RubinBrown Gaming Stats 2010

State Gaming Tax Revenues

Gaming Tax Revenues by State

States with established gaming operations struggled as a whole (i.e. MO, CO, PA increased) in 2009 with decreased tax revenue from gaming operations. In fact, from 2008 to 2009, most states suffered losses in their gaming tax revenues. The gaming tax rates vary widely by state. Pennsylvania has the highest rate of 55 percent while Nevada has the lowest tax rate of 6.75 percent. In general, Midwest states report a rate between 20-35 percent. Also noteworthy, only three of the 13 states charge an admissions tax on patrons entering the casino floor.

2008

2009

$1.2B

$800M

$400M

$0

Iowa

Illinois

Indiana

Nevada

Kansas*

Missouri

Michigan

Louisiana

Colorado

Mississippi

New Jersey

*The first Kansas casino opened on December 15, 2009, therefore there is no information to report prior to 2009.

Pennsylvania

South Dakota

National – Tax Revenues

State

Effective Gaming Revenue Tax Rate

Description of Gaming Tax Rates

Colorado

0.25 - 20% Graduated tax rate from .25% - 20%, with all adjusted gross proceeds in excess of $13 million taxed at 20%. 15 - 50% Graduated tax rate from 15% - 50%, with all adjusted gross receipts in excess of $200 million taxed at 50%, plus an admission tax of $2 - $3 per patron per gaming day. 15 - 40% Graduated tax rate from 15% - 40%, with all adjusted gross receipts in excess of $600 million taxed at 40%, plus an admission tax of $3 per patron per gaming day.

Illinois

Indiana

Iowa

5 - 22%

Graduated tax rate from 5% - 22%, with all adjusted gross receipts in excess of $3 million being taxed at 22%. Gross gaming revenue tax of 27% with 22% being paid to the state, 3% to the locality, and 2% to the state problem gambling fund. Riverboats incur a tax rate of 21.5% of adjusted gross receipts with additional local taxes determined by locality. Land-based casinos incur the greater of 21.5% of adjusted gross receipts or $60 million.

Kansas

27%

Louisiana

21.5%

Michigan

19 - 24% Permanent facilities pay a flat tax of 19% on gross gaming revenue, while temporary facilities pay a flat tax rate of 24%.

Mississippi

4 - 8%

Graduated tax rate from 4% - 8%, with all adjusted gross receipts in excess of $134,000 taxed at 8%. Additional local taxes up to 4% of revenues, as well as annual licensing and gaming device taxes. Adjusted gross receipts tax of 21%, plus an admissions tax of $2 per patron per excursion.

Missouri Nevada

21%

3.5 - 6.75% Graduated tax rate from 3.5% to 6.75%, with all monthly gross gaming revenue in excess of $134,000 taxed at 6.75%, with additional local, gaming devices, regulatory, and entertainment taxes. 9.25 - 10.5% Gross gaming revenue tax of 8% plus either a community investment alternative obligation tax of 1.25% or an investment alternative of 2.5%. An additional tax of 4.25% charged on Casino complimentaries.

New Jersey

Pennsylvania South Dakota

55%

Gross terminal revenue tax rate of 55%.

8%

Gross gaming revenue tax of 8% plus an annual gaming device tax of $2,000 per machine per year.

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