§241. Board to let contract to conduct casino gaming operations; bid specifications; compensation of casino gaming operator; contract renewal

            A.(1) Notwithstanding any provision of law to the contrary, the board of directors shall publicly advertise, offer, and let, in accordance with the provisions of this Chapter, a contract to conduct casino gaming operations at a single official gaming establishment to be located upon the site of the Rivergate Convention Center in Orleans Parish. The initial term of the contract and any option to extend or renew the initial term of the contract may not exceed a total of twenty years primary term and one ten-year renewal option except as provided in this Subsection. The contract or renewal option to conduct casino operations shall not be subject to sale, alienation, assignment, or transfer by the casino gaming operator except as provided for in this Chapter.

            (2)(a) Notwithstanding any law to the contrary, upon meeting the requirements of Subparagraph (b) of this Paragraph and upon a showing that additional renewals of the casino operating contract will benefit the economy of the state, encourage the continued growth of tourism, and promote the stability of casino operations at the land-based casino, and subject to the approval of any change in terms of the casino operating contract by the Joint Legislative Committee on the Budget and the approval by the New Orleans City Council, the mayor of the city of New Orleans, and the casino operator of all matters necessary to implement the provisions of the extension, the Louisiana Gaming Control Board shall approve and enter into additional thirty-year renewal terms of the casino operating contract, in addition to the initial term and the ten-year renewal term, subject to compliance with the provisions of this Chapter.

            (b) Prior to July 15, 2024, the casino operator shall make a capital investment on or around the official gaming establishment of three hundred and twenty-five million dollars, subject to an extension for any force majeure event, including any lawsuit, that delays construction, provided however, that in order for such extension to take place, the casino operator shall be required to post a bond or put monies in escrow to ensure satisfaction of the mandated capital spend and shall be required to proceed with construction immediately upon the cessation of the force majeure event.

            (3) The thirty-year renewal term, extending the casino operating contract to July of 2054, shall contain provisions that do all of the following:

            (a) As provided in R.S. 27:247, require the casino operator to annually pay directly to the governing authority of the parish where the official gaming establishment is located a sum of money as set forth in R.S. 27:247 to compensate the parish for the cost to the parish for providing support services resulting from the operation of the official gaming establishment and activities therein.

            (b) As provided in R.S. 27:241.1(B), require the casino operator to annually pay to the Louisiana Gaming Control Board a sum of money as set forth in R.S. 27:241.1(B), in addition to the existing obligation to remit to the Louisiana Gaming Control Board any fees or compensation, including compensation paid to the Louisiana Gaming Control Board pursuant to R.S. 27:241.1(A).

            (c) As provided in R.S. 27:241.1(C), require the casino operator to pay to the Louisiana Gaming Control Board an annual license payment as set forth in R.S. 27:241.1(C), in addition to the existing obligation to remit to the Louisiana Gaming Control Board any fees or compensation, including compensation paid to the Louisiana Gaming Control Board pursuant to R.S. 27:241.1(A) and (B).

            (d)(i) Notwithstanding any provision of law to the contrary, the casino operator shall pay a sum of twenty-five million dollars to the state and to the city of New Orleans to be paid and dispersed pursuant to the provisions of Item (ii) of this Subparagraph.

            (ii) Seventy percent shall be paid to the state and thirty percent shall be paid to the city of New Orleans no later than ten days after all of the following occur:

            (aa) Approval by the Joint Legislative Committee on the Budget of the amended casino operating contract.

            (bb) Approval by the New Orleans City Council of an amended lease that reflects the parties' mutual understanding and economic development requirements consistent with this Chapter.

            (cc) The execution of the amended casino operating contract reflecting the renewal of the contract through July of 2054.

            (e) Notwithstanding any provision of law to the contrary, at such time as the real estate investment trust option holder, hereinafter referred to as "option holder", exercises, prior to October 1, 2020, its call option to the leasehold interest in the official gaming establishment, the casino operator shall pay a sum of forty million dollars, seventy percent of which shall be paid to the state and thirty percent of which shall be paid to the city of New Orleans, in three installments as follows:

            (i) Twenty million dollars to be paid no later than ten days after the exercise of the call option if the following conditions have been fulfilled at the time of the exercise of the call option, or if the conditions have not been fulfilled at the time of the exercise of the call option, payment shall be made no later than ten days after the fulfillment of the following conditions:

            (aa) Approval by the Joint Legislative Committee on the Budget of the amended casino operating contract.

            (bb) Approval by the New Orleans City Council of an amended lease that reflects the parties' mutual understanding and economic development requirements consistent with this Chapter, and all approvals necessary for the assignment of the lease of the official gaming establishment or sublease to the option holder provided that there are no further requirements for remuneration to be paid or further concessions to be made by the casino operator or the option holder to the city of New Orleans in connection with the approval of the assignment of the lease of the official gaming establishment or sublease to the option holder, except as provided in this Chapter.

            (cc) The execution of the amended casino operating contract reflecting the renewal of the contract through July of 2054.

            (ii) Ten million dollars on the first anniversary of the date on which the payment was made pursuant to Item (i) of this Subparagraph.

            (iii) Ten million dollars on the second anniversary of the date on which the payment was made pursuant to Item (i) of this Subparagraph.

            (f) Notwithstanding any provision of law to the contrary, if the call option to the leasehold interest in the official gaming establishment is not exercised by October 1, 2020, the casino operator shall pay a sum of forty million dollars, seventy percent of which shall be paid to the state and thirty percent of which shall be paid to the city of New Orleans, in three installments as follows:

            (i) Twenty million dollars to be paid no later than ten days after October 1, 2020.

            (ii) Ten million dollars on the first anniversary of the date on which the payment was made pursuant to Item (i) of this Subparagraph.

            (iii) Ten million dollars on the second anniversary of the date on which the payment was made pursuant to Item (i) of this Subparagraph.

            B. The board shall devise a bid containing such specifications and requirements for the conducting of casino gaming operations as it determines will maximize economic development and revenues to the state from such operations and accomplish and promote the public policies set forth in this Chapter. Such bid may contain specific requirements or limitations regarding the location, quantity, and nature of games and gaming devices, hours of operation, security and internal control, the granting of credit to patrons, acquiescence in proposed rules and regulations and express resolutory conditions, and provisions providing for reciprocal remedies, rights, and damages upon breach and cancellation.

            C. The bid let by the board shall require a minimum compensation to be paid to the corporation of eighteen and one-half percent of gross revenues, or one hundred million dollars annually, whichever is greater. The bid shall allow an applicant to offer a proposal for compensation of a higher percentage of gross revenues, or a higher fixed dollar amount.

            D. The bid may also request and allow consideration of proposals which provide for construction of different kinds of an official gaming establishment (the official gaming establishment must provide at least one hundred thousand square feet of usable space in a single structure), the creation of specific numbers of jobs, services to be provided to the state, local government, or the corporation, investment of specified amounts in construction and development, and such other factors or items which the board deems to be in furtherance of the objectives of this Chapter.

            E. The bid let shall state or list the factors which the board will use in evaluating the proposals to conduct casino gaming operations and the approximate weight each factor will receive in selecting the winning proposal. Assumptions regarding probable patronage of the official gaming establishment, revenue or play for each kind of game or gaming device, estimated payout to patrons, and expenses of the casino operator may be made and utilized in determining bid specifications and the award thereof. If such assumptions are to be utilized by the board in the evaluation and comparison of the bids submitted, they shall be stated in the bid offered by the president.

            F. The board shall select the bid which in its opinion accomplishes the objectives of this Chapter, including revenue to the corporation, as evaluated and weighted according to the terms of the bid.

            G. The casino operating contract shall provide that the contract is exclusive and that no other official gaming establishment shall be contracted or licensed in the same parish during the term of the casino operating contract or any renewals or extensions thereof.

            H.(1) In the event that, at any time while the casino operating contract is in effect, through or as a result of the action of any or all or any combination of the legislature, the state of Louisiana, or any political subdivision or agency thereof, the corporation, any law enforcement entity, authority, or persons, or any other entities, authorities, persons, firms, or corporations, one or more land-based casino gaming establishments in addition to the single casino gaming operation provided for by this Chapter are authorized to operate in the parish of the official gaming establishment, the casino operating contractors shall be relieved of the obligation to remit to the corporation the compensation required under the provisions of the Casino Gaming Operating Contract. For purposes of this Section, the conduction of gaming operations upon riverboats in accordance with the Louisiana Riverboat Economic Development and Gaming Control Act or otherwise while upon a designated waterway while temporarily at dockside, video poker operations authorized pursuant to the Video Draw Poker Devices Control Law, authorized charitable gaming activities, lottery games conducted pursuant to the provisions of the Louisiana Lottery Corporation Law, pari-mutuel wagering as authorized by the provisions of Chapter 4 of Title 4 of the Louisiana Revised Statutes of 1950, and any other form of gambling or gaming not prohibited when the casino operating contract is executed shall not constitute the authorization of additional land-based casino gaming operations which relieves the casino gaming operator of payment of compensation to the corporation. Nothing in this Subsection shall be construed to authorize dockside gaming.

            (2) In the event that litigation arises between the casino gaming operator and either the corporation or the state of Louisiana or any of its political subdivisions, the casino gaming operator shall continue to make all payments to the corporation and to the state of Louisiana and any of its political subdivisions as required by law during the pendency of such litigation. In addition to any other legal remedies, failure to make the required payments shall render the casino gaming operator unsuitable.

            I. In addition, the casino gaming operator shall have the further right and be further entitled to obtain and be granted specific performance of the casino operating contract.

            J. The bid issued by the board and the proposal selected may authorize the casino operator having the winning proposal to conduct limited temporary gaming operations in the parish where the official gaming establishment is located, at a location designated by the casino operator and approved by the board. The conducting of such temporary gaming operation may be considered by the board in selecting a final proposal with compensation to the corporation and the state being not less than twenty-five percent of gross revenues with the remainder to the casino operator the net proceeds therefrom after deducting operating expenses to be utilized to perform and complete the obligations of the operator as contained in the casino operating contract and proposal. Temporary gaming operations shall cease upon the commencement of gaming operations at the official gaming establishment.

            Acts 1992, No. 384, §1, eff. June 18, 1992; Acts 1996, 1st Ex. Sess., No. 62, §1. Redesignated from R.S. 4:641 by Acts 1996, 1st Ex. Sess., No. 7, §3, eff. May 1, 1996; Acts 2019, No. 171, §1.