House Bill No. 542, introduced by Representative Jackson, amends existing Louisiana gaming laws to adjust the allowable deductions for promotional play offered by gaming operators. The bill specifies that a licensee may deduct promotional play wagers from their net gaming proceeds, gross revenue, and net slot machine proceeds, with a maximum deduction of $5 million or a percentage cap, whichever is greater. The percentage cap is set to increase over the next three years, starting at 4% of taxable revenue in 2026, rising to 7% in 2027, and reaching 10% in 2028 and beyond.

The bill also clarifies the definitions of "net gaming proceeds," "gross revenue," and "net slot machine proceeds" to include promotional play wagers received. This change aims to provide a more flexible framework for gaming operators in calculating their revenues while ensuring that the deductions remain capped at a reasonable level. The proposed law replaces the previous annual limit of $5 million directly attributable to promotional play wagers, allowing for a more dynamic approach to revenue calculations in the gaming industry.

Statutes affected:
HB542 Original: 27:44(15), 27:205(16)
HB542 Engrossed: 27:44(15), 27:205(16), 27:353(9)