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What Does The Government Have To Do With The Casino's Taxes?

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Gambling has become a very accepted way for governments to raise funds. With the increasing fiscal pressure on state budgets, gambling is increasingly being used to generate revenue through income taxes from casino employees, property tax and individual states required taxes. One may ask does gambling have a positive economic impact? That is how it is sold to legislators, who are told it will provide jobs and profits for businesses, such as restaurants and hotels, and extra revenues for states and cities, often for education (Christian Science Monitor, 2010). What does the governments do with the casino’s taxes? It depends on how the casinos do and how much business is taken away due to other gambling avenues.
The perception that casinos …show more content…

This revenue is a benefit for the recipients of taxed casino revenue. However, it is important to realize that this revenue is not "new money" to society. Taxes result in a transfer of income from one group to another group. For example, when the state of Missouri collected nearly $190 million in casino taxes and this $190 million is a costs to casino operators, no new money is created. Although state governments use casino tax revenue for various programs, public education seems to be the favored destination for casino tax revenue in many states. In fact, states often promote how much money from casino revenue is earmarked to public education. This suggests to the public that spending on education has increased since the taxing of casino revenue …show more content…

For example in Ohio, casinos are taxed at a rate of 33% of the gross revenues. The state then disburses the tax revenue to various funds. Ohio disburses 51% to a county fund 34% to a student fund, 5% to city fund, 3% Ohio State racing commission and 2 % to the law enforcement training and problem gambling and addictions fund. Another example on how casinos are being taxed such as in Pennsylvania, for every dollar produced as revenue from slot machine play, between 54¢ and 55¢ is returned to Pennsylvanians. A significant portion of revenue generated from slot machines are used to fund school property tax reduction. Revenues from slots are also used to expand the supplement programs such as rent and property tax for senior citizens, people with disabilities and

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