Iowa casinos might see their efficient gaming tax lowered within the coming years if new laws finds favor within the Des Moines capital.
Iowa Rep. Jane Bloomingdale (R) addresses the state Home in March 2023. Bloomingdale is spearheading a push to decrease the state’s tax on gross gaming income incurred by business casinos, riverboats, and racinos. (Picture: Des Moines Register)
Iowa is house to fifteen land-based business casinos, three riverboats, and one racino. The 19 casinos provide slot machines, desk video games, and sports activities betting.
Gross income from slots and desk video games is topic to a graduated tax. Most fall underneath the very best charge of twenty-two%, which applies to any on line casino that generates no less than $3 million in GGR in a given yr.
Iowa Consultant Jane Bloomingdale (R-Value) thinks with casinos opening in neighboring Nebraska, the state can be sensible to encourage its gaming licensees to make capital investments. That may maintain the Hawkeye State’s gaming trade aggressive.
“We’re decreasing taxes for people, we’re decreasing taxes for firms, however we’re not decreasing taxes for casinos. It simply doesn’t appear honest,” Bloomingdale stated.
Bloomingdale launched Home Research Invoice 719 final week. The measure, if handed within the legislature and signed by Gov. Kim Reynolds (R), would cut back the business gaming tax on slots and desk revenue over three years.
The examine invoice already handed a Home Methods and Means subcommittee, which implies the measure will quickly acquire a Home File quantity and obtain consideration from the complete committee.
Nebraska Gaming Begins
Except for 2020, Iowa’s business gaming trade has grown every year since 2014. GGR has risen from $1.39 billion in 2014 to $1.94 billion final yr.
Nevertheless, when sports activities betting income was excluded, legacy gaming — in-person slots and tables — was down 1.2% year-over-year in 2023.
Nebraska is presumably the wrongdoer, as non permanent casinos opened within the Cornhusker State. Iowa casinos in Council Bluffs suffered probably the most, as Nebraskans now have gaming choices while not having to journey throughout the Missouri River.
Mark Joyce, a lobbyist who represents the pursuits of the Diamond Jo casinos in Northwood and Dubuque, advised Radio Iowa {that a} tax break might assist Iowa casinos make renovations and amenity updates to compete with the brand new casinos in Nebraska.
It’s a really mature trade in Iowa and the newer casinos … in Nebraska are going to be model new,” Joyce stated. “They’re going to be taxed at 20% so for us to have the ability to have further capital to place again within the properties and higher compete for your online business [would be good].”
5 everlasting casinos in Nebraska are amid development in Omaha, Lincoln, Columbus, Grand Island, and Hastings.
Invoice Specifics
Bloomingdale’s on line casino invoice proposes decreasing the on line casino slot and desk tax to 21% starting July 1, 2024. The tax charge would decline to twenty% on July 1, 2025, and all the way down to 19% efficient July 1, 2026. The 19% tax would stay in perpetuity.
The tax discount applies to land-based and riverboat casinos. The racino facility can be taxed barely larger — 2% greater than the charges for the casinos every year.
Iowa’s casinos have a powerful lobbying presence in Des Moines.
In June 2022, the trade efficiently thwarted additional competitors by having the legislature and Reynolds approve laws that prevented the Iowa Racing and Gaming Fee from issuing new on line casino licenses for 2 years.
The moratorium is about to carry on July 1.
