HLS 25RS-814 ENGROSSED 2025 Regular Session HOUSE BILL NO. 540 BY REPRESENTATIVE FONTENOT Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. GAMBLING/VIDEO POKER: Provides relative to video poker 1 AN ACT 2To amend and reenact R.S. 27:412(B)(1) and (2), 413(A) and (B), 414(introductory 3 paragraph), 416(A), (C)(2)(a) through (c) and (3)(b), 435(D)(4), and 4 437(C)(introductory paragraph), (3), and (4) and to enact R.S. 27:415(C) through 5 (G), 437(C)(5), and 439.1, relative to video draw poker machines; to change the 6 number of video draw poker machines permissible in certain businesses; to provide 7 for criteria to qualify for additional video draw poker machines; to provide 8 definitions; to provide for areas in which video draw poker machines shall be 9 prohibited; to provide for an effective date; and to provide for related matters. 10Be it enacted by the Legislature of Louisiana: 11 Section 1. R.S. 27:412(B)(1) and (2), 413(A) and (B), 414(introductory paragraph), 12416(A), (C)(2)(a) through (c) and (3)(b), 435(D)(4), and 437(C)(introductory paragraph), 13(3), and (4) are hereby amended and reenacted and R.S. 27:415(C) through (G) and 14437(C)(5) and 439.1 are hereby enacted to read as follows: 15 §412. State license qualifications; types of licenses 16 * * * 17 B. The three categories of licenses which may be issued to qualified 18 establishments for the operation of video draw poker devices are as follows: Page 1 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 25RS-814 ENGROSSED HB NO. 540 1 (1) A license to operate a maximum of three four video draw poker devices 2 at establishments licensed to sell alcoholic beverages for consumption on the 3 premises of the establishment as provided for in R.S. 27:413. 4 (2) A license to operate a maximum of fifty sixty video draw poker devices 5 at qualified truck stop facilities as provided for in R.S. 27:416. 6 * * * 7 §413. Licenses to operate video draw poker devices at certain alcoholic beverage 8 facilities; multiple facilities 9 A. A person who has been granted a Class A-General retail permit or a Class 10 A-Restaurant permit, as defined in Part II of Chapter 1 or Part II of Chapter 2 of Title 11 26 of the Louisiana Revised Statutes of 1950, to sell alcoholic beverages for 12 consumption on the premises of a restaurant, bar, tavern, cocktail lounge, or club 13 only, or such an establishment located within a motel or hotel may be granted a 14 license for the placement of not more than three four video draw poker devices in his 15 licensed establishment. To qualify to receive a fourth video draw poker device, the 16 licensee shall earn a net device revenue of at least fifty thousand dollars for the 17 location in the calendar quarter prior to requesting the fourth device. 18 B. A person who is the owner of more than one restaurant, bar, tavern, 19 cocktail lounge, or club which is located within a single building or structure, and 20 who has been granted a Class A-General retail permit or a Class A-Restaurant 21 permit, as defined in Part II of Chapter 1 or Part II of Chapter 2 of Title 26 of the 22 Louisiana Revised Statutes of 1950, to sell alcoholic beverages for consumption on 23 the premises of each such facility, may make available for play not more than three 24 four video draw poker devices at each separate facility, not to exceed a total of nine 25 video draw poker devices for the single building or structure, if that person and each 26 facility complies with all other requirements of this Chapter and of the administrative 27 rules that are applicable to the operation of video draw poker devices. The limitation 28 on the number of facilities contained in this Subsection shall not apply to any person 29 or entity who owns and operates multiple facilities which are located in a publicly Page 2 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 25RS-814 ENGROSSED HB NO. 540 1 owned and operated transportation facility offering any transportation to interstate 2 and international destinations. 3 * * * 4 §414. Hotel and motel facilities; criteria 5 A licensee owning or leasing a licensed establishment which is a hotel or 6 motel which has more than one lounge or facility and which has a Class A-General 7 retail permit or a Class A-Restaurant permit, as defined in Part II of Chapter 1 or Part 8 II of Chapter 2 of Title 26 of the Louisiana Revised Statutes of 1950, to sell alcoholic 9 beverages for on-premises consumption on a single licensed premises may make 10 available for play not more than three four video draw poker devices at each lounge 11 or separate facility, not to exceed a total of twelve thirteen video draw poker devices 12 for the hotel or motel, if all other requirements of this Chapter are met. Each 13 separate lounge or facility shall meet the following criteria: 14 * * * 15 §415. Pari-mutuel wagering facility or offtrack wagering facility; no minimum 16 wager; location 17 * * * 18 C. No license shall be granted to any offtrack wagering facility located, at 19 the time application is made for a license to operate video draw poker devices, within 20 one mile from any property on the National Register of Historic Places, any public 21 playground, any residential property, or a building used primarily as a church, 22 synagogue, public library, or school. The measurement of the distance shall be a 23 straight line from the nearest point of the offtrack wagering facility to the nearest 24 point of the property on the National Register of Historic Places, the public 25 playground, residential property, or building used primarily as a church, synagogue, 26 public library, or school. 27 D. After an application is filed with the division, the subsequent 28 construction, erection, development, or movement of a property identified in 29 Subsection C of this Section which causes the location of an offtrack wagering Page 3 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 25RS-814 ENGROSSED HB NO. 540 1 facility to be within the prohibited distance shall not be cause for denial of an initial 2 or renewal application or revocation of a license. 3 E. If a parish or municipality does not have a zoning ordinance which 4 designates certain property within their jurisdiction as residential property, the 5 governing authority of the parish or municipality shall have the authority to 6 designate certain areas of their jurisdiction as residential districts for the purposes of 7 this Section. 8 F. The prohibition provided for in Subsection C of this Section shall not 9 apply to any offtrack wagering facility that is both licensed and operating on January 10 1, 2025. If application for licensing is made after January 1, 2025, the prohibition 11 in Subsection C of this Section shall apply. 12 G. For the purposes of this Section, "residential property" means any 13 property which is wholly or partly used for or intended to be used for living or 14 sleeping by human occupants and which includes one or more rooms, including a 15 bathroom and complete kitchen facilities. Residential property shall include a 16 mobile home or manufactured housing, provided that it shall have been in its present 17 location for at least sixty days. Residential property shall not include any hotel or 18 motel. 19 §416. Qualified truck stop facilities; number of devices; fuel sales 20 A. A person owning or leasing a qualified truck stop facility may be granted 21 a license for the placement of not more than fifty sixty video draw poker devices in 22 his facility based on the fuel sales as provided in Subsection C of this Section, in an 23 area separated for adult patronage only, if all other requirements of this Chapter are 24 met. There shall be only one license granted for the operation of video draw poker 25 devices at each qualified truck stop facility. 26 * * * 27 C. 28 * * * Page 4 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 25RS-814 ENGROSSED HB NO. 540 1 (2) Except as provided in R.S. 27:421 and Paragraph (3) of this Subsection, 2 the number of video draw poker devices placed at a qualified truck stop facility shall 3 be based on the average monthly fuel sales calculated quarterly, using four sets of 4 three calendar months, for the first year of operation and thereafter shall be based 5 upon the average monthly fuel sales calculated annually, using a calendar year, as 6 follows: 7 (a) One hundred thousand gallons of fuel - not more than fifty sixty devices. 8 (b) Seventy-five thousand gallons of fuel - not more than forty forty-eight 9 devices. 10 (c) Fifty thousand gallons of fuel - not more than thirty-five forty-two 11 devices. 12 * * * 13 (3) 14 * * * 15 (b) After ten years of operation as a qualified truck stop facility, the facility 16 shall thereafter be permitted to retain the number of devices for which the facility 17 qualified in the prior calendar year of operation, not to exceed forty forty-eight 18 devices, if the facility meets a minimum fuel sales requirement of not less than thirty 19 thousand gallons per month. However, such qualified truck stop facility shall be 20 required to comply with the provisions of Paragraph (1) of this Subsection. Any 21 qualified truck stop facility that has met the provisions of this Paragraph on 22 December 1, 2025, and has been granted the right to operate up to forty devices shall 23 now qualify for the additional number of devices authorized by this Paragraph. 24 * * * 25 §435. Licensing by division; fees; franchise payments; enforcement activities 26 * * * 27 D.(1) Each device owner shall remit to the division a franchise payment, in 28 an amount equal to a percentage of the net device revenue derived from the operation 29 of each video draw poker device owned by him. The amount of the percentage shall Page 5 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 25RS-814 ENGROSSED HB NO. 540 1 be based on the type of licensed establishment authorized by the division for the 2 placement of video draw poker devices, as follows: 3 * * * 4 (4)(a) Of the amount attributable to the payment of franchise fees as required 5 in this Section, an amount equal to the avails of one-half of one percent of the 6 franchise fee rate shall be allocated as provided in R.S. 27:437 and appropriated by 7 the legislature as provided in R.S. 27:439. 8 (b) Of the amount attributable to payment of franchise fees as required in this 9 Section, for additional video draw poker devices authorized pursuant to the 10 provisions of this Act an amount equal to the avails of one-half of one percent of the 11 franchise fee rate shall be allocated as provided in R.S. 27:437 and appropriated by 12 the legislature as provided in R.S. 27:439. 13 §437. Video Draw Poker Device Fund; distribution and expenditure 14 * * * 15 C. Except as provided in Paragraph (3) (4) of this Subsection, the monies in 16 the Video Draw Poker Device Fund shall only be withdrawn pursuant to 17 appropriation by the legislature and shall be distributed as follows: 18 * * * 19 (3) An amount shall be allocated to the Video Draw Poker Device 20 Supplement Fund as follows: 21 (a) The monies in excess of the monies generated in R.S. 27:435 for the 22 Fiscal Year 2024, if any, and received in this Chapter and distributed as outlined 23 above, the initial twenty-two million dollars shall be allocated as provided in R.S. 24 27:439.1. 25 (b) Any monies after (3)(a), in excess of the monies generated in R.S. 27:435 26 for the Fiscal Year 2024 and received in this Chapter and distributed as outlined 27 above, fifteen percent shall be allocated as provided in R.S. 27:439.1. 28 (3) (4) Any unexpended or unencumbered portion of the twenty-five percent 29 remaining in the Video Draw Poker Device Fund after the allocations made pursuant Page 6 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 25RS-814 ENGROSSED HB NO. 540 1 to the provisions of Paragraph (1) of this Subsection at the end of the fiscal year shall 2 not revert to the state general fund but shall be distributed in accordance with the 3 provisions of Paragraph (1) of this Subsection. Any remaining portion of the 4 seventy-five percent of the unexpended or unencumbered monies in the Video Draw 5 Poker Device Fund after the allocations made pursuant to the provisions of 6 Paragraphs (2) and (3) of this Subsection at the end of the fiscal year shall revert to 7 the state general fund. 8 (4) (5) An amount equal to all franchise payments exempted pursuant to R.S. 9 27:321 shall be considered to be part of the Video Draw Poker Device Fund for 10 purposes of calculating the distribution of the fund pursuant to Paragraphs (1), (2), 11 and (2) (3). 12 * * * 13 §439.1. Video Draw Poker Device Purse Supplement Fund; additional distribution 14 and expenditure 15 A. Funds specified pursuant to the provisions of R.S. 27:437(C) shall be 16 forwarded by the division to the state treasurer for immediate deposit in the state 17 treasury. The funds so deposited shall first be credited to the Bond Security and 18 Redemption Fund in accordance with Article VII, Section 9(B) of the Constitution 19 of Louisiana. Thereafter, the state treasurer shall, each fiscal year, credit to a special 20 fund, which is hereby created in the state treasury and entitled the Video Draw Poker 21 Device Purse Supplement Fund, an amount equal to all funds specified pursuant to 22 R.S. 27:437(C)(3). Monies in the Video Draw Poker Device Purse Supplement Fund 23 shall only be withdrawn pursuant to an appropriation by the legislature and shall be 24 used solely as provided in Subsection B of this Section. 25 B. Monies in the Video Draw Poker Device Purse Supplement Fund pursuant 26 to the provisions of R.S. 27:437(C)(3) shall be annually appropriated to the 27 Louisiana State Racing Commission within the office of the governor and shall be 28 allocated as follows: Page 7 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 25RS-814 ENGROSSED HB NO. 540 1 (1) Sixty percent of the funds appropriated to the commission pursuant to 2 this Section shall be allocated and provided to the Horsemen's Bookkeeper to be used 3 at the licensed racing associations in the state which conduct live horse racing on the 4 basis of the proportion of the number of thoroughbred race days each association 5 conducted for the preceding year bears to the total number of thoroughbred race days 6 conducted statewide for the preceding year. These additional monies shall be 7 distributed in accordance with a schedule or formula established by the purse 8 committee of the Louisiana Thoroughbred Breeders Association on Louisiana-bred 9 thoroughbred races or for Louisiana-bred horses that earn a percentage of the purse 10 in a non-breed-restricted race. 11 (2) Thirty percent of the funds appropriated to the commission pursuant to 12 this Section shall be allocated and provided to the Louisiana Quarter Horse Breeders 13 Association to be used to supplement purses for Louisiana-bred quarter horses. 14 (3) Four and one-half percent of the funds appropriated to the commission 15 pursuant to this Section shall be allocated and provided to the Louisiana 16 Thoroughbred Breeders Association for Breeder Awards. 17 (4) Two and one-quarter percent of the funds appropriated to the commission 18 pursuant to this Section shall be allocated and provided to the Louisiana Quarter 19 Horse Breeders Association for Breeder Awards. 20 (5) Two percent of the funds appropriated to the commission pursuant to this 21 Section shall be allocated and provided to the Louisiana State Racing Commission. 22 (6) One and one-quarter percent of the funds appropriated to the commission 23 pursuant to this Section shall be allocated and provided to the Louisiana Horsemen's 24 Benevolent and Protective Association, 1993 Inc. 25 Section 2. This Act shall become effective upon signature by the governor or, if not 26signed by the governor, upon expiration of the time for bills to become law without signature 27by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If 28vetoed by the governor and subsequently approved by the legislature, this Act shall become 29effective on the day following such approval. Page 8 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 25RS-814 ENGROSSED HB NO. 540 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] HB 540 Engrossed 2025 Regular Session Fontenot Abstract: Provides relative to the number of video draw poker devices certain businesses may operate, to areas where video draw poker devices may not be granted, and to where revenue is allocated. Proposed law increases the number of video draw poker devices permitted at certain alcoholic beverage facilities from three to four and provides criteria to qualify for additional video draw poker devices. Proposed law increases the number of video draw poker devices permitted at truck stops from 50 to 60. Proposed law increases the number of video draw poker devices permitted at hotels and motels from three to four for individual lounges and from 12 to 13 for the hotel or motel. Proposed law provides that offtrack wagering facilities shall not be granted a license to operate video draw poker devices within one mile of any property on the National Register of Historic Places, any public playground, any residential property, or a building used primarily as a church, synagogue, public library, or school. Proposed law provides for the designation of residential districts for the purposes of proposed law. Proposed law provides relative to franchise fee rates and appropriation for revenue generated by video draw poker devices. Proposed law (R.S. 27:437) provides that of the monies generated by franchise fees in the 2025 fiscal year, above the amount generated in the 2024 fiscal year, the first $22 million shall be allocated in accordance with proposed law (R.S. 27:439.1). Proposed law (R.S. 27:439.1) provides that revenue generated by proposed law (R.S. 27:437) shall be allocated to the Video Draw Poker Device Purse Supplement Fund and to various horse racing industry groups. Effective upon signature of governor or lapse of time for gubernatorial action. (Amends R.S. 27:412(B)(1) and (2), 413(A) and (B), 414(intro. para.), 416(A), (C)(2)(a)- (c) and (3)(b), 435(D)(4), and 437(C)(intro. para.), (3), and (4); Adds R.S. 27:415(C)-(G), 437(C)(5), and 439.1) Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Administration of Criminal Justice to the original bill: 1. Make technical changes. 2. Amend R.S. 27:437 to allocate tax revenue to the Video Draw Poker Device Purse Supplement Fund. Page 9 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 25RS-814 ENGROSSED HB NO. 540 3. Change the requirements that a restaurant or bar shall meet to add a fourth machine and remove the requirement that the gaming enforcement section remove a machine if the location falls under a certain net device revenue. 4. Add R.S. 27:439.1 to create the Video Draw Poker Device Purse Supplement Fund and allocate money to the fund for certain purposes. Page 10 of 10 CODING: Words in struck through type are deletions from existing law; words underscored are additions.