Posted date: February 26, 2024, 05:21.
Last updated: February 26, 2024 05:21h.
If the new law is upheld in the capital, Des Moines, Iowa casinos could see their effective gaming taxes reduced in the coming years.
Iowa has 15 land-based commercial casinos, three riverboats, and one racino. 19 casinos offer slot machines, table games, and sports betting.
Gross revenues from slots and table games are subject to graduated taxes. Most fall into the highest rate of 22%. This applies to casinos that generate his GGR of at least $3 million in a given year.
Iowa Rep. Jane Bloomingdale (R-Worth) said her state would encourage gaming licensees to make capital investments to keep the Hawkeye State’s gaming industry competitive as casinos open in neighboring Nebraska. I think it’s wise to do so.
“We’re lowering personal taxes, we’re lowering corporate taxes, but we’re not lowering casino taxes. That seems unfair,” Bloomingdale said.
Bloomingdale introduced House Study Bill 719 last week. If the bill passes the Legislature and is signed by Republican Gov. Kim Reynolds, it would reduce commercial gaming taxes on slot and table revenue for three years.
The research bill has already passed the House Ways and Means Subcommittee, and the bill will soon receive a House file number and consideration from the full committee.
Game begins in Nebraska
With the exception of 2020, Iowa’s commercial gaming industry has grown every year since 2014. GGR increased from $1.39 billion in 2014 to $1.94 billion last year.
However, excluding sports betting revenue, legacy gaming (in-person slots and tables) was down 1.2% year over year in 2023.
Nebraska appears to be the culprit, as a temporary casino opened in the Cornhusker state. Iowa casinos in Council Bluffs were among the hardest hit, as Nebraskans now have the option of gaming without having to cross the Missouri River.
said Mark Joyce, a lobbyist who represents the interests of the Diamond Joe casinos in Northwood and Dubuque. radio iowa They argued that tax breaks could help Iowa’s casinos make renovations and upgrades to compete with new casinos in Nebraska.
“It’s a very mature industry in Iowa, and the new casino in Nebraska will be brand new,” Joyce said. “They will be taxed at 20% so we have additional capital to put back into real estate and be able to better compete for our customers’ business.” [would be good]”
Five permanent casinos in Nebraska are under construction in Omaha, Lincoln, Columbus, Grand Island and Hastings.
Bill details
Bloomingdale’s casino bill proposes to reduce casino slot and table taxes to 21% starting July 1, 2024. The tax rate will be reduced to 20% on July 1, 2025, and to 19% from July 1, 2026. The 19% tax remains in place forever.
The tax reduction applies to land-based casinos and riverboat casinos. Lacino facilities are subject to a slightly higher tax, which is 2% higher each year than the casino tax rate.
Iowa casinos have a strong lobbying presence in Des Moines.
The industry successfully blocked further competition in June 2022 by getting the Legislature and Reynolds to approve a bill that would prohibit the Iowa Horse Racing and Gaming Commission from issuing new casino licenses for two years.
However, this suspension is scheduled to be lifted on July 1st.
