Comparison of State & International Gaming Taxes
How do casino gaming (gambling) taxes in Nevada compare with other states, and why can’t companies that pay higher tax rates elsewhere, including Macau (see below), afford to pay higher taxes in Nevada?
The Las Vegas Sun examined gaming taxes on February 24, 2020: High Tax Rates Won’t Keep Wynn Out of Pennsylvania
High gaming tax rates in other states inevitably raise the question on the minds of many Nevadans: Can’t companies that pay higher tax rates elsewhere afford to pay higher taxes in Nevada?
In Maryland and New York, casinos made up of slot machines are expected to pay taxes of more than 60 percent on gambling revenue.
It’s a touchy question that elicits a rapid-fire answer from the gaming industry: Tax us more and you will have less investment, which leads to fewer jobs, lower-rent joints and, as a result, less tourism and lower tax revenue in the long run. Without offering the nation’s lowest gaming tax rate, Nevada would not have cultivated the elaborate offerings and megaresorts for which the Las Vegas Strip is known, the casino companies contend.
They point out that in the states with the highest taxes on gambling, the best casinos rise only to the level of some of the bigger suburban casinos in Las Vegas. They aren’t as big or luxurious as the Strip’s top-tier properties.
The Strip needs to be the top tier because it has to be an international, mass-market attraction. The Strip must draw visitors from far and wide to compete with smaller casinos closer to home.
Related Story: The Transformation of Las Vegas – Casino Revenue is no Longer King
Colorado – Graduated tax rate with a maximum tax of 20% on gaming revenue.
Illinois – Graduated tax rate from 15% to 50% of gross gaming revenue, $2-3 per patron admissions tax.
Indiana – Graduated tax rate from 15% to 40% of gross gaming revenue, $3 per patron admissions tax.
Iowa – Graduated tax rate with a maximum of up to 22% on gross gaming revenue at riverboats and land-based casinos and up to 24% at racetracks with slots and table games with over $100 million in revenues.
Louisiana – Riverboat casinos: 21.5%, Land-based casino: $60 million annual tax or 21.5% of gross gaming revenue, whichever is greater.
Racetrack casinos: 18.5% tax on gross gaming revenue, 18% of net revenue paid to horsemen, 4% of the above net revenue then paid to local parish. (Riverboat casinos pay an additional 4% to 6% to local governing authorities under the terms of “local boarding fee” agreements).
Michigan – For permanent facilities: 19% on gross gaming revenue (10.9% to city of Detroit, 8.1% to state of Michigan); For temporary facilities: 24% tax on gross gaming revenue (11.9% to city of Detroit, 12.1% to state of Michigan)
Mississippi – Graduated tax of 8% on gaming revenues; up to 4% additional tax on gaming revenues may be imposed by local governments.
Missouri – 21% tax on gross gaming revenue; $2 per patron admission fee, per excursion, split between home dock community and the state.
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.
New Jersey – 8% tax on gross gaming revenue, plus a community investment alternative obligation of 1.25% of gross gaming revenue (or an investment alternative 2.5% on gross gaming revenue)
Pennsylvania – 34% to state gaming fund; 12% to horse racing industry; 5% to economic development; 4% to local and county governments.
South Dakota – 8% tax on gross gaming revenue; gaming device tax of $2,000 per machine per year.
International
Macau – 40% of gross gaming revenue
Las Vegas casino companies with casinos in Macau encourage Macau high rollers to visit Las Vegas where taxes are less than Macau.
Singapore – 15% of gross gaming revenue
Will the Las Vegas Sands try to move high rollers from Macau to Singapore?
The American Gaming Association provides Statistics and economic impact data for the 12 states with commercial casinos and the 12 states with racetrack casinos.
Nevada Gaming argues against increases in gaming taxes, while the mining industry contributes.
