Iowa Governor Terry Branstad is looking for a way to increase revenue for the state budget, and like lawmakers in other states, Branstad sees gambling as
Iowa is one of the states that was ahead of the curve when it came to casino expansion. While other states are just entering the market, Iowa is looking to tweak their current system. The tax rate for casinos in Iowa sits at twenty-two percent. That could jump to thirty-six percent if Governor Branstad has his way.
The proposition could become a catch twenty-two for casinos in the state. The casinos would pay a much higher tax rate, but they would also receive major relief from a corporate tax cut that is being proposed along with the gaming tax hike. Still, many analysts believe the casinos would be opposed to any tax rate increase.
In neighboring Illinois, the tax rate structure is one that will be similar to Iowa if the governor's proposal is approved. The higher tax rate may lead to a decrease in promotions from the Iowa casinos, which could then lead to gamblers taking their gaming money to Illinois.
Gamblers have many more choices now than ever in the past in the US. States all across the country have turned to casino gambling to fight off absurdly high budget deficits. States that have long had casino gambling, such as New Jersey and California, are turning to online gambling to help reduce budget deficits.
Iowa has been faced with the same economic problems that have gone on across the US since the recession. The gaming industry has been among the hardest hit by the recession, with gamblers simply not having enough funds to continue to enjoy the extracurricular activity. In recent months, casinos have started to see some relief in their gaming revenue as the economy improves.
January 30, 2011
Posted By April Gardner
Staff Editor, CasinoGamblingWeb.com
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