Louisiana Expands Racetrack Casino Promo Tax Breaks

One-year pilot raises deduction cap for promotional gaming credits

Louisiana’s four racetrack casinos can begin claiming larger tax deductions for promotional gaming credits starting Tuesday under a new one-year pilot program designed to measure the impact of increased marketing incentives on gaming revenue and tax collections.

State expects lower tax revenue during pilot year

According to estimates from the Legislative Fiscal Office, the expanded deduction is expected to reduce Louisiana’s state revenue by approximately $583,000 during fiscal year 2027, including nearly $575,000 from the state general fund.

The analysis also projects that around $281,000 may need to be transferred from the general fund to maintain statutory local funding distributions linked to racetrack gaming revenues.

Program limited to four racetrack casinos

The pilot applies exclusively to Louisiana’s four racetrack slot properties:

• Delta Downs Racetrack Casino Hotel
• Evangeline Downs Racetrack & Casino
• Fair Grounds Race Course & Slots
• Harrah’s Louisiana Downs

Promotional play includes complimentary slot credits and other incentives used by operators to attract and retain customers.

Mandatory reporting requirement included

As part of the program, participating facilities must submit a report by March 1, 2027 to state regulators and legislative committees detailing any additional slot machine revenue generated by the expanded promotional credits.

The report must also assess the effect of the program on both state and local tax collections, providing lawmakers with data before deciding whether to extend or broaden the initiative.

Unless renewed by the legislature, the pilot program will automatically expire on June 30, 2027.

Final legislation narrowed after revisions

The measure underwent substantial changes during the legislative process.

Representative Steven Jackson initially proposed a broader plan that would have gradually expanded promotional play deductions for all casino operators by linking them to a percentage of taxable gaming revenue beginning in 2027.

The final version, however, was scaled back to a one-year trial limited to racetrack slot facilities.

Bill overcame early legislative setbacks

The legislation faced several hurdles before becoming law, failing initial floor votes in both the House and Senate.

Lawmakers ultimately reached a compromise through a conference committee, allowing the measure to advance and become law without the governor’s signature.

State officials expect the pilot to reduce gaming tax collections in the short term, while the required reporting process will help determine whether the policy should continue beyond 2027.