400 Million Reasons to Bring Back the Proposal to Legalize 12 Casinos in Texas
While visiting Iowa this weekend, I picked up the saturday edition of The Des Moines Register and was drawn to an article entitled: "Iowa tries to block tribe's casino plans." It seems in iowa a certain indian tribe is trying to build a casino that will be exempt from state taxes and both Iowa and Nebraska are trying to thwart their plans (because they both have tax-paying casinos nearby).
In the reasons cited for Iowa's resistance, the article indicates that the proposed casino would be "adjacent to Council Bluffs" which is home to three casinos-Horshoe, Harrah's and Ameristar. It further states that those three casinos "generate more than 100 million annually in state, city and county taxes."
If three casinos can generate 100 million in taxes for the state of Iowa, imagine what 12 casinos could do for the State of Texas. 400 million or more. Perhaps if we presented this aspect to the public and proposed to use that money to lower property taxes to benefit everyone instead of trying to use it for college scholarships (as was done last session) which only benefits some, we could pass the bill? Food for thought as the 2009 legislative session approaches.
In the reasons cited for Iowa's resistance, the article indicates that the proposed casino would be "adjacent to Council Bluffs" which is home to three casinos-Horshoe, Harrah's and Ameristar. It further states that those three casinos "generate more than 100 million annually in state, city and county taxes."
If three casinos can generate 100 million in taxes for the state of Iowa, imagine what 12 casinos could do for the State of Texas. 400 million or more. Perhaps if we presented this aspect to the public and proposed to use that money to lower property taxes to benefit everyone instead of trying to use it for college scholarships (as was done last session) which only benefits some, we could pass the bill? Food for thought as the 2009 legislative session approaches.
posted by Gambling Advocate | 12:40 PM
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Throughout the state of Texas, you can see flashy billboards and ads beckoning Texans to casinos in Louisiana, Oklahoma, and New Mexico. Busses and cars full of eager gamblers zip over state lines to plop down cash playing blackjack, roulette, and slots.
The Texas Gaming Association argues, that there is already gambling in Texas in the form of the state lottery, race tracks, and that most Texans live within an hour and half of a neighboring state or country, where gambling is allowed.
Near the state's borders, and even in the heart of Texas, out-of-state casinos attempt to attract Texas gamblers. Depending on the region, billboards hype the waterfront casinos in Lake Charles, La., the Inn of the Mountain Gods resort and casino near Ruidoso, N.M., or the massive Win Star Casinos just across the Oklahoma line along Interstate 35.
Battle lines already are being drawn in the 2007 Legislature as gambling interests make a renewed push for casinos. The opposition is as stubborn as ever and this time has the advantage of Texas' $14.3 billion budget surplus, making it tough to argue for creating a new revenue source, especially one so controversial.
During Governor Rick Perry's term we have seen schools go under funded, teachers go under paid and insurance benefits to teachers slashed by the millions. His "solution" to stop rising property taxes across the state was to create a new tax on businesses that amounts to an income tax. What makes matters worse is that his solution barely provided any relief to Texans and is merely a temporary solution that will eventually be nullified by rising taxes, since there is nothing stopping the property taxes from rising. In simple terms, he put a band aid on a gaping wound.
Legalizing gambling can solve these problems. It has the potential to generate tax revenues at rates no other tax payer generates. For example, casinos in Louisiana are taxed at a rate of 21.5% of their gross revenue. Unlike the rest of us, they pay taxes off what they bring in with no deduction for expenses. In 2002-2003 Louisiana Casinos contributed over 400 million in taxes to State and Local Governments. Here is what they say about how much of that comes from Texas residents:
"Approximately 53% of all gaming revenue comes from out-of-state, most from Texas. As a result, on average, over $18.2 million per month is received by the state and local governments in gaming taxes."
Gambling proponents believe expanding gambling the right way by creating destination resort casinos will provide thousands of jobs and be a huge economic boon. The Texas Gaming Association is proposing dedicating a certain percentage of casino gambling revenues for college scholarships, a plan modeled after similar ones in other states.
Democratic Sen. Rodney Ellis of Houston, used statistics from economist Ray Perryman, which stated casino gambling in Texas would create 250,000 jobs and produce $2.1 billion in tax money for the state and $729.7 million for local governments each year once they open. Shields said updated economic estimates his association will soon outline show casino gambling could inject $45 billion annually into the Texas economy and another $3 billion in tax revenue each year.
Imagine what we could do with all that money we are currently investing in bordering states’ economies. It is time we woke up to the fact that Texas residents are gambling whether we like it or not. It is time we legalize Texas gambling.
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