§ 27:438 — Distribution of video draw poker device revenues; particular licensed establishments;

§438. Distribution of video draw poker device revenues; particular licensed establishments;
pari-mutuel wagering facilities
A.(1) The owner of the licensed establishment shall pay twenty percent of the net
video draw poker device revenue derived from the operation of video draw poker devices at
that licensed establishment and at its eligible off-track wagering facilities to the Horsemen's
Benevolent and Protective Association to be used to supplement purses for horsemen as
provided in Subsection B of this Section. The monies shall be remitted to the Horsemen's
Benevolent and Protective Association for use as purses monthly, prior to the twentieth day
of the month following the month in which they are earned.
(2) The Horsemen's Benevolent and Protective Association shall have a fiduciary
duty to all members and other horsemen in the state and all persons or entities that receive
purse supplements to preserve and account for the purse supplements. The account
containing the purse supplements transferred to the Horsemen's Benevolent and Protective
Association pursuant to this Subsection shall be subject to audit at all times by the legislative
auditor and shall be included in the annual audit required by R.S. 4:185.1. The licensee shall
have no fiduciary duty to the Horsemen's Benevolent and Protective Association, any
member or other horsemen, or any person or entity that receives purse supplements to
preserve and account for the transferred purse supplements and shall be indemnified against
any loss or other circumstance causing the amount of purse supplements to be less than what
the licensee transferred to the Horsemen's Benevolent and Protective Association.
B. Revenues earned for purse supplements under Subsection A of this Section shall
be disbursed, accounted for, and used as follows:
(1) Monies earned for purse supplements from video draw poker devices located at
an eligible racing facility or at an eligible off-track wagering facility shall be used for purse
supplements at the racing facilities of the owners of such facility where the net video draw
poker device revenues were earned. Where an eligible off-track wagering facility is jointly
owned, the monies earned for purse supplements at that facility shall be divided in direct
proportion to ownership of the facility for use at their respective racing facilities.
(2) At the licensed eligible facility located in Orleans Parish:
(a) Twelve and one-half percent of the monies earned for such purse supplements
shall be used to supplement purses for quarter horse races at that licensed eligible facility,
or as authorized by R.S. 4:147.1, up to a maximum of one million dollars per state fiscal
year, of which twenty-five percent for each state fiscal year shall be distributed to the
Horsemen's Benevolent and Protective Association, 1993 Inc., to be used to satisfy the
'Settlement Amount' of one million dollars, as defined in and pursuant to the Class Action
Settlement Agreement approved by the court in the lawsuit Soileau v. Churchill Downs La.
Horseracing Co., et al, Parish of Orleans, Civil District Court, Division G, No. 2014-3873.
(b) The remainder of the monies earned for such purse supplements shall be
allocated to purse supplements for thoroughbred horse races at that licensed eligible facility,
or as authorized by R.S. 4:147.1 per state fiscal year.
(3) For licensed eligible racing facilities required by law to run more than twenty
quarter horse racing days:
(a) Thirty percent of the monies earned for such purse supplements shall be used to
supplement purses for quarter horse races at that licensed eligible facility, or as authorized
by R.S. 4:147.1.
(b) Seventy percent of the monies earned for such purse supplements shall be used
to supplement purses for thoroughbred races as that licensed eligible facility, or as authorized
by R.S. 4:147.1.
(4) Monies earned for purse supplements in accordance with this Subsection shall
be in addition to all other monies currently provided for purses and purse supplements under
other provisions of law, shall be the net of sums payable to the Horsemen's Benevolent and
Protective Association, 1993 Inc., from purses and purse supplements in accordance with the
law, and shall be placed in the appropriate breed account, an interest bearing account, until
distributed in accordance with this Section.
(5) Monies earned for purse supplements from video draw poker devices, and
interest earned on such monies, shall be added to all other monies currently provided for
purses and purse supplements under other provisions of law and distributed as follows:
(a) The purses and purse supplements for thoroughbred races shall be used at the
eligible facility's current live thoroughbred race meet, or if live thoroughbred racing is not
being conducted, used at the eligible facility's next live thoroughbred race meet. All interest
earned on purses and purse supplements in accordance with this Section shall be for only
Louisiana bred races.
(b) The purses and purse supplements for quarter horse races shall be used at the
eligible facility's current live quarter horse race meet, or if live quarter horse racing is not
being conducted, used at the eligible facility's next live quarter horse race meet. All interest
earned on purses and purse supplements in accordance with this Section shall be for only
Louisiana bred races.
C. The division shall require all contracts between licensed device owners, operators,
or service entities and owners of licensed establishments offering pari-mutuel wagering to
be in writing and submitted to the division within ten days of signing. The division shall
promulgate rules and regulations necessary to require correct reporting and timely use of
those funds designated for use as horsemen's purses.
D. The provisions of this Section shall only apply to pari-mutuel wagering facilities.

Legislative History

Acts 1991, No. 1062, §1, eff. July 30, 1991; Acts 1993, No. 524, §1. Redesignated from R.S. 33:4862.18 by Acts 1996, 1st Ex. Sess., No. 7, §3, eff. May 1, 1996; Acts 2003, No. 1291, §1; Acts 2012, No. 161, §4; Acts 2014, No. 437, §2; Acts 2020, No. 342, §2, eff. July 12, 2022; Acts 2023, No. 261, §2; Acts 2024, No. 642, §2.