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Program D: Gaming Enforcement

Program Authorization: R.S. 4:166.5; R.S. 33:4861 et seq.; Act 752 of 1986; Act 443 of 1987; Act 767 of 1990; Act 753 of 1991; Act 1154 of 1995

PROGRAM DESCRIPTION

The mission of the Gaming Enforcement Program is to ensure the safety and security of the people in the state through enforcement, education, and provision of other essential public safety services.

The goal of the Gaming Enforcement Program is to maintain the integrity of the gaming industry.

The Gaming Enforcement Program has the following activities: Charitable Gaming Division, Racing Investigations Unit, Video Gaming Division, Indian Gaming Division, and Riverboat Gaming Division.

The Charitable Gaming Control Division licenses, educates, and monitors organizations conducting legalized gaming as a fund-raising mechanism. In addition, the division licenses, monitors, and educates manufacturers and distributors of gaming supplies. In addition, the Charitable Gaming Division promulgates rules and regulations relating to the registration and control of the manufacture, sale, distribution, transportation, and repair of gaming equipment with this state for use outside of this state; provides for the licensing of commercial lessors and related matters regarding electronic video bingo and progressive mega jackpot bingo.

The Office of State Police is charged with the responsibility of safeguarding the people of Louisiana against corrupt, incompetent, dishonest, and unprincipled horse racing practices. The Racing Investigations Unit of the Gaming Enforcement Program focuses on criminal cases involving violations of the law by licensees and others. The development of such cases is intended to help protect the revenue-producing potential of the pari-mutuel industry.

The Video Gaming Division is responsible for regulating, licensing, rulemaking, investigating, and revenue collecting with regard to legal gaming using computerized video draw poker devices.

The Indian Gaming Division is charged with preventing organized crime and other criminal elements from infiltrating and corrupting games of change on Indian land. Signed tribal compacts empower the Indian Gaming Division to regulate the gaming industry on Indian reservations. The division oversees the gaming operations, which requires it to approve all types of games, approve the rules of play, certify all gaming employees, certify all casino vendors, and enforce criminal statutes on the gaming floor.

The Riverboat Gaming Division regulates the games of change on riverboats throughout Louisiana. The division's responsibilities, in conjunction with the Gaming Control Board, include licensing the boats' owners and employees; monitoring the integrity of the games of change; overseeing internal security controls; auditing the licensees' financial books, and ensuring compliance with all rules and regulations.

OBJECTIVES AND PERFORMANCE INDICATORS

1. In FY 1998-99, the Gaming Enforcement Program, through the Charitable Gaming activity, will maintain the integrity of the charitable gaming industry by continuing to conduct investigations of wrongdoing.

2. By June 1999, the Gaming Enforcement Program, through the Video Gaming activity, will reduce late license submissions by 60% from the FY 1996-97 level (2,000).

1 The Gaming Enforcement Program recommends denial to the Louisiana Gaming Control Board.

3. In FY 1998-99, the Gaming Enforcement Program, through the Indian Gaming activity, will ensure compliance with the internal controls of the tribal/state compact by maintaining the number of specified casino inspections.

1 Indian casino operations include: Chitimacha in Charenton; Tunica-Biloxi in Marksville; and Coushatta in Kinder. The Act 18 projection included a possible fourth casino that did not materialize.

Explanatory Note: Violations found during inspections are not always written because the tribe has primary authority of routine day-to-day operations. The Gaming Enforcement Program does point such violations out to be corrected by the tribe.

4. In FY 1998-99, the Gaming Enforcement Program, through the Riverboat Gaming activity, will maintain the integrity of the riverboat casino industry by increasing inspections by 11%.

RESOURCE ALLOCATION FOR THE PROGRAM

SOURCE OF FUNDING

This program is funded with State General Fund, Self-Generated Revenue, and Statutory Dedications. The Self-Generated Revenues are derived from licenses and other fees and fines associated with regulation of the charitable gaming industry and from fees and other revenues from the Indian Casinos Regulatory Unit. The Statutory Dedications are derived from the Riverboat Gaming Enforcement Fund and from the Video Draw Poker Device Fund. (Per R.S. 39:32B.(8), see table below for a listing of expenditures out of each statutory dedicated fund.)

ANALYSIS OF RECOMMENDATION

GENERAL FUND

TOTAL

T.O.

 

DESCRIPTION

 

 

 

 

 

$91,663

$15,899,857

271

 

ACT 18 FISCAL YEAR 1997-1998

 

 

 

 

 

 

 

 

 

BA-7 TRANSACTIONS:

$197,200

$197,200

0

 

Carryforward for reimbursement of video draw poker applicants license fees

 

 

 

 

 

$288,863

$16,097,057

271

 

EXISTING OPERATING BUDGET - December 10, 1997

 

 

 

 

 

(197,200)

($197,200)

0

 

Non-Recurring Carryforward for reimbursement of video draw poker applicants license fees

$0

($687,221)

0

 

Equipment/Major Repairs Adjustment(s)

$0

$208,043

0

 

Annualization of 1997 -'98 Merit Pay Adjustment(s)

$0

$142,095

0

 

1998 -'99 Merit Pay Adjustment(s)

$0

($260,648)

(9)

 

Personnel Reduction(s)

$0

($449,200)

0

 

Attrition Adjustment(s)

($7,693)

($7,693)

0

 

Retirement Rate Adjustment(s)

$319,445

$319,445

0

 

Salary increase for commissioned personnel

$0

($10,163)

0

 

Transfer Civil Service/Comprehensive Public Training Program expenditures to the Operational Support Program

$748,800

$0

0

 

Means of financing substitution - replace self-generated revenue with state general fund

 

 

 

 

 

$1,152,215

$15,154,515

262

 

TOTAL RECOMMENDED

 

 

 

 

 

$863,352

($942,542)

(9)

 

DIFFERENCE (TOTAL RECOMMENDED AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 94.1% of the existing operating budget. It represents 88.3% of the total request ($17,147,563) for this program. The increased general fund is primarily due to increased funding for a salary increase for commissioned personnel and the means of financing substitution where state general fund replaced statutory dedication from the Riverboat Gaming Enforcement Fund. The decrease in the total means of financing is primarily due to the removal of funding for non-recurring carryforwards and non-recurring acquisitions, along with the elimination of nine(9) vacant positions.

PROFESSIONAL SERVICES

$50,691

 

Independent auditing and accounting services for Charitable Gaming Unit

$28,320

 

Medical and psychological testing and counseling for troopers

$120,000

 

Testing of slot machines to verify honesty

$57,715

 

Fees for specialized attorneys ( e.g. bankruptcy, gaming)

 

 

 

$256,726

 

TOTAL PROFESSIONAL SERVICES

OTHER CHARGES

$240,757

 

Troopers receive $4.50 per workday for cleaning and maintaining uniforms and $17.85 monthly standard allowance ($2.50 per month for foot wear, and $15.35 monthly for ammunition and batteries)

$64,303

 

In-service training for commissioned personnel at State Police Academy

$587,500

 

Monies used for investigative undercover work by specialized investigative support units

$50,000

 

Witness fees

 

 

 

$942,560

 

TOTAL OTHER CHARGES

 

 

 

 

 

Interagency Transfers:

$109,771

 

Salaries and related benefits for attorneys in the Attorney General's Office working on electronic video bingo and Indian Casino gaming cases

$181,499

 

Transferred to Management and Finance for personal services, printing, postage, telephone, utilities, maintenance, etc.

 

 

 

$291,270

 

TOTAL INTERAGENCY TRANSFERS

ACQUISITIONS AND MAJOR REPAIRS

$1,109,192

 

Fifty-six replacement vehicles

 

 

 

$1,109,192

 

TOTAL ACQUISITIONS AND MAJOR REPAIRS


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