By Misty Castile | The Center Square
(The Center Square) – Louisiana’s four racetrack casinos can begin claiming larger tax deductions for promotional gaming credits Tuesday under a one-year pilot program that state fiscal analysts estimate will reduce state revenue by about $583,000.
House Bill 75, authored by Rep. Steven Jackson, D-Shreveport, increases the annual promotional play deduction available to eligible racetrack slot facilities from $5 million to $7 million through June 30, 2027. Promotional play includes complimentary slot credits and other incentives casinos use to attract patrons.
The bill became law without the governor’s signature as Act 963.
According to the Legislative Fiscal Office, the pilot is expected to reduce state revenue by approximately $583,002 during fiscal year 2027, including about $574,627 from the state general fund. The fiscal note also estimates the state will need to transfer about $280,816 from the general fund to ensure certain statutory local distributions tied to racetrack gaming do not receive less funding than they did in fiscal year 2026.
The pilot applies only to Louisiana’s four racetrack slot facilities: Delta Downs Racetrack Casino Hotel in Vinton, Evangeline Downs Racetrack & Casino in Opelousas, Fair Grounds Race Course & Slots in New Orleans and Harrah’s Louisiana Downs in Bossier City.
The program includes a built-in accountability measure. Participating facilities must submit a report by March 1, 2027, to the Louisiana Gaming Control Board, the Senate Committee on Judiciary B and the House Committee on Administration of Criminal Justice. The report must identify any additional net slot machine proceeds directly attributable to the enhanced promotional play and its effect on state and local tax collections. Unless lawmakers extend it, the pilot expires June 30, 2027.
The legislation underwent significant revisions before becoming law. Jackson’s original bill would have gradually expanded promotional play deductions for all casino gaming operators by tying the deduction to a percentage of taxable revenue beginning in 2027. The final version instead created a one-year pilot program limited to racetrack slot facilities.
The measure also faced a difficult legislative path. It failed on initial floor votes in both the House and Senate before lawmakers approved a compromise through a conference committee.
The Legislative Fiscal Office said the additional promotional play deductions are expected to reduce gaming tax collections during the pilot year. The required report will provide lawmakers with data on the program’s fiscal impact before they decide whether to continue or expand it beyond June 2027.