The Louisiana legislature passed Senate Bill 5, which would allow the state’s 15 riverboat casinos, Harrah’s New Orleans casino and four racinos to issue up to $5 million annually in promotional play credits that would be exempt from the state’s 21.5 percent tax on gross gaming revenue for five years. Now the bill awaits Governor John Bel Edwards’ signature.
State Senator Ronnie Johns, the bill’s sponsor, said it would help an industry impacted by Covid-19 and employs 20,000 people during normal times. Johns noted the typical casino offers $15 million of promotional play credits per year. The tax break will cost the state an estimated $11 million a year, he said.
“Of all the industries around the state, I think the restaurants and the gaming industry have been hurt probably the most and they are on their heels. For every dollar of promotional play that is used, it generates $5 in state revenue. We know that it works. If it didn’t work, the industry wouldn’t even be doing it today,” Johns said. He noted as of May 17, gaming revenue had dropped by $122 million compared to one year ago.
Louisiana Gaming Association Executive Director Wade Duty told lawmakers, “This is a tool that’s not only necessary for growth, It’s a tool that is necessary to stop the bleeding.” State Rep. Rhonda Gaye Butler stated, “No risk is no reward. We’re on a wing and a prayer at this point, so I guess we’ll just roll the dice.”
None of the state’s casinos have reopened to full capacity since closing in March due to Covid-19. DiamondJacks in Bossier City announced it would close permanently.
Another proposed gambling measure would legalize fantasy sports and tax net revenue at 8 percent. The proceeds would go to early childhood education. In 2018, voters in 47 of the state’s 64 parishes approved fantasy sports betting.
