Delaware Senate approves lowering casino taxes
A Senate panel has approved a legislation that seeks the reduction on taxes and fees at the state’s casinos.
US.- The Senate Finance Committee of Delaware has approved a legislation to lower taxes on slots and table games at state’s casinos. While efforts to lower casino taxes have had a bad reputation in the past years, this legislation has bipartisan support.
Senate Bill 144 would cut the gross table game tax rate from 29.4 per cent to 15 per cent and eliminate the licensing fee. Moreover, it would suspend the table game licence fee due June 1st, 2019, and continue to suspend the fee in subsequent fiscal years if every agent increases expenditures on marketing, wages and benefits by its share of that licence fee.
The bill that was approved by four senators wants to reduce Delaware’s share of gross slot machine revenues from 43.5 per cent to 41.5 per cent or 42.5 per cent to 40.5 per cent, as applicable. It would also lift a ban that prohibits Delaware casinos from operating at Christmas and Easter.
This move would generate US$15 million less revenue next fiscal year and US$20 million the following year. However, Senator Brian Bushwelle believes that if the industry keeps working under these regulations, it will continue to decline. “No business can sustain that for long,” Sen. Bushweller said. “No business can last under those circumstances.”
