Greetings, ,
Thursday's (10/27) casino vote on HB593 is all about whether to sock the New Hampshire economy with a big, new tax. The proposed slot casino tax is the size of a 3% retail sales tax. This big, new tax will suck money out of New Hampshire's private economy and hand it to the legislature.
A note of caution for legislators licking their chops at the prospect of a big, new consumer tax. Don't trust casino lobbyists' promises.
West Virginia Now Paying for Casino Slot Machines
West Virginia is now handing out taxpayer-funded subsidies for casinos there to buy slot machines, up to $100 million in subsidies over 10 years. Here is a snip from today's Wheeling News-Register:
"If you're a butcher, a baker or a candlestick maker, don't look for the state of West Virginia to help you out if your business needs new equipment. For that matter, regardless of what you do for a living, don't ask the state for such help - unless you run a gambling casino. Earlier this month the Mardi Gras West Virginia Casino [the first to use the program] received a $193,884 check from the state, courtesy of a program approved last year by the Legislature. The money will be used to buy new gambling machines to help keep the casino competitive with newer facilities in nearby states. Under the program, the state's four casinos can get $1 from the state for every $2 they spend to modernize gambling equipment. No more than $10 million a year can be handed out, but the program is to last 10 years ...
Years ago we warned about big, well-funded gambling interests gaining too much power over public policy in West Virginia. In a way, it's a shame there was no method by which we could bet money on that. Clearly, we'd have won a bundle."
New York Zeroes Out Casino Host Community Impact Aid
Saratoga Gaming and Raceway promised host city Saratoga Springs a share of gambling taxes to cover increased costs for local police, water, sewer, roads, and schools. But, facing a budget crunch, New York State this summer zeroed out $3.9 million in state aid the city once received to cover the increased costs.
Take it from Kenneth Ivins, Saratoga Springs Finance Commissioner. There are no offsetting economic gains for local merchants. "People who come to the area to gamble rarely shop," said Ivins. "The money is not going to the local merchants or the sales tax base. It's really not supporting our economy."
Casino Lobbyists Phony Resort-Casino Promise
Salem and Hudson will not get the promised $500 million destination-resort casinos because investment bankers know full well that the New England gambling market will soon be saturated and that the best casino locations are in Massachusetts, not New Hampshire. The Massachusetts legislature wants destination casinos and therefore wrote into its casino bill a requirement that a developer invest no less than $500 million in each of the three allowed casinos.
Ignore the pretty architectural renderings being shown in Ways & Means Committee work sessions. Salem and Hudson will get tacky "Phase I" slots barns - and no more. The evidence? The gambling lobbyists who wrote HB593 included no minimum casino investment requirement.
If the legislature gets snookered by casino lobbyists' promises, casinos will be back within a year or two threatening that the slots barns will become permanent blights on New Hampshire's image unless the promised 49% tax rate in HB593 is cut to 25%, the tax rate in Connecticut and Massachusetts.
Tax-hungry legislators: get prepped for a bait & switch on revenue promises.
Just How Naïve Do Slot-Casino Promoters Think We Are?
Apparently, Millennium (aka Cannery Casinos) thinks that the legislature is so star-struck with the prospect of a big new tax that it will buy almost any promise from a company with a junk (B-) credit rating, which has lost money each of the past two years, has just suffered termination of its operating agreement to run one of its Las Vegas casinos, and survives financially only by drawing down a breakup fee paid in 2009 by a potential acquirer which chose to walk from the deal.
Lobbyists for the Hudson casino won't even disclose financing sources they claim to have.
Email House Ways & Means Members
Ask members if they trust casino lobbyists' phony promises. Ask if they are comfortable voting for a bill written by these lobbyists. Ask members to kill HB593.
Email all members: ~HouseWaysandMeansCommittee@leg.state.nh.us
