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The Facts on Gaming
Casino taxes are a consistent form of revenue
There are 11 states in the U.S. that have commercial casino operations. When comparing the tax revenues by state for the period of 2005-2006, each state showed an increase in revenues, with the exception of Mississippi and Louisiana which are still recovering from the impact of Hurricane Katrina. In total, there was a 5.5 percent increase from 2005 for a total of $5.2 billion in direct gaming taxes to state and local governments.1
Exhibit A shows tax revenues from 1998 to 2006 that have been contributed to the state that hosts the casino operations. These numbers show tax revenues from gaming to be extremely consistent and showing steady growth in almost every state.
Exhibit A: Tax Revenues to States from Casino Gaming (millions) |
| |
1998 |
1999 |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
| Colorado |
63 |
72.8 |
83 |
92 |
98.2 |
95.6 |
99.5 |
101.1 |
108.4 |
| Illinois |
337 |
419 |
512 |
555.2 |
666.1 |
719.9 |
801.7 |
749.7 |
830.2 |
| Indiana |
370 |
425 |
453 |
492.6 |
544.7 |
702.7 |
760.5 |
777.8 |
833.7 |
| Iowa |
96 |
214 |
206 |
216.9 |
249.3 |
209.7 |
252.7 |
265 |
289.4 |
| Louisiana |
315 |
324 |
381 |
374.8 |
414.2 |
421.2 |
436.9 |
531.7 |
527.8 |
| Michigan |
na |
30 |
171 |
219.3 |
249.1 |
250.2 |
279.4 |
331.9 |
349.9 |
| Mississippi |
262 |
302 |
320 |
322.6 |
331.7 |
325 |
333 |
301.7 |
301.6 |
| Missouri |
251 |
275 |
304 |
322.7 |
357.6 |
369 |
403.1 |
413.9 |
424.9 |
| Nevada |
586 |
635 |
708 |
710.6 |
718.7 |
776.5 |
887 |
952.6 |
1012.5 |
| New Jersey |
319 |
330 |
342 |
342.4 |
403.7 |
414.5 |
470.6 |
490.2 |
508.8 |
| South Dakota |
3.4 |
3.7 |
4.8 |
4.5 |
5.1 |
11.3 |
11.9 |
12.5 |
13.3 |
| Annual Total |
2500 |
3000 |
3500 |
3600 |
4000 |
4320 |
4720 |
4928.1 |
5200.5 |
| Michigan's casino began operations in 1999. |
| Louisiana and Mississippi are still recovering from Katrina. |
| Illinois' increase was due to a large lump sum payment due to a state regulation. |
| Iowa had a casino closed for 8 months in 2003. In 2006 it had three new properties open. |
The gaming industry as a whole continues to show consistent growth. In 2006 the total U.S. consumer spending at commercial casinos totaled $32.42 billion, a 6.8 percent increase from 2005. From 1998 to 2006 casino tax revenues have grown from $2.5 billion to $5.2 billion.2
In addition to commercial casinos, racetrack casinos (racinos) are also proving to be a steady and consistent source of revenues to states (Exhibit B).3
| Exhibit B: Racino Distributions to State/Local Governments (millions) |
| |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
| Delaware |
185.6 |
201 |
174.5 |
196.26 |
206.3 |
232.55 |
| Florida |
|
|
|
|
|
5.15 |
| Iowa |
93.9 |
82.9 |
68.6 |
98.31 |
91.85 |
105.46 |
| Louisiana |
na |
17.4 |
28.3 |
42.6 |
62.59 |
69.27 |
| Maine |
|
|
|
|
1.99 |
18.07 |
| New Mexico |
21.9 |
35.4 |
37.5 |
37.42 |
53.36 |
61.96 |
| New York |
na |
na |
na |
136.64 |
209.45 |
217.95 |
| Oklahoma |
|
|
|
|
0.741 |
9.6 |
| Pennsylvania |
|
|
|
|
|
17.36 |
| Rhode Island |
109.7 |
151.8 |
188.8 |
234.1 |
257.71 |
255.79 |
| West Virginia |
166.8 |
229.5 |
268.6 |
327.63 |
404.52 |
445.59 |
| Annual Total |
577.9 |
718 |
270.8 |
1070 |
1288.511 |
1438.75 |
| Iowa racinos had a lawsuit with the state over its tax rate that impacted the 2003 revenues. |
Sources:
- State Gaming Regulatory Agencies’ Annual Reports
- 2006 State of the States Report by the AGA
- State Gaming Regulatory Agencies’ Annual Reports
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