The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Dawn Romero Watson.
DIGEST
SB 247 Original 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.
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.
(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 gaming.
(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 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.
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.
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.
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)A single act in a team event solely in the control of one participant acting independently.
(4)On the occurrence of injuries or penalties, or the outcome of an athlete's disciplinary rulings,
or replay reviews. 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.
(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.
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.
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 upon the enactment of the bill which originated as House Bill No. 697 of this 2021 Regular
Session of the Legislature.
(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 601-610)