§ 27:243 — Requirements for casino operating contract

Louisiana § 27:243

• Jurisdiction: Louisiana
• Title 27: Louisiana Legislature

Text

§243. Requirements for casino operating contract
A. Any bid to conduct casino gaming operations by an applicant shall contain
provisions, narrative or schematic or both, describing the management, operation, financial,
internal, and security aspects to the proposed conducting of casino gaming operations at the
official gaming establishment.
B. The board shall review each bid required by Subsection A hereof and shall
determine whether it conforms to the requirements of this Chapter and to any rules and
regulations promulgated thereunder and whether the system submitted provides adequate and
effective controls of the operation by the person submitting it. If the board finds any
insufficiencies, it shall declare the bid submitted as nonconforming.
C. Beginning August 1, 2019, the casino operator is authorized to conduct the
following non-casino related activities at the official gaming establishment or at another
location subject to the requirements set forth in Paragraphs (1), (2), (3), (4), (5), and (6) of
this Subsection:
(1) The casino gaming operator may offer food and restaurant facilities at or in the
vicinity of the official gaming establishment consistent with the terms of any agreement
between the casino operator and the Louisiana Restaurant Association and its successors, as
such agreement may be amended from time to time.
(2) The casino operator may have a meeting space for parties, VIP events, and the
like but shall not rent business meeting space for business seminars and training associated
with the sale or purchase of rentable units, unless such rentable units are rented at the rates
established as provided in Subparagraph (3)(b) of this Subsection.
(3) The casino operator, on its own or through an affiliate, shall not provide lodging,
except that the casino gaming operator may own or operate lodging at or in the vicinity of
the official gaming establishment consistent with the following conditions and any agreement
between the casino operator and the Greater New Orleans Hotel and Lodging Association
and its successors, as such agreement may be amended from time to time:
(a) There shall be no more than four hundred fifty rentable units, and not more than
fifteen thousand square feet of meeting space if a hotel is newly constructed or twenty
thousand square feet if an existing hotel is purchased or leased that contains such space, from
April 1, 2001 to March 31, 2005, provided that after March 31, 2005, additional rentable
units may be owned or operated with additional meeting space, only in accordance with any
agreement for such increases entered into by and between the casino gaming operator and
the Greater New Orleans Hotel-Motel Association and its successors, as such agreement may
be amended from time to time.
(b) Except as provided in Subparagraph (c) of this Paragraph and Paragraph (4)(a)
of this Subsection, the casino gaming operator shall not advertise room rates to the general
public at below market rates. The casino gaming operator shall base room rates on average
seasonal rates for the preceding year of hotels located in the Central Business District and
French Quarter of the parish of the official gaming establishment as compiled by a nationally
recognized firm that compiles data on room rates for such parish.
(c) The casino gaming operator shall not offer complimentary or discounted hotel
offerings to the general public, but may, nonetheless, offer complimentary or discounted
hotel offerings to: (i) a patron that is a member of the casino gaming operator's or manager's
customer reward system or otherwise maintained on the casino operator's or manager's data
base; (ii) a known "high roller" or patrons on a junket with established play at the official
gaming establishment or with other casinos; (iii) a person that, based upon observed win or
loss levels at the casino, is eligible to a discount or full complimentary offerings; (iv) a
targeted prospect outside a fifty-mile radius of the official gaming establishment, or not
within the state; (v) a person that has suffered a service error that results in a complimentary
rate or discount to rectify the error in service; or (vi) a vendor or other person visiting the
casino for business or educational purposes.
(d) The casino operator shall not advertise to the general public, which does not
include those individuals specified in Items (c)(i) through (vi) of this Paragraph,
complimentary or discounted hotel rates; however, the casino gaming operator may advertise
rooms rented at the rates established in Subparagraph (b) of this Paragraph on billboards
outside a fifty-mile radius of the official gaming establishment or on billboards outside of
Louisiana. The casino operator may otherwise prospect for new customers through
advertising media so long as the pricing for rooms is consistent with the rate structure as set
forth in Subparagraph (b) of this Paragraph.
(4)(a) The casino operator is subject to the requirements of a memorandum of
understanding and agreement entered into with the Greater New Orleans Hotel and Lodging
Association dated April 2019, which may include an authorization to provide an agreed-upon
number of additional hotel rooms at a new hotel site, and a memorandum of understanding
and agreement entered into with the Louisiana Restaurant Association dated March 2018.
Any action related to the enforcement of the memoranda of understanding and agreements
shall be instituted in the Civil District Court for the Parish of Orleans. The Louisiana
Gaming Control Board shall retain jurisdiction over the casino operator's compliance with
the provisions of this Chapter and any regulations or rules adopted by the Louisiana Gaming
Control Board.
(b) Among other things, the memorandum of understanding and agreement with the
Greater New Orleans Hotel and Lodging Association dated April 2019, shall provide for the
following:
(i) Only for those additional rooms authorized by the memorandum of understanding
and agreement dated April 2019, advertising of market rates shall be based on average
seasonal rates for the preceding year of luxury hotels in the Central Business District, French
Quarter, and Warehouse District of the city of New Orleans, as compiled by a nationally
recognized firm.
(ii) For rooms existing prior to August 1, 2018, room taxes levied and collected by
the city of New Orleans shall be paid by the casino gaming operator on all complimentary
rooms at the applicable tax rates based upon average seasonal rates for the preceding year of
hotels in the Central Business District and French Quarter of the city of New Orleans, as
compiled by a nationally recognized firm. For those hotel rooms added after 2019 and
authorized by the memorandum of understanding and agreement dated April 2019, room
taxes levied and collected by the city of New Orleans shall be paid by the casino operator on
all complimentary rooms at the applicable tax rates based upon average seasonal rates for the
preceding year of luxury hotels in the Central Business District, French Quarter, and
Warehouse District of the City of New Orleans, as compiled by a nationally recognized firm.
(iii) Complimentary rooms provided by the casino gaming operator shall not be
subject to the state sales and use tax. Room taxes levied and collected by the city of New
Orleans, sales and use taxes levied by the state of Louisiana, and sales and use or occupancy
taxes levied by any other political subdivision on rooms provided at a discount by the casino
gaming operator shall be paid at the applicable rates based on the amount actually paid or
charged for the room.
(iv) In order to establish and stabilize the amount of occupancy taxes to be paid by
the casino gaming operator to the Louisiana Stadium and Exposition District and the Ernest
N. Morial-New Orleans Exhibition Hall Authority for complimentary rooms provided by the
casino gaming operator, which amount is otherwise uncertain, the casino gaming operator
shall enter into a binding memorandum of understanding with the Louisiana Stadium and
Exposition District and the Ernest N. Morial-New Orleans Exhibition Hall Authority to
provide for cumulative annual payments for the occupancy taxes of not less than one million
three hundred thousand dollars per year, with the first payment beginning on July 1, 2022,
and continuing through July 31, 2054, the payment to be made on a quarterly basis as may
be set forth in the binding memorandum of understanding. Any action related to the
enforcement of the binding memorandum of understanding set forth herein and any related
agreements shall be instituted in the Civil District Court for the parish of Orleans.
(5) The casino gaming operator shall remit state and local sales and use taxes at the
applicable tax rates on all complimentary and discounted food, beverage, or entertainment
offerings based on the actual value of food, beverage, or entertainment provided. The casino
gaming operator shall remit state and local sales and use taxes at the applicable tax rates on
all parking provided at a charge to the customer or the general public.
(6) The casino gaming operator shall not engage in such activities as are prohibited
by the casino operating contract.

Legislative History

Acts 1992, No. 384, §1, eff. June 18, 1992. Redesignated from R.S. 4:643 by Acts 1996, 1st Ex. Sess., No. 7, §3, eff. May 1, 1996; Acts 2001, 1st Ex. Sess., No. 1, §2, eff. Mar. 21, 2001; Acts 2019, No. 171, §1; Acts 2021, No. 408, §1, eff. July 1, 2021.