Tuesday, August 25, 2009

Some more back of the evelope with local tax revenue.

If a bar has 5 machines that get played 70 times an hour at $1 per play and played for 12 hours. That leads to a gross amount played of $840 per machine for $4200 for all machines.

Yes, my rate of play may be low, but I think my average bet is high. Go to a casino in this state during the week. Lots of folks a nickle and quarter slots, not a lot a the dollar machines.

Back to the math....
With an 80% payout it results in a net on the 5 machines of $840 (before taxes). The taxes are $252 of which 1/6 goes to the local government video Gaming Distributive fund. That 1/6th is $42 so for each location that has 5 video poker devices. So if a city has 10 bars, thats about $420 a day or about $153,300 a year. Decent money, but not exactly a windfall considering the state is going to get about $744,609 in the same time period..

OneMan

1 comment:

Marie said...

On the other hand, that would be a nice windfall for a town like Springfield, even if only half the bars and clubs host video gambling. I'm guessing there are more than 100 bars here.

Speaking of taxes, that reminds me of a question that's been nagging at the back of my mind: How and when will the IRS get its cut of the players' winnings? I think I know how they'll get their cut of the barkeep's income from hosting gambling, and I'm assuming they'll get no cut of the not-for-profits' income from gambling. But what about the actual winnings? I know the state is still figuring out the regulations (I think), so I'll be interested to see if they put something in for that. Or am I missing something that makes it a non-issue?