A bill currently under review in the Iowa House aims to adjust the tax rate for Iowa’s state-licensed casinos, potentially bringing it in line with rates seen in neighboring states like Nebraska and Missouri. In light of the increasingly competitive land-based gambling landscape, lobbyists and representatives from the gaming industry have expressed their support for the proposed tax reduction.
Mark Joyce, a lobbyist representing the Diamond Jo casinos in Northwood and Dubuque, highlighted the significance of this tax adjustment, particularly in light of increased competition in neighboring states.
“It’s a very mature industry in Iowa and the newer casinos in surrounding states, in particular in Nebraska, are going to be brand new,” Joyce said. “They’re going to be taxed at 20% so for us to be able to have extra capital to put back in the properties and better compete for your business, that’s why.”
Similarly, Doug Struyk, representing the Catfish Bend Casino in Burlington and Caesars Entertainment, stressed the pressures faced by Iowa’s gaming industry due to more competition from neighboring states. With new casinos opening in Illinois and Nebraska, there is a pressing need for Iowa’s casinos to maintain their appeal and attractiveness to patrons.
“Tremendous amount of pressures on the industry, so we appreciate you taking a look at this,” Struyk said during a House subcommittee hearing.
The opening of the WarHorse Casino in Lincoln in 2022, followed by Harrah’s opening in Columbus (Nebraska) last year, has resulted in a decline in gaming revenue from Council Bluffs casinos. Struyk noted the importance of continued investment in Iowa’s facilities to ensure they remain attractive destinations for gamblers from Nebraska.
“It will take additional investment in the facilities in Iowa to continue to be bright, shining new attractions to keep people wanting to come over and utilize the Iowa facilities instead of the Nebraska facilities,” Struyk said.
Looking ahead, the impending opening of another WarHorse Casino in Omaha adds to the urgency for Iowa’s gaming industry to remain competitive. Representative Jane Bloomingdale, sponsor of the bill, emphasized the need for fairness in tax policies across different sectors.
“We’re lowering taxes for individuals, we’re lowering taxes for corporations, but we’re not lowering taxes for casinos. It just doesn’t seem fair,” said Bloomingdale. “If we’re going to lower taxes for everyone across the state of Iowa, we maybe need to look at everyone.”
Bloomingdale’s proposal, which has advanced through a House subcommittee, aims to gradually lower Iowa’s casino taxes over three years. However, concerns have been raised regarding the potential impact on the Rebuild Iowa Infrastructure Fund, which relies on casino tax revenue for various projects.
Original article: https://www.yogonet.com/international/noticias/2024/02/27/71002-iowa-casino-tax-reform-bill-gathers-industry-support-amidst-growing-competition
