Deck007
Deck007
Joined: Mar 3, 2014
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January 15th, 2015 at 6:11:12 PM permalink
I presume the tax will be collected at the chips buy-in instance.

How would this affect the casino top and bottom line.

The unknown is when would the players cash in their chips.
Would the tax be refund by the government when the chips are cashed in.

If the gov. do not refund the tax then if the player has a break even game the casino will be out of pocket by 6%.

If the player wins then the gov. would be out of pocket by 6%. This seems unlikely.

Strange things happen here, so what sort of hit will the casino take on this.
kewlj
kewlj
Joined: Apr 17, 2012
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January 15th, 2015 at 6:16:34 PM permalink
Quote: Deck007

I presume the tax will be collected at the chips buy-in instance.

How would this affect the casino top and bottom line.

The unknown is when would the players cash in their chips.
Would the tax be refund by the government when the chips are cashed in.

If the gov. do not refund the tax then if the player has a break even game the casino will be out of pocket by 6%.

If the player wins then the gov. would be out of pocket by 6%. This seems unlikely.

Strange things happen here, so what sort of hit will the casino take on this.



Is there a link to what you are referring to?
Deck007
Deck007
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January 15th, 2015 at 6:28:56 PM permalink
Quote: kewlj

Is there a link to what you are referring to?



No.

The Gov. is implementing the 6% sales tax and the casino says they will absorb this tax. That is all the information available.
sc15
sc15
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January 15th, 2015 at 6:31:35 PM permalink
Quote: Deck007

No.

The Gov. is implementing the 6% sales tax and the casino says they will absorb this tax. That is all the information available.



Yeah.. on food and merchandise maybe.

There's no sales tax on buying chips at the table.
Deck007
Deck007
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January 15th, 2015 at 6:35:48 PM permalink
Quote: sc15

Yeah.. on food and merchandise maybe.

There's no sales tax on buying chips at the table.



No.

On buying in the casino chips at the table or cage.

F & B sales tax for sure.
Venthus
Venthus
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January 15th, 2015 at 6:52:55 PM permalink
I feel like half this thread is missing or something.

Is this a hypothetical situation (as it's posted in 'Math'), happening outside the US, or just some obscure bit of litigation that isn't showing up anywhere?

Edit for clarity: Not showing up anywhere on the internet.
rdw4potus
rdw4potus
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January 15th, 2015 at 6:58:25 PM permalink
What casino? What government? There's never a sales tax on cash instruments like chips...
"So as the clock ticked and the day passed, opportunity met preparation, and luck happened." - Maurice Clarett
Deck007
Deck007
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January 15th, 2015 at 6:59:33 PM permalink
Quote: Venthus

I feel like half this thread is missing or something.

Is this a hypothetical situation (as it's posted in 'Math'), happening outside the US, or just some obscure bit of litigation that isn't showing up anywhere?



No hypothetical situation. It is happening in Malaysia.

The question is for mathematician or accountant
sc15
sc15
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January 15th, 2015 at 7:07:56 PM permalink
Oh ok, no surprise since that's a crappy third world country.

Simple answer:

Casino loses 6% of their hold. (eg. If their blackjack hold is 10%, it becomes 4%, with the other 6% going to the tax, since the hold is the % of buy ins that the casino wins).
Deck007
Deck007
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January 15th, 2015 at 7:52:04 PM permalink
Quote: sc15

Oh ok, no surprise since that's a crappy third world country.

Simple answer:

Casino loses 6% of their hold. (eg. If their blackjack hold is 10%, it becomes 4%, with the other 6% going to the tax, since the hold is the % of buy ins that the casino wins).



Assuming what you said is true this would put the casino out of business. They would get 40% only of their previous revenue and be a loss making entity.

Yet the casino is quite sanguine about this tax. Maybe some other experts want to chime in here.

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