Senate committee advances bill to direct video-poker revenue to Louisiana horsemen after amendments

House Bill 540, sponsored in the House by Representative Fontenot, was taken up Tuesday by the Senate Judiciary B Committee and reported out as amended, after the panel adopted two technical amendment sets and language clarifying revenue measurement.

The bill would allow licensees that already operate three video-draw poker devices to qualify to place a fourth device if the three existing machines generate a threshold amount of gross device revenue over a consecutive three‑month period; a set of amendments adopted in committee changed proposed language that had referred to “net” revenue to require a $100,000 gross threshold for the three‑month test. The bill directs a percentage of the added machine revenue to Louisiana horsemen to support purses and Louisiana‑bred programs.

Representative Fontenot, the bill’s House author, described the measure as “a collaborative work between the Louisiana horsemen and the video poker industry.” He told the committee the revenue changes are meant “for Louisiana‑bred horses, Louisiana horse races, and just for the purses and those that are bred here.”

Industry and regulator clarifications were offered during debate. A witness identified as “Alton” told the committee regulators favor measuring eligibility on gross receipts rather than net receipts because net calculations require accounting for taxes and payout variance, which complicates enforcement. The committee accepted technical language edits clarifying that the licensed device owner — not the establishment owner — would apply for placement.

Randall Womack, who testified for Churchill Downs, opposed the bill. Womack said the bill’s geographic restrictions on off‑track betting facilities — including proposed distance limits from churches, schools and historical markers — combined with increased competition for machines, could “shut down any possibility of expanding” and place tracks such as the Fairgrounds at financial risk. “If this bill passes…nobody needs to be surprised in a few months when they announce it’s going to be closed,” Womack said.

Committee members and the author said they want to work with Churchill Downs to try to address its concerns before the bill reaches the floor. After adopting amendment sets including a technical change to make the gross revenue test consistent across language, Senator Talbot moved to report the bill as amended; with no objection, the measure was reported out of committee.

The committee’s action incorporated amendment sets identified in the record as addressing eligibility language and the measurement of device revenue, and committee staff indicated the amendments were technical and intended to help regulators implement the statute if enacted.

The bill will move to the full Senate with the committee’s amendments; the author and committee members signaled willingness to meet with affected stakeholders, including Churchill Downs, before floor debate.