2015 Casino Tax and Expenditures

Jackson Brainerd 9/28/2015

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.

For more information, email Jackson Brainerd at jackson.brainerd@ncsl.org

State-Operated Casinos

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

 20%                                 Above $13M

Taxes in the state are distributed in the following manner:

  • 28% to the State Historical Society;
  • 12% to Gilpin and Taller counties;
  • 10% to Blackhawk, Central City and Cripple Creek; and
  • 50% to the State General Fund.

 

Out of the State General Fund, the following appropriations must be made:

  • $15M to the Colorado Travel and Tourism Promotion Fund;
  • $5.5M to the Advance Industries Acceleration Cash Fund;
  • $5.5M to the Bioscience Discovery Evolution Grant;
  • $5M to the Local Government Limited Gaming Impact Fund;
  • $2.1M to the Innovative Higher Education Research Fund;
  • $2M to the Creative Industries Cash Fund; and
  • $500,000 to the Office of Film, TV, and Media Fund.

Delaware

29.4% tax on table game licenses and a 4.5% purse supplement

VLT Revenuess

  • Approximately 42% of the revenue is paid to the three tracks as commissions for operating the games.
  •  Approximately 40% is contributed to the State General Fund to help pay for state services
  • Approximately 10% goes toward increasing the size of the horse race purses
  • Approximately 7% goes toward leasing, servicing and upgrading the games, and for monitoring the games with the lottery’s computer system    

‚ÄčSports-betting Revenues:

  • 50% to the state’s general fund, where funds must be allocated to State Services
  • 40% directed back to the operating racetracks for operating the games
  • 10% goes toward increasing the size of racing 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.

Taxes are distributed in the following manner:

                              State Gaming Fund

Hosting Local Government

5% of AGR

Horse Racing Equity Fund

15% of AGR from Rivers Casino

Home Rule County with < 3m population for Criminal Justice

2% of AGR from Rivers Casino

Chicago State University Education Improvement Fund

$1.6M

Education Gaming Fund

$158.36M annually ($92M one time transfer plus $5.53m per month)

Horse Racing Equity Fund

$23M

Operation and Enforcement of Gaming, including Problem Gaming

Unspecified – Appropriations by General Assembly

Education Improvement Fund

Remaining Funds

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

 

Wagering Tax on slot machines:

  • $100M and under- 25%
  • Over $100M up to $200M- 30%
  • Over $200M- 35%

 

$500,000 gambling fee to the Division of Mental Health and Addiction and $250,000 gaming integrity fee to the Indiana Horse Racing Commission for each racetrack that offers slot machine wagering.

Riverboat Casino

 

State Gaming Fund Disbursement:

  • Revenue Sharing- First $33M
  • City or County of Home Dock- Remaining 25%
  • State General Fund- Remaining 75%

Admission Tax ($3) Disbursement:

  • $2.10 to city/county
  • $0.15 to State Fair Commission
  • $0.10 to Division of Mental Health Addiction
  • $0.65 to State General Fund

 

Historical Hotel Riverboat Casino

State Gaming Fund Disbursement:

  • 37.5% to the State General Fund
  • 19% to West Baden Springs Historical Preservation and Maintenance Funds
  • 8% to Orange County Development Commission
  • 16% goes to equal amounts disbursed to each town in dock county with a Historical Hotel
  • 9% to county treasurer for disbursement
  • 5% to a town with a population greater than 3,500 in a county with a population greater than 19,500 and less than 20,000
  • 5% to a town with a population greater than 2,000 and less than 3,500 in a county with a population greater than 19,500 and less than 20,000
  • 0.5% to Indiana Economic Development Corporation

Iowa

5%     First one million dollars of AGR

10%   Next two million dollars of AGR
22%   Over three million dollars of AGR for a riverboat or land-based casino and 24% for racetrack casinos.

 

The city or county where a riverboat is docked may vote to impose an admission fee of no more than $0.50 per person.

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:

  • Maximum effective rate of 27.5%. Includes a 3.5% license fee, 4-6% local tax, and a graduated franchise fee which can be as high as 18% depending on net monthly gaming proceeds.
  • $3 admission fee

Land-based casinos: 

  • $60 million annual tax or 18.5% of gross gaming revenue, whichever is greater

Racinos:

  • 40.5% effective tax rate on net slot machine proceeds. 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

Net table game income- 16%

Casino net slot income- 46%

Racino net slot income- 39%

 

Additional taxes of 1-3% levied for administrative expenses and county/city costs

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

 

Exception: Allegany County casino- 50% rate and must dedicate 0.5% of profits to annual capital investment requirement

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, with 8.1% going to the state school aid fund and 9.9% going 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

Monthly graduated tax on the following amounts:

First $50,000 of Gross Revenue- 3.5%

$50,000-$143,000 Gross Revenue- 4.5%

All Gross Revenue over $134,00 – 6.75%

 

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%)

 

$3 fee imposed on a daily basis for each occupied casino hotel room.

Senior citizens, disabled, economic revitalization programs

New Mexico

Racinos are taxed at an effective rate of 46.25% of net take. Includes a 26% gaming tax, a 20% tax for racing purses and a 0.25% tax for problem gambling.

General fund, problem gambling treatment

New York

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

Education, agent commission, gaming administration, marketing allowance

Ohio

33% on gross gaming revenues

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

Oklahoma

Graduated Wagering Tax:

First $10M- 10%

$10M-$30M- 10%

$30M-$40M- 15%

$40M- $50M- 20%

$50M-$70M- 25%

Over $70M- 30%

12% to the General Revenue Fund, 88% to the Education Reform Revolving Fund

Pennsylvania

55% effective rate

  • 34%  - State Tax
  • The greater of $10 million or 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: 17% tax rate

 

Video Lottery:

  • At Twin River, revenues taken are 71.15% to 74%, plus $767,687
  • At Newport Grand, revenues taken are 68.85% to 74%, plus $384,996

General Fund, Lottery Commission, marketing programs

South Dakota

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

  • 40% Dept. of Tourism
  • 10% Lawrence County
  • 50% disbursed as follows: first $100,000 to State Historical Preservation Grant and Loan Fund. Next $6.8M to the City of Deadwood. Remaining funds go to the state general fund, Lawrence County municipalities, Lawrence County school districts, Deadwood historic restoration and preservation fund

West Virginia

35% of AGR

Education, Racetrack Table Games Fund, Horse and Dog Racing Purses

Source: “Get to Know Gaming.” American Gaming Association, http://www.gettoknowgaming.org, UNLV Center for Gaming Research, state financial reports.