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 percentage cap based on their taxable revenue when calculating net gaming proceeds and gross revenue. The percentage cap will increase over the next three years, starting at 4% in 2026, rising to 7% in 2027, and reaching 10% in 2028 and beyond.

The bill also modifies the definitions of "net gaming proceeds," "gross revenue," and "net slot machine proceeds" to include promotional play wagers in the calculations. The previous law limited the deduction to $5 million annually, which has now been replaced with the option to use the percentage cap, thereby providing more flexibility for gaming operators in their financial reporting. The amendments aim to enhance the gaming industry's operational framework while ensuring compliance with state regulations.

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