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NORTON NOTES: A North Florida Casino Would Make Sense
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by Steve Norton
CEO, Norton Management
Opposition mounts in Miami to new plan for casino | Tampa Bay Times
This plan for a Miami area casino, is not the kind of destination casino, as proposed by LV Sands or Genting; but a racino on steroids. Sands and Genting, in their proposals several years ago, would have built multi $ billion mega resorts, like they have in Asia, and Sands in Las Vegas, with the Venetian and Palazzo.
NORTON NOTES: Meadowlands Casino Would Make Sense
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by Steve Norton
CEO, Norton Management
Two Republican candidates for governor back North Jersey casinos
New Jersey Representative and Steve Rogers, both potential candidates for Governor, have indicated that they favor a North Jersey casino.
NORTON NOTES: A Case for Higher VGT, iGaming Taxes
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by Steve Norton
CEO, Norton Management
Casino Slot Machine Allocation Declines 21% Since 2007
This study was based on 12 casino companies; but did not consider the 25,000 video gaming terminals at bars and other businesses, possessing a liquor license, in Illinois.
NORTON NOTES: PA Gaming Options Need More Research
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Pennsylvania Senators Propose Prohibitive iGaming Tax | Pennsylvania Senators Propose Prohibitive iGaming Tax | iGamingPlayer
One of the most efficient ways to raise State revenue, thru gaming (a voluntary tax), is the introduction of various types of slot machines to existing businesses. As many states look at online gaming to increase their tax collections, from the gaming industry; slots in existing adult businesses, may be the most effective way to do that. You still need to consider the impact that new machines will have on existing casinos or other types of gaming, that are substantial tax payers and employers. Online gaming has higher operating costs and most likely provides far fewer jobs than traditional resort casinos, or other types of live gaming.
So except in a State like New Jersey, where live gaming is restricted to Atlantic City, but Pennsylvania and New York, have gaming much closer to over 90% of New Jersey's population; most NJ resident trips to a real casino aren't to Atlantic City; where the casino win has declined from $5.2 billion (in 2006) to just over $2 billion, after deducting free play. The proposed Online gaming in Pennsylvania, is very different than New Jersey; where live casinos are convenient to the great majority of the population. But you also have to consider the proposed tax rate for online gaming, compared to the tax at existing casinos. In New Jersey, the casino tax rate is 8%, but online at 15%, doesn't give the casino a reason to promote online, as preferable to an actual casino visit.
But in PA, where slot win is taxed at 55%, but online proposed at 25%; there is a reason for the casinos to promote their online operations. And as a comparison, look at Illinois, where the 9 IL riverboat casinos (in 2007) paid over $800 million in casino win taxes. In 2016 with 10 riverboat casinos, and roughly 25,000 VGT's at liquor establishments, the State collected $40 million less than in 2007; because the riverboat visitations declined, by over 30% (in spite of the largest riverboat casino opening in 2012). Plus the VGT tax is only 30%, where the riverboat casino tax increases, up to 50%, on variable levels of win.
So for Pennsylvania to considering online gaming, at a tax rate less than half that of the live casino slot tax; a through study should be conducted, by a reputable 3rd party casino consulting firm. A step that should be taken, before passing Legislation, that might actually reduce (like IL), current gaming tax revenue. And your consultant needs to study other forms of gaming, that can afford a tax rate closer to 50% or 60%, that could produce more new tax revenue, even it will most likely have a negative impact on current tax collections, from live casino operations.