No two ways about it, Delaware‘s racinos are failing. However, they have an ambitious plan to reverse that … providing the state is cooperative. One of the reasons the tracks are struggling is an onerous 40% tax rate on table games, which the racinos would like to see reduced to 15%. Members of the Video Lottery Advisory Council also proposed “that the tax rate on table games be revised, either by lowering the rate or by subtracting half the revenue to help casinos cover payrolls for the labor-intensive games before distributing the remaining money among the state, the casinos and the horse racing industry.”
The council also proposed pegging the tax rate on slots to gross revenues: higher when play is strong, lower when it is not. The council is also pondering Continued >>
America‘s second-largest casino market, Pennsylvania, has truly hit the jackpot, according to a new study by Oxford Economics. It addition to engendering 18,000 direct-employment jobs, casinos have generated economic impact of $6.2 billion and paid $2.4 billion in taxes, not to mention generating $1.7 billion in wages (some of which may be indirect). Gambling grossed $3.1 billion, while amenities yielded another $250 million.
The 33,574 direct and indirect jobs are making the difference between 5.7% unemployment and 6.6% (theoretical). Casinos are also effectively providing tax relief of $488 per household for Pennsylvanians. American Gaming Association President Geoff Freeman was quick to tout the impressive numbers and appeal for tax relief. “How do we take 34,000 jobs and turn it into 50,000 jobs,” he asked. “How do we take $2.4 billion in tax payments and turn it into Continued >>
“Preliminary talks” could mean relatively nothing but when one of the principal parties is MGM Resorts International, you have to take them seriously … especially when MGM is building an arena intended for major-league sports. Still, there don’t appear to be direct negotiations with an actual team but instead “a group interested in housing an NHL team.” Very different. Sports Business Daily has looked at the economics of an NHL franchise in Sin City and concluded that they don’t pan out. Then there’s the hostility of the league itself. Another wrinkle is that MGM partner AEG owns the Los Angeles Kings. The company would probably welcome having another market in which to show off the Kings, but how does it feel about building an arena whose primary tenant would be a rival franchise?
It still seems far more plausible than Continued >>