§ 27:604 — License; limited; requirements; contract with platform provider

§604. License; limited; requirements; contract with platform provider
A.(1) No person, business, or legal entity shall operate a sports book without first
being licensed by the board.
(2) The license to engage in the business of operating a sports book shall be in
addition to any other license required by law.
B.(1) The board shall issue no more than twenty licenses to operate sports books.
The board shall first consider applications for licensing from the following:
(a) The casino gaming operator as defined in R.S. 27:205 and provided for in
Chapter 5 of this Title.
(b) The holder of a license as defined in R.S. 27:44 and provided for in Chapter 4 of
this Title.
(c) The holder of a license as defined in R.S. 27:353 and provided for in Chapter 7
of this Title, provided the holder of the license also has the approval of the Louisiana State
Racing Commission to apply to be licensed for a sports book.
(2) Should the sports wagering license held by an entity identified in Paragraph (1)
of this Subsection be surrendered, that entity may reapply, or a new entity identified in
Paragraph (1) of this Subsection may apply, for the sports wagering license within two years
of the board's acceptance of the surrender. Should the sports wagering license of an entity
identified in Paragraph (1) of this Subsection be revoked, any new entity approved by the
board to operate under a new license identified in Paragraph (1) of this Subsection shall have
the first option to apply for the sports wagering license within two years of the effective date
of the approval.
(3)(a) Should a license become available after the initial issuance, the board shall
notify any entity identified in Paragraph (1) of this Subsection who does not have a sports
wagering license about the available license and provide those entities an opportunity to
apply for the license by a certain date. If the number of applications determined by the board
to be eligible applicants exceeds the number of available licenses, the board shall provide for
a concealed bid process and issue the available licenses, in accordance with the board's
ranking of the bids, to the applicants that in the board's discretion have the greatest potential
for revenue generation for the state.
(b) Should a license become available after the initial issuance and entities identified
in Paragraphs (1) and (2) of this Subsection decline to apply or the number of available
licenses exceeds the number of entities identified in Paragraph (1) of this Subsection who are
interested, the board shall notify licensed establishments as defined in R.S. 27:402 and
provided for in Chapter 8 of this Title, any licensed establishment that is also licensed by the
Louisiana State Racing Commission with the commission's approval may apply to be
licensed to operate a sports book, and operators as defined in R.S. 27:302 and provided for
in Chapter 6 of this Title who do not have a sports wagering license about the available
license and provide those entities an opportunity to apply for the license by a certain date. If
the number of applications determined by the board to be eligible applicants exceeds the
number of available licenses, the board shall provide for a concealed bid process and issue
the available licenses, in accordance with the board's ranking of the bids, to the applicants
that in the board's discretion have the greatest potential for revenue generation for the state.
C. The board shall issue a license to operate a sports book only to an applicant
determined by the board to be suitable. In addition to the standards provided in R.S. 27:28,
in determining an applicant's suitability as a sports wagering licensee, the board may request
from an applicant, and consider as a factor in the determination, any or all of the following:
(1) The applicant's capitalization adequacy and the financial ability and means to
develop, construct, operate, and maintain infrastructure to support sports wagering activities
and operations in compliance with this Chapter and any administrative rules promulgated by
the board.
(2) The applicant's financial ability to purchase and maintain adequate liability and
casualty insurance and to provide an adequate surety bond.
(3) The applicant's capitalization adequacy and financial ability to responsibly pay
its secured and unsecured debts in accordance with its financing agreements and other
contractual obligations.
(4) The applicant's history of material noncompliance with licensing requirements
or any other regulatory requirements in the state or in any other jurisdiction, where the
noncompliance resulted in enforcement action by the person with jurisdiction over the
applicant.
(5) The applicant's filing or having filed against it a proceeding for bankruptcy, or
involvement in any formal process to adjust, defer, suspend, or otherwise negotiate the
payment of any debt.
(6) The applicant's being named as a defendant in litigation involving the integrity
of its business practices.
D. Each applicant shall submit as part of its application a detailed plan of design of
its sports book lounge and other areas of its establishment where sports wagering
mechanisms may be placed. The board shall issue a license only to an applicant whose
detailed plan of design the board finds acceptable.
E. The board shall issue not more than twenty licenses to applicants that meet the
provisions of this Section and all other qualifications and standards as determined by the
board.
F.(1) A licensee may operate the sports book itself or contract for operation of its
onsite or electronic wagering with a sports wagering platform provider. Only a licensee, or
its sports wagering platform provider on its behalf, shall process, accept, offer, or solicit
sports wagers.
(2) A licensee shall be responsible for the conduct of its sports wagering platform
provider.
G. Prior to beginning operations, an operator shall install and thereafter maintain a
computerized bookmaking system, referred to in this Chapter as a sports wagering platform,
that meets the specifications required by law and by rule and is approved by the board.

Legislative History

Acts 2021, No. 440, §1, eff. July 1, 2021; Acts 2023, No. 286, §1.