Net Take Computations

A. For each gaming machine, gross revenue equals the total of cash received from patrons for playing a game, cash received in payment for credit extended by a licensee to a patron for playing a game, and compensation received for conducting a game in which the licensee is not a party to the wager. Net take equals gross revenue less the total of all cash paid out as losses to winning patrons and those amounts paid to purchase annuities to fund losses paid to winning patrons over several years by independent administrators. In addition, if the licensee retains detailed documentation supporting the deduction, the licensee may deduct the actual cost to the licensee, its agent or employee, or an affiliate of the licensee, of any personal property (other than costs of travel, food, refreshments, lodging, or services) distributed to a patron as the result of a legitimate wager. B. The difference between the initial hopper load and the total amount that is in the hopper at the end of each business year shall be adjusted accordingly as an addition to or subtraction from the drop. If the licensee does not make, or makes inaccurate, additions to or subtractions from the drop, the audit and compliance services division may compute an estimated total amount in the slot machine hoppers and may make reasonable adjustments to gross revenue during the course of an audit. C. A licensee shall not exclude from gross revenue money paid out on wagers that are knowingly accepted by the licensee in violation of the act, this title, or other state or federal laws. D. If in any month the amount of net take is less than zero, the licensee may deduct the excess in the succeeding months until the loss is fully offset against net take. [12/31/98; 15.1.8.16 NMAC - Rn & A, 15 NMAC 1.8.16, 10/15/00; A, 2/28/05] 15.1.8.17 [RESERVED] [12/31/98; 15.1.8.17 NMAC - Rn, 15 NMAC 1.8.17, 10/15/00; A, 2/28/05; A, 6/30/08; Repealed, 10/15/15] 15.1.8.18 NONPROFIT LICENSEES; SEPARATE OPERATING ACCOUNTS: A. Nonprofit licensees shall establish and maintain a separate operating account exclusively for the deposit of all gaming funds. The account shall be in a financial institution that is licensed by the state, in a national bank with an office in the state, or in another financial institution acceptable to the board. The bank or other financial institution shall not be an affiliate of the nonprofit licensee. B. The operating account is subject to the following restrictions and requirements: (1) all net revenue after replenishment of imprest funds shall be deposited into the gaming operating account; (2) if required by the board, a nonprofit gaming licensee shall deposit all gaming funds into their gaming operating account after each drop and count; and, once the deposit is made, shall write a check back to the cashier cage or vault (if applicable) for replenishment; (3) by the end of the month, the required charity and educational funds shall be transferred from the operating account into the charity account; 15.1.8 NMAC 7 (4) by the end of the month, the required gaming tax shall be transferred from the operating account into the gaming tax account; (5) by the end of the month, any discretionary funds shall be transferred from the gaming operating account shall be transferred to the licensee’s general operating account; (6) after making the required tax, charity and discretionary fund transfers, the remaining funds in the gaming operating bank account are the property of the licensee. The balance in the gaming operating bank account shall not exceed twenty thousand ($20,000) dollars. All funds in excess of twenty thousand ($20,000) dollars shall be transferred to the license’s general operations bank account. The remaining funds in the gaming operating bank account balance shall be maintained as a cash reserve to replenish gaming funds, if needed; and (7) the nonprofit licensee shall maintain detailed records of all deposits into, and withdrawals and disbursements from, the operating account. C. A non-profit licensee shall not commingle gaming funds and other monies of the nonprofit licensee or use any monies in the operating account for any purpose other than the transfers as identified in this section. D. Non-profit licensees shall establish and maintain a separate charity and education bank account exclusively for the deposit of all required charitable and educational funds. The account shall be in a financial institution that is licensed by the state, a national bank with an office in the state, or in another financial institution accepted by the board. The bank or other financial institution shall not be an affiliate of the non-profit organization gaming operator licensee. E. The charitable and education account is subject to the following restrictions and requirements: (1) non-profit licensees shall deposit the required charity/educational percentage of net revenue (gross revenues less jackpot payouts) into their charity/educational account by the end of each month; (2) the non-profit licensee shall maintain detailed records of all deposits into, and withdrawals, and disbursements from, the charity/educational account; (3) monies in the charity/educational account shall be used exclusively for charitable and educational payments as set forth in the charity and educational guidelines; and (4) charitable/educational funds shall not be commingled with any other monies of the non- profit gaming licensee.