Mississippi Administrative Code
Title 35 - Department of Revenue
Part 5 - Gaming
Subpart 04 - Taxation
Chapter 01 - Gross Revenue Subject to Taxation
Section 35-5-04-01-100

Universal Citation: MS Code of Rules 35-5-04-01-100

Current through September 24, 2024

Gross revenue subject to taxation includes cash received as winnings, cash received for credit extended to a patron for purposes of gaming, and compensation received for conducting any game in which the licensee is not party to a wager, less cash paid out as losses to patrons or amounts paid to purchase annuities to fund losses paid to patrons over several years by independent financial institutions.

1. For each table game, gross revenue equals the closing bankroll plus credit slips for cash, chips, or tokens returned to the casino cage, plus drop, less opening bankroll and fills to the table.

2.

a. For each slot machine, gross revenue equals drop less fills to the machine, jackpot payouts, and, if the licensee retains detailed documentation supporting the deduction, the actual cost to the licensee of any personal property (other than costs of travel, food, lodging, services, food and beverages) provided for or distributed to a patron as winnings.

b. The initial hopper load is not a fill and does not affect gross revenue. The difference between the initial hopper load and the total amount that is within a hopper when hopper loads are tested will be an adjustment to gross revenue. The taxpayer/licensee may appropriately adjust gross revenue, no less than quarterly, when a test of the hopper loads was made and such adjustment made to the books and records of the taxpayer/licensee. Each taxpayer/licensee is required to submit for approval and maintain on file with the MSTC the sampling methods and testing schedules employed to determine the hopper adjustments and include such methodology in their written system as provided to the MSTC. When hopper adjustments are made, the taxpayer/licensee must maintain all supporting documentation for the adjustments in accordance with the record retention requirements found in the MSTC Regulations for Gaming Establishments. The taxpayer/licensee must make these records available to the designated agent of the Chairman of the MSTC upon request. If the licensee does not maintain adequate support for the adjustment, or makes inaccurate additions or subtractions to gross revenue, the MSTC may calculate and determine an estimated total amount in the slot machine hoppers and make reasonable adjustments to gross revenue during the course of an audit.

3. For each counter game, gross revenue equals the money accepted by the licensee on events or games that occur during the month or will occur in subsequent months less money paid out during the month to patrons on winning wagers; or the money accepted by the licensee on events or games that occur during the month plus money, not previously included in gross revenue, that was accepted by the licensee in previous months on events or games occurring in the month, less money paid out during the month to patrons on winning wagers.

4. For each card game and any other game in which the licensee is not a party to a wager, gross revenue equals all money received by the licensee as compensation for conducting the game.

5. A licensee shall not include either shill win or shill loss in gross revenue computations.

6. A licensee shall not exclude money paid out on wagers that are knowingly accepted by the licensee in violation of Gaming Control Act or the regulations of the Mississippi Gaming Commission or State Tax Commission from gross revenue.

7. If in any month the amount of gross revenue is less than zero, the licensee may deduct the excess in the succeeding months, until the loss is fully offset against gross revenue.

8.

a. Counterfeit money or tokens, foreign currency received in gaming devices, and cash taken in fraudulent acts perpetrated against a licensee for which the licensee is not reimbursed, are not included in gross revenue.

b. Any of the above items which were previously excluded from gross revenue, but were reimbursed at a later date, must be included in the next month's gross revenue license fee return.

9. Cash received as entry fees for contests or tournaments in which the patrons compete for prizes are not included in gross revenue, nor are cash or the value of noncash prizes awarded to patrons awarded to patrons in a contest or tournament considered losses.

10. All revenue received from any game or gaming device which is leased for operation on the premises of the licensee-owner to another person other than the owner, or which is located in an area on such premises which is leased by the licensee-owner to any such person, must be included as part of the gross revenue of the licensee-owner.

11. Any prizes, premiums, drawings, benefits or tickets which are redeemable for money, merchandise or other promotional allowance may not be deducted as losses from any game except a slot machine. When awards or prizes awarded to patrons are determined by points or credits earned by the players, a deduction from gross revenue may be allowed only when the award or prize is a direct result of slot machine play and when the points or credits accumulated are determined by coin out. In calculating gross revenue from slot machines, the actual cost to the licensee of any merchandise awarded to the patron shall be the basis of the deduction for any non-cash items. The value of accrued points or credits as stated above may not be deducted from gross revenue until such time as the said points are redeemed by the patron. In the computation of gross revenue at a table game, there is no authority or allowance to deduct any type of promotional play.

Disclaimer: These regulations may not be the most recent version. Mississippi may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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