FleaStiff
FleaStiff
Joined: Oct 19, 2009
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January 21st, 2012 at 1:33:03 AM permalink
It seems the tax rate for a casino was so high in Maryland that a few casino licenses were simply unwanted.

Now there are some blatherings about lowering the overall tax rate and even allowing table games to be introduced at a zero percent tax rate.

The state of the economy trumps the confiscatory tax rate as states really have to learn that they are in an inter-state competition for gamblers and can't have Pie in the Sky dreams about tax revenue or suppressing gambling.

Washington Post article on slots in Prince Georges County
pacomartin
pacomartin
Joined: Jan 14, 2010
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January 21st, 2012 at 5:23:36 AM permalink
Quote: FleaStiff

Now there are some blatherings about lowering the overall tax rate and even allowing table games to be introduced at a zero percent tax rate.



PA had the 55% tax rate on slots. The casino operators were able to convince the state that as slot clubs the casinos were not functional. They got table games introduced at 14% tax rate to be reduced to 12% after a few years. But the kicker was a one time $30 million licensing fee to introduce table games. So $30 million times 10 casinos was enough to balance the budget for that year.
AZDuffman
AZDuffman
Joined: Nov 2, 2009
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January 21st, 2012 at 6:43:09 AM permalink
Quote: pacomartin

PA had the 55% tax rate on slots. The casino operators were able to convince the state that as slot clubs the casinos were not functional. They got table games introduced at 14% tax rate to be reduced to 12% after a few years. But the kicker was a one time $30 million licensing fee to introduce table games. So $30 million times 10 casinos was enough to balance the budget for that year.



Yes, they even ran ads here saying that the 14% rate is a fair rate for all and a higher level would mean it was unprofitable. Some states refuse to realize that 60% of nothing is nothing. MD is a crazy state--they instituted a sort of "Wal Mart Tax" forcing certain sized employers to pay a certain level of health care benefits to their employees. But it was one of those laws made to apply to just one company. Last I heard Wal Mart sent them an up-yours card and moved the center, taking the jobs elsewhere. So the workers got an "increase" of 25% (or whatever) of a base of nothing.

When will politicians learn?
Tolerance is the virtue of believing in nothing
Ibeatyouraces
Ibeatyouraces
Joined: Jan 12, 2010
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January 21st, 2012 at 8:15:00 AM permalink
deleted
DUHHIIIIIIIII HEARD THAT!
buzzpaff
buzzpaff
Joined: Mar 8, 2011
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January 21st, 2012 at 9:59:25 AM permalink
I am a native Baltimoron. Old enough that as a teenager in 1957 or 58 I can remember this. Buying something at the drugstore fpr $1.29 and giving Doc $2.00. He make a big production of giving me 70 cents in change. Then dropping a penny in a big empty
pickle jar before loudly announcing " That $1.29 for me and 1 cent for the Governor" And so the new sales tax did start !!!!
FleaStiff
FleaStiff
Joined: Oct 19, 2009
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January 21st, 2012 at 10:04:32 AM permalink
Quote: AZDuffman

Yes, they even ran ads here saying that the 14% rate is a fair rate for all and a higher level would mean it was unprofitable.

We have had threads on this forum discussing a "fair rate" for minimum bets and also some discussion of "fair rate" for taxation. Nothing is really provable and there are different viewpoints that each have some validity, if not merit, to them. I think confiscatory taxation stifles growth and may even kill the chances off right from the start. This is true whether the legislature is desperate or not. There are local situations as far back as the Whiskey Rebellion. I even had a thread once on the fake lottery in Illinois and how much of a better deal they offered than the real lottery with nary a non-payment complaint in almost a decade. So who knows what a fair rate of taxation is? Who knows what local impact really is and what is fair compensation? Road repairs? Fire trucks? Alcohol counselors? Legislators view casinos as cash cows. Some casinos are cash cows. At sixty percent taxation, its going to be a mighty sickly cow.

>When will politicians learn?
Not until the voters learn!!!
buzzpaff
buzzpaff
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January 21st, 2012 at 11:05:17 AM permalink
" I even had a thread once on the fake lottery in Illinois and how much of a better deal they offered than the real lottery with nary a non-payment complaint in almost a decade."
I can remember when the media would get on the despicable Don King and refer to him having been a "numbers" runner in the past. With hardly ever a mention of his having served time for murder. And the Baltimore Sun newspaper would run editorials railing against the welfare mother who would would bet 50 cents on the number , instead of buying milk for her babies. But now the state is in the numbers racket and all is well.
Of course Don King and other paid 700 to 1 and the politicians pay 500 to 1 !

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