The legislative instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Alan Miller.
CONFERENCE COMMITTEE REP ORT DIGEST
SB 272 2022 Regular Session Cortez
Keyword and summary of the bill as proposed by the Conference Committee
HORSE RACING. Provides relative to wagering on horse races in a sports book lounge and
required investment of slot machine proceeds in race track facilities.
Report adopts House amendments to:
1. Remove the authority to deduct direct costs in determining net audited profits.
2. Add definition for "offtrack wagering facility licensee".
3. Add authority for LSRC to terminate the license of an OTB located in a sports book
lounge for actions contrary to its agreement with a host entity or a plan of operation.
4. Add specific authority for LGCB to reconsider and withdraw its approval of an
agreement or plan of operation for an OTB located in a sports book lounge.
5. Make technical corrections.
Report amends the bill to:
1. Requires each horse racing association to establish and maintain a facility
maintenance and improvement fund, specifies the fund's purpose, and provides that
the fund shall be subject to audit by the La. State Racing Commission and the
legislative auditor.
2. Defines the terms "gross profits", "state tax", and "taxable net slot machine
proceeds".
3. Requires that, after July 1, 2023, 10% of gross profits are to be deposited into the
facility maintenance and improvement fund until all commission-required facility
maintenance and improvements have been completed.
4. After initial maintenance and improvements have been completed satisfactorily,
requires each association to maintain a minimum fund balance of three million dollars.
5 Provides for deadlines for development of the minimum facility maintenance and
improvements standards, the submission of plans for compliance, the approval of
plans, and completion of the build outs.
6. Provides that for any new license or license renewal issued on or after July 1, 2023
by the Gaming Control Board for Slots at Racetracks, the establishment of, deposits
into, and maintenance of the fund and compliance with the minimum standards and
required infrastructure investments shall be a condition of licensing and shall be
required by the owner of the licensed eligible facility or licensee in order to maintain
continued authority to conduct slot machines gaming.
7. Authorizes the Gaming Control Board to grant or renew a Slots at Racetrack license
for a probationary period to associations that are out of compliance with minimum
standards and infrastructure investment required by the State Racing Commission but
are working towards compliance as certified by the State Racing Commission.
Digest of the bill as proposed by the Conference Committee
Present law provides for the Louisiana State Racing Commission (LSRC) to regulate the conduct
of pari-mutuel racehorse wagering and the Louisiana Gaming Control Board (LGCB) to regulate the
conduct of sports wagering.
Proposed law authorizes the LSRC to make rules and regulations for pari-mutuel wagering in a
sports book lounge of a host entity (Riverboats or Land-based Casino) licensed by the LGCB to
conduct sports wagering. Also authorizes pari-mutuel wagering in the sports book lounge of a
licensed racing association (Racetrack).
Present law provides that LSRC is the exclusive authority regarding all conducted horse races upon
the results of which there is wagering. Provides that only persons receiving a license from LSRC
may conduct pari-mutuel wagering and that pari-mutuel wagering shall be limited to a space within
the race meeting grounds or an offtrack wagering facility. Declares that all other forms of wagering
on the result of horse races are illegal.
Proposed law provides that notwithstanding present law, pari-mutuel wagering on the result of horse
races may also be conducted in the sports book lounge licensed by LGCB for sports wagering,
provided the requirements of proposed law are met.
Present law provides for certain definitions for the purpose of establishing an offtrack wagering
facility (OTB).
Proposed law retains present law and adds definitions for "audited net profits", "host entity" and
"offtrack wagering facility licensee". Present law provides that any licensed racing association may conduct pari-mutuel wagering and
engage in all necessary activities to establish appropriate offtrack wagering facilities to accomplish
that purpose.
Proposed law retains present law and adds that a licensed racing association may be licensed as an
OTB to conduct pari-mutuel wagering in a sports book lounge of a Riverboat or Land-based Casino,
provided that the Riverboat or Land-based Casino is geographically located in one of the 20 parishes
that have approved, by public referendum, the conduct of pari-mutuel wagering in that parish.
Requires there to be an agreement between the licensed racing association and the Riverboat or
Land-based Casino that is approved by both the LSRC and LGCB and that the agreement include
the following terms:
(1)Pari-mutuel wagering shall be restricted to the Riverboat's or Land-based Casino's retail
sports book lounge.
(2)Pari-mutuel wagering shall be conducted in accordance with present law.
(3)All pari-mutuel wagers shall be maintained and accounted separate and distinct from all other
sports wagers placed in the sports book lounge.
(4)The gaming division of the office of state police shall have access to all files, records,
documents, film, tape, including surveillance tape, and any other information and personnel
necessary to determine compliance with all gaming laws, rules, and regulations on gaming
activities and operations under LSRC's jurisdiction or LGCB's jurisdiction.
(5)The offtrack wagering facility licensee shall make compensation payments to the Riverboat
or Land-based Casino of 30% of audited net profits on the total amount wagered at the
Riverboat or Land-based Casino facility. Requires the agreement to specify the calculation
and periodic payments.
(6)All commissions and fees taken from pari-mutuel wagers and the distribution of the takeouts
shall be as provided in present law.
Proposed law provides that a licensed racing association may be licensed as an OTB to conduct pari-
mutuel wagering in its sports book pursuant to a plan of operation approved by LSRC and LGCB
and requires the plan of operation to provide that:
(1)Pari-mutuel wagering shall be conducted in accordance with present law.
(2)All pari-mutuel wagers placed in the sports book lounge shall be maintained and accounted
separate and distinct from all other sports wagers placed in its sports book lounge.
(3)The gaming division of the office of state police shall have access to all files, records,
documents, film, tape, including surveillance tape, and any other information and personnel
necessary to determine compliance with all gaming laws, rules, and regulations on gaming activities and operations under LSRC's jurisdiction or LGCB's jurisdiction.
Present law provides several criteria for LSRC to approve a licensed racing association for an OTB.
Proposed law retains present law with the following exceptions for OTBs located in a sports book
lounge:
(1)Provides a municipal governing body's authority to impose a license fee on an OTB as a
result of a municipal referendum shall not apply.
(2)Provides that the requirement that a licensed racing association grant permission to an OTB
to be located within a 55 mile radius of its pari-mutuel facility shall not apply.
(3)Provides that such OTB's shall not count toward present law's maximum number of OTBs
per parish.
(4)Provides that present law's maximum allowable attendance at an OTB shall not apply.
(5)Raises the minimum age of a person to enter to 21 years old.
(6)Provides the 25 cents per person admission fee shall not apply.
(7)Prohibits the conducting of historical horse wagering.
Present law provides that only a licensed racing association may own and operate an OTB in a parish
whose parish seat is located less than 55 miles from their facility and provides a procedure for
ownership for locations outside of the 55 mile radius and instances where more than one facility is
within the radius.
Proposed law provides that present law shall not apply to an OTB located in a sports book lounge
of a Riverboat or Land-based Casino.
Present law restricts the location of OTBs in relation to National Register of Historic Places, public
playgrounds, residential property or buildings primarily used as a church, synagogue, public library,
or school.
Proposed law provides that present law shall not apply to an OTB located in a sports book lounge
of a Riverboat or Land-based Casino.
Present law provides that LSRC may refuse, suspend, or withdraw licenses granted by it for just
cause. Provides that several behaviors that constitute just cause, including an action that is contrary
to present law.
Proposed law retains present law and adds to the behaviors that constitute just cause actions contrary
to an agreement or plan of operation for an OTB located in a sports book lounge. Present law provides that Riverboats, Land-based Casino, and Racetracks pay taxes on net gaming
proceeds from sports wagering. Defines "net gaming proceeds" as the amount equal to the total gross
revenue of all wagers placed by patrons less the total amount of all winnings paid out to patrons and
the amount of eligible promotional play.
Proposed law provides that "net gaming proceeds" shall not include wagers placed by patrons on
racehorse wagering, or winnings paid out to patrons on racehorse wagering, and defines "racehorse
wagering" as wagers placed on horse racing conducted under the pari-mutuel form of wagering at
licensed racing facilities that are accepted in accordance with present law on pari-mutuel wagering
and an approved agreement or approved plan of operation.
Proposed law provides that any commissions, fees, and other deductions on racehorse wagering shall
be in accordance with present law.
Proposed law provides specific authority for the LGCB to reconsider and withdraw its approval of
an agreement or plan of operation upon a finding of noncompliance with the terms of the agreement
or plan.
Proposed law (HB 1055 of the 2022 Regular Session) provides for the LSRC to promulgate rules
setting forth minimum standards and infrastructure investments required of each association for
facility maintenance and improvements, such as minimum standards for track surface, barns, grand
stands, and paddocks in order for the association to be eligible to conduct race meets at a particular
track. Requires facility improvements to be included in the plan of operation guidelines set forth in
present law and defines "facility maintenance" and "facility improvements".
Proposed law defines "gross profits", "state tax", and "taxable net slot machine proceeds".
Proposed law requires that, after July 1, 2023, 10% of gross profits are to be deposited into the
facility maintenance and improvement fund until all commission-required facility maintenance and
improvements have been completed. Requires the deposits to be made at the same time that the state
tax is paid.
Proposed law provides that after initial maintenance and improvements have been completed
satisfactorily, each association is required to maintain a minimum fund balance of $3,000,000.
Proposed law provides that for the purposes of the initial maintenance and improvements, the
following deadlines shall apply:
(1)The commission shall promulgate rules establishing minimum standards of facilities and
infrastructure investments no later than October 1, 2022.
(2)Each association shall submit a plan for compliance to the commission no later than
December 1, 2022.
(3)The commission shall approve or specify deficiencies in each association's plan no later than February 1, 2023.
(4)Each association shall complete the required maintenance and improvements to its facilities
no later than December 31, 2023.
Proposed law provides that deadlines may be extended by a majority vote of the membership of the
commission for extenuating circumstances including force majeure. Provides that the failure of an
association to meet deadlines shall constitute grounds for just cause for the commission to deny or
terminate racing privileges.
Proposed law provides that, if it determines that an association is in compliance with the minimum
standards and infrastructure investments, the commission may, by a 2/3s vote of the membership,
authorize any of the following:
(1)Exempt an association from maintaining the minimum fund balance required by proposed
law.
(2)Exempt the association from making deposits as required by proposed law.
(3)Allow the balance of an association facility maintenance and improvement fund be
withdrawn or reduced.
Proposed law authorizes the commission to reconsider compliance with proposed law at any time
and revoke any exemption or allowance for noncompliance.
Present law provides for the LGCB to grant or deny licenses to racetracks to operate slot machines
on the racetrack grounds. Provides for the licenses to be for 5 years.
Proposed law provides that notwithstanding present law, upon notification from the Louisiana State
Racing Commission that the racetrack is not in compliance with the minimum standards for facility
maintenance and improvements but is cooperating with the commission and working towards
compliance, the LGCB may grant or renew a license for a probationary period not to exceed one
year. Provides that barring extenuating circumstances as determined by the board, the probationary
period shall not be extended beyond one year. Provides that after the probationary period, the board
shall either grant or renew the license for the remainder of the term or revoke the license.
Provides that the provisions of this Act shall supercede the conflicting provisions of the Act which
originated as House Bill No. 1055 of the 2022 Regular Session.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 4:149, 164, 211, 213, 214, and 226(B)(1) and R.S. 27:602(13); adds R.S. 4:147(7),
215(D), and 228(H) and R.S. 27:361(E)(3), 393.1, 602(18.1), 607(H), and 629)