Net Proceeds (Gaming Law) Law and Legal Definition
Net Proceeds is generally the actual amount one receives after deducting all costs such as fees, taxes, and other related expenses incurred in a transaction that involves sale of goods, property, or securities. Net proceeds with regard to gaming is the amount that is available after deducting all expenses necessary for the conduct of the gaming, and managing the organization and amount of prizes, fees, and other related expenses.
The following is an example of state statute (New York) defining the term.
Pursuant to NY CLS Gen Mun § 186 (6)] "Net proceeds" shall mean (a) in relation to the gross receipts from one or more license periods of games of chance, the amount that shall remain after deducting the reasonable sums necessarily and actually expended for supplies and equipment, prizes, security-personnel, stated rental if any, bookkeeping or accounting services according to a schedule of compensation prescribed by the board, janitorial services and utility supplies if any, license fees, and the cost of bus transportation, if authorized by the clerk or department and (b) in relation to the gross rent received by an authorized games of chance lessor for the use of its premises by a game of chance licensee, the amount that shall remain after deducting the reasonable sums necessarily and actually expended for janitorial services and utility supplies directly attributable thereto if any”.
