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 establishes that a licensee or gaming operator can deduct either $5 million in promotional play wagers or a new percentage cap when calculating net gaming proceeds and gross revenue. The percentage cap will 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. The previous limit of $5 million directly attributable to promotional play wagers has been removed, allowing for a more flexible approach to deductions based on the percentage of taxable revenue. This change aims to provide gaming operators with greater financial leeway while ensuring that the state can still benefit from gaming revenues.

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