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Toll on casino revenues varies by state

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By Kathy Canavan

Delaware casino operators give about 55 percent of their combined revenue to the state, horsemen and video lottery vendors under the current revenue-sharing agreement. They keep 45 percent.

Pennsylvania operators pay 55 percent of slot revenue and 14 percent of table-games revenue.

New Jersey casino operators pay 9.25 percent of gross revenues.

Maryland operators pay 20 percent of table-games revenue and 50 to 67 percent of slot revenue.

In Nevada, the casino operators pay approximately 6.75 percent of gross revenues. Analysts say the low tax rate has led to more casinos and more casino jobs in the state.

An apples-to-apples comparison with any other state is difficult, because some states have revenue-sharing models and others levy taxes. Casinos also pay millions of dollars in licensing fees and other fees, which vary from state to state. The number of inspectors states require also varies.

The states’ takes from table games are generally lower because the games are labor-intensive and the casinos bear the labor costs.

Income from Delaware’s partnership with its three casinos makes up around 5 percent of the state’s operating budget. When casinos were at their peak, it was close to double that, according to State Treasurer Ken Simpler. The economic downturn since 2008 and competition from new casinos in Maryland and Pennsylvania cut the number of visitors to Delaware casinos.

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