Maryland Casino Operators Could Pay 70 Percent in Taxes
The price of running a casino with slot machines in Maryland could become very pricey, as the Governor of the state, Martin O'Malley, has released his plan for allowing the legalization of slots in Maryland.
The Governors plan would call for 70 percent of the gross gaming revenue to the government, and they would in turn distribute the money among education, the horse racing industry, and money would go to refurbishing tracks and to breeders.
Of the 30 percent that the casino operators would keep, they would still have to take out expenses for operating and building the slot facility, and also for paying their employees, and that would not leave much profit for whoever gets awarded casino licenses.
"The tax rate can work if there is a limit on the number of machines permitted", says William R. Eadington, the director of the Institute for the Study of Gaming and Commercial Gaming at the University of Nevada, Reno.
The idea would be that with less machines, the ones that are available would be in play more, thus driving up revenue.
Opponents of the Governors plan suggest that the plan is being used as a way that only certain people can actually go after the gaming licenses, mainly the states racetracks.
November 1, 2007
Posted By Larry Rutherford
Staff Editor, CasinoGamblingWeb.com
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