Bill Summary – FastDemocracy

GREEN SHEET REDIGEST
HB 564                             2023 Regular Session                        Schexnayder
RACING/HORSE: Provides relative to racehorse wagering.
                                          DIGEST
Present law provides that all other forms of wagering on the result of horse races, other than
pari-mutuel wagering, are illegal.
Proposed law removes provision in present law that prohibits any form of wagering on horse
races other than pari-mutuel wagering, as provided in proposed law.
Proposed law creates in the state treasury a special fund to be known as the Fixed Odds
Horse Wagering Purse Supplement Fund (fund).
Proposed law requires any appropriation by the legislature to the La. State Racing
Commission (LSRC) from the fund be utilized to supplement purses as provided by proposed
law.
Proposed law requires monies in the fund to be invested by the state treasurer in the same
manner as monies in the state general fund. Proposed law requires interest earned on the
investments of monies in the fund be deposited in and credited to the fund. Present law
requires unexpended and unencumbered monies in the fund at the end of the fiscal year to
remain in the fund.
Proposed law requires monies in the fund only be withdrawn pursuant to an appropriation
by the legislature solely to implement the provisions of proposed law.
Proposed law requires that each fiscal year, the LSRC allocate any appropriations received
pursuant to proposed law as follows:
(1)    70% to the race tracks on the basis of the proportion of the number of thoroughbred
       race days conducted for the preceding year compared to the total number of
       thoroughbred race days conducted statewide for the preceding year, with such funds
       being used solely to supplement purses in accordance with a schedule or formula
       established by the purse committee of the Louisiana Thoroughbred Breeders
       Association.
(2)    30% to the race tracks on the basis of the proportion of the number of quarter horse
       race days conducted for the preceding year compared to the total number of quarter
       horse race days conducted statewide for the preceding year, with such funds being
       used solely to supplement purses in accordance with a schedule or formula
       established by the purse committee of the Louisiana Quarter Horse Breeders
       Association.
Proposed law changes the definition of "sports event" to include horse racing.
Proposed law requires the La. Gaming Control Board (LGCB) to establish guidelines for the
acceptance of fixed odds horse race wagers.
Proposed law prohibits a sports wagering operator from knowingly accepting a wager from
a person who is a jockey, horseman, including their employees, or a racing official who is
participating in the horse racing sports event on which the person is attempting to place the
wager.
Proposed law defines "fixed odds wagering on horse races" as the acceptance of wagers on
a sports event of a live or simulcast horse race with predetermined odds.
                                        Page 1 of 3
                                  Prepared by Alan Miller.
Proposed law defines a "fixed odds wager on horse races" as a sum of money or
representation of value risked by a player on an occurrence associated with a sports event
involving race horses for which the outcome is uncertain. The term includes single-race bets,
teaser bets, moneyline bets, in-race wagering, proposition bets, straight bets, and parlays.
Proposed law provides for net gaming proceeds from all fixed odds wagers on horse races,
other than parlays, to be allocated and shall be credited to the fund.
Proposed law provides for net gaming proceeds from all fixed odds wagers on horse races,
in conjunction with a parlay bet with other sports event other than another horse racing event,
to be allocated and shall be credited to the Sports Wagering Purse Supplement Fund
established by present law.
Proposed law requires the licensee or its sports wagering platform to only accept fixed odds
wagers on horse racing in the sports book lounge or on a sports wagering platform pursuant
to a commercial participation agreement, approved by the LGCB, with a race track licensed
by the LSRC for the track's simulcast or other video transmission of its entire race card.
Proposed law provides that after executing at least one commercial participation agreement
with a race track licensed by the LSRC, and subject to applicable federal laws, the LGCB
shall permit an authorized licensee or its sports wagering platform to conduct fixed odds
horse wagering on any live horse races conducted out of state.
Present law provides for a 10% tax upon the net gaming proceeds from sports wagering
conducted onsite at a licensed sports wagering establishment.
Present law provides for a 15% tax upon the net gaming proceeds from sports wagering
conducted electronically through a website or mobile application.
Present law requires that 2.5% of the monies collected pursuant to present law be credited
to the Sports Wagering Purse Supplement Fund.
Proposed law requires 5% of the monies collected from fixed odds wagering on horse races
be credited to the fund.
(Amends R.S. 4:149(A) and R.S. 27:44(22), 205(30), 602(19) and (22), and 625(G)(4); adds
R.S. 4:200 and R.S. 27:86(E), 249.1(E), 603(2)(a)(xvii), 608(B)(3), and 622)
Summary of Amendments Adopted by House
   The House Floor Amendments to the engrossed bill:
   1.      Require the Gaming Control Board, instead of the division, to issue a permit to
           conduct wagering at the licensed sports operator.
   2.      Require an applicant for a permit to submit his application with a written contract
           authorizing the applicant to conduct wagering to the licensed sports operator.
   3.      Require the Gaming Control Board, instead of the division, to promulgate rules
           and regulations for conducting wagering at the licensed sports operator.
   4.      Make technical changes.
Summary of Amendments Adopted by Senate
   Committee Amendments Proposed by Senate Committee on Judiciary B to the
        reengrossed bill
   1.      Makes technical changes.
                                        Page 2 of 3
                                  Prepared by Alan Miller.
2.   Removes all provisions providing for fixed-odds racehorse wagering within a
     land-based casino and the payment of audited net profits from such wagering to
     a licensed racing association.
3.   Removes provision in present law that prohibits any form of wagering on horse
     races other than pari-mutuel wagering, as provided in proposed law.
4.   Creates a Fixed Odds Horse Wagering Purse Supplement Fund with monies to
     be allocated for purse supplements, with 70% going toward thoroughbred purses
     and 30% going toward quarter horse purses.
5.   Adds a definition of "fixed odds wagering on horse races".
6.   Adds the requirement that fixed odds wagering on horse races only be conducted
     pursuant to a commercial participation agreement.
7.   Changes definition of "sports event" to include horse races.
8.   Adds prohibition on who may place a fixed odds wager on horse races to include
     a jockey, horseman, including their employees, or a racing official.
9.   Provides for allocation of net gaming proceeds to the Fixed Odds Horse
     Wagering Purse Supplement Fund.
                                Page 3 of 3
                          Prepared by Alan Miller.
Statutes affected: 
HB564 Original: 
HB564 Engrossed: 
HB564 Reengrossed: 