Kentucky: calls to raise taxes on slot machines
A coalition has sent a letter to lawmakers arguing that slot machines are “vastly under-taxed” compared to other states.
US.- A coalition of 17 unions and non-profit groups has called on Kentucky lawmakers to raise taxes on its slot machines, known as historical horseracing machines.
The groups allege that machines in the state are taxed far below other states and below other types of gambling in Kentucky.
A statement issued by the progressive Kentucky Center for Economic Policy claims that this affects the funds available for public services, schools and public attention.
It notes that West Virginia has a tax of 53.3 per cent on electronic gaming devices, Pennsylvania‘s racinos have a tax of 55 per cent on slot machines and Illinois has a graduated tax rate of up to 50 per cent.
However, Kentucky’s tax rate on its historical horseracing slot machines is just 1.5 per cent of the handle, significantly lower than the tax on live horseracing.
Last year, the total handle for historical horseracing in Kentucky reached $2.2 bn, up 11 per cent from the previous year.
However, the slots-like gambling machines have been on pause since September following a decision from the Kentucky Supreme Court, which found that Historical Horse Racing machines were not a form of pari-mutual wagering.
