Are US Budgets In Trouble With Casino Tax Declining?
Thursday 12th June 2008
The Nevada casino industry is suffering from a slowing economy which is starting to filter through to casino players. The Gaming Control Board has reported a five percent fall in ‘club wins’ in April, to $1 billion, in line with what many observers had expected. However, the fact that this is the fourth month in a row that revenues have declined may start to play on the minds of the local authorities which rely heavily on casino tax for a chunk of their funding.
The report showed that $12.7 billion was wagered during April with the casinos retaining just over $1 billion after payouts, expenses, etc. Of this $1 billion ‘profit’ the State takes a fairly large chunk in tax which is part of the casino licensing laws in the US. Many in the industry expect to see a further reduction in casino activity over the next few months as money becomes tighter and more people have less money in their pockets.
Some had seen the industry as ‘recession proof’ but this does not seem to be the case. Initially numbers had held up well with many people looking for that ‘big win’ but it seems as though that phase may be coming to an end.
The Nevada casino industry is suffering from a slowing economy which is starting to filter through to casino players. The Gaming Control Board has reported a five percent fall in ‘club wins’ in April, to $1 billion, in line with what many observers had expected. However, the fact that this is the fourth month in a row that revenues have declined may start to play on the minds of the local authorities which rely heavily on casino tax for a chunk of their funding.