RubinBrown Gaming Stats 2013

STATE GAMING TAX REVENUES

In 2012, state gaming tax revenues increased by $661.4 million (8.5%). The state gaming tax growth rate continues to outpace the overall gaming revenue growth, as newer states have imposed gaming tax rates as high as 67.0% of net revenues. This translates to only $0.33 of every dollar earned by a casino goes towards operational expenses, overhead, capital improvements, and net income. As a comparison, the two states offering gaming the longest - Nevada since 1931 and New Jersey since 1976 - have gaming revenue tax rates of 6.75% and 9.25%, respectively. During 2012, Indiana state legislatures decreased the tax rate on racinos, applying the tax rate to 99% of gaming revenues, as opposed to 100%. Looking towards 2013, Indiana legislators are looking at ways to bolster the gaming industry amidst increased competition from commercial casinos in Ohio and Illinois and tribal casinos in Michigan. Measures currently being discussed include the reduction of the overall tax rate, providing a tax credit for promotional awards, eliminating the admissions tax, and authorizing land-based casinos. In Maryland, the state with the nation’s highest gaming tax rate of 67.0%, legislators approved a tax break for casinos. Once implemented, the tax rate on EGD revenues will vary by casino and range from 50.0% to 62.0%, with additional requirements on casino operators to purchase the video lottery terminals. The reduction in tax rates will improve the overall competitiveness of the market and help existing operators handle increased competition from the Baltimore and Prince George’s County casinos.

Gaming Tax Revenues

$104.26M

Colorado

$228.49M

Delaware

$147.89M

Florida

$574.34M

Illinois

$806.56M

Indiana

$334.54M

Iowa

$92.11M

Kansas

$495.60M

Louisiana

$41.23M

Maine

$253.14M

Maryland

$269.18M

Michigan

$272.79M

Mississippi

$471.42M

Missouri

$868.60M

Nevada

$254.95M

New Jersey

$62.79M

New Mexico

$822.67M

New York

$138.18M

Ohio

$20.38M

Oklahoma

$1,441.79M

Pennsylvania

Contrary to the trends seen in Indiana and Maryland, Colorado increased the gaming tax rate, restoring the tax rates seen from 2008 through June 2011.

$317.83M

Rhode Island

$16.68M

South Dakota

$384.70M

West Virginia

$0

$200M

$400M

$800M

$600M

$1,000M

$1,400M

$1,200M

6 | 2013 Commercial & Tribal Gaming Stats