March 08, 2005

Louisiana May Make Things Tougher on Casinos

Why is it that government agencies always look to gambling to solve their problems? Why should one industry be expected to rescue politicians who don't know how to spend our tax dollars within their means?

Just try to name a state lottery which doesn't give at least a portion of its proceeds to public education.

The latest example comes from the state of Louisiana. Like many states, Louisiana is looking for ways to pay for the over abundance of public programs they've put into place. Although the talks are still in the early stages, Louisiana casinos could soon face higher taxes which then means the casinos need to increase their revenues by increasing the house edge, raising room rates, or charging more for meals and entertainment. And if you're the type of player who gets comps, it'll probably become even more difficult to earn your fair share.

Considering that in 2003 gaming companies in the 11 states which offer commercial casinos paid over $4.3B on revenues of over $27B, one could easily argue that the casinos already pay more than their fair share. Wouldn't you complain if the government taxed you an additional 16% on top of the normal business taxes you already had to pay?

Let's hope that the government stops their greedy ways and treat the industry like any other legitimate business.

Source: TheStreet.com

Posted by Cruzino at March 8, 2005 06:52 PM | TrackBack
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