Federal Taxation of Casinos

Congress seeks to clear up any confusion regarding the Unlawful Internet Gambling Enforcement Act. Not only does it plan to specify what is legal or illegal with regards to online gambling but also intends to regulate and tax those that are deemed to be legal.

This affects land-based casinos as well as online casinos. There is some controversy between groups because the allowance and growth of online casinos could potentially take business away from land casinos. What is more, if the government were to enforce a greater taxation upon casinos they would suffer to some degree. At this time Nevada casinos are getting away with less than 10% taxes paid to state and don’t feel that the government as any right to interfere with state issues.

Frank Fahrenkopf, CEO of the American Gaming Association, said “…I must say that most of the companies that we work with have opposed federal regulation and taxation of any form of gambling. It’s an intrusion on states’ rights.”