This is not only great for the books, but in the long run should be good for the player, however small that could be.
The article.........
A federal excise tax on wagers taken by sports and race books and keno games would be abolished under a provision attached by Sen. Harry Reid to the six-year, $318 billion transportation bill that passed the U.S. Senate late last week.
In a statement, Reid, D-Nev., claims the “repeal” of the 0.25 percent tax will save Nevada casinos roughly $100 million.
Representatives from Reid’s offices in Washington, D.C. and in Nevada were not available for comment, and the statement did not make it clear over what period of time the $100 million would be saved.
“If in fact it passes, I would think it would be a very significant figure for the casinos,” said Ellen Whittemore, a gaming attorney and partner with the law firm Lionel Sawyer & Collins in Las Vegas.
The transportation bill still must pass in the U.S. House of Representatives and be signed by President Bush.
“Gaming is the backbone of Nevada’s economy and job market, and repealing this tax will keep that backbone strong,” Reid said in the statement.
The news seemed to catch prominent gaming attorneys and casino executives by surprise.
“It’s fantastic that he did that,” said Jeff Siri, president and chief executive of the Club Cal Neva Hotel Casino in downtown Reno. “I can tell you that it will save us a good bit of money; it’s something we’ve paid for a long time. And we could use it to be a little bit more competitive against the Indians.”
Siri said the tax was reduced from 2 percent in the early 1980s.
Bob Faiss, a senior partner at Lionel Sawyer & Collins and one of the more prominent gaming attorneys in the nation, said he was unaware of Reid’s provision.
The excise tax, he said, has its origins in Senate hearings from 1950, when organized crime in Nevada gaming was first being investigated. At first it was a 10 percent tax on the g**** receipts of all gambling transactions, but through the efforts of Sen. Patrick McCarran, it was revised to cover only race and sports books.
After that, “it was modified from time to time to its present level,” Faiss said.
Siri refers to the excise tax as a “g**** wagers tax,” as it is levied on all bets, not just the money sports books win from customers. For keno games, it applies only to “multi-race” betting of more than 20 “ball draws,” he said
The article.........
A federal excise tax on wagers taken by sports and race books and keno games would be abolished under a provision attached by Sen. Harry Reid to the six-year, $318 billion transportation bill that passed the U.S. Senate late last week.
In a statement, Reid, D-Nev., claims the “repeal” of the 0.25 percent tax will save Nevada casinos roughly $100 million.
Representatives from Reid’s offices in Washington, D.C. and in Nevada were not available for comment, and the statement did not make it clear over what period of time the $100 million would be saved.
“If in fact it passes, I would think it would be a very significant figure for the casinos,” said Ellen Whittemore, a gaming attorney and partner with the law firm Lionel Sawyer & Collins in Las Vegas.
The transportation bill still must pass in the U.S. House of Representatives and be signed by President Bush.
“Gaming is the backbone of Nevada’s economy and job market, and repealing this tax will keep that backbone strong,” Reid said in the statement.
The news seemed to catch prominent gaming attorneys and casino executives by surprise.
“It’s fantastic that he did that,” said Jeff Siri, president and chief executive of the Club Cal Neva Hotel Casino in downtown Reno. “I can tell you that it will save us a good bit of money; it’s something we’ve paid for a long time. And we could use it to be a little bit more competitive against the Indians.”
Siri said the tax was reduced from 2 percent in the early 1980s.
Bob Faiss, a senior partner at Lionel Sawyer & Collins and one of the more prominent gaming attorneys in the nation, said he was unaware of Reid’s provision.
The excise tax, he said, has its origins in Senate hearings from 1950, when organized crime in Nevada gaming was first being investigated. At first it was a 10 percent tax on the g**** receipts of all gambling transactions, but through the efforts of Sen. Patrick McCarran, it was revised to cover only race and sports books.
After that, “it was modified from time to time to its present level,” Faiss said.
Siri refers to the excise tax as a “g**** wagers tax,” as it is levied on all bets, not just the money sports books win from customers. For keno games, it applies only to “multi-race” betting of more than 20 “ball draws,” he said
