Taxes
lost from casino in Florence, Oregon
(population 7,500)
Casino profits in Oregon are untaxed
(population 7,500)
Casino profits in Oregon are untaxed
| Annual Social Costs (Lane County Gambling and Prevention Estimate) |
$996,577 |
| Lost property taxes on similar
commercial development (Lane County Assessor's estimate on market value of $24,600,000) |
$222,189 |
| Lost Lane County room tax on
similar 100-room motel (7% x 120 rooms x $50 per room x 200 days per year) |
$84,000 |
| Lost business income taxes - Federal
taxes on $12 million annual net profit (Casino developer estimated $12 million net profit per year in 2004, indicated even higher in 2005) (Federal corporate tax = $3,400,000 + 35% of amount over $10,000,000) |
$4,100,000 |
| Lost business income taxes - State of
Oregon taxes on $12 million annual net profit (Casino developer estimated $12 million net profit per year in 2004, indicated even higher in 2005) |
$792,000 |
| Lost Oregon
Liquor Control Commission Revenues (OLCC) (liquor sales mark-up only 5%, non-casino retailers pay 105% markup) (based on 2004-2006 liquor purchases at OLCC) |
$33,022 |
| Tobacco
Tax Refunds (State of Oregon 'refunds' a certain percentage
of
tobacco taxes) |
Unknown |
| Annual costs of casino in
Florence |
$6,227,788 |
We're not certain of the total cost to a community when a casino moves in.
Most existing "impact studies" have been paid for by casinos and gambling interests, so it's difficult to say with certainty what real impact a casino will have on a community - until it's too late and the harm has been done.
Agreements between cities and casino tribes, (City of North Bend and Lincoln City) give an indication of what two Oregon communities considered was the cost of a casino in their town. Even these seemingly generous agreements have resulted in considerable costs to the 'host' community (See Lincoln City - casino putting property into trust and eroding tax base, 4/21/06)
The above estimates do not include the loss from the State's lottery revenues on video poker machines in local non-casino businesses. Included is our best guess about the loss of State revenue from the sale of alcohol, which the casino purchases at about half the price that other businesses must pay, reducing Oregon's annual revenues by millions of dollars.
We don't know how much cigarette tax revenue is "refunded" to Oregon casino tribes under State Statutes: Oregon Revised Statute 323.401 "Refund agreement with governing body of Indian reservation; appropriation for refunds. (1) The Department of Revenue is authorized to enter into a cigarette tax refund agreement with the governing body of any Indian reservation in Oregon. The agreement may provide for a mutually agreed upon amount as a refund to the governing body of any cigarette tax prepaid on sales of cigarettes to Indians upon the reservation and paid into the State Treasury. This provision is in addition to other laws allowing tax refunds."
The building of two government subsidized housing projects in Canyonville, Oregon coincided with the casino (Seven Feathers Casino) development in that town. A Douglas County, Oregon, Planning Commissioner stated that the tax-subsidized housing projects were built in large part to accommodate casino workers who qualified for such financial assistance. In 2004, a community health clinic in Canyonville was closed down because of cuts in state funding, and the hospital's increasing debt and free-care costs·. Reports by the U.S. Office of Management and Budget also indicate that Oregon casino tribes continue to receive millions of dollars in federal funding, even ten years after their casinos have opened.
Slot Revenues
What's the take? Between $227 and $403 per machine, per day
What's the take? Between $227 and $403 per machine, per day
The daily per-machine revenue is the average amount of money left in a slot machine at the end of a day after winners have been paid. It's a universal statistic in the gambling industry for how well a casino performs. (1/17/08, Casino Ahead of Game)
... Congress intended with the Indian Gaming Regulatory Act in 1988, in which gambling was intended to be an engine for economic development — not welfare for tribal members. "It's created a lack of ambition to do anything more." (9/9/09, Pequots find that easy money is hard to give up)
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