More than three dozen bills that would change gambling in Louisiana are working their way through the state legislature.
Among the most recent developments, the House of Representatives voted 78-12 for House Bill 553, which would extend the state’s contract with Caesars Entertainment to operate Harrah’s New Orleans for another 30 years. The bill also allows more dining and entertainment options plus a luxury hotel at the property. Any expansions will require the approval of the New Orleans city council. Harrah’s lobbied hard for the bill prior to the vote, even giving personal tours of the New Orleans property to the House Committee on the Administration of Criminal Justice, which was required to sign off on the measure. The measure’s sponsor, House Speaker Taylor Barras, told colleagues, “If someone hasn’t talked to you about this bill, I’ll be very surprised.” In return
Harrah’s existing contract with Louisiana will end in July 2024. Barras’ bill would extend it an additional 30 years. In exchange, Caesar’s is required to invest another $350 million into the New Orleans facility. In addition, Barras’ legislation would require Caesars to pay $63.6 million annually to the state, up from the current $60 million. The payment would increase every two years by 2 percent or the percentage increase in the consumer price index, whichever is lower.
Caesars plans to add to Harrah’s New Orleans a Vegas-style night club, spa, state-of-the-art pool, a “celebrity chef” restaurant, a New Orleans-focused food hall, a live performance venue, improved street entrances and landscaping.
Another bill moving forward is Senate Bill 184 which passed 20-17 and loosens video poker regulations at truck stops throughout the state. The bill’s sponsor, state Senator Danny Martiny, said the video poker industry didn’t receive everything it wanted due to opposition from the Louisiana Family Forum, an influential anti-gambling group. Family Forum President Gene Mills said he plans to water down the bill even more when it’s taken up in the House.
The legislation would allow a wider variety of screens on the video poker machines for “entertainment purposes” and more card decks when a person is playing multiple hands. It also removes a prohibition on video line-up games and mechanical reel games from the state’s legal definition of video poker. Video poker truck stops’ fuel sales requirements also will be lowered. But the video poker outlets still must have a restaurant open 12 hours a day remains, although operators wanted that rule removed.
More than 1,800 establishments, more than half truck stops, offer 13,000 video poker machines across Louisiana. In 2015-2016, video poker operators collected $580 million in net revenue and generated $186 million for local and state governments, according to the Louisiana Gaming Control Board.
Five gambling bills that would impact the state’s 15 riverboat casinos passed out of the Senate Judiciary B Committee. Senate Bill 316, sponsored by the committee chairman, state Senator Ronnie Johns, would allow riverboats to relocate their casinos to land not within 1,200 feet. Johns said moving to land would also allow the casinos to eliminate paddle wheels and other requirements related to being on water. Johns’ legislation also would set a limit of 2,365 gambling spaces per casino, replacing a 30,000 square foot limit on gaming space.
The Senate Judiciary B Committee also approved Senate Bill 320, also sponsored by Johns, which deals with “promotional pays.” Under the bill, beginning in July 2020, casinos, video poker operators and racetracks would not have to pay taxes on all of the vouchers, free chips and other giveaways they offer to lure people to their facilities. Currently, casinos have to pay taxes on these incentives, as well as the 21.5 percent state revenue tax. The proposal would allow operators to appeal to the Gaming Control Board to only pay taxes up to a “baseline” value of its giveaways; any revenue beyond that would not be taxed. Casinos also could ask the board to lower their baselines, thereby lowering their tax burden.
The proposed changes are based on the recommendations of a gambling task force led by Johns. He said riverboat casino licenses were first issued in 1991, and but no major changes have occurred since the boats were allowed to quit sailing in 2001. The proposed changes are designed to promote economic development and improve safety on waterways, and to help Louisiana casinos compete with those in Oklahoma, Mississippi and Arkansas, he said. “The one thing the legislation doesn’t do is expand the casino industry. It doesn’t create any new licenses, it doesn’t allow for internet gaming or any other forms of gaming such as sports betting. These bills were well thought out by a wide variety of people who served on the task force,” Johns stated.
Additionally, a House committee has advanced legislation that would change the restrictions on gambling space at racetracks from 15,000 square feet to 1,632 gambling seats. The racetracks also would be allowed to hold four gambling tournaments per year.
Also, a Senate committee approved state Senator Bodi White’s Senate Bill 417 calling for a November 6 referendum in Tangipahoa Parish to determine if a riverboat casino would be allowed there. Peninsula Pacific is interested in moving its DiamondJacks Casino & Hotel from Bossier City to a location along the Tangipahoa River, a few miles west of St. Tammany Parish. Company officials said the move would help the economy in an “underserved area” and attract gamblers who currently visit Mississippi casinos. Governor John Bel Edwards, a resident of Tangipahoa, said he would vote for the casino if the question goes before the voters.
Other legislation moving forward includes House Bill 152 that would make it more difficult for casinos to eject people who are winning; House Bill 299, which would no longer require a video poker operator or video poker outlet employee to be present when a machine is being repaired; and House Bill 298, which would allow the Gaming Control Board to change the licensing requirements for suppliers who work with gambling businesses.
