Provides relative to the allowable amount of promotional play offered by certain gaming operators and for deductions regarding promotional play. (7/1/26)

Senate Bill 294 amends three sections of the Louisiana Revised Statutes governing gaming taxation to create a promotional play deduction transfer mechanism across gaming platforms. The bill modifies the definitions of "net gaming proceeds" for riverboat operators under R.S. 27:44(15), "gross revenue" for land-based casino operators under R.S. 27:205(16), and "net slot machine proceeds" for racetrack slot machine operators under R.S. 27:353(9). Each of these definitions already contains a five million dollar annual deduction directly attributable to promotional play wagers. The new provisions authorize gaming operators to assign all or part of any unused promotional play deduction from a given fiscal year to another licensed gaming operator in a different category, provided the assignment is made in writing and reported to the Louisiana Gaming Control Board by both the assigning operator and the receiving operator.

The practical effect of this legislation is to allow gaming licensees greater flexibility in utilizing promotional play deductions for state gaming fee calculation purposes. A riverboat operator that does not fully utilize its five million dollar annual promotional play deduction in a fiscal year may now transfer the unused portion to either a land-based casino operator or a racetrack slot machine licensee. Similarly, a land-based casino operator may assign unused deductions to riverboat or racetrack operators, and racetrack operators may assign unused deductions to riverboat or casino operators. This creates a fungible deduction system where promotional play spending efficiency at one type of gaming facility can reduce the taxable revenue calculations at another type of facility, potentially lowering the total state gaming tax burden across the three categories of licensees.

Senate Bill 294 operates within the existing framework of Louisiana gaming taxation established in Title 27 of the Louisiana Revised Statutes. The legislation does not alter the fundamental tax rates or compensation structures currently imposed on gaming operators but rather adjusts the revenue calculations upon which those percentages are applied. The five million dollar promotional play deduction existed prior to this bill and has historically operated as a fixed annual allowance for each gaming category. By permitting the assignment of unused portions across operator categories, the bill creates an inter-category deduction sharing system while maintaining the reporting requirements necessary for the Louisiana Gaming Control Board to administer and enforce the tax provisions. The law becomes effective July 1, 2026.