Heard it on the River
by Rudi Schiffer
It was a tiny item on casinocitytimes.com that caught my attention. The news source was the Clarion Ledger and the headline read, “Mississippi Bill Proposes To Collect Tax On Small Winnings.” My first reaction was this can’t be real. It’s too insane to even joke about. If passed it would mean that some 30 casinos in Mississippi would be become tax collectors for the state on small winnings. Casinos are already collectors on winnings over $1,200.
The bill is SB2144. It was authored by Republican SENATOR JOEY FILLINGANE of the 41st Senatorial District and it’s no joke. Senator Fillingane is chairman of the Finance Committee and he estimates that the state is missing out on $500 million in taxes, according to the Clarion Ledger.
It is easy to question Fillingane’s reasoning on SB2144 when one considers that he expects every gambler in the state to report every win under $1,200. Why stop there. Why not trace all winnings in that category and make non-reporters of winnings pay a fine (or worse) if it’s proven that there is a long history of non-declaration of such winnings. And can those winners declare losses as well to offset the winnings? If gambler were able to offset wins with losses there would be very little tax collected by the state since most players lose—especially over the long term.
Just think about the logistics involved to write up a tax form on everything won below $1,200. “It would be a total disaster,” one smart thinking general manager told me when is asked for his opinion. Another top executive said, “With all respect to the senator, he barking up the wrong tree on this. Our tax rate now is very high and already supports many state programs.”
In this writer’s opinion, Senator Fillingane was wrong when he told Clarion Ledger reporter Geoff Pender, “This isn’t a new tax or tax increase. We’ve got a law already on the books. It’s already supposed to be collected.” Some casino execs say the measure IS a new tax. They say gamblers are not supposed to report and pay the 3 percent on ALL WINNINGS, just on winnings over $1,200. The market in Mississippi is very competitive, not just from casinos within the state, but also with others in nearby states. New taxes would hurt gaming industry revenue and growth in Mississippi. Lower revenue and growth means less in taxes collected. It is simple economics.
The senator should also be reminded that the new tax will be paid by a lot of voters in Mississippi. You can express your opinion on this to Senator Fillingane at jfillingane@Senate.Ms.com. With the gaming industry in general struggling because of a terrible economy, it’s not the time for SB2144.
TOURNAMENT TRASH TALKING... I was trying to win my table into the semifinals of FITZ CASINO’S $20,000 SWEETHEART BLACKJACK tournament his past weekend when out of the blue two old timers on opposite ends of the table started busting each other’s chops over bad draws, questionable hits and so on. While they were mixing it up and making max limit bets of $2,500, I played tight and was unusually patient. I made my move at the end with big bets and wound up in the semi-finals, where I got squashed. The next tourney is planned for May, according to ADOLPH LEPRE, the man who makes it all happen.
You always see a lot of vehicle giveaways promotions at our casinos, such as the current NISSAN ROGUE at BALLY’S, a FORD-150 at ISLE of CAPRI and the FORD KING RANCH truck at SILVER STAR. But do the winners drive them home or take the cash. I suspect it’s the cash they take. SAM’S TOWN is staging a $50,000 open slot tournament on Feb. 22-23 with a buy-in of $200. The entry fee also includes two free room nights and cash prizes go through 100 places. Call (800) 456-071 soon as space is limited. I want to take part in the MISTER POPULARITY promo now running at SOUTHLAND PARK but can’t find five friends to support me and that is the number you need to participate. But if you have five friends you have to enter this event as at the grand prize drawing night, you will be crowned and handed $25,000 cash and your five pals divvy up another $25,000. Not shabby. BIG EASY WINNINGS continues Feb. 23 at GOLD STRIKE and you can win your share of $25,000 FreePlay if you qualify free by earning 300 slot base points on the day of the tournament. TREASURES of THE CARIBBEAN with plunder of $1,500,000 is heating up the slot action at GOLD STRIKE.
Scoop… FITZ will stage the BONE SHAKER craps tournament March 22-23 with $5,000 cash first place winnings. Play will be 30-minute rounds. While at Fitz, I met the new Executive Director of Marketing RICK CASAGRANDE. The meeting was going just fine; he was quiet and well-spoken, had great industry experience and seemed to be a good fit for the casino and the market. But then he said he was from New York and If you know this old writer you know that I am a totally dedicated Boston Red Sox nut and have an aversion to anything in pinstripes. Those vertical uniform patterns and Chinese-like logo have caused me much pain since TED WILLIAMS patrolled left field for Boston. Maybe he will overlook my flaws? GEAUX SAWX. LAISSEZ LE BON TEMPS ROULER
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