GAMING: Creates an enhanced promotional play pilot program relative to net slot machine proceeds (EN -$574,627 GF RV See Note)
Summary
HB75 revises Louisiana gaming law to change how promotional play wagers are treated for certain gaming operators. Under current law, casino gaming operators may exclude up to $5 million in promotional play wagers from gross revenue or net gaming proceeds. This bill keeps the $5 million floor but adds a new alternative cap tied to a percentage of taxable revenue, allowing operators to deduct the greater of $5 million or a phased-in percentage cap.
The percentage cap would begin at 4% of taxable revenue in tax year 2027, rise to 7% in 2028, and reach 10% in 2029 and thereafter. The bill amends the statutory definitions of both "net gaming proceeds" and "gross revenue" to reflect these promotional play deductions, thereby affecting how gaming revenue is calculated for tax and regulatory purposes. The bill was enacted as Act 963 without the Governor's signature.
Impact
HB75 changes the revenue-calculation rules in Title 27 for gaming operators by expanding the allowable deduction for promotional play wagers. This directly affects the computation of net gaming proceeds and gross revenue for casino gaming operators and other covered gaming licensees, which in turn can reduce taxable gaming revenue and alter state gaming tax collections. The bill also creates a new percentage-based deduction schedule tied to taxable revenue beginning in 2027, replacing a flat cap alone with a larger, scalable allowance over time.
Sentiment
The available context suggests the bill was ultimately accepted into law, indicating sufficient legislative support for the measure. Because there are no committee transcripts or recorded votes provided, there is no detailed evidence of debate in the supplied materials. The enacted status without the Governor's signature suggests the proposal moved through the process without a publicly documented veto or major procedural blockage in the record provided.
Contention
The main policy issue is the fiscal effect of allowing larger promotional play deductions, which can lower reported gaming revenue and reduce state receipts. Supporters would likely view the change as giving operators more flexibility to compete and market games, while opponents may be concerned about the revenue loss to the state and whether the expanded deduction is too generous. The bill text itself does not show any specific amendments or negotiated compromises beyond the phased-in percentage cap, and no committee testimony is available to identify particular stakeholders or objections.
Provides for the allowable amount of promotional play offered by certain gaming operators and for deductions regarding promotional play (EG1 -$974,000 GF RV See Note)