Business Law Blog

Understanding the Licensing Requirements for Video Poker Gaming in Louisiana

Posted by Amanda Butler Schley | Jun 16, 2025 | 0 Comments

Louisiana's video poker industry is highly regulated under state law, primarily administered by the Louisiana Gaming Control Board (LGCB) and enforced by the Office of State Police, Gaming Enforcement Division. Anyone seeking to engage in video poker gaming — whether as a premises owner offering machines to customers or as a manufacturer/distributor supplying machines — must obtain the appropriate license and comply with detailed eligibility requirements.

This article summarizes the key requirements and considerations for two major categories of applicants: premises owners/operators (retailers) and manufacturers/distributors.


I. Licensing Requirements for Premises Owners (Retailers)

Premises owners include businesses that offer video poker devices to the public as part of their operations, such as truck stops, bars, restaurants, hotels, and certain qualified facilities.

A. Eligibility Criteria

To qualify for a video poker license, the premises and its owners must meet the following:

  1. Business Qualification

    • Must hold a valid state alcoholic beverage permit.

    • Business must fall into one of the authorized facility types under La. R.S. 27:402(11), such as:

      • Licensed restaurants

      • Licensed bars

      • Hotels with a certain number of rooms

      • Truck stop facilities meeting fuel sales and acreage requirements

      • Off-track betting facilities or pari-mutuel wagering facilities

  2. Character and Fitness of Applicants
    All owners, officers, directors, partners, members, shareholders (with certain ownership thresholds), and key employees must:

    • Be at least 21 years old.

    • Submit to full criminal background checks.

    • Disclose personal, financial, and business histories.

    • Demonstrate good character, honesty, and integrity.

    • Avoid disqualifying criminal convictions (e.g., felonies involving dishonesty, theft, fraud, gaming offenses, etc.).

  3. Financial Suitability

    • Applicants must disclose financial information to prove sufficient capitalization and lawful sources of funds.

    • Any indebtedness or prior bankruptcies will be reviewed.

  4. Premises Suitability

    • The proposed gaming area must comply with location restrictions (e.g., distance from schools, churches, and playgrounds).

    • Security, surveillance, and signage requirements must be met.

B. Application Process

  • Complete the Class A Video Draw Poker Device License Application.

  • Submit all required documentation for all individuals and entities with ownership or control interests.

  • Pay required fees, which include:

    • Application fees (non-refundable)

    • Licensing fees (upon approval)

  • Consent to site inspections and interviews.

  • Provide detailed floor plans and security layouts.

C. Ongoing Compliance

  • Maintain good standing with state and local regulatory authorities.

  • File periodic reports with the LGCB.

  • Renew licenses annually.

  • Ensure devices are operated only by authorized personnel.


II. Licensing Requirements for Manufacturers and Distributors

Manufacturers and distributors are those who make, sell, lease, or distribute video draw poker devices in Louisiana.

A. Manufacturer License Requirements

A manufacturer produces, assembles, programs, or modifies video poker devices.

  1. Corporate Qualification

    • Entity must be properly registered to conduct business in Louisiana.

    • Must have established manufacturing and service capabilities.

  2. Character and Fitness

    • All owners, officers, directors, and key employees undergo comprehensive background investigations.

    • No disqualifying criminal history.

    • Disclosure of financial records, business affiliations, and prior gaming experience.

  3. Technical Standards Compliance

    • Devices must meet approved technical specifications as tested and certified by independent laboratories approved by the Louisiana State Police.

    • All devices must include internal control features and auditing capabilities.

B. Distributor License Requirements

A distributor buys and sells video poker devices but does not manufacture or modify them.

  1. Corporate Qualification

    • Louisiana registration required.

    • Proof of lawful ownership and control of devices.

  2. Character and Fitness

    • Background checks for owners, officers, directors, and key employees.

    • Complete financial disclosure.

  3. Sales Restrictions

    • May only sell or lease to licensed operators within Louisiana.

    • Devices must have been approved for use by the State Police.

C. Application Process for Manufacturers and Distributors

  • Submit the Manufacturer or Distributor License Application.

  • Complete personal disclosure forms for all key individuals.

  • Pay all associated fees.

  • Provide detailed business plans, contracts, and device specifications.

  • Allow site inspections and audits.

D. Ongoing Compliance

  • File updated reports of ownership changes, contracts, and financial disclosures.

  • Renew licenses annually.

  • Cooperate with inspections and audits by State Police and LGCB.

  • Maintain records of all device sales, leases, and placements.


III. Enforcement and Penalties

Both retailers and manufacturers/distributors are subject to strict enforcement:

  • Violations may result in fines, suspension, or revocation of licenses.

  • Criminal penalties may apply for unlawful gaming activity.

  • The LGCB maintains broad authority to oversee all aspects of gaming operations.


Conclusion

Obtaining and maintaining a video poker license in Louisiana involves a detailed, document-intensive process focused on ensuring the integrity of gaming activities. Applicants must be fully transparent and prepared for thorough scrutiny of their financial, criminal, and business histories.

Prospective applicants are strongly advised to engage experienced legal counsel familiar with Louisiana gaming law to assist in preparing applications and navigating regulatory requirements.

About the Author

Amanda Butler Schley

Ranked as a Top Rated Business and Commercial Attorney, I have more than a decade of experience representing boutique hotels, family-owned businesses, privately owned restaurants, breweries, artists, executives and entrepreneurs.

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