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EXHIBITS
To Accompany Presentation—
ASSESSING IMPACTS OF EXPANDED GAMING IN RHODE ISLAND:
FRAMEWORK FOR ANALYSIS
EXHIBIT Page
I: STATE CASINO LICENSING FEES & TAXES…………………..…2
II: INTERNET GAMBLING PORTAL: …………..…………………….4
III: “EARMARKING” OF STATE GAMING REVENUES…………….6
IV: STATE GAMING REFERENDA: CURRENT & RECENT………...8
Source: NCSL survey of Commerce Clearing House summary of state tax laws, 2000 and updated Juy 2002.
Rhode Island Special House Commission to Study Gaming
Gary Ciminero
Rhode Island House Policy Office
September 17, 2002
EXHIBIT I
STATE CASINO LICENSING FEES & TAXES
Sources: National Conference of State Legislatures (NCSL) survey of Commerce Clearing House summary of state tax laws, 2000.
Information for Colorado, Illinois, Indiana, Iowa, Louisiana, Mississippi and Missouri updated 7/02, compiled and emailed to GC courtesy of Monica Kearns, NCSL.
Other information on select Indian Gaming Facilities compiled by GC and added to the exhibit.
Note: A number of other states have tribal casinos that have no financial obligation to the state other than to reimburse any regulatory costs incurred on the part of state
government.
STATE CASINO TAXES/FEES
Colorado Casino tax:
Progressive Rates—
Ranging from 0.25% tax on $0 - $2 million in adjusted gross proceeds (AGP)
Increasing to 20% tax on AGP above $15 million.
Connecticut Tribal Casinos—Revenue sharing agreement: Each of two tribal casinos pay the greater of
25% of their slot machine revenues
Or $80 million.
Delaware Racetrack Slots/Video Gaming:
Progressive Rates on Average Daily Win—
Ranging from 12.5% of $0 - $25k
Increasing to 30% of amounts exceeding $75K
Illinois Riverboat Gaming—
Admissions tax: $2/person.
Progressive Wagering Tax Rates—
Ranging from 15% tax on $0 - $25 million in adjusted gross receipts
Increasing to 35% of adjusted gross receipts in excess of $100 million.
Indiana Riverboat Gaming—
Admissions fee: $3/person.
Dockside Boats Levied Progressive Wagering Tax Rates—
Ranging from 15% tax on $0 - $25 million in adjusted gross receipts
Increasing to 35% of adjusted gross receipts in excess of $150 million
Cruising Boats—Levied a Flat Tax of 22.5% of adjusted gross receipts
Iowa Excursion boat Gaming—
Admissions Tax of $0.50/person
Imposed by state
Plus an additional $0.50 each authorized by cities/counties
Progressive Wagering Tax Rates—
Ranging from 5% on $0 - $1 million in adjusted gross receipts
Increasing to 20% of adjusted gross receipts in excess of $2 million
Louisiana Riverboat Gaming—wagering tax:
Shreveport-based boats phasing from 18.5% up to 21.5% on net proceeds.
Bally’s boat in New Orleans: Progressive Wagering Tax Rates on “Monthly New Proceeds—:
Ranging from 18.5% on $0 - $6 million
Increasing to 21.5% over $8 million
Riverboat admissions fee—local option: up to $2.50 or $3 per person, depending on the parish.
New Orleans land-based casino tax:
21.5% of net revenues or $50 million, whichever is greater
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Michigan Detroit Casinos
Casino wagering tax—18% of GGR
Municipal service fee—greater of 1.25% of gross revenue or $4 million.
Annual Assessment: initially $25 million adjusted annually by the CPI.
o Equal share of levy imposed on each of 3 (three) casinos.
Michigan Tribal Casinos—Revenue sharing agreement
10% of slot revenues until other non-tribal casinos are operational in state.
No tax due once other non-tribal operations commence. (Some have agreed to continue the payment even after
Detroit casinos were opened.)
Mississippi Riverboat Gaming—
Progressive “Wagering License Fee” levied on monthly gross revenue (GR):
Ranging from 4% on $0 - $50K
Increasing to 8% over $134K.
City or county may impose a license fee ranging from 0.4%, to 0.6%, to 0.8% on GR.
Many local governments also impose an additional 3.2% tax on GR.
Missouri Riverboat Gaming—
Admissions fee of $2 per person
Plus a wagering tax of 20% of AGR
Montana Non-casino/non-track Video Gaming/VLT—
Tax of 15% of net lottery machine revenues (after pay-outs)
Annual state device/license fees
o $200 per device
o $1,000 license fees imposed on manufacturer and distributor
Nevada Casino License Fees & Taxes
License fees: imposed at both state and local level.
o County monthly fees range from $10 to $50.
o State fees:
Monthly fees range from 3% to 6.25% of gross revenues.
Annual fees range from $100 to $6,000 based on establishment.
Additional annual $80 fee peer slot machine is imposed for an unrestricted state license.
A restricted quarterly state license fee ranges from $45 per machine to $225 plus $90 per machine.
Slot machine tax: annual fee of $250 imposed on each machine.
Casino entertainment tax: 10% of amounts paid for admission, food, refreshments and merchandise.
New Jersey Casino License Fees & Taxes
License fees:
Minimum initial fee—$200K
Minimum annual renewal fee—$100K.
Slot machine annual license—$500.
Gaming tax: 8% tax on casino gross revenues.
Investment alternative tax: 2.5% on the gross revenues of casino licensees.
Puerto Rico Taxes are imposed on slot machine revenues
South Dakota Gaming tax: 8% is imposed on adjusted gross proceeds.
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EXHIBIT II
INTERNET GAMBLING PORTAL: www.internet-gambling-portal.com/
4
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EXHIBIT III
“EARMARKING” of STATE GAMING REVENUES
Source: National Conference of State Legislatures (NCSL) survey of Commerce Clearing House summary of state tax laws, 2000.
Information for Colorado, Illinois, Indiana, Iowa, Louisiana, Mississippi and Missouri updated 7/02, compiled and emailed to GC courtesy of Monica Kearns, NCSL.
Other information on select Indian Gaming Facilities compiled by GC and added to the exhibit.
STATE USE OF REVENUE
Colorado 28% to the Colorado Historical Society for historical preservations grants
12% to Gilpin and Teller County governments, in proportion to the gaming revenues generated in the respective
counties
10% to the city governments of Black Hawk, Central City, and Cripple Creek, in proportion to the gaming revenues
generated in each
0.2% to the Colorado Travel and Tourism Promotion Fund
49.8% to the state general fund, of which the following are designated: 2% to the Municipal Impact Fund for the cities
of Woodland Park and Victor; at least 11% to the Local Government Limited Gaming Impact Fund; and an amount to
be determined annually to the Colorado Department of Transportation.
Connecticut General revenue fund and local governments.
Delaware Local governments and the state education assistance fund.
Each local government that serves as a host community for a casino licensee receives a share of gaming taxes in an
amount equal to 5 percent of the adjusted gross revenue and one-half of the admission tax attributable to the licensee
within its jurisdiction.
Illinois Admissions tax:
$1 to the city where the riverboat is docked
$1 to the county where the riverboat is docked
$0.10 to the county tourism promotion fund
$0.15 to the state fair commission
$0.10 to the division of mental health
$0.65 to the state horse racing commission.
Riverboats operating on Patoka Lake have separate revenue distribution provisions.
Wagering tax:
25% to the riverboats’ home cities and counties, up to $33 million (the total local distribution level for 2002)
75% to the property tax replacement fund and the Build Indiana Fund lottery and gaming surplus account.
Indiana One-half of one percent (0.5%) of adjusted gross receipts to the city from which the gambling excursion originated
Another one-half of one percent (0.5%) to the county in which the gambling excursion originated
0.3% to the Gamblers Assistance Fund
The remainder goes to the state general fund
Iowa Riverboats:
9% of state revenues go to an education fund for teacher salaries/pay raises
1% of state revenues go to a compulsive gambling program
Remaining state revenues go to the general fund for gambling enforcement
Land-based casino:
All state revenues go to the education fund for teacher salaries/pay raises.
Local government revenue allocations are determined by Louisiana Revised Statutes Title 27, section 93.
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STATE USE OF REVENUE
Louisiana Forty-five percent to the state school aid fund and 55 percent to the city where casino is located for public safety and
economic development.
Michigan $3 million or 25%, whichever is greater, of the state monthly revenue share goes to retire bonds until 2012
Any amount in excess of $3 million but less than 25% goes to the state Highway Fund until 2012
The remainder goes to the state general fund. All of the state revenues go to the general fund after 2012.
Michigan Admissions fee:
$1 to the state gaming commission; $0.01 of this goes to the compulsive gamblers treatment fund
$1 to the home dock city or county
Wagering tax:
10% of the adjusted gross receipts revenues go to local governments
The state share of adjusted gross receipts go to an education fund
Mississippi Local governments and state general fund.
Missouri Casino revenue funds provide financial assistance to the elderly and disabled.
Montana 34% to hotels
20% to the University
20% to education
9% to economic development
17% to tourism.
Nevada General revenue fund and historic preservation.
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EXHIBIT IV
STATE GAMING REFERENDA: CURRENT and RECENT
Source: Relayed by Monica Kearns, NCSL, from the Listserve of the National Association of Legislative Fiscal Officers.
STATE RECENT REFERENDA
ARIZONA Lottery Referendum—
1998: Voters passed a referendum to extend state lottery until 7/1/03
November 2002 Ballot: Three Indian Gaming initiatives
ARKANSAS Gaming Referendum—
2000: Whether to establish statewide lottery and permit charitable bingo and casinos—FAILED
CALIFORNIA Lottery Referendum—
1998: To establish terms and conditions of compacts between state and Indian tribes for gaming on Indian
tribal
land and to authorize slot machines and banked card games at tribal casinos—PASSED
COLORADO Lottery Referendum—
2000: To allow participation in multi-state lotteries—PASSED
GEORGIA Lottery Referendum—
1998: Amending the state constitution to limit educational purposes for earmarking lottery proceeds, giving
piority
to scholarships, pre-kindergarten programs, and shortfall reserves over teacher technology training
and capital
outlays for educational facilities—PASSED
FLORIDA Florida voters defeated a casino gambling referendum in November 1994. It did not earmark revenues.
IDAHO Lottery Referendum—
November 2002 Ballot: Indian Gaming initiative
LOUISIANA Gaming Referenda—
1996: 33 parishes voted to shut down video poker machines by 1999; 31 parishes voted to keep video poker.
[Machines in riverboat casinos, New Orleans French Quarter, racetracks and off-track betting parlours
not affected.]
MAINE Lottery Referendum—
2000: Whether to establish a video lottery—FAILED
MASSACHUSETTS Dog racing Referendum—
2000: Whether to prohibit dog racing in the state—FAILED
MICHIGAN Gaming Referenda—
1996: “Proposition E”, authorizing three licensed casinos to be built in Detroit—PASSED. [Later substitially
improved and strengthened, presumably by legislation, and signed into law as the Michigan Gaming
Control & Revenue Act, AA (Public Act 69 of 1997; MCL 432.201]
MINNESOTA Gaming Referenda—
1988: Voters adopted a constitutional amendment to allow a state lottery.
1990: Constitutional amendment adopted to dedicate 40% of lottery proceeds to the Environment & Natural
Resources
Trust Fund.
1994: Voters rejected a constitutional amendment to authorize off-track wagering on horse racing.
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STATE RECENT REFERENDA
MISSOURI Riverboat Casino Referendum—
1998: Whether to approve constitutional amendment, authorizing riverboat casinos to remain dockside—
PASSED
NEBRASKA Gaming Referenda—
1990: Whether to establish a NB State Lottery System, operated by certain nonprofit organizations—FAILED
1992: State Lottery passed—referendum adopted
1992: Whether to use proceeds of state lottery to compensate depositors of Industrial Loan & Investment
companies
for unreimbursed losses—FAILED
1996: Whether to remove restriction that pari-mutuel horseracing be conducted within licensed racetrack
enclosures—FAILED
Current: One new initiative (details currently unknown) introduced this year but not yet voted on.
NEW JERSEY Gaming Referenda—
Since 1990, nothing on gaming, per se. Gaming-related referenda include—
1998: Allows Legislature to regulate horserace wagering and simulcasting—not through referenda—PASSED
1999: Prohibiting state lottery proceeds from being used to support correctional system costs—PASSED
NEW MEXICO Gaming Referendum—
2000: Whether to construct a casino or racetrack in McKinley County—FAILED
OKLAHOMA Gaming Referendum—
2000: Whether to authorize casino gambling—FAILED
OREGON Lottery Referendum—
1998: Whether to dedicate 15% of net lottery proceeds to a new fund for parks, beaches, wildlife habitat, and
watershed protection—PASSED
SOUTH CAROLINA Gaming Referenda—
[1999: SC Legislature passed a ban on video poker but gave voters the right to decide by referendum whether
these
games should remain legal. SC Supreme Court blocked the referendum, saying the legislature should
not
delegate its power, but kept in place part of the law that banned these games.]
2000: Whether to create a state lottery—PASSED
SOUTH DAKOTA Gaming Referenda—
1992: Whether to keep VLTs—PASSED 62.8% to 37.2%
2000: Whether to increase betting limits in Deadwood, SD—PASSED
TENNESSEE Lottery Referendum—
2002: Whether to approve a constitutional amendment to create a state lottery.[The state had allowed charity
bingo
until a 1989 TN Supreme Court ruling decided it was a lottery and therefore banned by the TN
constitution.
UTAH Gaming Referenda—
1992: Citizen initiative allowing pari-mutuel betting on horses; revenues earmarked to regulate racing—
FAILED
VIRGINIA Lottery Referendum—
2000: Whether to direct lottery proceeds specifically to public education—PASSED
WASHINGTON Lottery Referenda—
1996: Whether to authorize electronic gaming on Indian lands with joint regulation and earmarking—FAILED
2000: Whether to direct lottery proceeds specifically to public education—PASSED
WEST VIRGINIA Casino Referendum—
2000: Whether to allow the Greenbriar Resort in WV to open a casino—FAILED
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NOTES: Website of I. Nelson Rose, law professor and well-known gaming scholar, at www.gamblingandthe law.com/dates.html
LaFleur’s Lottery Fast Facts, charts lotteries, when established and how (by legislation or referendum, etc.).
See www.lafleurs.com/fastfacts
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