N.M. Code R. § 15.1.8.16 – 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]