Authorizes enhanced promotional play allowances for gaming operators that make certain capital investments (EG -$50,600,000 GF RV See Note)
Summary
HB 415 expands the tax treatment of promotional play wagers for certain Louisiana gaming operators. Under current law, gaming operators may deduct up to $5 million annually in promotional play wagers from net gaming proceeds or gross revenue. The bill creates an additional promotional play credit for operators that make a qualifying capital outlay, allowing them to increase the amount of promotional play that can be excluded from taxable gaming revenue.
The new credit would be tied to certified capital investments made on or after January 1, 2022, including land, buildings, equipment, slot machines, other gaming equipment, and other expenditures that increase taxable revenue or improve a licensed gaming facility. The credit could be claimed for up to ten taxable years, but annual use is capped at the greater of 10% of the certified capital outlay or 20% of the operator’s gross gaming revenue. The bill also expressly includes expenditures to move riverboat gaming facilities landside as qualifying capital outlays. In addition, it directs Louisiana Economic Development to prepare a strategic economic development plan by January 1, 2027, with recommendations on gaming taxes and gaming tax incentives.
Impact
HB 415 would amend Louisiana gaming tax statutes governing the calculation of net gaming proceeds and gross revenue by adding a new, investment-based promotional play credit. This would reduce taxable gaming revenue for qualifying operators and could lower state gaming tax collections for affected facilities, particularly those making large capital improvements or relocating riverboat operations landside. The bill also adds a new planning requirement for Louisiana Economic Development to study gaming tax policy and incentives, potentially influencing future economic development and tax legislation.
Sentiment
The bill appears to be framed positively as an economic development measure that encourages reinvestment in gaming facilities and capital improvements. The caption and digest emphasize incentives for operators that make substantial investments, suggesting support for using tax policy to stimulate facility upgrades and related economic activity. No committee transcript or vote record was provided, so there is no recorded public debate in the supplied materials to indicate broader support or opposition.
Contention
The main point of contention is likely the fiscal effect of expanding tax deductions for gaming operators, since the bill is associated with a significant estimated general fund revenue impact. Supporters would likely argue that the credit encourages capital outlays, modernization, and economic development, while opponents may question whether the state should forgo gaming tax revenue to subsidize private investment. Another possible issue is that the credit applies to expenditures dating back to January 1, 2022, which could be viewed as retroactive in practical effect and may benefit a narrow set of operators.