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Opinion
Editorial: Taxpayers pay for state gaming


"A report by The Times of Munster the other day found that Indiana casinos pay taxes averaging 38 percent of revenues, the highest in the Midwest.

Casinos in neighboring states pay less, The Times reported. In Illinois, the effective tax rate ranges from 20 percent to 36 percent. Detroit casinos pay 21.2 percent, and Michigan tribal casinos pay 3 percent.

"Nobody else pays taxes like we do," Mike Smith, president of the Casino Association of Indiana, said for that story. "Before you pay that first nickel of expense, 40 cents is gone from that dollar right off the top."

So while many of us may have been taken in by the revenue stream and failed to foresee gambling's spread faster than a virus, we'll make some predictions about the future that seem apparent based on recent developments.

The gambling forces will get the upper hand on what they pay in taxes.

With so many states and locales now fully engaged in casino gambling and more, like Ohio, placing the issue on this fall's ballot, we think the gambling lobby, like any other industry, will force state and local governments to do their competitive bidding if they want licensed casinos.

In short, like any other business attracted to the state or local government in part by incentives and attractive tax packages, gambling will have increased say over what it is willing to pay to do business in a state."

Get the Story:
Editorial: State lays odds on gambling's fortunes (The Richmond Palladium-Item 10/7)