collegiate sport or athletic event, any amateur sport or athletic event, any Page 14 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 Olympic or international sports competition event, any competitive video game 2 or other electronic sports event, or any other special event or competition of 3 relative skill as authorized by the board to be a sports event for purposes of this 4 Chapter. "Sports event" shall not include high school sports, youth events, any 5 international sports events where the majority of the participants are under the 6 age of eighteen years, fantasy sports contests as provided in Chapter 6 of this 7 Title, and any event prohibited by law. 8 (22) "Sports wager" or "sports bet" means a sum of money or 9 representation of value risked by a player on an occurrence associated with a 10 sports event for which the outcome is uncertain. The term includes but is not 11 limited to single-game bets, teaser bets, parlay bets, over-under bets, moneyline 12 bets, pools, exchange wagering, in-game wagering, in-play bets, proposition 13 bets, and straight bets. 14 (23) "Sports wagering" means the acceptance of wagers on sports events 15 or on portions of a sports event or on the individual performance or statistics 16 of athletes or participants in a sports event or a combination of sports events, 17 by any system or method of wagering. 18 (24) "Sports wagering account" means an electronic financial record 19 established with an operator for an individual patron in which the patron may 20 deposit and withdraw funds for sports wagering and other authorized 21 purchases and to which the operator may credit winnings or other amounts due 22 to that patron or authorized by that patron. 23 (25) "Sports wagering mechanism" or "kiosk" means a board-approved 24 self-service mechanical, electrical, or computerized terminal, device, apparatus, 25 or piece of equipment that is directly tied to a licensee's approved sports 26 wagering platform that allows a patron to place a sports wager in a 27 board-approved location on a licensee's premises. "Sports wagering 28 mechanism" does not include a personal computer, mobile phone, or other 29 device owned and used by a player to wager on a sports event. Page 15 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 (26) "Sports wagering platform" means an integrated system of 2 hardware, software, or applications, including mobile applications and servers, 3 through which an operator conducts the business of offering sports wagering 4 conducted in accordance with this Chapter. 5 (27) "Sports wagering platform provider" means a suitable business or 6 legal entity that holds a permit from the board to engage in the operation of a 7 sports book on behalf of a licensee. 8 §603. Gaming Control Board; state police; duties and powers 9 A.(1) The board shall perform the duties and functions as authorized by 10 this Chapter and shall possess authority, control, and jurisdiction and all power 11 incidental and necessary thereto with respect to the regulation of sports 12 wagering as provided by Chapters 1 and 2 of this Title. 13 (2)(a) In accordance with the Administrative Procedure Act, the board 14 shall: 15 (i) Develop qualifications and standards and a process and procedure for 16 the issuance of a license to operate a sports book as well as the renewal thereof. 17 A process and procedure for notification to eligible applicants of available 18 licenses as required by R.S. 27:604(B) shall be included. 19 (ii) Develop qualifications and standards and a procedure and process 20 for permitting sports wagering platform providers, manufacturers, suppliers, 21 and personnel as well as the renewals thereof. 22 (iii) Promulgate forms, processes, and procedures necessary to 23 implement, administer, and regulate sports wagering as authorized by this 24 Chapter. 25 (iv) Establish standards for the amount of reserves required to be 26 maintained by an operator and the allowable form of those reserves, including 27 standards for initial reserves for a new licensee or newly permitted sports 28 wagering platform provider. 29 (v) Establish guidelines for the acceptance of wagers on a series of sports Page 16 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 events by an operator. 2 (vi) Prohibit an operator from unilaterally rescinding a wager except in 3 compliance with rules of the board. 4 (vii) For cash wagers placed in person or via a sports wagering 5 mechanism, establish standards for the type of wagering tickets which may be 6 used, information required to be printed on a ticket, and methods for issuing 7 tickets. 8 (viii) Establish the method of accounting to be used by an operator, the 9 types of records required to be kept, and the length of time records shall be 10 retained. 11 (ix) Require an operator to comply with AML standards. 12 (x) Provide standards for the use of credit and checks by players and 13 other protections for players. 14 (xi) Require an operator to submit for approval by the board its internal 15 controls for all aspects of electronic wagering, including procedures for system 16 integrity, system security, operations, accounting, patron disputes, and 17 reporting of problem gamblers. 18 (xii) Require an operator to submit for approval by the board its 19 operational controls for server-based gaming systems, software, and hardware 20 utilized on electronic sports wagering, including but not limited to appearance, 21 functionality, contents, collection, storage and retention of data, and security. 22 (xiii) Require an operator to submit for approval by the board its 23 operational controls for patron's sports wagering accounts, including but not 24 limited to procedures for establishment and closure of an online account, 25 funding of withdrawal of funds from an online account, and generation of an 26 account statement. 27 (xiv) Establish standards for servers and other equipment used to accept 28 wagers by operators and procedures for inspection and for addressing defective 29 or malfunctioning devices, equipment, and accessories related to sports Page 17 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 wagering. 2 (xv) Require an operator to post the toll-free telephone number available 3 to provide information and referral services regarding compulsive or problem 4 gaming. 5 (xvi) Require each operator to submit for board approval a responsible 6 gaming policy that allows patrons to restrict themselves from placing wagers 7 with the operator, including limits on time spent wagering and limits on 8 amounts wagered, and identifies actions by the operator to honor those self- 9 imposed restrictions. 10 (b) For purposes of expeditious implementation of the provisions of this 11 Chapter, the promulgation of the initial administrative rules pertaining to this 12 Chapter shall be considered to constitute a matter of imminent peril to public 13 health, safety, and welfare as provided in R.S. 49:953(B). 14 B.(1) The gaming division of the office of state police shall, at all times 15 considered appropriate by the board, be charged with inspecting and ensuring 16 compliance with all the requirements of this Chapter. 17 (2) The gaming division of the office of state police may be charged by 18 the board with any other tasks deemed necessary to the regulation of sports 19 wagering in this state. 20 PART II. LICENSEE AND PLATFORM PROVIDER 21 §604. License; limited; requirements; contract with platform provider 22 A.(1) No person, business, or legal entity shall operate a sports book 23 without first being licensed by the board. 24 (2) The license to engage in the business of operating a sports book shall 25 be in addition to any other license required by law. 26 B.(1) The board shall issue no more than twenty licenses to operate 27 sports books. The board shall first consider applications for licensing from the 28 following: 29 (a) The casino gaming operator as defined in R.S. 27:205 and provided Page 18 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 for in Chapter 5 of this Title. 2 (b) The holder of a license as defined in R.S. 27:44 and provided for in 3 Chapter 4 of this Title. 4 (c) The holder of a license as defined in R.S. 27:353 and provided for in 5 Chapter 7 of this Title, provided the holder of the license also has the approval 6 of the Louisiana State Racing Commission to apply to be licensed for a sports 7 book. 8 (2)(a) For the initial application process, if any entity identified in 9 Paragraph (1) of this Subsection elects not to apply for a license or fails to 10 submit a completed application to the board prior to January 1, 2022, or within 11 thirty days of applications being available, whichever is later, it shall not be 12 considered for a license. The board may consider for the remaining licenses, 13 applications from: 14 (i) Licensed establishments as defined in R.S. 27:402 and provided for in 15 Chapter 8 of this Title. Any licensed establishment that is also licensed by the 16 Louisiana State Racing Commission with the commission's approval may apply 17 to be licensed to operate a sports book. 18 (ii) Operators as defined in R.S. 27:302 and provided for in Chapter 6 of 19 this Title. 20 (b) From the licensed establishments and operators identified in 21 Subparagraph (a) of this Paragraph, if the number of applications received by 22 the board that are determined to be from eligible applicants exceeds the number 23 of licenses available, the board shall provide for a concealed bid process and 24 issue the available licenses, in accordance with the board's ranking of the bids, 25 to the applicants that in the board's discretion have the greatest potential for 26 revenue generation for the state. 27 (3)(a) Should a license become available after the initial issuance, the 28 board shall notify any entity identified in Paragraph (1) of this Subsection who 29 does not have a sports wagering license about the available license and provide Page 19 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 those entities an opportunity to apply for the license by a certain date. If the 2 number of applications determined by the board to be eligible applicants 3 exceeds the number of available licenses, the board shall provide for a concealed 4 bid process and issue the available licenses, in accordance with the board's 5 ranking of the bids, to the applicants that in the board's discretion have the 6 greatest potential for revenue generation for the state. 7 (b) Should a license become available after the initial issuance and 8 entities identified in Paragraph (1) of this Subsection decline to apply or the 9 number of available licenses exceeds the number of entities identified in 10 Paragraph (1) of this Subsection who are interested, the board shall notify the 11 entities identified in Subparagraph (2)(a) of this Subsection who do not have a 12 sports wagering license about the available license and provide those entities an 13 opportunity to apply for the license by a certain date. If the number of 14 applications determined by the board to be eligible applicants exceeds the 15 number of available licenses, the board shall provide for a concealed bid process 16 and issue the available licenses, in accordance with the board's ranking of the 17 bids, to the applicants that in the board's discretion have the greatest potential 18 for revenue generation for the state. 19 C. The board shall issue a license to operate a sports book only to an 20 applicant determined by the board to be suitable. In addition to the standards 21 provided in R.S. 27:28, in determining an applicant's suitability as a sports 22 wagering licensee, the board may request from an applicant, and consider as a 23 factor in the determination, any or all of the following information items: 24 (1) The applicant's capitalization adequacy and the financial ability and 25 means to develop, construct, operate, and maintain infrastructure to support 26 sports wagering activities and operations in compliance with this Chapter and 27 any administrative rules promulgated by the board. 28 (2) The applicant's financial ability to purchase and maintain adequate 29 liability and casualty insurance and to provide an adequate surety bond. Page 20 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 (3) The applicant's capitalization adequacy and financial ability to 2 responsibly pay its secured and unsecured debts in accordance with its 3 financing agreements and other contractual obligations. 4 (4) The applicant's history of material noncompliance with licensing 5 requirements or any other regulatory requirements in the state or in any other 6 jurisdiction, where the noncompliance resulted in enforcement action by the 7 person with jurisdiction over the applicant. 8 (5) The applicant's filing or having filed against it a proceeding for 9 bankruptcy, or involvement in any formal process to adjust, defer, suspend, or 10 otherwise negotiate the payment of any debt. 11 (6) The applicant's being named as a defendant in litigation involving the 12 integrity of its business practices. 13 D. Each applicant shall submit as part of its application a detailed plan 14 of design of its sports book lounge and other areas of its establishment where 15 sports wagering mechanisms may be placed. The board shall issue a license only 16 to an applicant whose detailed plan of design the board finds acceptable. 17 E. The board shall issue not more than twenty licenses to applicants that 18 meet the provisions of this Section and all other qualifications and standards as 19 determined by the board. 20 F.(1) A licensee may operate the sports book itself or contract for 21 operation of its onsite or electronic wagering with a sports wagering platform 22 provider. Only a licensee, or its sports wagering platform provider on its behalf, 23 may process, accept, offer, or solicit sports wagers. 24 (2) A licensee shall be responsible for the conduct of its sports wagering 25 platform provider. 26 G. Prior to beginning operations, an operator shall install and thereafter 27 maintain a computerized bookmaking system, referred to in this Chapter as a 28 sports wagering platform, that meets the specifications required by law and by 29 rule and approved by the board. Page 21 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 §605. Sports wagering platform provider 2 A.(1) The board shall issue a sports wagering platform provider permit 3 to a suitable person who desires to contract with a licensee to manage or operate 4 all or a portion of a licensee's sports book line-of-business. A person shall not 5 manage or operate all or a portion of a licensee's sports book unless it possesses 6 a valid permit. 7 (2) In addition to the standards provided in R.S. 27:28, in determining 8 an applicant's suitability as a sports wagering platform provider, the board may 9 request from the applicant and consider as a factor in its determination any of 10 the items of information listed in R.S. 27:604(C) that it considers relevant. 11 B. (1) A sports wagering platform provider shall contract with a licensee 12 to provide sports wagering services. 13 (2) The board shall provide by rule for the minimum requirements of the 14 contract between the licensee and its sports wagering platform provider. Among 15 other requirements, the rules shall require that the contract provide access by 16 the division and the board to any information maintained by the platform 17 provider for verification of compliance with this Chapter. 18 C. A sports wagering platform provider shall use no more than one 19 sports wagering platform to offer, conduct, or operate a sports book on behalf 20 of the licensee. 21 D. A sports wagering platform provider shall keep books and records for 22 the management and operation of sports wagering as authorized by this 23 Chapter and for services for which it is contracted by a licensee. The keeping 24 of books and records shall be separate and distinct from any other business the 25 sports wagering platform provider operates. A sports wagering platform 26 provider shall file quarterly reports with the board listing all of its contracts 27 and services related to sports wagering authorized under this Title. 28 E.(1) The board shall provide by rule for the standards and 29 requirements of a sports wagering platform. The rules shall specify technical Page 22 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 requirements as well as operational requirements. 2 (2) Only a sports wagering platform that meets the standards and 3 requirements as provided by rule may be used by an operator to book wagers. 4 F. The sports wagering platform provider shall provide the division with 5 a readily available point of contact to ensure compliance with the requirements 6 of this Chapter. 7 G. All servers necessary for the placement or resolution of wagers, other 8 than backup servers, shall be physically located in Louisiana. 9 H. Any sports wagering platform utilized for electronic wagering shall 10 have a component of its design to reasonably verify that the person attempting 11 to place the wager is: 12 (1) At least twenty-one years of age. 13 (2) Physically located in the state and not physically located in a parish 14 that has not approved a proposition to authorize sports wagering at the time the 15 wager is initiated or placed. 16 (3) Not a person who is otherwise prohibited from wagering with the 17 operator through law, rule, policy of the operator, self-exclusion, or pursuant 18 to R.S. 27:27.1. 19 §606. Temporary certificate of authority 20 A. When considering a person's application for a license to conduct 21 sports wagering or a permit as a sports wagering platform provider or service 22 provider, the board may issue to the person a temporary certificate of authority 23 to conduct business pursuant to this Chapter if all of the following apply: 24 (1) The person has filed with the board a completed application, 25 including all fees. 26 (2) The person has substantially demonstrated to the satisfaction of the 27 board that the person meets the requirements of this Chapter, the board's rules, 28 including emergency rules, and the board's or division's orders. 29 (3) The person applying for a permit as a sports wagering platform Page 23 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 provider or service provider holds a gaming license or permit for similar 2 activity in Louisiana or another state of the United States and the license or 3 permit is in good standing. 4 (4) The person agrees in writing to the following conditions of the 5 temporary certificate of authority issued pursuant to this Section: 6 (a) The temporary certificate of authority does not create a right or 7 privilege. 8 (b) The board may rescind the person's temporary authority to conduct 9 business under this Section at any time, with or without notice to the person and 10 without a hearing, if either of the following apply: 11 (i) The board is informed that the suitability of the person may be at 12 issue. 13 (ii) The person fails to cooperate with the investigation into the 14 qualifications and suitability of the person applying for a license or the person 15 applying for a permit as a sports wagering platform provider or service 16 provider. 17 B.(1) The temporary certificate of authority shall expire six months after 18 issuance. 19 (2) The board may issue one ninety-day extension of the certificate upon 20 a showing of good cause. 21 (3) If a license or permit is issued to the holder of a temporary certificate 22 of authority, the license or permit term shall begin on the date of issuance of the 23 temporary certificate of authority. 24 PART III. WAGERING 25 §607. Operators; sports lounge required; responsibilities; pooling 26 A.(1) An operator may conduct sports wagering in person or via a sports 27 wagering mechanism located on its premises or through a website or mobile 28 application. 29 (2) Each licensee shall house its sports book in a sports wagering lounge Page 24 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 on its premises which shall be restricted to patrons who are twenty-one years 2 of age or older and shall conform to all requirements concerning square footage, 3 design, equipment, security measures, and related matters which the board shall 4 prescribe by rule. 5 B. An operator shall establish and display the odds at which wagers may 6 be placed on sports events. No operator shall accept a wager in person, via a 7 sports wagering mechanism, or through a website or mobile application unless 8 the wagering proposition is posted by electronic or manual means. 9 C. An operator shall adopt comprehensive rules, which shall be 10 approved by the board, governing sports wagering transactions with its patrons. 11 The rules shall specify the amount to be paid on winning wagers and the effect 12 of schedule changes. The rules, together with any other information the board 13 deems appropriate, shall be conspicuously displayed in the establishment, 14 posted electronically on any sports wagering mechanism, website, or mobile 15 application, and included in the terms and conditions of the sports wagering 16 account system. 17 D. An operator shall maintain records of sports wagering activities and 18 operations in accordance with rules and regulations of the board and follow 19 federal anti-money laundering standards in the day-to-day operations of its 20 business. 21 E. Each operator shall designate one or more key employees who shall 22 be responsible for the operation of the sports book. 23 F. All wagers on sports events authorized pursuant to this Chapter shall 24 be initiated, received, and otherwise made within the state unless otherwise 25 determined by the board in accordance with applicable federal and state laws 26 and regulations. Consistent with the Unlawful Internet Gambling Enforcement 27 Act of 2006, 31 U.S.C. 5361 et seq., the intermediate routing of electronic data 28 relating to a lawful intrastate wager authorized by this Chapter shall not 29 determine the location or locations in which the wager is initiated, received, or Page 25 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 otherwise made. 2 G. An operator may pool wagers with persons who are not physically 3 present in this state if the board determines that this wagering is not 4 inconsistent with the law of this state or any federal law, including the law of 5 any foreign nation in which the person is located, or that the wagering is 6 conducted pursuant to a reciprocal agreement to which the state is a party that 7 is not inconsistent with federal law. 8 §608. Limitations on wagering 9 A.(1) To place a sports wager with an operator, a player shall meet all 10 of the following: 11 (a) Be twenty-one years of age or older. 12 (b) Be physically located in a parish that has approved a proposition 13 authorizing sports wagering. 14 (c) Have a wagering account established with the operator, if the player 15 is attempting to place the sports wager through a website or mobile application. 16 (d) Not be prohibited from wagering with the operator by law, rule, 17 policy of the operator, or self-exclusion, or pursuant to R.S. 27:27.1. 18 (2) In order to accept a sports wager from a player, an operator shall 19 confirm that the player meets all of the following criteria: 20 (a) Is twenty-one years of age or older. 21 (b) Is physically located in a parish that has approved a proposition 22 authorizing sports wagering. 23 (c) Has an existing sports wagering account with the operator, if the 24 wager is being placed through a website or mobile application. 25 (d) Is not prohibited from wagering with the operator by law, rule, policy 26 of the operator, or self-exclusion, or pursuant to R.S. 27:27.1. 27 B.(1) An operator shall not knowingly accept a wager from a person who 28 is an athlete, coach, referee, or other official or staff of a participant or team 29 that is participating in the sports event on which the person is attempting to Page 26 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 place the wager. 2 (2) An operator shall not knowingly accept a wager from a person who 3 is the operator itself or is a director, officer, owner, or employee of the operator 4 or any relative or other person living in the same household as a director, 5 officer, owner, or employee of the operator. 6 C. No sports wagers may be accepted or paid by any operator on any of 7 the following: 8 (1) On any sport or athletic event not authorized by law or the board. 9 (2) On any sport or athletic event which the operator knows or 10 reasonably should know are being placed by or on behalf of an official, owner, 11 coach, or staff of a participant or team that participates in that event. 12 (3) On the occurrence of injuries or penalties, or the outcome of an 13 athlete's disciplinary rulings, or replay reviews. 14 (4) On other types, forms, or categories of wagering prohibited by the 15 board by rule. 16 D. Subject to the rules of the board, an operator shall promptly report 17 to the board on the following activities: 18 (1) Any criminal or disciplinary proceedings commenced against the 19 licensee or its employees, or a sports wagering platform provider or its 20 employees, in connection with the operations of the sports book. 21 (2) Any abnormal wagering activity or patterns that may indicate a 22 concern about the integrity of a sports event. 23 (3) Any other conduct with the potential to corrupt a wagering outcome 24 of a sports event for purposes of financial gain, including but not limited to 25 match fixing. 26 (4) Suspicious or illegal wagering activities, including the use of funds 27 derived from illegal activity, wagers to conceal or launder funds derived from 28 illegal activity, use of agents to place wagers, or use of false identification. 29 E. Every operator shall adopt procedures to obtain personally Page 27 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 identifiable information from any individual who places an in-person single 2 wager in an amount of ten thousand dollars or greater on a sports event. 3 F.(1) A sports governing body may submit to the board in writing a 4 request to restrict, limit, or exclude a certain type, form, or category of sports 5 wagering with respect to sporting events of its body if the sports governing body 6 believes that such type, form, or category of sports wagering with respect to 7 sporting events of its body may undermine the integrity or perceived integrity 8 of the body or sporting event of the body. 9 (2) The board shall request comments from operators on any request it 10 receives pursuant to Paragraph (1) of this Subsection. 11 (3) After due consideration to all comments received, the board shall 12 grant the request if the board finds a demonstration of good cause from the 13 requestor that such type, form, or category of sports wagering is likely to 14 undermine the integrity or perceived integrity of the body or the sporting event. 15 (4) The board shall respond to a request concerning a particular event 16 before the start of the event, or if it is not feasible to respond before the start of 17 the event, no later than thirty days after the request is made. 18 (5) If the board determines that the requestor is more likely than not to 19 prevail in successfully demonstrating good cause for its request, the board may 20 provisionally grant the request of the sports governing board until the board 21 makes a final determination as to whether the requestor has demonstrated good 22 cause. Absent such a provisional grant by the board, operators may continue to 23 offer sports wagering on the sporting events that are the subject of such a 24 request during the pendency of the board's consideration of the applicable 25 request. 26 §609. Electronic wagering; kiosk; mobile wagering 27 A.(1) Electronic wagering may be conducted only to the extent that it is 28 conducted in accordance with this Chapter and in accordance with the rules 29 and regulations promulgated by the board. Page 28 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 (2) An operator may accept wagers made electronically using a sports 2 wagering mechanism located on its premises or through a website or mobile 3 application. 4 B. Sports wagering mechanism. (1) A player may place a wager via a 5 sports wagering mechanism with cash or vouchers or by utilizing the player's 6 established sports wagering account. 7 (2) Sports wagering mechanisms shall be located only on a licensee's 8 premises in areas where accessibility is limited to patrons twenty-one years of 9 age or older. 10 (3)(a) Sports wagering mechanisms shall be branded in the same brand 11 as the licensee, or the sports wagering platform provider, or both. 12 (b) Each sports wagering mechanism shall: 13 (i) Not have any device or program that will alter the reading of a bet, 14 value, or amount of wagering or deposits to reflect a bet, value, or amount other 15 than that actually wagered or deposited or any switches, jumpers, wire posts, 16 or any other means of manipulation that could affect the operation or outcome 17 of a wager. 18 (ii) Not have any device, switch, program, or function that can alter the 19 readings of the actual amounts or values relating to any function or occurrence 20 of the mechanism. 21 (iii) Have separate secure areas with locking doors for the logic board 22 and software, the cash compartment, and the mechanical meters as required by 23 the rules of the board. Access to one area from the other shall not be allowed at 24 any time. 25 (iv) Not have any functions or parameters adjustable by or through any 26 separate video display or input codes, except for the adjustment of features that 27 are wholly cosmetic. 28 (v) Have a circuit-interrupting device, method, or capability that will 29 disable the machine if the board-approved program is accessed or altered. Page 29 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 (vi) Have a serial number or other identification number permanently 2 affixed to the mechanism by the manufacturer. 3 (c) Each sports wagering mechanism shall be linked to an operator's 4 sports wagering platform for purposes of polling or reading mechanism 5 activities and for remote shutdown of mechanism operations. If the platform 6 fails as a result of a malfunction or catastrophic event, or the mechanism loses 7 connectivity to the platform, the mechanism shall not accept any additional 8 wagers until the connection to the platform is restored. 9 (d) The board may provide for additional specifications for mechanisms 10 to be approved and authorized pursuant to the provisions of this Chapter as it 11 considers necessary to maintain the integrity of sports wagering mechanisms 12 and operations. 13 (4)(a) Any sports wager placed with cash via a sports wagering 14 mechanism shall be evidenced by a ticket indicating the name of the operator 15 booking the wager, the sports event on which the wager was placed, the amount 16 of cash wagered, the type of bet and odds if applicable, the date of the event, and 17 any other information required by the board. 18 (b) A patron with a winning ticket shall redeem the ticket at the 19 establishment of the licensee that booked the wager within one hundred eighty 20 days of the date of the event. 21 (5) A sports wagering mechanism may be utilized by a player to make a 22 deposit in the player's sports wagering account. 23 (6) Wagers placed via a sports wagering mechanism through a player's 24 established sports wagering account shall be settled through the player's 25 wagering account. 26 C. Mobile wagering. (1) For purposes of mobile wagering, each licensee 27 may provide no more than two individually branded websites each of which 28 may have an accompanying mobile application bearing the same brand as the 29 website. The website and mobile application shall be offered only under the Page 30 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 same brand as the licensee, or the sports wagering platform provider, or both. 2 The website and mobile application shall be, at the discretion of the licensee, in 3 addition to any other websites or mobile applications operated by the platform 4 provider and offering other types of mobile gaming. 5 (2) Wagering through a website or mobile application shall be subject to 6 the following requirements: 7 (a)(i) A patron shall establish a wagering account with the operator 8 before the operator may accept any sports wager through a website or mobile 9 application from the patron, and an initial verification of the account shall be 10 completed by the operator. An account may be established with a line of credit 11 or as an advance deposit wagering account. 12 (ii) No operator shall accept a sports wager through a website or mobile 13 application from the public or any person who does not have an established 14 account with the operator. 15 (b) No wagers shall be placed when the player is physically located out 16 of state or in a parish that has not approved a proposition authorizing sports 17 wagering. An operator shall maintain geofencing and geolocation services and 18 shall bear all costs and responsibilities associated with the services as required 19 by the board. 20 §610. Payment of winnings; collection and use of funds 21 A.(1) Winning wagers that were placed in person or via a sports 22 wagering mechanism with cash and are evidenced by a ticket receipt shall be 23 redeemed by a player within one hundred eighty days after the date of the 24 event. An operator shall pay tickets upon presentation after performing 25 validation procedures unless otherwise allowed pursuant to the rules and 26 regulations of the board. 27 (2) The failure to present a winning ticket within the prescribed time 28 shall constitute a waiver of the right to the payment, and the holder of the ticket 29 shall thereafter have no right to enforce payment of the ticket. Page 31 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 (3)(a) An operator's obligation to pay a winning ticket shall expire one 2 hundred eighty days after the date of the sports event if not presented for 3 payment. 4 (b) The funds held by any operator for payment of outstanding tickets 5 shall be retained by the operator for that purpose until the expiration of one 6 hundred eighty days after the date of the sports event. 7 (c) After such time, the operator shall each day accumulate the amount 8 equal to the sum of any unclaimed winnings, less the amount of state tax paid 9 by the licensee on the unclaimed monies that expire that day. On or before the 10 fifteenth day of the first month following the end of a calendar-year quarter, the 11 licensee shall remit to the state treasurer for deposit into the Crime Victims 12 Reparations Fund as provided for in R.S. 46:1816 an amount equal to the 13 accumulated total for the previous calendar-year quarter. The funds shall be 14 used exclusively to pay the expenses associated with health care services of 15 victims of sexually-oriented criminal offenses, including forensic medical 16 examinations as defined in R.S. 15:622. 17 B. Winning wagers placed using a sports wagering account shall be 18 credited by the operator to the patron's account within one day after the date 19 of the event unless otherwise allowed pursuant to the rules and regulations of 20 the board. 21 §611. Layoff bets 22 An operator may seek to reduce its risk exposure on a sports event by 23 placing a wager with another book. An operator may accept wagers placed by 24 other operators. An operator may place wagers only with other operators. The 25 operator that places a wager shall inform the book accepting the wager that the 26 wager is being placed by a book and shall disclose the book's identity. 27 Section 2. R.S. 13:4721 is hereby amended and reenacted to read as follows: 28 §4721. Gambling houses; definition; declared public nuisances 29 A. For the purposes of this Sub-part, Subpart, or for the purposes of any Page 32 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 action or prosecution hereunder in this Subpart, a gambling house is either: 2 (1) any Any place whatever whatsoever where any game of chance of any 3 kind or character is played for money, for wagers, or for tokens, and where the 4 conduct of such place operates, directly or indirectly, to the profit of one or more 5 individuals and not exclusively to the direct profit of the actual participants in such 6 game; and. 7 (2) any Any place whatsoever where races, athletic contests, and sports, and 8 games are not actually held and where opportunity is afforded for wagering upon 9 races, athletic contests, sports, and games of chance. 10 B. All gambling houses as herein defined in this Section are declared to be 11 public nuisances, and the owner owners thereof, and the agent agents for such 12 owner, owners, or the lessee, sublessee lessees, sublessees, or other occupants 13 thereof are declared to be guilty of maintaining a public nuisance. 14 C. The provisions of this Subpart shall not apply to any place where 15 sports wagering is being conducted in accordance with Chapter 10 of Title 27 16 of the Louisiana Revised Statutes of 1950. 17 Section 3. R.S. 14:90.5(A), (B), and (C) are hereby amended and reenacted and R.S. 18 14:90(E) and 90.3(K) are hereby enacted to read as follows: 19 §90. Gambling 20 * * * 21 E. Sports wagering shall not be considered gambling for purposes of this 22 Section so long as the wagering is conducted in compliance with Chapter 10 of 23 Title 27 of the Louisiana Revised Statutes of 1950. 24 * * * 25 §90.3. Gambling by computer 26 * * * 27 K. Sports wagering shall not be considered gambling by computer for 28 purposes of this Section so long as the wagering is conducted in compliance with 29 Chapter 10 of Title 27 of the Louisiana Revised Statutes of 1950. Page 33 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 * * * 2 §90.5. Unlawful playing of gaming devices by persons under the age of twenty-one; 3 underage persons, penalty 4 A. It is unlawful for any person under twenty-one years of age to play casino 5 games, gaming devices, or slot machines, or to place a wager on a sports event. 6 B. No person under the age of twenty-one, except an emergency responder 7 acting in his official capacity, shall enter, or be permitted to enter, the designated 8 gaming area of a riverboat, the designated gaming area of the official gaming 9 establishment, or the designated slot machine gaming area of a pari-mutuel wagering 10 facility which offers live horse racing licensed for operation and regulated under the 11 applicable provisions of Chapters 4, 5, and 7 of Title 27 of the Louisiana Revised 12 Statutes of 1950. 13 C.(1) For purposes of this Section, "casino games, gaming devices, or slot 14 machines" means a game or device, as defined in R.S. 27:44(10) or (12), 205(12) or 15 (13), or 353(14) operated on a riverboat, at the official gaming establishment, or at 16 a pari-mutuel wagering facility which offers live horse racing which is licensed for 17 operation and regulated under the provisions of Chapters 4, 5, and 7 of Title 27 of 18 the Louisiana Revised Statutes of 1950. 19 (2) For purposes of this Section, "place a wager on a sports event" shall 20 apply to wagers attempted to be or actually placed in person, via a self-service 21 sports wagering mechanism, or through a website or mobile application as those 22 terms are defined in R.S. 27:602 and the operation of which is regulated under 23 the provisions of Chapter 10 of Title 27 of the Louisiana Revised Statutes of 24 1950. 25 * * * 26 Section 4. R.S. 46:1816(B)(8) is hereby amended and reenacted to read as follows: 27 §1816. Crime Victims Reparations Fund; creation; sources and use of funds 28 * * * 29 B. The fund shall be composed of: Page 34 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED 1 * * * 2 (8) Monies deposited by the state treasurer from the collection of unclaimed 3 prize money as provided for in R.S. 4:176 and R.S. 27:94, 252, and 394, and 609, 4 which shall be used exclusively to pay the expenses associated with health care 5 services of victims of sexually-oriented criminal offenses, including forensic medical 6 examinations as defined in R.S. 15:622. 7 * * * 8 Section 5. R.S. 27:44(A)(5)(f) is hereby repealed in its entirety. 9 Section 6. This Act shall take effect and become operative on July 1, 2021; however, 10 no license or permit shall be issued by the Louisiana Gaming Control Board relative to 11 sports wagering activities and operations until state laws are enacted regarding the taxation 12 of net gaming proceeds generated through the operation of a sports book. The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Dawn Romero Watson. DIGEST SB 247 Reengrossed 2021 Regular Session Cortez Proposed law enacts the "Louisiana Sports Wagering Act". Present law vests all regulatory authority, control, and jurisdiction over all aspects of gaming activities and operations of riverboats, the land-based casino, video poker, and fantasy sports contests with the Louisiana Gaming Control Board (board). Proposed law retains present law and adds authority, control, and jurisdiction for the board over sports wagering. Present law defines a "gaming position" as a seat a gaming machine or space at a table game. Present law limits riverboats to 2,365 gaming positions, the racetrack in Orleans Parish to 700 slot machines, and the other three racetracks to 1,632 gaming positions. Proposed law provides that seats or spaces at sports wagering kiosks or sports wagering windows shall not be included as "gaming positions." Proposed law specifically provides that any license, permit, approval, or thing obtained or issued pursuant to proposed law is expressly declared by the legislature to be a pure and absolute revokable privilege and not a right, property or otherwise, under the federal or state constitution. Proposed law provides for definitions and requires the board to adopt rules in accordance with the Administrative Procedure Act to: (1)Develop qualifications and standards and a process and procedure for the issuance of a license to operate a sports book as well as the renewal thereof. Requires there also be a process to notify eligible applicants of available licenses. Page 35 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED (2)Develop qualifications and standards and a procedure and process for approval and permitting of sports wagering platform providers, manufacturers, suppliers, and personnel, as well as the renewal, suspension, and revocation of a permit. (3)Promulgate forms, processes, and procedures necessary to implement, administer, and regulate sports wagering as authorized by proposed law. (4)Establish standards for the amount of reserves required to be maintained by an operator and the allowable form of those reserves, including standards for initial reserves for a new licensee or newly permitted sports wagering platform provider. (5)Establish guidelines for the acceptance of wagers on a series of sports events by an operator. (6)Prohibit an operator from unilaterally rescinding a wager except in compliance with rules of the board. (7)For cash wagers placed in person or via a sports wagering mechanism, establish standards for the type of wagering tickets which may be used, information required to be printed on a ticket, and methods for issuing tickets. (8)Establish the method of accounting to be used by operators, the types of records required to be kept, and the length of time records shall be retained. (9)Require operators to comply with anti-money laundering standards. (10)Provide standards for the use of credit and checks by players and other protections for players. (11)Require operators to submit for approval by the board its policies and procedures on internal controls for all aspects of electronic wagering, including procedures for system integrity, system security, operations, accounting, patron disputes, and reporting of problem gamblers. (12)Require operators to submit for approval by the board its policies and procedures on operational controls for server-based gaming systems, software and hardware utilized on electronic sports wagering, including but not limited to appearance, functionality, contents, collection, storage, and retention of data and security. (13)Require operators to submit for approval by the board its policies and procedures on operational controls for sports wagering accounts, including but not limited to procedures for establishment and closure of an online account, funding of withdrawal of funds from an online account, and generation of an account statement for a patron's online account. (14)Establish standards for servers and other equipment used to accept wagers by operators and procedures for inspection and for addressing defective or malfunctioning devices, equipment, and accessories related to sports wagering. (15)Require operators post the toll-free telephone number available to provide information and referral services regarding compulsive or problem gambling. (16)Require operators to submit for board approval a responsible gaming policy that allows patrons to restrict themselves from placing wagers with the operator, including limits on time spent wagering and limits on amounts wagered, and identifies actions by the operator to honor those self-imposed restrictions. Proposed law authorizes emergency rulemaking procedures to be used for the initial Page 36 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED promulgation of administrative rules. Proposed law provides that the gaming division of state police shall be charged with inspecting and ensuring compliance with all the requirements of proposed law and with any other tasks deemed necessary by the board. Proposed law provides that no person, business, or legal entity shall operate a sports book without first being licensed by the board and that a sports wagering license shall be in addition to any other license. Proposed law provides that the board shall issue no more than 20 licenses to operate a sports book. Requires the board to first consider applications for licensing from the following: (1)The landbased casino. (2)The fifteen licensed riverboats. (3)The four race tracks, provided that the race track has the approval of the Louisiana State Racing Commission to apply to be licensed to operate a sports book. Proposed law provides that for the initial application process, should any of the initial 20 eligible applicants elect not to apply for a license or fail to submit a completed application by January 1, 2022, or within 30 days of applications being available, whichever is later, it shall not be considered for a license and the board may consider for the remaining licenses, applications from suitable applicants who are: (1)Video poker licensed establishments; however, any applicant that is also licensed as an offtrack betting parlor shall also have the Louisiana State Racing Commission's approval to apply to be licensed for a sports book. (2)Fantasy sports operators. Proposed law provides that if the number of applications received by the board that are determined to be eligible applicants exceeds the number of licenses available, the board shall provide for a concealed bid process and issue the available licenses to bidders, in accordance with the board's ranking of the bids, to the applicant that in the board's discretion has the greatest potential for revenue generation for the state. Proposed law provides that should a license become available after the initial issuance, the board shall notify the riverboats, race tracks, or the landbased casino who do not have a sports wagering license about the available license and provide those entities an opportunity to apply for the license by a certain date. Provides that if the number of applications from eligible applicants exceeds the number of available licenses, the board shall provide for a concealed bid process and issue the available licenses to bidders, in accordance with the board's ranking of the bids, to the applicant that in the board's discretion has the greatest potential for revenue generation for the state. Proposed law provides that should a license become available after the initial issuance and the riverboats, race tracks, and the landbased casino decline to apply or the number of available licenses exceeds the number of riverboats, race track, or the landbased casino who are interested, the board shall notify the licensed video poker establishments (bars and lounges, restaurants, truck stops, offtrack betting parlors, and hotels) who do not have a sports wagering license about the available license and provide those entities an opportunity to apply for the license by a certain date. If the number of applications from eligible applicants exceeds the number of available licenses, the board shall provide for a concealed bid process and issue the available licenses to bidders, in accordance with the board's ranking of the bids, to the applicant that in the board's discretion has the greatest potential for revenue generation for the state. Page 37 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED Proposed law provides that the board shall only award a license to operate a sports book to an applicant that it determines to be suitable, and specifically provides other information that the board may consider in addition to the information the board uses in determining suitability for other gaming licenses. Proposed law provides that each applicant shall submit as part of its application a detailed plan of design of its sports book lounge and other areas of its establishment where sports wagering mechanisms may be placed. Requires the board to only issue a license to an applicant whose detailed plan of design the board finds acceptable. Proposed law provides that a licensed sports wagering establishment may operate the sports book itself or contract for operation of its onsite or its mobile operation with a sports wagering platform provider. Provides that only a licensed sports wagering establishment, or its sports wagering platform provider on its behalf, may process, accept, offer, or solicit sports wagers. Proposed law specifically provides that a licensed sports wagering establishment shall be responsible for the conduct of its sports wagering platform provider. Proposed law provides that prior to beginning operations, a licensed sports wagering establishment shall install and thereafter maintain a sports wagering platform that meets the specifications required by law and by rule and approved by the board. Proposed law requires a sports wagering platform provider to meet the same standards of suitability as a licensee. Proposed law requires a sports wagering platform provider to be permitted by the board and to contract with a licensee to provide sports wagering services. Provides that the board shall provide by rule for the minimum requirements of the contract between the licensee and its sports wagering platform provider. Among other requirements, the rules shall require that the contract provide access by the division and the board to any information maintained by the platform provider for verification of compliance with proposed law. Proposed law limits a sports wagering platform provider to one sports wagering platform to offer, conduct, or operate a sports book on behalf of a licensee. Requires a sports wagering platform provider to keep books and records for the management and operation of sports wagering and for services for which it is contracted by a licensee. Requires the keeping of books and records separate and distinct from any other business the sports wagering platform provider might operate. Requires a sports wagering platform provider to file quarterly returns with the board listing all of its contracts and services related to sports wagering authorized under proposed law. Proposed law requires the board to provide by rule for the standards and requirements of a sports wagering platform. Requires the rules to specify technical requirements as well as operational requirements and provides that only a sports wagering platform that meets the standards and requirements as provided by rule may be used by an operator to book wagers. Proposed law requires that the sports wagering platform shall provide to the gaming division of state police a readily available point of contact to ensure compliance with the requirements of proposed law. Proposed law requires that all servers necessary for the placement or resolution of wagers, other than backup servers, be physically located in Louisiana and that any sports wagering platform utilized for electronic wagering shall have a component of its design to reasonably verify that the person attempting to place the wager is at least 21 years of age, physically located in the state, and not physically located in a parish that has not approved a proposition to authorize sports wagering at the time the wager is initiated or placed, and not a person who is otherwise prohibited from wagering with the operator. Page 38 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED Proposed law authorizes the board to issue a temporary certificate of authority to an applicant for a license or permit if: (1)The applicant has filed with the board a completed application, including all fees. (2)The applicant has substantially demonstrated to the satisfaction of the board that the person meets the requirements of proposed law, the board's rules, including emergency rules, and the board's or division's orders. (3)The applicant of a sports wagering platform provider permit or service provider permit holds a gaming license or permit for similar activity in Louisiana or another state and the license or permit is in good standing. (4)The applicant agrees in writing that the temporary certificate of authority does not create a right or privilege and that the board may rescind the temporary authority to conduct business at any time, with or without notice and without a hearing, if the board is informed that the suitability of the person may be at issue or the person fails to cooperate with the investigation into the qualifications and suitability. Proposed law provides that: the temporary certificate of authority shall expire 6 months after issuance; the board may issue one 90-day extension of the certificate upon a showing of good cause; and, if a license or permit is issued to the holder of a temporary certificate of authority, the license or permit term will begin on the date of issuance of the temporary certificate of authority. Proposed law provides that an operator may conduct sports wagering in person or via a sports wagering mechanism located on its premises or through a website or mobile application. Requires each licensee to house its sports book in a sports wagering lounge on its premises which shall be restricted to patrons who are 21 years of age or older and conform to all requirements concerning square footage, design, equipment, security measures, and related matters which the board prescribes by rule. Proposed law requires an operator to establish and display the odds at which wagers may be placed on sports events. Prohibits an operator from accepting a wager in person, via a sports wagering mechanism, or through a website or mobile application unless the wagering proposition is posted by electronic or manual means. Proposed law requires an operator to adopt comprehensive rules which the board approves to govern sports wagering transactions with its patrons. Requires the rules to specify the amount to be paid on winning wagers and the effect of schedule changes. Requires that the rules, together with any other information the board deems appropriate, to be conspicuously displayed in the establishment, posted electronically on any sports wagering mechanism, website, or mobile application, and included in the terms and conditions of the sports wagering account system. Proposed law requires an operator to maintain records of sports wagering activities and operations in accordance with rules and regulations of the board and to follow federal anti- money laundering standards in the day-to-day operations of its business. Proposed law requires each operator to designate one or more key employees who shall be responsible for the operation of the sports book. Requires at least one key employee to be on premises whenever in person sports wagering is conducted and for mobile wagering, requires at least one key employee be electronically accessible for patrons and the division at all times. Proposed law declares that all wagers on sports events authorized pursuant to proposed law shall be initiated, received, and otherwise made within the state unless otherwise determined by the board in accordance with applicable federal and state laws. Page 39 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED Proposed law authorizes an operator to pool wagers with persons who are not physically present in this state if the board determines that this wagering is not inconsistent with federal law or the law of this state, including any foreign nation, in which the person is located, or that the wagering is conducted pursuant to a reciprocal agreement to which the state is a party that is not inconsistent with federal law. Proposed law provides that to place a sports wager with an operator, a player must be, and an operator must confirm that the player is: (1)21 years of age or older. (2)Physically located in a parish that has approved a proposition authorizing sports wagering. (3)Have a wagering account established with the operator if the player is attempting to place a sports wager through a website or mobile application. (4)Not prohibited from wagering with the operator by law, rule, policy of the operator, self-exclusion, or pursuant to Uniform Compulsive and Problem Gambling Program. Proposed law prohibits an operator from knowingly accepting wagers from: (1)A person who is an athlete, coach, referee, or other official or staff of a participant or team that is participating in the sports event on which the person is attempting to place the wager. (2)A person who is the operator itself or is a director, officer, owner, or employee of the operator or any relative or other person living in the same household as a director, officer, owner, or employee of the operator. Proposed law provides that no sports wagers may be accepted or paid by any operator on any of the following: (1)On any sport or athletic event not authorized by law or the board. (2)On any sport or athletic event which the operator knows or reasonably should know is being placed by or on behalf of an official, owner, coach, or staff of a participant or team that participates in that event. (3)On the occurrence of injuries or penalties, or the outcome of an athlete's disciplinary rulings, or replay reviews. (4)On other types, forms, or categories of wagering prohibited by the board by rule. Proposed law authorizes a sports governing body to submit to the board a request to restrict, limit, or exclude a certain type, form, or category of sports wagering with respect to sporting events of its body if the sports governing body believes that such wagers may undermine the integrity or perceived integrity of the body or sporting event of the body. Upon receipt, the board shall request comments from operators and after due consideration to all comments received, the board shall grant the request if the board finds a demonstration of good cause from the requestor that such type, form, or category of sports wagering is likely to undermine the integrity or perceived integrity of the body or the sporting event. Proposed law requires an operator to promptly report to the board on the following activities: (1)Any criminal or disciplinary proceedings commenced against the licensee or its employees, or a sports wagering platform provider or its employees, in connection with the operations of the sports book. Page 40 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED (2)Any abnormal wagering activity or patterns that may indicate a concern about the integrity of a sports event. (3)Any other conduct with the potential to corrupt a wagering outcome of a sports event for purposes of financial gain, including but not limited to match fixing. (4)Suspicions or illegal wagering activities, including the use of funds derived from illegal activity, wagers to conceal or launder funds derived from illegal activity, use of agents to place wagers, or use of false identification. Proposed law requires every operator to adopt procedures to obtain personally identifiable information from any individual who places an in person single wager in an amount of $10,000 or greater on a sports event. Proposed law provides that an operator may accept wagers made electronically using a sports wagering mechanism located on its premises or through a website or mobile application. Proposed law provides that a player may make a deposit in his sports wagering account or place a wager via a sports wagering mechanism. Provides that the deposit or wager may be made with cash, vouchers, or utilizing the player's established sports wagering account. Requires that sports wagering mechanisms: (1)Be located only on a licensee's premises in areas where accessibility is limited to patrons 21 years of age or older. (2)Be branded in the same brand as the licensee or the sports wagering provider, or both. (3)Be configured in such a way that no device, program, switch, or function will alter the reading of a bet, value, or amount of wagering or deposits to reflect a bet, value, or amount other than that actually wagered or deposited or any switches, jumpers, wire posts, or any other means of manipulation that could affect the operation or outcome of a wager. (4)Be divided into separate secure areas with locking doors for the logic board and software, the cash compartment, and the mechanical meters as required by the rules of the board and prohibit access to one area from the other. (5)Not have any functions or parameters adjustable by or through any separate video display or input codes, except for the adjustment of features that are wholly cosmetic. (6)Have a circuit-interrupting device, method, or capability which will disable the machine if the board approved program is accessed or altered. (7)Have a serial number or other identification number permanently affixed to the mechanism by the manufacturer. (8)Be linked to an operator's sports wagering platform for purposes of polling or reading mechanism activities and for remote shutdown of mechanism operations. If the platform fails as a result of a malfunction or catastrophic event, or the mechanism loses connectivity to the platform, provides that the mechanism not accept any additional wagers until the connection to the platform is restored. Proposed law provides that the board may provide for additional specifications for mechanisms to be approved and authorized as it deems necessary to maintain the integrity of sports wagering mechanisms and operations. Page 41 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED Proposed law requires that any sports wager placed with cash via a sports wagering mechanism be evidenced by a ticket indicating the name of the operator booking the wager, the sports event on which the wager was placed, the amount of cash wagered, the type of bet and odds if applicable, the date of the event, and any other information required by the board. Proposed law provides that a patron with a winning ticket shall redeem the ticket at the establishment of the licensee that booked the wager within 180 days of the date of the event. Provides that wagers placed through a player's established sports wagering account shall be settled through the player's wagering account. Proposed law authorizes mobile wagering. Provides that for purposes of mobile wagering, each licensee may provide no more than two individually branded websites which may have an accompanying mobile application bearing the same brand as the website. The website and mobile application shall only be offered under the same brand as the licensee, or the sports wagering platform provider, or both. The website and mobile application shall be, at the discretion of the licensee, in addition to any other websites or mobile applications operated by the platform provider and offering other types of mobile gaming. Proposed law, regarding mobile wagering, requires that: (1)A patron establish a wagering account with the operator before the operator may accept any sports wager through a website or mobile application from the patron and that the operator conduct an initial verification of the account. Provides that an account may be established with a line of credit or as an advance deposit wagering account. (2)Prohibits an operator from accepting a sports wager through a website or mobile application from the public or any person who does not have an established account with the operator and when the player is physically located out of state or in a parish that has not approved a proposition authorizing sports wagering. Requires an operator to maintain geofencing and geolocation services and bear all costs and responsibilities associated with the services as required by the board. Proposed law requires winning wagers that were placed in person or via a sports wagering mechanism with cash and are evidenced by a ticket receipt to be redeemed by a player within 180 days from the time of the event. Requires an operator to pay winning tickets upon presentation after performing validation procedures unless otherwise allowed pursuant to the rules and regulations of the board. Provides that the failure to present a winning ticket within 180 days shall constitute a waiver of the right to the payment and the holder of the ticket shall thereafter have no right to enforce payment of the ticket. Provides that an operator's obligation to pay a winning ticket expires after 180 days from the date of the sports event if not presented for payment. Proposed law provides that funds held by an operator for payment of outstanding tickets shall be retained by the operator for that purpose until the expiration of 180 days after the date of the sports event. Provides that after that, the operator shall each day accumulate the amount equal to the sum of any unclaimed winnings, less the amount of state tax paid by the operator on the unclaimed monies that expire that day. Provides that on or before the 15th day of the first month following the end of a calendar-year quarter, the operator shall remit to the state treasurer for deposit into the Crime Victims Reparations Fund as provided for in present law an amount equal to the accumulated total for the previous calendar-year quarter. The funds shall be used exclusively to pay the expenses associated with health care expenses of victims of sexually-oriented crimes. Proposed law provides that winning wagers placed using a sports wagering account shall be credited by the operator to the patron's account within one day from the time of the event unless otherwise allowed pursuant to the rules and regulations of the board. Page 42 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 247 SLS 21RS-1821 REENGROSSED Proposed law authorizes an operator who seeks to reduce its risk exposure on a sports event to place a wager with another book. Requires the operator that places a wager to inform the book accepting the wager that the wager is being placed by a book and to disclose its identity. Present law prohibits gambling houses, gambling, and gambling by computer. Proposed law retains present law, but makes an exception for gaming conducted in accordance with proposed law. Present law provides that it is unlawful for any person under 21 years of age to play casino games, gaming devices, or slot machines. Proposed law retains present law and includes sports wagering to casino games that persons under 21 years of age are prohibited from playing. Effective July 1, 2021; however, the board is not authorized to issue any licenses or permits until state laws are enacted regarding the taxation of net gaming proceeds generated through the operation of a sports book. (Amends R.S. 13:4721, R.S. 14:90.5(A), (B), and (C), R.S. 27:15(B)(1), 15.1, 24(A)(5)(a), (b), (c), (d), and (e) and (6), 27.1(C)(intro para), 44(9) and (13), 58(5), 65(B)(11), 205(11) and (12), 239.1, 353(2) and (5), 361(F), 364(A)(1)(c)(ii) and (5), 371(C), 372(B) and (C), and 375(D), and R.S. 46:1816(B)(8); adds R.S. 14:90(E) and 90.3(K), R.S. 27:15(8)(c) and 601-611) Summary of Amendments Adopted by Senate Senate Floor Amendments to engrossed bill 1. Clarify that a sports wagering window is excluded from counting as "gaming position" for a riverboat or racetrack. 2. Authorize the board to issue temporary certificates of authority for licenses and permits when certain conditions are satisfied. 3. Authorize a sports governing body to petition the board to restrict, limit, or exclude a certain type, form, or category of sports wagering in certain circumstances. 4. Change effective date from enactment of the House Bill which originated as HB 697 to July 1, 2021, and prohibiting the issuance of a license or permit by the board until state laws are enacted on taxation of sports wagering. 5. Make technical corrections. Page 43 of 43 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.