The wildfires last month in Southern California made Nevada a safe haven for many of those driven out of their homes by the flames. The response of many casino employees who provided shelter, food, money and comfort was admirable, and typical of the reaction of people of our state to people in need.

But it got me to thinking about why we’ve all come to this state.

I’ve met a few native Nevadans in my three years in the state, but they are few and far between. The vast majority of the people in Nevada came here from other states for various reasons.

I came from New Jersey. I recently read a poll that said more than half of the people in New Jersey want to leave the state because of high taxes, congestion and political corruption. I guess I was lucky to get out when I did, but my move was dictated by possible opportunities in Nevada more so than my dissatisfaction with the situation in New Jersey.

People come to Nevada for different reasons: low taxes, business opportunities, retirement, relationships… whatever, we all have our own reasons for coming here.

What we all have in common, however, is a desire to make a better life in Nevada. We don’t want what we left behind to follow us to Nevada. Of course, we bring our personalities with us and succeed or fail as a result of that more than anything else. But we want to be in a situation where our success depends upon us and what we do rather than what the government or any other outside force does.

That’s why the recent proposal by the Nevada State Education Association to raise gaming taxes is so disturbing.

Those of us in the gaming industry are in the right place at the right time here in Nevada. The growth of gaming in our state is nothing short of astounding. Do you realize that there is almost $20 BILLION in development underway on the Las Vegas Strip alone? Those new and expanding casinos are going to provide thousands of jobs and create promotions for many of us who live and work in Nevada. And it’s not the end. There are still many different projects on the drawing boards that are just waiting for the current construction to be completed. The upward mobility of current casino employees is unlimited if development continues at the pace we anticipate.

The problem with the NSEA’s tax proposal is that it will slam the door on any future casino development. That development occurs because Nevada has one of the lowest gaming tax rates in the country. Companies are not shy about pouring billions of dollars into casino and resort development because the return on investment can be substantial. Raising that tax rate dramatically reduces those returns, which are already getting narrower because of the slumping economy and increased competition.

But there’s another reason why companies may look elsewhere for their investments: tax stability. MGM Mirage Chairman and CEO Terry Lanni commented a couple of years ago that his company would concentrate its investments in Nevada, New Jersey and Mississippi because those states have stable tax rates. The tax rates in New Jersey and Mississippi have not changed since gaming was introduced in those states in 1978 and 1994, respectively. Nevada’s rate has remained relatively stable for years. That’s why companies are willing to invest billions of dollars in casino resorts. They can depend on these states not to change the rules in the middle of the game.

Yes, we have some problems in Nevada that require more funding. The NSEA wants to dedicate this new tax revenue to education. Maybe we do need more money for education, but why target one industry, which represents less than 20 percent of the residents in the state? If we have a problem, shouldn’t everyone contribute? If we’re going to target one business, shouldn’t all businesses pitch in?

So the NSEA tax proposal is a bad idea not just because it will completely stop casino development in Nevada, but also because it puts the burden of solving just one of our problems on one industry. So let’s not let this travesty continue without letting our friends and family know how bad it can be for our state.

After all, we’re in control of our own destiny with this plan, so let’s make sure Nevada doesn’t become the place we all left behind.

By Roger Gros

Roger Gros is publisher of Casino Connection and editor and publisher of Global Gaming Business magazine, the industry’s leading gaming trade publication. Prior to joining Global Gaming Business, Gros was president of Inlet Communications, an independent consulting firm. He was vice president of Casino Journal Publishing Group from 1984-2000, and held virtually every editorial title during his tenure. Gros was editor of Casino Journal, the National Gaming Summary and the Atlantic City Insider, and was the founding editor of Casino Player magazine. He was a co-founder of the American Gaming Summit and the Southern Gaming Summit conferences and trade shows. He is the author of the best-selling book, How to Win at Casino Gambling (Carlton Books, 1995), now in its third edition. Gros was named “Businessman of the Year” for 1998 by the Greater Atlantic City Chamber of Commerce.

Please login to post your comments.