Casino Connection Nevada

Impressive Impact

Facts about gaming you may not know

by Bill Bible

Soon the 2007 Nevada Gaming Fact Book produced by the Nevada Resort Association will be made available to industry executives, journalists and public officials throughout the state of Nevada, and available for download on our website. The book’s purpose is to educate the public about how gaming impacts Nevada and to provide an overview of gaming and tourism in Nevada.

It is nearly impossible to present all the publication’s information in a single column but, I’ll list just a few highlights from the fact book. As representatives of the industry, I want to offer you the opportunity to be as well informed as possible about the industry in which you work. I hope the following facts shed some light on how your efforts are important in keeping Nevada successful.

• According the Nevada Department on Taxation, tourism and gaming tax dollars account for nearly 50 percent of all general fund taxes collected in the state. This number does not include what you and your co-workers pay in property, sales or other associated taxes and fees but only the tax revenue generated through hotel and gaming enterprises. Even though Nevada resorts only account for about 16 percent of the state’s employment base, the industry is by far the state’s largest taxpayer. In fiscal year 2006, Nevada collected more than $2.8 billion in general fund tax revenue, of that more than $1.3 billion was directly contributed by the hotel-casino industry.

• Due to the state’s heavy dependence on casino-hotel tax revenue, Nevada residents and businesses enjoy the fourth-best tax climate in the country. Nevada residents and businesses do not have to pay a state personal income tax, sales tax on food, corporate income tax, inventory tax or admission tax to name a few. Most states depend on personal and corporate income taxes as a primary revenue source for state funding.

• Nevada’s resort companies are industry leaders in wages and benefits provided to employees. According to data reported by the U.S. Bureau of Economic Analysis, Nevada’s hotels and hotel-casinos average worker pay and salaries that are 37.3 percent higher than the national average paid to similarly situated employees, and funds employee health care programs at more than twice the rate of other Nevada employers.

• Gaming is Nevada’s only industry which pays state taxes on gross revenue and not on profits. This means that even if a casino does not make a profit, taxes will be taken out of the total number of dollars collected.

These are but a few facts that can be found in the 35-page fact book. Nevada’s tourism and gaming industry has grown significantly in recent years and is the state’s most important industry not only because it is the primary driver of our economy but it is the primary funding source for our state’s budget.

These findings and more will be made available through Nevada Resort Association’s website in the near future.