Better rules in states with lower Taxes

[Dyepaintball12]

Hey,

I am taking a casino class right now at Michigan State, and we ran through the list of states with casinos and the corresponding tax rate for the casinos.

My Prof then said something I had never thought about before:

"Casinos in states with lower tax rates have better rules on their games"

Has anyone found this to be true?


Thanks,

David

 

[creeping panther]

David

Hey,

I am taking a casino class right now at Michigan State, and we ran through the list of states with casinos and the corresponding tax rate for the casinos.

My Prof then said something I had never thought about before:

"Casinos in states with lower tax rates have better rules on their games"

Has anyone found this to be true?


Thanks,

David

Of course, that is only common economic sense. Take a look around those many Michigan Native casinos that pay NO state taxes, and with the exception to the ABOMINATION called Soaring Eagle, most all have respectable to fine games and rewards systems.

CP

 

[shadroch]

I have little to no idea what various states tax casinos at,so I can't answer the question. I'd be curious to see such a list.

 

[QFIT]

Las Vegas has BJ rules that run the gamut from S17, DAS, LS, RSA to 6:5 BJ. Does the tax rate change when you walk across the street? Or, in some cases when you walk across the room. And does he talk of taxes aimed at casinos, or all state taxes, or all taxes, or all regulations? Also, comparing tribal with non-tribal casinos makes the definition of "taxes" difficult. And how does he count per hand fees charged in some states. How does he reconcile the effect of different table limits - like the $5 max in Colorado casinos. How is casino size factored in? How about casino density and proximity to population and available rooms? The huge variations in other costs like real estate, construction and labor pool? Local economic conditions? What percentage of revenue is from the casino alone, or high-end shops and facilities, or conventions?

Sounds like the Prof has an agenda.

 

[Guynoire]

Which tax are you talking about?

Are you talking about taxes on the individual or taxes on the casino? Nevada has no state income tax precisely because the state taxes gambling revenues. New Jersey is more socialist and has higher taxes on the individual but gambling revenues isn't nearly as large a percentage of the budget as Nevada.

 

[EasyRhino]

It may depend on the tax structure, too. If the taxes are based on the total win or if some sort of tax or fee is levied "off the top" from revenues instead of profits.

I know that in california most of the compacts tend to have an escalating tax rate the more slot machines are installed. One local tribe (Sycuan) actually delayed ratifying a new compact because I guess it would have cost them more money even before they installed the additional slots.

I think supply and demand probably make a much bigger difference than taxes, though.

 

[Billy C1]

Residency

Are you talking about taxes on the individual or taxes on the casino? Nevada has no state income tax precisely because the state taxes gambling revenues. New Jersey is more socialist and has higher taxes on the individual but gambling revenues isn't nearly as large a percentage of the budget as Nevada.

Wisconsin and most other midwestern states don't let you itemize (deduct) gambling loses against wins, which needless to say, raises hell with your EV.
This is the main reason that I'm planning a residency change.

Billy C1

 

[cardcounter0]

Hey,

I am taking a casino class right now at Michigan State, and we ran through the list of states with casinos and the corresponding tax rate for the casinos.

My Prof then said something I had never thought about before:

"Casinos in states with lower tax rates have better rules on their games"

Has anyone found this to be true?


Thanks,

David

Yes, there are other factors, but certainly the State Tax Rate has a lot to do with it. Compare IL casinos with MO casinos right across the river in St. Louis. IL has a heavy tax rate approaching 50% compared with MO more reasonable rates. IL boats are packed with slots the sure money makers, and the table games have high minimums, $25 usually being the lowest. While in MO $5 and $10 games are common. IL simply cannot afford to pay a dealer to run games with such low stakes. Also, IL casino rarely have poker rooms, despite the current on-going poker boom. All the MO casinos have a thriving poker business, IL casinos can't spare the floor space for a poker room vs more slot machines to help pay the taxes and give shareholders the return they are expecting.

 

[Blue Efficacy]

Yes, there are other factors, but certainly the State Tax Rate has a lot to do with it. Compare IL casinos with MO casinos right across the river in St. Louis. IL has a heavy tax rate approaching 50% compared with MO more reasonable rates. IL boats are packed with slots the sure money makers, and the table games have high minimums, $25 usually being the lowest. While in MO $5 and $10 games are common. IL simply cannot afford to pay a dealer to run games with such low stakes. Also, IL casino rarely have poker rooms, despite the current on-going poker boom. All the MO casinos have a thriving poker business, IL casinos can't spare the floor space for a poker room vs more slot machines to help pay the taxes and give shareholders the return they are expecting.

Could MO really have many $25 tables? What with the buy in limit and all?

 

[cardcounter0]

The buy-in rule is easily gotten around. It is $500 every two hours, but you can buy $500 1 minute before the two hour set period, and then buy in for another $500 a minute later. Then 2 hours later buy-in for $500 more. Most regulars don't cash out, they just bring chips from previous sessions which would not count as a buy-in. Or buy in for $500, bring $500 in chips with you, go eat, buy-in for $500 more two hours later.

 

[EasyRhino]

Any IL casinos near Chicago have the ease of preying on the Chicago market, which will have a larger proportion of degenerate gamblers, and, I am guessing, have less competition than the st louis market. This is another easy reason they can stick it to the gamblers.

For instance, I noticed fairly little difference between the casino in Alton (Afton?), IL (closest to STL), and the st Louis riverboats.

 

[GeorgeD]

Not sure what tax rate you mean, but the native casinos in New York give a percentage of the slots to be split between the city and state. I don't think they pay on table games. At other locations the tribes sell smokes and h=gasoline on which they pay no tax

The games suck mostly because of 8 deck and not beat pen .. otherwise DOA, DAS S17