That was the decision Iowa was faced with after the Iowa Supreme Court ruled that tax rates at race track (horse racing) casinos were unconstitutional in 2004. Today, Iowa is in the midst of a casino building boom, with four new casinos opening and many existing casinos undergoing renovations.
Of course, legislators when faced with a tax shortfall (or a tax being declared illegal/unconstitutional) try for some other means of raising the same revenues. Perhaps we can call it a “user fee.” Maybe some video lottery terminals will raise some money. Or let’s just add some casinos. I mean, can we actually consider cutting spending? Of course not.
The beneficiaries of this policy are obvious: the casinos, Indian tribes operating some casinos, the State of Iowa (those tax revenues are still flowing), and in one sense, the gamblers in Iowa. After all, with the renovations and new facilities, it’s easier to gamble and it’s more comfortable (or soon will be).
Of course, it’s hard to win in most gambling, as the odds are with the house. You could try playing poker (several casinos in Iowa offer real poker). I’d advise reading a book first (shameless self promotion: I’m the co-author of a book on no-limit hold’em), as most poker players are losers.
So what’s the moral of the story? In most jurisdictions, government will find a way to make sure those tax revenues keep coming in.
News Story: Des Moines Register
Iowa Supreme Court Decision
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