2022 Regular Session ENROLLED SENATE BILL NO. 272 BY SENATOR CORTEZ 1 AN ACT 2 To amend and reenact R.S. 4:149, 211, 213, 214, and 226(B)(1) and R.S. 27:602(13) and to 3 enact R.S. 4:147(7), 164, 215(D), and 228(H) and R.S. 27:361(E)(3), 393.1, 4 602(18.1), 607(H), and 629, relative to horse racing; to provide for pari-mutuel 5 wagering; to provide relative to offtrack wagering facilities; to authorize pari-mutuel 6 wagering in a sports book lounge of certain licensed entities as offtrack wagering 7 facilities; to require certain agreements or plans of operations; to provide for required 8 terms of the agreement or plan and approval; to provide for requirements and 9 exceptions; to provide relative to restrictions and prohibitions; to provide relative to 10 revenue from slot machines to support horse racing industry; to provide for facility 11 maintenance and improvement funds; to provide for minimum standards and 12 infrastructure investments; and to provide for related matters. 13 Be it enacted by the Legislature of Louisiana: 14 Section 1. R.S. 4:149, 211, 213, 214, and 226(B)(1) are hereby amended and 15 reenacted and R.S. 4:147(7), 164, 215(D), and 228(H) are hereby enacted to read as follows: 16 §147. Specific duties of commission 17 The commission shall carry out the provisions of this Part, including the 18 following specific duties: 19 * * * 20 (7) To make rules and regulations applicable to offtrack wagering facility 21 licensees for pari-mutuel wagering that occurs in a sports book lounge of an 22 entity licensed by the Louisiana Gaming Control Board to conduct sports 23 wagering pursuant to Chapter 10 of Title 27 of the Louisiana Revised Statutes 24 of 1950. ACT No. 530 Page 1 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 272 ENROLLED 1 * * * 2 §149. Wagering; rules and regulations 3 A. The commission may prescribe rules and regulations under which shall be 4 conducted all horse races upon the results of which there is wagering. The 5 commission shall, as may be necessary, prescribe additional special rules and 6 regulations applicable separately to thoroughbreds and quarter horses. The 7 commission shall make rules governing, permitting, and regulating the wagering on 8 horse races under the form of mutuel wagering by patrons, known as pari-mutuel 9 wagering, whether on live or historical horse races. Only those persons receiving a 10 license from the commission may conduct this type of wagering, and shall restrict 11 this form of wagering to a space within the race meeting grounds or an offtrack 12 wagering facility. All other forms of wagering on the result of horse races are illegal. 13 B. Notwithstanding the space restriction provided in Subsection A of this 14 Section, pari-mutuel wagering on the result of horse races may also be 15 conducted in the sports book lounge of a host entity licensed for sports wagering 16 by the Louisiana Gaming Control Board pursuant to Chapter 10 of Title 27 of 17 the Louisiana Revised Statutes of 1950, if the requirements of this Chapter are 18 met. 19 * * * 20 §164. Facility maintenance and improvement fund 21 A. Each association shall establish and maintain a facility maintenance 22 and improvement fund for the sole purpose of complying with the commission's 23 rules regarding minimum standards and required infrastructure investments. 24 This fund shall be subject to audit by the commission and the legislative auditor. 25 B. For purposes of this Section, the following terms shall have the 26 following meanings: 27 (1) "Gross profits" means the amount of taxable net slot machine 28 proceeds less the amount of state taxes paid. 29 (2) "State tax" means the license tax on taxable net slot machine 30 proceeds as provided in R.S. 27:393. Page 2 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 272 ENROLLED 1 (3) "Taxable net slot machine proceeds" shall have the same meaning as 2 that term is defined in R.S. 27:353. 3 C.(1) After July 1, 2023, ten percent of gross profits shall be deposited 4 into the fund until such time that all commission-required facility maintenance 5 and improvements have been completed as determined by the commission. Such 6 deposits shall be made at the same time as the state tax is paid. 7 (2) Once the initial facility maintenance and improvements are 8 completed to the satisfaction of the commission, each association shall continue 9 to maintain a minimum fund balance of three million dollars. 10 D.(1) For the purposes of the initial maintenance and improvements, the 11 following deadlines shall apply: 12 (a) The commission shall promulgate rules establishing minimum 13 standards of facilities and infrastructure investments no later than October 1, 14 2022. 15 (b) Each association shall submit a plan for compliance to the 16 commission no later than December 1, 2022. 17 (c) The commission shall approve or specify deficiencies in each 18 association's plan no later than February 1, 2023. 19 (d) Each association shall complete the required maintenance and 20 improvements to its facilities no later than December 31, 2023. 21 (2) Any of the deadlines described in Paragraph (1) of this Subsection 22 may be extended by a majority vote of the membership of the commission for 23 extenuating circumstances including force majeure. 24 (3) Failure of an association to meet deadlines provided in 25 Subparagraphs (1)(b) and (d) of this Subsection shall constitute grounds for just 26 cause for commission action as provided by R.S. 4:152. 27 E.(1) If the commission determines that an association is in compliance 28 with the commission's minimum standards and infrastructure investments, the 29 commission may, by a two-thirds vote of the membership, authorize any of the 30 following: Page 3 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 272 ENROLLED 1 (a) Exempt an association from maintaining the minimum fund balance 2 required in Subsection C of this Section. 3 (b) Exempt the association from making deposits as required by 4 Subsection C of this Section. 5 (c) Allow the balance of an association's facility maintenance and 6 improvement fund be withdrawn or reduced. 7 (2) Maintaining compliance with the commission's minimum standards 8 and required infrastructure investment is a continuing obligation of each 9 association. By a majority vote, the commission may reconsider a determination 10 of compliance at any time and revoke any exemption or allowance provided in 11 Paragraph (1) of this Subsection for noncompliance. 12 * * * 13 §211. Definitions 14 Unless the context indicates otherwise, the following terms shall have the 15 meaning ascribed to them below: 16 (1) "Audited net profits" means the total commissions retained by an 17 association on pari-mutuel wagers placed at a specific offtrack wagering facility, 18 less breakage, settlements, and taxes applicable to such wagers. 19 (2) "Eligible applicants" means the primary licensee fulfilling the licensure 20 criteria described in this Part. 21 (2)(3) "Exotic wagers" or "exotic wagering pools" include all pari-mutuel 22 pools except the win, place, or show pools conducted at each race meeting in the this 23 state. Examples of exotic wagering pools in common usage are daily double pools, 24 exacta pools, trifecta pools, twin trifecta pools, pick-six pools, and quinella pools. 25 (3)(4) "Host entity" means an entity licensed by the Louisiana Gaming 26 Control Board to conduct sports wagering in its sports book lounge in 27 accordance with Chapter 10 of Title 27 of the Louisiana Revised Statutes of 28 1950; however, it shall not include an entity that is also the holder of a license 29 as defined in R.S. 27:353 and provided for in Chapter 7 of Title 27 of the 30 Louisiana Revised Statutes of 1950. Page 4 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 272 ENROLLED 1 (5) "Host track" means the Louisiana track at which the race is run. 2 (4)(6) "Net commission" means the commission retained by a licensee on 3 pari-mutuel wagers on historical horse races, less breakage, settlements, and taxes 4 applicable to such wagers. 5 (5)(7) "Offtrack wagering facility" means the licensed and authorized 6 location where offtrack wagers may be accepted. 7 (8) "Offtrack wagering facility licensee" means an association that has 8 been licensed by the Louisiana State Racing Commission to operate an offtrack 9 wagering facility. 10 (6)(9) "Pari-mutuel facility" means any pari-mutuel race track conducting 11 race meetings during the 1986-87 racing season and licensed prior to the effective 12 date of this Part June 30, 1987. 13 (7)(10) "Parish seat" means the facility, courthouse, meeting hall, etc., at 14 which the parish governing authority meets on a regular basis in an official capacity. 15 (8)(11) "Primary licensee" means the licensed association conducting the 16 majority of race days at a pari-mutuel facility. 17 * * * 18 §213. Offtrack wagering facilities; establishment; sports book lounge 19 A. In addition to the rights granted in R.S. 4:149.2, any association licensed 20 by the commission may conduct pari-mutuel wagering and engage in all necessary 21 activities to establish appropriate offtrack wagering facilities to accomplish this 22 purpose. Such activities shall include, but not be limited to: 23 (1) Live simulcast of races from the host track. 24 (2) Historical horse racing on the premises of offtrack wagering facilities via 25 dedicated machines or personal mobile devices. 26 (3) Construction or leasing of offtrack wagering facilities. 27 (4) Sale of goods and beverages. 28 (5) Advertising and promotion. 29 (6) All other related activities. 30 B.(1) In addition to Subsection A of this Section, any association licensed Page 5 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 272 ENROLLED 1 by the commission may also conduct pari-mutuel wagering and engage in 2 necessary activities to establish appropriate offtrack wagering in a sports book 3 lounge of a host entity, if the sports book lounge of the host entity is 4 geographically located in a parish that has approved, by public referendum, the 5 conduct of pari-mutuel wagering in that parish. 6 (2) The conduct of offtrack wagering in a sports book lounge shall be 7 pursuant to an agreement between the licensed association and the host entity 8 and the agreement shall be subject to approval by the commission and by the 9 Louisiana Gaming Control Board. 10 (3) The commission shall promulgate rules establishing the regulations 11 and conditions for the conduct of offtrack pari-mutuel wagering in a sports 12 book lounge of a host entity. The rules shall require an agreement between the 13 association licensed by the commission and the host entity licensed for sports 14 wagering by the Louisiana Gaming Control Board and its retail sports wagering 15 operator, if applicable. The agreement shall include but not be limited to the 16 following terms: 17 (a) Pari-mutuel wagering shall be restricted to the host entity's retail 18 sports book lounge. 19 (b) Pari-mutuel wagering shall be conducted in accordance with the 20 provisions of this Chapter. 21 (c) All pari-mutuel wagers shall be maintained and accounted separate 22 and distinct from all other sports wagers placed in the sports book lounge. 23 (d) The gaming division of the office of state police shall have access to 24 all files, records, documents, film, tape, including surveillance tape, and any 25 other information and personnel necessary to determine compliance with all 26 gaming laws, rules, and regulations on gaming activities and operations under 27 the commission's jurisdiction or the Louisiana Gaming Control Board's 28 jurisdiction. 29 (e) In consideration for hosting, the offtrack wagering facility licensee 30 shall make compensation payments to the host entity of thirty percent of the Page 6 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 272 ENROLLED 1 audited net profits on the total amount wagered at its facility. The agreement 2 shall specify the calculation and periodic payments. 3 (f) Unless otherwise provided by law, all commissions and fees and their 4 distribution shall be as provided by this Chapter. 5 C.(1) An offtrack wagering facility licensee that is also the holder of a 6 license, as defined in R.S. 27:353 and provided for in Chapter 7 of Title 27 of the 7 Louisiana Revised Statutes of 1950, may conduct pari-mutuel wagering and 8 engage in necessary activities to establish appropriate offtrack wagering in its 9 retail sports book lounge. 10 (2) The conduct of offtrack wagering in a sports book lounge shall be 11 pursuant to a plan of operation, and the plan shall be subject to approval by the 12 commission and by the Louisiana Gaming Control Board. 13 (3) The commission shall promulgate rules establishing the regulations 14 and conditions for the conduct of offtrack pari-mutuel wagering in a sports 15 book lounge of a holder of a license as defined in R.S. 27:353. The rules shall 16 require the plan of operation to include but not be limited to the following 17 provisions: 18 (a) Pari-mutuel wagering shall be conducted in accordance with the 19 provisions of this Chapter. 20 (b) All pari-mutuel wagers placed in the sports book lounge shall be 21 maintained and accounted separate and distinct from all other sports wagers 22 placed in the sports book lounge. 23 (c) The gaming division of the office of state police shall have access to 24 all files, records, documents, film, tape, including surveillance tape, and any 25 other information and personnel necessary to determine compliance with all 26 gaming laws, rules, and regulations on gaming activities and operations under 27 the commission's jurisdiction or the Louisiana Gaming Control Board's 28 jurisdiction. 29 §214. Offtrack wagering facilities; licensing; criteria; management; appeal of license 30 suspension or revocation; limitation on facilities with historical horse Page 7 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 272 ENROLLED 1 racing 2 A. License Except for offtrack wagering conducted in a sports book 3 lounge, license approval shall be subject to the criteria established by R.S. 4:159. 4 B. Licensure for all offtrack wagering facilities shall be subject to the 5 following conditions: 6 (1)(a) Only the primary licensee operating at a pari-mutuel facility may apply 7 for a license to operate offtrack wagering facilities in this state and only such 8 primary licensees shall be licensed to operate offtrack wagering facilities under this 9 Part. 10 (b) An association applying for a license to operate an offtrack wagering 11 facility to be located in a sports book lounge shall provide its agreement with the 12 host entity or plan of operation as part of its application. 13 (2)(a)(i) Before a license is granted for an offtrack wagering facility in any 14 parish, the voters of that parish must shall have approved the establishment of such 15 a facility within the parish in a referendum election held for that purpose. The 16 commission shall request a referendum by the governing body of a parish only after 17 receipt of an application for licensure of an offtrack wagering facility in that parish 18 by the eligible applicant as provided in R.S. 4:215. 19 (ii) If the referendum fails to gain voter approval, or if the commission's 20 request to the parish governing authority for a referendum is not granted within six 21 months of such request, then the request therefor is rendered void. 22 (iii) Any request for an offtrack referendum that is pending on the effective 23 date of this Subparagraph before the governing authority of a parish wherein such 24 a referendum has failed to gain voter approval in a prior election shall be rendered 25 void upon that date. 26 (iv) Any request for an offtrack referendum that has been pending before a 27 parish governing authority for six months or more upon the effective date of this 28 Subparagraph shall be rendered void upon that date. 29 (b)(i) After a request by the commission to a parish governing authority for 30 an offtrack referendum is voided for any reason, the original applicant may either: Page 8 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 272 ENROLLED 1 (aa) Resubmit the application for licensure, and the commission shall submit 2 a new request for an offtrack referendum election to the parish governing authority; 3 or 4 (bb) Submit a new application to the commission for licensure of an offtrack 5 wagering facility in any city, town, or municipality within the parish, and the 6 commission shall request the governing authority of such city, town, or municipality 7 to hold an offtrack referendum election. 8 (ii) If the referendum fails to gain voter approval or if the commission's 9 request for a referendum is not granted within six months of such request, the request 10 therefor is rendered void. 11 (iii) If the offtrack referendum gains voter approval, the commission may 12 license one offtrack wagering facility within the corporation limits of the city, town, 13 or municipality in which the referendum was held. Such license must shall conform 14 to all applicable licensing criteria as provided in this Part. 15 (c)(i) Except as provided in R.S. 4:214(A)(2)(c)(ii) Item (ii) of this 16 Subparagraph, the collection and distribution of license fees as provided in R.S. 17 4:218 shall not be affected by this Paragraph. 18 (ii) Notwithstanding any provision of R.S. 4:218 to the contrary and except 19 for offtrack wagering conducted in a sports book lounge of a host entity, if an 20 off-track offtrack wagering facility is located within the corporate limits of a 21 municipality as a result of a municipal off-track offtrack wagering referendum as 22 provided in this Paragraph, called by the municipal governing authority without the 23 assistance of the parish governing authority, the municipal governing authority may 24 impose a license fee not to exceed two percent of the total amount wagered at that 25 facility, and no license fee shall be imposed by the parish, and the municipality shall 26 retain the total license fees collected; otherwise, distribution of the fees shall be in 27 accordance with R.S. 4:218(B). 28 (3)(a) A license shall not be granted to an offtrack wagering facility to be 29 located within a fifty-five mile radius of a pari-mutuel facility without the prior 30 written permission of the primary licensee of that facility. Page 9 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 272 ENROLLED 1 (b) Subparagraph (a) of this Paragraph shall not apply to an offtrack 2 wagering facility located in a sports book lounge of a host entity. 3 (4)(a) Not more than two offtrack wagering facilities may be licensed in any 4 parish, except for Orleans and Jefferson. 5 (b) For the purposes of this Paragraph, a pari-mutuel facility as that term is 6 defined in R.S. 4:211 shall not be included in the count of licensed offtrack wagering 7 facilities for the parish in which it is located. 8 (c) For the purposes of this Paragraph, an offtrack wagering facility 9 located in a sports book lounge of an entity licensed pursuant to Chapter 10 of 10 Title 27 of the Louisiana Revised Statutes of 1950, shall not be included in the 11 count of licensed offtrack wagering facilities for the parish in which it is located. 12 (5) Final Except for an offtrack wagering facility located in the sports 13 book lounge, final license approval is subject to local governing authority facility 14 citing requirements. 15 (6) Each Except for an offtrack wagering facility located in the sports 16 book lounge, each offtrack wagering facility shall be specifically designed as an 17 entertainment complex. Maximum allowable attendance at each facility shall be one 18 hundred twenty-five percent of the seating capacity at that facility. At least one area 19 for patrons at each offtrack wagering facility shall be designated as a nonsmoking 20 area. 21 (7) No Except for an offtrack wagering facility located in the sports book 22 lounge of a host entity, no person licensed by the commission pursuant to the 23 provisions of this Chapter who shows proof of licensure upon entering an offtrack 24 wagering facility shall be assessed any fees for admission into the facility. 25 B.C.(1) Licenses granted by the commission shall be valid for a ten-year 26 period. In the event of the sale of the pari-mutuel facility, such license may be 27 transferred and remain valid for the balance of the term of the license. If the 28 conditions of the sale do not include the transfer of the offtrack wagering facility 29 license, such license shall be automatically voided upon the completion of the sale. 30 (2) In the event a primary licensee is granted approval by the Louisiana State Page 10 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 272 ENROLLED 1 Racing Commission to transfer its live racing dates to another pari-mutuel facility, 2 such primary licensee shall retain all the rights, privileges, and obligations relative 3 to offtrack wagering facilities as provided in this Part as though it remained a 4 primary licensee, as defined in R.S. 4:211(7), in its original location. 5 C.D. License applications shall be accompanied by a good faith deposit of 6 one thousand dollars. 7 D.E. All primary licensees are eligible for licensure at their existing horse 8 racing facilities as offtrack wagering facilities. Such primary licensees shall not be 9 subject to the licensing requirements in R.S. 4:214(A)(2) Paragraph (B)(2) of this 10 Section. 11 E.F. There shall be no penalty for closing a licensed offtrack wagering 12 facility provided the licensee submits written notice to the commission at least thirty 13 days prior to closure. The commission shall notify all eligible applicants of the notice 14 of closure. Ownership of an offtrack wagering facility may be transferred to other 15 eligible applicants subject to all licensing requirements except as provided in R.S. 16 4:214(A)(2) Paragraph (B)(2) of this Section. 17 F.G. Nothing in this Part shall be construed as preventing licensees from 18 jointly owning or contracting for the management of any or all licensed offtrack 19 wagering facilities. 20 G. In no case may H. An offtrack wagering facilities facility shall not accept 21 wagers on races run at any track without a contract with the licensee operating the 22 host track. This contract shall include all terms and conditions for use of races run 23 at the host track by the offtrack wagering facility, including compensation of the host 24 track for such use. This contract shall be filed with the commission. No host track 25 may deny the use of its races by any other offtrack wagering facility in Louisiana 26 under the same terms and conditions. 27 H. In no case shall an I.(1) An offtrack wagering facility shall not allow the 28 admission of any person less than eighteen years old. However, the provisions of this 29 Paragraph shall not apply to any offtrack wagering facility located on the premises 30 of a pari-mutuel facility as defined in R.S. 4:211(5). Page 11 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 272 ENROLLED 1 (2) An offtrack wagering facility located in a sports book lounge shall not 2 allow the admission of any person less than twenty-one years old. 3 I. In J. Except for an offtrack wagering facility located in the sports book 4 lounge of a host entity, in addition to license fees, each licensee shall pay the fees 5 provided for in this Subsection. Each licensee shall begin paying the fees on the first 6 day of the second year in which the licensee operates the facility. The licensee shall 7 pay to the collector twenty-five cents for each person attending the offtrack wagering 8 facility other than licensed personnel, employees, officials, and working press. These 9 payments shall be made at the conclusion of each calendar week and shall be 10 accompanied by a report under oath showing the total contributions and admissions, 11 and any other information which the commission may require. 12 J.K.(1) Should the commission suspend or revoke the license of a primary 13 licensee, the licensee may, within ten days of the notification of the commission's 14 decision take a suspensive appeal to the district court having jurisdiction over the 15 licensee's offtrack wagering facility. The appeal shall be filed in the district court in 16 the same manner as an original suit is instituted thereon. Each appeal shall be tried 17 de novo. Either party may amend and supplement his pleadings and additional 18 witnesses may be called and heard. 19 (2) Within ten calendar days of the signing of the judgment by the district 20 court in any such appeal case, the commission or the applicant for a license or 21 licensee, as the case may be, may suspensively appeal the judgment to the appellate 22 court of proper jurisdiction. The appeal shall be perfected in the manner provided for 23 in civil cases and shall be suspensive or devolutive in the discretion of the court. 24 (3) All proceedings in the district and appellate courts arising under this Part 25 are civil in nature and shall be heard summarily by the court, without a jury, shall 26 take precedence over other civil cases, and shall be tried in chambers or in open 27 court, and in or out of term. 28 K.L. (1) No primary licensee may operate more than five offtrack wagering 29 facilities in which historical horse racing is permitted. 30 (2) Notwithstanding Paragraph (1) of this Subsection, any primary licensee Page 12 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 272 ENROLLED 1 that operates more than five offtrack wagering facilities as of July 1, 2021, may 2 conduct historical horse racing at all of its licensed facilities. However, historical 3 horse racing shall not be authorized at any future offtrack wagering facility for that 4 primary licensee if the primary licensee is operating more than five offtrack 5 wagering facilities. If any of the primary licensee's existing licensed offtrack 6 wagering facilities on July 1, 2021, cease to be a licensed offtrack wagering facility 7 for reasons other than force majeure, the number of offtrack wagering facilities 8 allowed to conduct historical horse racing for that primary licensee shall be reduced 9 by the number of its offtrack wagering facilities that cease to be licensed until such 10 time as the primary licensee is reduced to no more than five licensed offtrack 11 wagering facilities allowed to conduct historical horse racing. 12 (3) Each primary licensee or licensed offtrack wagering facility shall not 13 place more than fifty historical horse racing machines into service at any given time. 14 (4) In addition to the requirements of Paragraph (3) of this Subsection, an 15 application from an eligible facility to conduct historical horse racing in Orleans 16 Parish may be approved by the commission only after the Amended and 17 Renegotiated Casino Operating Contract entered into pursuant to R.S. 27:201 et seq., 18 on October 30, 1998, as amended, is amended to provide that the conducting of 19 historical horse racing at the eligible facility in Orleans Parish shall not constitute an 20 exclusivity violation or prohibited land-based gaming as defined in such contract and 21 such amendment to the contract is approved by the Joint Legislative Committee on 22 the Budget as required by the provisions of Section 3.B of Act No. 1 of the 2001 23 First Extraordinary Session of the Legislature. 24 L. No historical M.(1) Historical horse racing may shall not be conducted 25 via a machine or website or mobile application beyond the property of the pari- 26 mutuel facility or offtrack wagering facility. 27 (2) Historical horse racing shall not be conducted at an offtrack wagering 28 facility located in a sports book lounge. 29 (3) The commission shall promulgate rules relative to the enforcement of this 30 restriction the restrictions provided for in this Subsection. Page 13 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 272 ENROLLED 1 * * * 2 §215. Offtrack wagering facilities, ownership 3 * * * 4 D. The provisions of this Section shall not apply to an offtrack wagering 5 facility located in the sports book lounge of a host entity. 6 * * * 7 §226. Grounds for denial or termination of license to operate an offtrack wagering 8 facility 9 * * * 10 B. Those things constituting just cause are: 11 (1) Any action by a licensee contrary to the provisions of this Part or an 12 agreement or plan of operation for an offtrack wagering facility located in a 13 sports book lounge. 14 * * * 15 §228. Offtrack wagering facility locations; prohibited distances; prohibited 16 structures 17 * * * 18 H. The provisions of this Section shall not apply to an offtrack wagering 19 facility located in the sports book lounge of a host entity. 20 Section 2. R.S. 27:602(13) is hereby amended and reenacted and R.S. 27:361(E)(3), 21 393.1, 602(18.1), 607(H), and 629 are hereby enacted to read as follows: 22 §361. Conduct of slot machine gaming; temporary conduct 23 * * * 24 E. * * * 25 (3)(a) Notwithstanding Paragraph (1) of this Subsection, upon 26 notification from the Louisiana State Racing Commission that the licensed 27 eligible facility is not in compliance with R.S. 4:164 but is cooperating with the 28 commission and working towards compliance, the board may grant or renew 29 a license for a probationary period not to exceed one year. Barring extenuating 30 circumstances as determined by the board, the probationary period shall not be Page 14 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 272 ENROLLED 1 extended beyond one year. After the probationary period, the board shall either 2 grant or renew the license pursuant to Paragraph (1) of this Subsection for the 3 remainder of the term or revoke the license. 4 (b) Nothing in Subparagraph (a) of this Paragraph shall prevent the 5 board from denying or revoking a license for reasons other than R.S. 4:164. 6 * * * 7 §393.1. Facility maintenance and improvement fund 8 A. Each licensed eligible facility or licensee shall establish and maintain 9 a facility maintenance and improvement fund as provided in R.S. 4:164 and 10 shall make deposits as required therein. 11 B. The establishment, required deposits, and maintenance of a facility 12 maintenance and improvement fund as well as compliance with the minimum 13 standards and required infrastructure investments as determined by the 14 Louisiana State Racing Commission shall be a condition of licensing and shall 15 be required by the owner of the licensed eligible facility or the licensee to 16 maintain continued authority to conduct slot machines gaming at the licensed 17 eligible facility. The provisions of this Subsection shall be applicable to any new 18 license or the renewal of any existing license issued by the board on and after 19 July 1, 2022. 20 C. Except as provided in R.S. 27:361(E)(3), the board shall not issue a 21 new or renewed license to any eligible facility unless it receives certification 22 from the Louisiana State Racing Commission that the applicant eligible facility 23 is in compliance with the requirements of R.S. 4:164. 24 * * * 25 §602. Definitions 26 For purposes of this Chapter, the following terms shall have the following 27 meanings ascribed to them unless the context clearly indicates otherwise: 28 * * * 29 (13) "Net gaming proceeds" means the amount equal to the total gross 30 revenue of all wagers placed by patrons less the total amount of all winnings paid out Page 15 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 272 ENROLLED 1 to patrons and the amount of eligible promotional play determined pursuant to R.S. 2 27:627. "Net gaming proceeds" shall not include wagers placed by patrons on 3 racehorse wagering, or winnings paid out to patrons on racehorse wagering. 4 * * * 5 (18.1) "Racehorse wagering" means wagers placed on horse racing 6 conducted under the pari-mutuel form of wagering that are accepted by an 7 offtrack wagering facility licensee as defined in R.S. 4:211 in accordance with 8 the provisions of Chapter 4 of Title 4 of the Louisiana Revised Statutes of 1950, 9 and a board and Louisiana State Racing Commission approved agreement 10 between the licensee and the offtrack wagering facility licensee or a board and 11 Louisiana State Racing Commission approved plan of operation. 12 * * * 13 §607. Operators; sports lounge required; responsibilities; pooling 14 * * * 15 H.(1) A sports wagering licensee and its retail sports wagering operator 16 may contract with an offtrack wagering facility licensee as defined in R.S. 4:211 17 to conduct racehorse wagering in its sports book lounge if the terms of the 18 agreement have been approved by the board and the Louisiana State Racing 19 Commission as required by R.S. 4:213(B) and the pari-mutuel wagering is 20 conducted in accordance with the agreement. 21 (2) A sports wagering licensee that is an association as defined in R.S. 22 4:143 and is also the holder of a license as defined in R.S. 27:353 and provided 23 for in Chapter 7 of Title 27 of the Louisiana Revised Statutes of 1950, may 24 conduct pari-mutuel wagering in its retail sports book lounge if the pari-mutuel 25 wagering is conducted in accordance with a board and Louisiana State Racing 26 Commission approved plan of operation as required in R.S. 4:213(C). 27 (3) The board may reconsider and withdraw its approval of an 28 agreement or plan of operation upon a finding of noncompliance with the terms 29 of the agreement or plan. 30 * * * Page 16 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 272 ENROLLED 1 §629. Pari-mutuel wagering; commissions, fees, and other deductions 2 Any commissions, fees, and other deductions on racehorse wagering shall 3 be in accordance with Chapter 4 of Title 4 of the Louisiana Revised Statutes of 4 1950. 5 Section 3. The provisions of this Act enacting R.S. 4:164 and R.S. 27:393.1 shall 6 supercede the conflicting provisions of the Act which originated as House Bill No. 1055 of 7 the 2022 Regular Session enacting R.S. 4:164 and R.S. 27:393.1. 8 Section 4. This Act shall become effective upon signature by the governor or, if not 9 signed by the governor, upon expiration of the time for bills to become law without signature 10 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If 11 vetoed by the governor and subsequently approved by the legislature, this Act shall become 12 effective on the day following such approval. PRESIDENT OF THE SENATE SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 17 of 17 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.