Monday, January 30, 2012

Gambling: The deals in each State, Florida is among the worst. By Geniusofdespair

I put the States in order of when they allowed gambling from the earliest,  Colorado in 1931 to the latest, Maryland in 2008.  If you follow along you will see the deals for each State. You will also see that the deals get better and better because we know just how much money these casinos generate. The lowest rates are for the first two States to approve gambling.

In any event, look at this list and tell me why Florida is going to go backwards and take LESS money then other States, the lowest rate except for the early States. Following my list is an open letter to the two asses in the legislature pushing this low rate.  Sergio Campos wrote them the letter.

Legalization date 1931
State gaming tax rate - 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
Legalization date 1976
State gaming tax rate - 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)

South Dakota - Legalization date 1989
State gaming rate - 9% tax on gross gaming revenue; gaming device tax ($2,000 per machine per year)

Iowa - Legalization date 1989
State gaming rate - Graduated tax rate with a maximum of up to 22%

Colorado - Legalization date 1990
State gaming tax rate - Graduated 20% max

Illinois - Legalization date 1990
State gaming tax rate - Graduated from 15% to 50% of gross gaming revenue

Mississippi - Legalization date 1990
State gaming tax rate - Graduated tax of 8% on gaming revenues; up to 4% additional tax on gaming revenues may be imposed by local governments 

Louisiana - Legalization date 1991
State gaming tax rate - Riverboat Casinos: 21.5%1; Land-based casino: $60 million annual tax or 21.5% of gross gaming revenue, whichever is greater; Racinos: 18% of gross gaming revenue paid to horsemen; 18.5% of net to state taxes and 4% to local parish

1Riverboat casinos pay an additional 4 percent to 6 percent to local governing authorities under the terms of “local boarding fee” agreements.

Rhode Island - Legalization date 1992
State gaming rate - 27.33%1
1FY 2010 data was used to calculate the percentage of revenue retained by operator.

Indiana - Legalization date 1993
State gaming tax rate - Riverboat and land-based casinos: Graduated tax rate from 15% to 40% of gross gaming revenue; $3 per patron admissions tax; Racinos: Graduated slot tax from 25% to 35% of gross gaming revenue

Missouri - Legalization date 1993
State gaming tax rate - 21% tax on gross gaming revenue; $2 per patron admission fee, per excursion, split between home dock community and the state.

Delaware -Legalization date 1994
Revenue retained by operator 42.21%

West Virginia -Legalization date 1994
Revenue retained by operator 45.89%

Michigan -Legalization date 1996
State gaming tax rate - For permanent facilities: 19% tax on gross gaming revenue (10.9% to city of Detroit, 8.1% to state of Michigan); state and municipal service fees also are levied annually

New Mexico - Legalization date 1997
State gaming rate - 26% tax on gross gaming revenue; 20% to purse supplements; 0.25% to fund disordered gambling treatment and awareness

New York -Legalization date 2001
Revenue retained by operator - 33.47% - New York gets 66.53%

Maine - Legalization date 2004
State gaming tax rate - 1% tax on handle, or the amount wagered; 39% tax on gross gaming revenue; 3% tax on gross gaming revenue to the city of Bangor 

Oklahoma - Legalization date 2004
State gaming tax rate - Graduated state tax from 10-30% on gross gaming revenue; 9% tax to state racing commission, varying payments to horsemen, breeders and purses depending on track gaming revenues.

Pennsylvania - Legalization date 2004
State gaming tax rate - Slot machines: 34% to state gaming fund, 12% to horse racing industry, 5% to economic development, 4% to local and county governments; Table games: 16% tax - 14% to general fund, 2% to local county municipalities

Florida - Legalization date 2006  (They are going to reduce this rate for Racinos)
State gaming tax rate - 42.79% (3)

3- This figure only represents what operators retain after state taxes are collected. It does not take into account what operators allocate to horse and dog breeders funds, local authorities and public gambling awareness. Thus, the percentage of revenue retained by operators is actually significantly lower than this 50 percent figure.

Kansas - Legalization date 2007
State gaming tax rate - 22% state tax, 3% local government tax and 2% tax to fund problem gambling treatment

Maryland - Legalization date 2008
Revenue retained by operator - 33% - Maryland get 67%

Following is the open letter from Sergio Campos, questioning the 10% gambling deal, sent to Rep. Fresen and Senator Bogdanoff (Mr. Campos says that he is a retired Financial Analyst/Budget analyst with over 47 years experience):

Senate bill #710 is very confusing and proposes the enactment of a LOW
TAX of 10% on gaming tax revenue.

The American Gaming Association shows that 22 States operated authorized gambling establishments as of 2010. Our citizens should know that GROSS casino revenues, are revenues before prizes (winnings), salaries and all other Casino expenses are deducted. GAMING TAX REVENUES are net revenues.

Some STATES base their taxes on Gross Casino Gaming Revenues, but MOST of them base their tax rates on the GAMING TAX REVENUES. (Net profits).

We need from you answers to several questions.

1) We need to know the Florida proposed Gaming tax rate?
What base rate will Florida be using?
2)How gaming tax revenues will be spent?

If someone asked you which State took the most money from Casino Gambling taxes, you probably would say it was NEVADA, because of the city of Las Vegas, but you would be wrong.

PENNSYLVANIA was number one (1) and INDIANA was number two (2). There is no valid reason to bring FULL SCALE GAMBLING CASINOS to Florida, to accept a low tax rate of 10%. Let’s review first what other STATES have done.

COLORADO. They have a graduated tax rate of between 14% and 20%. Taxes are spent for local governments, education, and general funds.

TAX RATES ON gaming tax revenues are as follows:
STATE                 TAX RATE        HOW TAXES ARE SPENT
Colorado               14% to 20%       Local, education and general.
Delaware               15% to 57%            General funds.
ILLINOIS              15% to 50%.    Local, education and general.
INDIANA              15% to 40%     Local governments only.
IOWA                     24% of gross.          General funds.
KANSAS                22%                 Local and general funds.
LOUISIANA           21%                Local and general funds.
MAINE                    39%                Local and general funds.
MARYLAND           67%                Education and general.
MICHIGAN              19%               Host cities and general.
MISSISSIPPI            12%             Host City keeps 4%.
MISSOURI                21%            Education and general funds.
NEVADA                   6.75%         Education and general funds.
NEW JERSEY            8.%             Senior Citizens and general.
NEW MEXICO          26%             General funds.
NEW YORK             66%                           Education
OKLAHOMA        10% to 30%                  Education. 
PENNSYLVANIA  16% to 55%     Local, tourism and general.
RHODE ISLAND        27%                     General Funds.
SOUTH DAKOTA   9% of gross     Local, tourism and general.
WEST VIRGINIA     54%                    Education and tourism.

Let’s remember the Florida lottery.

Back in 1986 the lottery was approved because citizens in Florida were told that $1 billion a year from the Lottery would enhance the already approved State Education Funds/budget already in place. The Florida Legislators basically replaced those funds.

Politicians played the “BAIT-AND-SWITCH” game, whereby money for education, prior to the introduction of the Florida Lottery, was funded from general funds. We want to STOP and avoid another case of “bait-and-switch” with respect to the approval of the Full Scale Gambling Casinos in Florida.

We are told that the 3 New Casinos will generate 100,000 new direct jobs. According to the AMERICAN GAMING ASSOCIATION, the average number of employees per Casino, nationwide has been around 1,000 per unit. It is true, that the proposed casinos for South Florida will be twice as big as the average U.S. Casinos now operating. However, 3 Casinos could not possibly generate 100,000 new direct jobs. It would probably be around 5,000 employees per unit, and that will mean around 15,000 direct jobs, instead of 100,000 jobs.

Once FULL SCALE GAMBLING CASINOS are approved in Cities such as Miami and Miami Beach, just to mention a few, these Cities will need additional police officers and firefighters, paramedics, and public safety support personnel. These Cities will also need to spend a lot of money for infrastructure such as road expansion, sewer lines, etc.

I like the formulas used by MICHIGAN, MISSISSIPPI and MISSOURI, just to mention a few, whereby between 4% and 40% of the tax money collected from gambling casinos STAYS with the HOST CITY and HOST COUNTY, having the Casinos in their communities.

I do not like the idea of the Legislators distributing tax gambling revenues equally among the 67 Florida Counties, when only a handful of Counties will be faced with more traffic, and the need for more public safety officers, fire fighters, paramedics, and support infrastructure needed to handle millions of new visitors each year.


Based on what other STATES are doing I like to propose for FLORIDA the following Tax rate and how the money should be spent, under the revised new Gambling law.

4% tax distribution to the HOST CITY, to be used only for additional police officers, firefighters, paramedics, tourism and infrastructure.

4% tax distribution to the HOST COUNTY, to be used only for additional police officers, firefighters, paramedics, tourism and infrastructure.

2% tax distribution to the HOST COUNTY PUBLIC SCHOOL DISTRICT, as tax relief, so Education will be assisted by additional funds, and local real estate taxes earmarked for Schools will not continue to increase, as in the past.

AFTER, the first 10% is distributed, as above mentioned, with a proviso in the law, that it could not be changed later on. Then, the rest of the tax money could be distributed from the GENERAL FUNDS to assist other counties local governments and for State Wide education activities, tourism, tax relief, and infrastructure as they see fit.

We need to be sure that the HOST CITIES and COUNTIES facing a potential increase in criminal activities, traffic and other infrastructure problems, be given a mandatory amount of funds, that could not be taken from them or reduced by the Legislator at will, as they did in the past with the LOTTERY FUNDS.

One more thing: FLORIDA SHOULD APPROVE a graduating tax rate from 20% for Casinos table games, and 35% for slot machines

1 comment:

Anonymous said...

I believe you forgot massachusetts