RÉSUMÉ DIGEST
ACT 530 (SB 272) 2022 Regular Session Cortez
Existing 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.
New 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).
Existing 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.
New law provides that notwithstanding existing 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 new law are met.
Existing law provides for certain definitions for the purpose of establishing an offtrack
wagering facility (OTB).
New law retains existing law and adds definitions for "audited net profits", "host entity", and
"offtrack wagering facility licensee".
Existing 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.
New law retains existing 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 has 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 existing 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 existing law. New 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 existing 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.
Existing law provides several criteria for LSRC to approve a licensed racing association for
an OTB.
New law retains existing 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 existing law's maximum number of
OTBs per parish.
(4)Provides that existing 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.
Existing 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.
New law provides that existing law shall not apply to an OTB located in a sports book lounge
of a Riverboat or Land-based Casino.
Existing 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.
New law provides that existing law shall not apply to an OTB located in a sports book lounge
of a Riverboat or Land-based Casino.
Existing 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 existing law.
New law retains existing 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. Existing 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.
New 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 existing law on
pari-mutuel wagering and an approved agreement or approved plan of operation.
New law provides that any commissions, fees, and other deductions on racehorse wagering
shall be in accordance with existing law.
New 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.
New 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 existing law and defines "facility maintenance" and "facility
improvements".
New law defines "gross profits", "state tax", and "taxable net slot machine proceeds".
New 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.
New 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.
New 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.
New 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.
New 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 new
law. (2)Exempt the association from making deposits as required by new law.
(3)Allow the balance of an association facility maintenance and improvement fund be
withdrawn or reduced.
New law authorizes the commission to reconsider compliance with new law at any time and
revoke any exemption or allowance for noncompliance.
Existing 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.
New law provides that notwithstanding existing law, upon notification from the LSRC 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 (Act 525) of the 2022 Regular Session.
Effective June 16, 2022.
(Amends R.S. 4:149, 211, 213, 214, and 226(B)(1) and R.S. 27:602(13); adds R.S. 4:147(7),
164, 215(D), and 228(H) and R.S. 27:361(E)(3), 393.1, 602(18.1), 607(H), and 629)