There has been considerable discussion about the corporate tax system in the U.S. and the IRS’s global reach in the media over the past year. The rash of corporate inversions was the catalyst for the public discussion of...
- The Tax Policy Blog
- Massachusetts to Allow Gambling-and Tax It
Massachusetts to Allow Gambling-and Tax It
On Tuesday, the Massachusetts House and Senate overwhelmingly agreed to license up to three casinos and one slot parlor to open in the state. The legislation, which passed by a margin of 118-33 in the Massachusetts House and 23-14 in the Senate, details that bids for casino licenses will start at $85 million and bids for the slots parlor license will start at $25 million. Many casino companies already plan to push for licenses.
The slot parlor will have to make a minimum capital investment of $125 million and is subject to a daily tax of 40 percent on gross gaming revenue. They are also subject to a daily "assessment" of 9 percent of gross gaming revenue; that money is earmarked "to support the thoroughbred and standardbred horse-racing industries."
There is also a $600 annual license fee for each approved slot machine. According to TaxAnalysts (subscription required), "Overall revenue from the casino and slot parlor taxes and licensing fees would generally go to the state and its cities and towns to help with education, healthcare, transportation, and other costs."
Read the bill here.
For more on gambling and lotteries, click here.
For more on Massachusetts, click here.
Subscribe to the Tax Foundation Newsletter
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.