PART II. LICENSEE AND 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.

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