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Lawmakers consider expanded promotional play and tax incentives to spur casino investment
Summary
Committee members heard two related bills on promotional play and tax treatment for gaming operators: House Bill 542 (promo-play cap changes and track inclusion) was reported as amended; House Bill 415 (capital-investment tied promotional credits) was also reported favorably after discussion about scope and track inclusion.
The House Criminal Justice Committee advanced multiple, related bills that would change how promotional play is taxed and create incentives for capital investment by gaming operators.
Representative Jackson presented House Bill 542, a measure to increase promotional-play allowances among gaming licensees; an amendment (set 1098) was adopted to amend the statutory definition of net slot machine proceeds and clarify percentage caps and participation by racetracks. "This bill is to increase the promotional play, among our gaming licensees throughout the state," Rep. Jackson said. Industry witnesses described Louisiana's current approach as more restrictive than neighboring states and asked for tax treatment changes so promotional credits are not taxed as "real money" when redeemed.
Rep. Echols offered House Bill 415 to tie enhanced promotional-play allowances to qualifying capital outlays. "If an organization made a hundred million dollar investment, they would get essentially a 10% promotional play credit," Echols said, describing the initiative as an incentive to attract tourism and drive ancillary investment such as hotels and restaurants. Echols said he would work to add racetracks to his bill's scope to avoid excluding them.
Industry groups including the Louisiana Casino Association and Cordish Companies testified in support; Boyd Gaming and other operators raised concerns about draft language that initially excluded racetracks and asked to be included. Opponents including the Louisiana Family Forum and Louisiana Baptist Office of Public Policy submitted opposition cards.
The committee adopted the Jackson amendment and reported HB 542 as amended to the next stage with no objections. Representative Knox moved to report HB 415 favorably; the committee recorded HB 415 as reported favorably as well. Members said further fiscal analysis would be handled in appropriations.
