HASBSB247 WATSOND 3364
SENATE SUMMARY OF HOUSE AMENDMENTS
SB 247 2021 Regular Session Cortez
KEYWORD AND SUMMARY AS RETURNED TO THE SENATE
GAMIING. Regulates sports wagering. (See Act)
SUMMARY OF HOUSE AMENDMENTS TO THE SENATE BILL
1. Makes technical changes.
2. Deletes requirement for the Louisiana Gaming Control Board to provide by
rule for the minimum requirements of a contract between the licensee and its
platform provider.
3. Changes from requiring that all servers necessary for the placement or
resolution of wagers be physically located in Louisiana to requiring that all
servers responsible for the processing of a sports wager be physically located
in Louisiana. Also specifically provides that proposed law shall not prevent
the use of cloud computing.
4. Clarifies that a licensee shall house its onsite sports book in a sports wagering
lounge and that a player's electronic account may be established and verified
in person or remotely.
5. Changes the limitation on each licensee from providing no more than two
individually branded websites to contracting with no more than two sports
wagering platform providers who may each provide individually branded
websites.
6. Regarding promotional play, adds provisions regarding the cap applying per
licensee, prohibiting the stacking of caps by licensees who pool wagers, and
prohibiting a licensee from splitting promotion play between platform
providers.
7. Adds provision authorizing "games" at the landbased casino to include pari-
mutuel racehorse wagering provided the casino gaming operator contracts
with a qualified racehorse wagering operator.
8. Adds provisions authorizing a video poker qualified truck stop to have a ATC
Class A-General retail permit operating as a sports wagering lounge which
sells food instead of present law onsite restaurant.
DIGEST OF THE SENATE BILL AS RETURNED TO THE SENATE
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). HASBSB247 WATSOND 3364
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."
Present law defines allowable games to be played exclusively within land-based casino;
wagering on horse races is specifically excluded from authorized games.
Proposed law deletes the specific exclusion of wagering on horse races in present law and
specifically authorizes racehorse wagering which it defines as wagers placed on horse racing
conducted under the pari-mutuel form of wagering at licensed racing facilities that are
accepted by a licensed racehorse wagering operator. Provides a permitting process for a
qualified racehorse wagering operator to conduct racehorse wagering at the land-based casino
and requires the racehorse wagering operator to provide to the licensed racing association
25% of audited net profits from this activity to be used as purse supplements.
Present law regarding video poker, provides several criteria and amenities for a truck stop
to qualify to be licensed as an establishment to conduct video poker. One of the amenities
is an onsite restaurant which must have certain features including seating for at least 50
patrons, open at least 12 hours a day, offers a varied menu, operates a fully equipped kitchen
and in Orleans Parish, must provide full table service for sit-down meals.
Proposed law authorizes a truck stop to have an Alcohol and Tobacco Control Class A-
General retail permit operating as a sports wagering lounge which sells food instead of
present law onsite restaurant.
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 revocable 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. HASBSB247 WATSOND 3364
(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 for
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
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 land-based 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. HASBSB247 WATSOND 3364
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, shall 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 is approved by the board. HASBSB247 WATSOND 3364
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. Requires 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 sports
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 responsible for the processing of sports wagers shall
be physically located in Louisiana and nothing in proposed law shall prevent the use of cloud
computing. Provides 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 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. HASBSB247 WATSOND 3364
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. HASBSB247 WATSOND 3364
(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 athlete, coach, referee or other official, or staff
of a participant or team that is participating 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.
(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, HASBSB247 WATSOND 3364
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 contract with no more than two sports wagering platform providers who
may each provide individually branded websites each of 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, in person or remotely,
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, either in person or remotely. 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. HASBSB247 WATSOND 3364
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.
Proposed law (House Bill 697 of 2021 Regular Session) provides for taxes on net gaming
proceeds of an operator. Net gaming proceeds are defined as the difference between all
wagers taken in by the operator and all winning paid out to players. In determining the
taxable amount, operators are allowed to subtract up to $5M in wagers in a calendar year that
are directly attributable to promotional play.
Proposed law provides that the $5M cap applies per licensee. Provides that notwithstanding
proposed law, if a licensee pools its wagers with other licensees in the state, the maximum
amount of eligible promotional play shall apply per pool and the amount of eligible
promotional play per participating licensee shall be allocated in accordance with an
agreement among licensees participating in the pool. Requires board approval of the pooling
of wagers and the corresponding agreement. Also, prohibits a licensee from claiming
promotional play from more than one sports wagering platform in a calendar year.
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), HASBSB247 WATSOND 3364
375(D), and 417(A)(2)(intro para), and R.S. 46:1816(B)(8); adds R.S. 14:90(E) and 90.3(K),
R.S. 27:15(8)(c), 205(35), 249.1, 601-611, and 627)
______________________
Dawn Watson
Senate Counsel