Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR
Martinez, A./Dow/De La
Cruz
/Hernandez/Jones
LAST UPDATED
ORIGINAL DATE 2/7/2025
SHORT TITLE Gaming Act Definition Changes
BILL
NUMBER House Bill 241
ANALYST Gray
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
Gaming Control
Board
No fiscal impact No fiscal impact No fiscal impact
No fiscal
impact
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Gaming Control Board (GCB)
SUMMARY
Synopsis of House Bill 241
House Bill 241 (HB241) adds a definition of allowable gaming expenses and balance of net take
to the Gaming Control Act. The apparent effect reduces the distribution nonprofit gaming
operators make for charitable or educational purposes. See “Significant Issues.”
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns, or June 20, 2025, if enacted.
FISCAL IMPLICATIONS
The bill does not have a fiscal impact to the state but may have an impact on entities
policymakers have an interest in.
SIGNIFICANT ISSUES
The bill’s definitional changes impact 60-2E-47 Subsection G, which provides:
A nonprofit gaming operator licensee shall distribute at least twenty percent of the
balance of its net take, after payment of the gaming tax, any income taxes and allowable
gaming expenses, for charitable or educational purposes.
House Bill 241 – Page 2
Currently, the term “allowable gaming expenses,” is not defined in statute. However, it is defined
in rule. New Mexico Administrative Code 15.1.10.7 defines allowable gaming expenses as
follows:
"allowable gaming expenses" means the following bona fide expenses in reasonable and
customary amounts: license fees, including renewals and gaming machine license fees”
HB241 changes the definition of allowable gaming expenses to:
“allowable gaming expenses” means the following bona fide expenses in reasonable and
customary amounts:
purchase prices of non-cash prizes;
security and surveillance expenses;
independent accountant fees;
license fees, including renewals and gaming machine license fees;
utilities attributed to the licensed premises;
installment payments to an independent administrator or lease payments;
gaming device repair and maintenance;
gaming employees' salaries and employment taxes;
gaming supplies;
approved management fees; and
licensed premises repair and maintenance.
By expanding the definition of allowable gaming expenses from the definition in rule to the
definition in statute, nonprofit gaming operator licensees could be required to distribute less
toward charitable and educational purposes, as required by 60-2E-47 Subsection G.
The Gaming Control Board notes:
It is important to note that gaming at veteran and fraternal organization is called
charitable gaming. Charity and education support is the reason gaming was permitted in
these organizations. Gaming revenues provide these organizations with additional funds
to support charitable and educational needs of their members, communities, and local
charities while providing funds to support the operation of their organization.
The change to the definition of “balance of net take” is consistent with current rule.
BG/hg