Regulatory Report: 65 gambling-related bills in progress in U.S. legislatures June

Thursday, July 18, 2024 6:26 PM
  • Commercial Casinos
  • Igaming
  • Sports Betting
  • Debra Jobes — Gaming Division Lead, Regology

A total of 65 gambling-related bills went through the various stages of the lawmaking process during the month of June 2024. There are currently eight (2%) US state legislatures in session with three states in recess.1 The states with the highest legislative activity last month were New York (14), New Jersey (10), Louisiana (7), Arizona (6), Rhode Island and Michigan (5).

 


Win, Lose, or Draw: Legislation that Became Law

Out of the many bills our system processed during the month of June, this report will review some of the most important laws that were recently passed in Arizona, Colorado, Kansas, Louisiana, and Rhode Island.2 The following topic categories are applied to these certain jurisdictions.

Bingo:

Colorado – This newly enacted law, also known as the Bingo-Raffle Licensing Sunset Review, concerns the continuation of the licensing of certain games of chance, including bingo, under the sunset law.  It also contains amendments to the Colorado Revised Statutes related to the definitions of bingo and bingo strip card games, the establishment of the Colorado bingo-raffle advisory board, licensing and enforcement authority, application requirements for bingo-raffle licenses, conduct of bingo games, licensee’s statement of receipts and expenses, and the creation of the Colorado bingo-raffle advisory board. The law also addresses the duties of the board, the review and repeal of the licensing functions, and includes an appropriation for the implementation of the act. Note: HB 24-1326 (6/5/2024) Became Law

 

Casino:

Rhode Island

HB 7571A and SB 2814A are companion Acts relating to state affairs and government, specifically casino gaming. The bill amends the law to accommodate the emergence of iGaming and new technology. It establishes a gaming enforcement unit within the state police, which will work independently and in cooperation with the division of state lottery and the department of business regulation to ensure the integrity of casino gaming activities in Rhode Island. The gaming enforcement unit will be responsible for conducting due diligence and background investigations, monitoring and investigating potential criminal activity, and enforcing the criminal laws related to casino gaming activities. The bill also grants the gaming enforcement unit the power to enter gaming facilities and access server-based gaming systems for inspection, examination, seizure, and audit purposes. Additionally, the bill codifies the reimbursement of travel-related and investigatory expenses incurred by the state police during gaming-related investigations and background investigations. Note: HB 7571 (6/11/2024) Became Law; SB 2814A (6/26/2024) Became Law

 

SB 3040A and HB 8244A are companion Acts relating to state affairs and government, specifically video lottery games, table games, and sports wagering. The bill authorizes licensed video lottery retailers to extend credit to players for the purpose of making wagers at their facilities, subject to certain terms and conditions. The bill also establishes regulations for credit applications, verification processes, establishment of credit limits, recordkeeping, reduction or suspension of credit, voluntary credit suspension, and liability. Additionally, the bill authorizes amendments to the regulatory agreement involving Bally’s Corporation and its affiliates, allowing for an increase in the “Maximum Leverage Ratio” and modifications to the calculation of the “Leverage Ratio” for the purpose of increasing Rhode Island’s competitiveness in the gaming industry. Note: SB 3040A (6/24/2024) Became Law; HB 8244A (6/24/2024) Became Law

 

Charitable Gaming:

Louisiana – HB309 is an Act that amends and reenacts Louisiana Rev. Stat. 4:715(A)(2)(b) in relation to charitable gaming in Louisiana. The bill specifically addresses the compensation of personnel involved in running charitable gaming events. It allows any person, association, or corporation licensed to hold, operate, or conduct games of chance to compensate up to fifteen employees, including a bingo caller, who assist in the holding, operating, or conducting of such games. The rate of compensation is set at a maximum of $20 per hour, not exceeding $100 per session for any employee. Additionally, employees or volunteer workers may be provided meals and beverages with a total value not exceeding $15 per person. It is important to note that the compensation provided under this provision does not violate the prohibition against the payment or giving of a commission, salary, compensation, reward, or recompense to any person holding, operating, or conducting such games. Note: HB 309 (6/3/2024) Became Law

 

Lottery: 

Arizona – Section 1 of HB2901 amends Arizona Rev. Stat. § 5-568, which pertains to the disposition of unclaimed prize money in the state lottery. The amended section specifies the distribution of unclaimed prize money as follows: Note: HB 2901 (6/18/2024) Became Law

 

  • Fifty-five percent (55%) of the prize money will be held in the state lottery prize fund for use as additional prizes in future games. However, if the amount of money transferred by the commission is less than $900,000 each fiscal year, the difference will be transferred to the internet crimes against children enforcement fund. Additionally, if the amount of money transferred by the commission is less than $100,000 each fiscal year, the difference will be transferred to the victims’ rights enforcement fund.
  • Thirty percent (30%) of the unclaimed prize money will be transferred quarterly to the court-appointed special advocate and vulnerable persons fund.
  • Fifteen percent (15%) of the unclaimed prize money will be transferred monthly to the tribal college dual enrollment program fund. However, the amount transferred may not exceed $325,000 in any fiscal year.

 

Racing: 

Arizona – This Act repeals and amends certain sections of the Arizona Revised Statutes related to dog racing. The new law prohibits live dog racing in the state after December 31, 2016, and prohibits pari-mutuel wagering on simulcast dog racing in the state on or after December 31, 2028. It also prohibits pari-mutuel wagering on simulcasts of dog racing originating outside of the continental United States on or after June 30, 2024, with an exception for nonprofit organizations hosting lure coursing or similar events. TheAct allows permittees qualified under certain conditions to conduct advance deposit wagering and wagering on telecasts of races without offering live racing at their racetrack enclosure. The bill applies retroactively from and after June 30, 2024. Note: SB 1260 (6/21/2024) Became Law

 

Louisiana

HB 131 is an Act that amends Louisiana Rev. Statutes 4:177, which governs the payment of horse racing purses in Louisiana. It applies to licensees authorized to conduct race meets and breeders of the first, second, and third place winners of races. According to the amendment, each licensee shall pay the equivalent of ten percent of the total purse of each race earned by accredited Louisiana bred horses as a breeder’s award. The payment should be made within thirty days after the close of the race meeting to the respective breeders of the first, second, and third place winners. However, races written exclusively for accredited Louisiana bred horses are exempt from this requirement, as they receive a breeder’s award from the Louisiana State Racing Commission. Note: HB 131 (6/11/2024) Became Law

 

HB932 is an Act that amends and reenacts several sections of Louisiana law related to purse supplements in horse racing. The act allows for the transfer of any purse funds from one licensed eligible facility to another to supplement thoroughbred and quarter horse purses at race meets. It also addresses the disposition of accrued interest on undistributed monies at race meetings and the distribution of video draw poker device revenues. The Act specifies that interest earned on purse supplements and funds designated for Louisiana bred races should be used exclusively for Louisiana bred races. Note: HB 932 (6/11/2024) Became Law

 

Sports: 

Kansas – This Act authorizes the Secretary of Commerce to enter into agreements with major professional sports franchises to establish STAR bond projects for a major professional sports complex. It expands the powers and discretion of the secretary and makes changes to the STAR Bonds Financing Act to facilitate these projects. The secretary’s authority to approve projects is limited to one year, unless extended by the legislative coordinating council. The Kansas development finance authority is authorized to issue STAR bonds for these projects. Funds may be transferred from the state gaming revenues fund to the attracting professional sports to Kansas fund for the fiscal years ending June 30, 2025, and each fiscal year thereafter. Note: HB 2001 (6/18/2024) Became Law

 

Louisiana – SB235 is an Act that relates to the regulation of sports wagering in Louisiana. The Act amends and reenacts certain sections of the Louisiana Revised Statutes to provide definitions, enforcement measures, licensing and permitting requirements, and regulations for sports wagering. It also establishes the Louisiana Equine Promotion and Research Fund and outlines the transfer, deposit, and use of funds in the fund. The Act became effective on July 1, 2024. Note: SB 235 (6/11/2024) Became Law

 

Tax – Gaming:

Louisiana – SB500 is an Act to amend Louisiana Rev. Stat. 47:337.11.4 relative to the levy of local fees and taxes on certain non-gaming incentives or inducements granted by certain licensees. It prohibits local governing authorities, including political subdivisions and school boards, from imposing fees or taxes on non gaming incentives or inducements awarded by gaming licensees to patrons on a complimentary basis or through the redemption of rewards from a loyalty rewards program. However, if non gaming incentives or inducements are granted on a discounted basis or partially through the redemption of rewards, any fees or taxes levied shall be limited to the actual cash portion paid by the patron, and no tax shall be applied to the extent of the discount or rewards. The document also clarifies that this provision does not change the definition of net gaming proceeds or increase any allowance for promotional play. Additionally, it specifies that sales or use tax may still be imposed on certain items, such as tangible personal property used as a complimentary incentive or inducement, parking, admissions, or entertainment provided on a complimentary or discounted basis if the tax is otherwise due under applicable law. Note: SB 500 (6/11/2024) Became Law

 

1Regology database statistics filtered by jurisdiction [US federal/50 states], status [applicable bills only], and time period [June  1 – 30, 2024].

2Bills included in this category are reported “active”, even though the state legislature may have adjourned during this time period. Regology uses the official status reported by each individual state legislature according to their policies and procedures.