Iowa Lawmakers Protect Casinos By Tabling Gambling Tax Increase

Iowa casinos are receiving a lot of help from lawmakers this legislative session when it comes to protecting their rights. Lawmakers this week rejected Governor Terry Branstad's proposal to raise taxes on gambling revenue.

The tax rate would have cut into casino profits at a time when competition within the industry is getting tough. Many states have added casino gambling to their list of offerings, and that has hurt Iowa casinos.

From the beginning, there was not much support amongst lawmakers to raise taxes for the casinos. On Friday, legislators seemed stunned that Branstad would even consider taking such a drastic measure. The casinos already pay a twenty-two percent.

"As far as the Senate is concerned, we are not particularly interested in raising taxes," said Senate Majority Leader Michael Gronstal. "We're a little surprised that the governor recommended a tax increase and were also a little surprised he's going to single out an industry for tax increases so he can give breaks to other industries."

Legislators not only are against the tax increase, but they may be on their way to helping casinos out in an even bigger way. An online gambling bill is being discussed that would regulate online poker in Iowa. If approved, gaming companies would be allowed to make proposals to operate online poker rooms.

Passing any gambling legislation may be tough with the Senate and House controlled by different party's. Republicans have control of the House, and democrats control the Senate. There is, however, support in both chamber's to pass the online gambling bill. If passed, it would become the first of its kind in the US.

April 8, 2011
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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