The chairman of a gaming task force said Thursday it would recommend that the Legislature allow riverboats to place slot machines on land up to 1,200 feet from the shore to generate more revenue and compete with casinos in Mississippi.
Ronnie Jones, the chairman of the Riverboat Economic Development and Gaming Task Force, announced the recommendation at a meeting of the Louisiana Gaming Control Board, which regulates the gaming industry.
Jones also chairs the Gaming Control Board. The task force had concluded its work and that the control board would not take any position on the proposed legislation since it is a regulator, he said.
Sen. Ronnie Johns, R-Lake Charles, also was on the task force and will be the primary author of the bills. While the task force limits its recommendations to riverboat gaming, Jones closed his remarks by stating he expects other legislation, including the possible exploration of sports betting.
Mississippi already permits riverboats to conduct gaming within 800 feet of the coast. By stretching that to 1,200 feet, the task force’s proposal would enable Louisiana’s 15 riverboat casinos to add more slot machines and gaming tables on land than their rivals in Mississippi.
The 15 riverboat licenses are spread across four main markets: Shreveport/Bossier City, Lake Charles, Baton Rouge, and New Orleans.
The gaming industry is the fourth largest contributor to the state’s budget, generating $3 billion to $4 billion annually in tax revenue for the state. The task force hopes to stir up more business at the 15 riverboat properties, which could ultimately help ease the state’s $1 billion budget shortfall.
Changes in gaming laws often run into opposition on religious or other grounds, and the riverboat casinos in Louisiana still would face other hurdles in competing with those in Mississippi.
Louisiana taxes riverboat casino profits at a rate of 21 percent, while casinos in Mississippi, properties only pay an 8 percent tax rate.
Each licensee would be required to submit a development plan to the Gaming Control Board before extending gaming on land.
“The riverboat licensees will not just be able to throw slot machines into a meeting room,” Jones said.
Back when Louisiana voters approved riverboat gaming in 1991, the campaign emphasized gaming as an antebellum nostalgia of paddle wheel boats taking patrons on day trips.
In reality, neither gamblers nor vessel captains wanted to sail. In fact, many riverboats are stuck in mud and unable to navigate through shallow waters.
Under state law, all 15 boats are still required to have an operating paddle wheel. Today, the antiquated paddle wheel requirement has given Louisiana the distinguished honor of being the last possible consumer of paddle wheels on the planet.
The task force also recommended changing the statutory definition of “gaming area.” The current cap on riverboat gaming areas is 30,000 square feet.
This description no longer meets the needs of today’s digital audience as gaming machines get larger and more interactive and include social media features. The task force recommends eliminating the square footage definition and basing the requirement on the number of machines.
