The April issue looks at the growing role of social media in the legislature, rainy day funds, policy changes for life insurance and much more.
State-operated casinos are taxed to support state services. Below is a listing of states with state-operated casinos and information regarding how much each state taxes and where the money goes.
Casino Tax Rate
Use of Income
Tax rate Adjusted gross proceeds
as of July 1, 2012 (AGP)
0.25% $0 - $2 million(M)
2% $2M - $5M
9% $5M - $8M
11% $8M - $10M
16% $10M - $13M
All revenues generated from gaming (gaming tax revenues along with license and application fees paid by casinos and other revenues) are placed in the Limited Gaming Fund (LGF).The LGF breaks down as follows:
Colorado also distributes additional gaming revenue as required by the passage of Amendment 50 (which expanded gaming prizes in the state).That revenue was broken out as follows:
56.23% revenue retained by state.
35% tax on slot machines
The slot machine revenue tax shall be paid to the division for deposit into the Pari-mutuel Wagering Trust Fund for immediate transfer by the chief financial officer for deposit into the Educational Enhancement Trust Fund of the Department of Education. Any interest earnings on the tax revenues shall also be transferred to the Educational Enhancement Trust Fund.
Admissions tax: $2 per person for patrons of Jumer’s Casino Rock Island. For all other casinos the admissions tax is set at $3 per person.
Admissions tax: $1 to host community, remainder to State.
Wagering tax revenues are deposited into the State Gaming Fund. They are computed as a percentage of Adjusted Gross Receipts (AGR), defined as gross receipts less winnings paid to bettors. The majority of revenues in the State Gaming Fund are transferred to the Education Assistance Fund, a general fund which can be used for any purpose relating to public education.
The General Assembly also provided that specified percentages of the revenues from the Rivers Casino in Des Plaines shall be paid to the Horse Racing Equity Fund (15% of total AGR); Chicago State University (2% of total AGR) and Cook County Criminal justice system (2% of total AGR).
Admissions Tax: $3
Wagering Tax: If riverboat made at least $75M in previous year; tax rates on adjusted gross receipts:
If riverboat made less than $75M in previous year; tax rate on adjusted gross receipts:
22.5% of adjusted gross receipts if the riverboat does not implement flexible scheduling
1. For riverboats in Dearborn, Harrison, LaPorte, Ohio, Switzerland and Vanderburgh counties:
2. For riverboats in Lake County:
5% - first $1 million of AGR
10% - next $2 million of adjusted gross receipts.
For AGR over $3 million:
If the licensee is a gambling boat – 22%
Racino with gambling boat in same county:
(1) If the license of the racetrack enclosure has not been issued a table games license during the fiscal year or if the AGR from gambling games of the licensee in the prior fiscal year were less than $100 million – 22%
(2) If the licensee of the racetrack enclosure has been issued a table games license during the fiscal year or prior fiscal year and the adjusted gross receipts from gambling games of the licensee in the prior fiscal year were $100 million or more, 22% on AGR received prior to the operational date and 24% on AGR received on or after the operational date.
Racino with no gambling boat in the same county – 24%
The wagering tax shall be distributed as follows:
a. 0.5% of the AGR shall be remitted to the treasurer of the city in which the dock is located.
b. 0.5% of the AGR shall be remitted to the treasurer of the county in which the dock is located.
c. 0.8% of the AGR shall be deposited in the county endowment fund
d. 0.2% of the AGR shall be deposited in a state miscellaneous fund
e. The remaining amount of the AGR tax shall be credited to the general fund of the state.
22% state tax, 3% local government tax and 2% tax to fund problem gambling treatment
Monies go to:
1.5% each of Boot Hill Casino’s revenue to Dodge City and Ford County; 1% each of Kansas Star Casino’s revenue to City of Mulvane, Sumner County, and Sedgwick County; 3% of Hollywood Casino’s revenue to the Unified Government of Wyandotte County & Kansas City, KS
Riverboat Casinos: 21.5%
Land-based casino: $60 million annual tax or 21.5% of gross gaming revenue, whichever is greater
Racinos: 18% of gross gaming revenue paid to horsemen; 18.5% of net to state taxes and 4% to local parish
General fund, city of New Orleans, public retirement systems, state capital improvements, rainy day fund
1% tax on handle, or the amount wagered; 39% tax on gross gaming revenue; 3% tax on gross gaming revenue to the city of Bangor
Education, health care, agriculture, gambling control board administration, city of Bangor, among other things. Complete breakdown here: http://www.maine.gov/dps/GambBoard/Financial.html
Gambling facilities are taxed at a rate of 67% of all gross gaming revenues
Maryland Education Trust Fund, Horse Racing Purse Dedication Account, Local Impact Grants $52,514,508.52 Racetracks Facility Renewal Accounts $19,876,061.22 Maryland Lottery $20,189,561.61 Small, Minority, and Women-Owned Business $14,323,111.39
- See more at: http://gaming.mdlottery.com/#sthash.BJCs72CH.dpuf
24% of AGR
Michigan has two wagering taxes. The first is 18% of AGR, and 8.1% of that goes to the state school aid fund. 9.9% goes to the city where the casino is located (in this case, Detroit).
An additional 6% tax was levied in 2004, with the following breakdown: 1/3 to the city in which the licensee's casino is located (for uses enumerated in statute), 7/12 to the general fund, and 1/12 to the Michigan agriculture equine industry development fund.
Monthly graduated tax on following amount:
Municipalities can impose an additional 4% tax on gaming revenues.
Housing, education, transportation, health care services, youth counseling programs, local public safety programs
21% tax on gross gaming revenue; $2 per patron admission fee, per excursion, split between home dock community and the state
Education, local public safety programs, compulsive gambling treatment, veterans' programs, early childhood programs
Graduated tax rate with a maximum tax of 6.75% on gross gaming revenue; additional fees and levies may be imposed by counties, municipalities and the state adding approximately 1% to the tax burden
Education, local governments, general fund, problem gambling programs
9.25% effective rate, including gross revenue tax (8%) and mandatory contribution to the Casino Redevelopment Agency (1.25%)
Senior citizens, disabled, economic revitalization programs
26% tax on gross gaming revenue; 20% to purse supplements; 0.25% to fund disordered gambling treatment and awareness
General fund, problem gambling treatment
Graduated effective tax rate beginning at 60%. Can go as high as 69%, depending on revenue.
33% on gross gaming revenues
Local governments, education, casino control commission, racing commission, law enforcement training, problem gambling and addictions
10-30% on gross gaming revenue
55% effective rate
Property tax relief, economic development, tourism, horse racing industry, host local government
Table Gaming: 18% tax rate
Video Lottery Terminals: 27.5% effective tax rate
9% effective tax rate and a device fee of $2000 per gaming machine
35% of AGR
Education, Racetrack Table Games Fund, Horse and Dog Racing Purses
Source: American Gaming Association, UNLV Center for Gaming Research, State financial reports
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