Casino Connection Nevada

What’s the Answer?

Educate yourself on the issues in this important election year

by Bill Bible

The 2008 year is shaping up to be very challenging for Nevada’s gaming and tourism industry. As the state’s budget crunch begins to squeeze state agencies, our industry is being increasingly threatened on a number of fronts. We have multiple tax initiatives asking for unimaginable increases on the taxes we pay. And, it is possible that a number of other initiatives will be proposed in the coming months addressing everything from roads to marijuana.

As these proposals come to bear, I ask that you take the time and make it your responsibility to learn as much as you can and understand what each of these initiatives mean to you and your family. I also want you to be vigilant in questioning what is being said in the media and around the water cooler.

We have already seen complete falsehoods in print by the teachers union about their initiative, most recently in a letter sent to the Reno Gazette-Journal. Their leader, Lynn Warne, has said that their initiative would tax profits, which is not true. The gaming industry would pay their proposed tax regardless of profits. Their proposal would tax gross gaming revenues, which is, as I have previously written about in this space, is completely different from profits. A gross revenue tax, as the teachers union actually proposes, applies on total gaming revenues. The taxes are taken directly from the casinos before they pay for employee salaries, health benefits and general operating costs, regardless of profitability. A profit tax would apply after these costs were paid. The teachers union incorrectly positioned their proposal in their letter as a no profit, no tax situation. This is simply not the case.

Many of you are aware that our industry considers these issues very seriously. As an industry, we recognize the importance of education, transportation and health services in our communities. We have been supportive of past tax increases to help address these issues, but we feel that it is time that others help share some of the burden of paying for needed governmental services.

In the coming months as you have questions about what you are reading in the newspaper or hear from a co-worker or friend, please try and learn as much as you can about each of these issues. Come to your own conclusions and make the correct choice not only for our industry but for you and your family as well. To learn more about how gaming taxes are collected and how gaming benefits you please visit www.BettingOnNevada.org.