Delaware Government is seriously considering cutting the taxes imposed on the Casinos. This move assumes significance because Delaware is one of the 7 states that allow gambling the United States.
Currently, the casinos pay about 43 percent of their revenue generated from slot machines and 20 percent of their revenue from table games in the form of taxes. Further, they also pay an additional tax of $3 million annual towards licensing fee for table games.
As per the experts from the Casino industry, the current taxation regime is beneficial to the state’s revenue, but it doesn’t make a good investment proposition from a business point of view. It is, therefore, important to have a revised taxation to have a level playing field with the other states.
The proposal to amend the tax has been tabled on several occasions in the past, but it never saw the light of the day owing to different reasons. However, this time, the government seems to be quite serious about the bill and this means there will be some good news to cheer for the Casino industry.
On the other hand, the state Government might lose close to $20 million in revenue annually if the revised tax is implemented. But, if the revised taxes are not implemented there could be several losses of jobs and may even see the closure of the business. So, from the long-term perspective, the tax cut seems to the need of the hour.