The Louisiana Senate Revenue & Fiscal Affairs Committee has voted against a bill that would cut taxes on free-play promotions. Industry advocates claim the promotions are necessary to bring customers back to the casinos that have been closed for more than two months due to Covid-19. However, Louisiana is one of just three states that does not allow the casinos to credit the promotional amount used in gambling. For example, if a customer uses $20 in free play, then spends $80 of his own money, Louisiana taxes the full $100.
State senators argued now was not the time to remove the money from the state treasury when Louisiana faces an $867 million budget shortfall.
State Senator Eddie Lambert said, “So, if we vote for this resolution, we’re taking $29.3 million out of the state treasury on the hope that it generates more money than we give away?”
The bill’s sponsor, state Senator Barrow Peacock, who sponsored Senate Concurrent Resolution 64, said removing the tax on promotions would help attract more customers to spend more, giving the state more tax revenue. “We are in partnerships with these casinos. We’ve got to help these casinos, our partners, get back open,” Peacock said.
Louisiana Casino Association Director Wade Duty noted, “The industry is a consistent producer.” He said the state taxes casinos at 21.5 percent. In 2019, casinos and video poker generated $731.6 million in state revenue. Economists projected that amount will fall by $268 million due to casino shutdowns.
