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Casino Tax and Expenditures, 2013

2013 Casino Tax and Expenditures

Jon Griffin 1/3/2014

Dice, credit card and keyboardState-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.

State

Casino Tax Rate

Use of Income

Colorado

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:

  • 50% to the “state share,” which was statutorily distributed to: the State General Fund, the Local Government Limited Gaming Impact Fund, the Colorado Travel and Tourism Promotion Fund, the Bioscience Discovery Evaluation Cash Fund, the Innovative Higher Education Research Fund, and the Creative Industries Cash Funds
  • 28% to the State Historical Fund; of which 20% (of the 28%) distributed by the State Historical Society to the governing bodies of Cripple Creek, Central City and Black Hawk (in proportion to the revenues generated in the respective cities) and 80% (of the 28%) used for historic preservation and restoration throughout the state
  • 12% to Gilpin and Teller counties (in proportion to the AGP generated in the respective counties)
  • 10% to the towns of Cripple Creek, Central City and Black Hawk (in proportion to the AGP generated in the respective towns)

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:

  • 78% to the state’s public community colleges, junior colleges and local district colleges to supplement existing state funding
  • 12% to Gilpin and Teller counties in  proportion to AGP generated in each county
  • 10% to the cities of Black Hawk, Central and Cripple Creek in proportion to AGP generated in each city

Delaware

56.23% revenue retained by state.

  • 66.1% of the revenue is paid to the three tracks as commissions for operating the games.
  • 29.4% is contributed to the State General Fund to help pay for state services.
  • 4.5% goes toward increasing the size of the horse race purses.

Florida (slots)

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.

Illinois

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.

Wagering Tax:

  • 15% of AGR up to and including $25 million;
  • 22.5% of the AGR in excess of $25 million but not exceeding $50 million;
  • 27.5% of AGR in excess of $50 million but not exceeding $75 million;
  • 32.5% of AGR in excess of $75 million but not in excess $100 million;
  • 37.5% of AGR in excess of $100 million but not exceeding $150 million;
  • 45% of AGR in excess of $150 but not exceeding $200 million;
  • 50% of AGR in excess of $200 million.

Admissions tax: $1 to host community, remainder to State.


Wagering Tax:

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.

  • 5% of the AGR from each riverboat casino is distributed to the local government hosting the casino.
  • Money in the fund are also used to fund the Gaming Board’s administrative and operational expenses.

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).

Indiana

Admissions Tax: $3

 

Wagering Tax: If riverboat made at least $75M in previous year; tax rates on adjusted gross receipts:

  • $25M and under - 15%
  • Over $25M up to $50M - 20%
  • Over $50M up to $75M - 25%
  • Over $75M up to $150M - 30%
  • Over $150M up to $600M - 35%
  • Over $600M - 40%

 

If riverboat made less than $75M in previous year; tax rate on adjusted gross receipts:

  • $25M and under - 5%
  • Over $25M up to $50M - 20%
  • Over $50M up to $75M - 25%
  • Over $75M up to $150M - 30%
  • Over $150M up to $600M - 35%
  • Over $600M - 40%

 

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:

  • $1.00 to the “home dock” city or county in which boat is docked
  • $1.00 to the county in which boat is docked
  • $0.10 to the county convention and visitor bureau or promotion fund
  • $0.15 to the State Fair Commission
  • $0.10 to the Division of Mental Health and Addiction
  • $0.65 to the Indiana Horse Racing Commission

2. For riverboats in Lake County:

  • $1.00 to the “home dock” city or county in which boat is docked
  • $1.00 to the county in which boat is docked
  • $0.09 to the county convention and visitor bureau or promotion fund
  • (capped at 90% of FY 2002 level)
  • $0.10 to the Northwest Indiana Law Enforcement Training Academy
  • (capped at 10% of the FY 2002 level provided to the Convention Bureau)
  • $0.15 to the State Fair Commission
  • $0.10 to the Division of Mental Health and Addiction
  • $0.65 to the Indiana Horse Racing Commission

Iowa

 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.

Kansas

22% state tax, 3% local government tax and 2% tax to fund problem gambling treatment

Monies go to:

  • State of Kansas
  • The Problem Gambling and Addictions Grant Fund
  • Local Governments in the following amounts:

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

Louisiana

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

Maine

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

Maryland

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

Michigan

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.

Mississippi

Monthly graduated tax on following amount:

  • First $50,000 Gross Revenue - 4%
  • Next $84,000 Gross Revenue - 6%
  • All Gross Revenue over $134,000 - 8%

Municipalities can impose an additional 4% tax on gaming revenues.

Housing, education, transportation, health care services, youth counseling programs, local public safety programs

Missouri

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

Nevada

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

New Jersey

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

New Mexico

26% tax on gross gaming revenue; 20% to purse supplements; 0.25% to fund disordered gambling treatment and awareness

General fund, problem gambling treatment

New York

Graduated effective tax rate beginning at 60%.  Can go as high as 69%, depending on revenue.

Education

Ohio

33% on gross gaming revenues

Local governments, education, casino control commission, racing commission, law enforcement training, problem gambling and addictions

Oklahoma

10-30% on gross gaming revenue

Education

Pennsylvania

55% effective rate

  • 34%  - State Tax
  • 4%  - Local Share Assessment
  • 5% - Economic Development and Tourism Fund
  • 12%  - Pennsylvania Race Horse Development Fund

Property tax relief, economic development, tourism, horse racing industry, host local government

Rhode Island

Table Gaming: 18% tax rate

 

Video Lottery Terminals: 27.5% effective tax rate

General fund

South Dakota

9% effective tax rate and a device fee of $2000 per gaming machine

  • 40% Dept. of Tourism
  • 10% Lawrence County
  • 50% commission fund

West Virginia

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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