In the recently begun session, Louisiana lawmakers will consider several bills that could add up to the largest gambling expansion since riverboats and video poker were legalized in 1991. Riverboat casinos want to move ashore and Harrah’s New Orleans casino wants an extension on its monopoly contract, plus a second hotel and permission to operate a food court. The state’s four racinos want to offer table games, video poker and sports betting. And fantasy sports operators want to enter the Louisiana market. Caesars Entertainment Lead Lobbyist Randy Haynie said, “Each form of gaming is coming forward with what they need to bring their laws into common status with other states.” Caesars operates Harrah’s in New Orleans, a dockside riverboat in Bossier City and the Louisiana Downs racetrack in Bossier City.
State Senator Danny Martiny, who is sponsoring legislation sought by video poker and riverboat casino interests, said, “People don’t like gaming, but they sure like the revenue that comes from it. If we were flush with cash and had a $1 billion surplus, we wouldn’t be talking about it. We need to come up with a stable revenue stream to run our government. We haven’t been doing that. We’re doing temporary sales tax and sun-setting this and sun-setting that. That’s just not the way to do it.”
State Rep. Major Thibaut, sponsor of racetrack gambling expansion legislation, said, “We have a budget problem. This is a way to pay for education, roads and health care.” The state faces an estimated $700 million gap when the new budget year begins July 1.
Last year, Louisiana collected a total of $710 million from Harrah’s New Orleans, the 15 riverboat casinos, video poker and racetrack slot machines. Gambling is now the fourth largest source of tax revenue for the state, far surpassing oil and gas. The industry also has created jobs: 13,800 at the 15 riverboats, according to the Louisiana Casino Association; 10,000 in the video poker industry, according to the Louisiana Video Gaming Association; and 2,400 at Harrah’s New Orleans casino, including the restaurants and hotel.
Haynie said Harrah’s wants permission to build another hotel, on the casino site, and add the food court as part of a $350 million investment. Harrah’s also is seeking a 35-year extension of its contract to operate the only land-based casino in New Orleans. In return, company officials would pay several million dollars more in annual revenue sharing to the city and the state. House Speaker Taylor Barras is the lead sponsor of House Bill 553, the legislation including Harrah’s proposals.
State Senator Ronnie Johns is sponsoring two riverboat casino bills. One would allow riverboats to apply to the Louisiana Gaming Control Board to locate their casinos within 1,200 feet of their licensed berths. Louisiana Casino Association Executive Director Wade Duty said, “Some of these vessels are now 25 years old and are nearing the point where they have to be replaced. The economic question: Do you force them to still stay on the water?” The measure also would replace the 30,000 square foot cap on gaming floors with a limit of 2,365 gambling positions. The proposed legislation also would eliminate the paddlewheel requirement.
Johns, a member of the Riverboat Economic Development and Gaming Task Force, chaired by Louisiana Gaming Commission Chairman Ronnie Jones, said the legislature hasn’t had a meaningful conversation about the industry since it launched in 1991. “We’ve started with something we think is very manageable, something that I think has an excellent opportunity to pass. There will be some opposition but the legislature as a whole realizes the impact the industry has on our state’s budget. It is an honest effort to modernize the industry.”
Martiny also is sponsoring Senate Bill 322, which would allow a public referendum on internet gaming and provide for “a referendum election in any parish seeking internet gaming,” including online poker. Under Martiny’s proposal, any parish would be able to include a referendum on an election ballot stating: “Shall internet gaming be allowed to be conducted within the parish of ____?” The measure would require players to be at least 21years of age. If approved, it would become effective January 1, 2020. The long delay would allow parishes to add the referendums to ballots and determine election results and give the Louisiana Gaming Control Board time to create the regulatory framework.
Regarding video poker, Louisiana has 205 truck stops and 3,600 bars and restaurants that each may have up to three machines. Industry lobbyist Alton Ashy is promoting loosening restrictions on the truck stops, including permitting video poker operators to offer different types of video poker games and to use multiple electronic decks of cards per play. State Rep. Stuart Bishop is sponsoring House Bill 464 and Martiny is sponsoring Senate Bills 116 and 184 on behalf of truck stop operators. Bishop said, “These are people trying to make a living. Why are we being so restrictive on these guys?”
Thibaut is sponsoring House Bill 91 which would allow more slots at Boyd Gaming’s racinos in Lake Charles and Evangeline Downs near Lafayette. Also Thibaut’s House Bill 245 would allow the racetracks to offer table games, video poker and sports betting.
State Rep. Kirk Talbot sponsored legislation that would permit Louisiana residents to bet on fantasy sports games. “Let’s get it regulated so their winnings can be taxed and have it be above aboard,” Talbot said.
And in Tangipahoa Parish, Los Angeles-based Peninsula Pacific wants the legislature to allow it to move its Bossier City riverboat casino to the Tangipahoa River. Peninsula Pacific officials have said they would invest $100 million, create 500 jobs and build a conference center. Parish President Robby Miller said, “Our council would have a lot of leeway to make sure it’s built a certain way.” He added Tangipahoa Parish voters also would have to approve the riverboat casino move.
