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Benefits of Expanded Gaming for Kentucky
Kentucky is facing a terrible budget shortfall of revenue and Governor Beshear and the legislature are faced with not only limiting spending but cutting existing programs. To remain competitive as a state and to move forward, new revenues are desperately needed.
Expanded gaming will bring new tax revenues to our state, attract tourists, create jobs and stimulate our state and local economies.
Tax Revenues
- It is estimated that if expanded gaming were allowed in Kentucky, it would generate up to $500 million annually in tax revenues for the Commonwealth of Kentucky.
- Under the proposed plan, all counties would receive revenues from the casinos, whether the community had a casino or not.
- Gaming revenues has proven to be a steady and consistent form of revenue for other states. Kentucky is in need of a new revenue stream that is consistent and can help provide much-needed revenues for existing services and to expand services in the future.
Tourism
- Casinos are tourist destinations and draw in visitors from outside the region which can have a great impact on the local economy with increased hotel bookings, restaurant and attraction expenditures, etc.
Jobs
- In Indiana and Illinois casinos that share a border with Kentucky, each casino has an average of 1,400 employees.
- The average casino salary per year in states bordering Kentucky and similar in size to our state is $33,106.
- There will also be some construction-related jobs associated with the development/expansion of facilities if expanded gaming is passed. For instance, Turfway Park in Boone County has estimated that if Turfway were allowed to expand and offer casino services, they plan to build an impressive $250 million-plus facility which would create an estimated 1,200 jobs with a payroll of $30 million-plus and annual salaries of around $32,000.
Reinvestment in our State and Local Economies
- By expanding gaming and allowing casinos, not only will our state receive tax revenues, local communities with these facilities will gain a large, new employer. This means payroll and corporate taxes for the local community.
- Like any large business operation, casinos will rely on local suppliers of goods and services, thus creating a ripple affect in the economy.
Kentucky is Losing Revenue to Neighboring States
- Kentuckians spent an estimated $671 million at five Indiana riverboat casinos and one Illinois casino between July 2004 and June 2005. This means gambling that is already taking place by Kentucky residents who generated at least $236 million in state taxes for Indiana and Illinois.
- It estimated that 51% of the total gross gaming revenues from bordering casinos is from Kentucky gamblers.
- There are an estimated 566,000 gamblers in Kentucky who make an average of 4 trips per year to casinos outside Kentucky's border.
Our Loss is Indiana, Ilinois, and Other States' Gain
- Since 1996, $1.6 billion of Indiana's wagering tax funds have gone into the property tax replacement fund. So when Kentuckians visit Indiana casinos they are helping pay Indiana's property taxes.
- In addition, $1.7 billion since 1996 has gone into the Build Indiana Fund which is distributed for projects such as infrastructure improvements, roads and education. Kentuckians are helping educate Indiana's children and pave their roads.
- In Dearborn County and the City of Lawrenceburg where Argosy Casino is located, the city and county have shared some $300 million in admission and wagering taxes and property taxes since 1996.
- Metropolis, Illinois had 1.1 million casino visitors in 2005 and derived $8.4 million in local tax revenues from the casino operation.
- Since Harrah's Metropolis Casino opened in 1993, casino funds have been used to develop the Metropolis Industrial Park and renovate the city electric, water and sewer systems.
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