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Unclaimed Slot Machine Tickets to Nevada Coffers?

September 2nd, 2011 Leave a comment Go to comments

Reported by the Las Vegas Sun, the state of Nevada is seeking to pass a regulation that would allow the state to collect from casinos a substantial portion of unclaimed slot machine tickets. Earlier this week, the state’s Gaming Control Board held a workshop to take testimony on the proposed regulation. Nobody showed to speak up.

According to the article, casinos would be required to send 75 percent of the proceeds from expired slot machine tickets straight to the state. The casinos would keep the remaining 25 percent, before taxes. The casinos would still be required to pay the 6.75 percent gaming revenue tax on that amount.

The spike in revenue for the state would be significant. If the regulation passes, I wonder whether casinos would consider bringing a suit to challenge the regulation. My immediate reaction is that they would likely lose, but I’m far from an expert on the Nevada Constitution. To me it’s a valid levy on a certain type of gaming revenue that all casinos with slot machines would be required to pay.

It’s clear that the state is making various efforts to increase its revenues collected from casinos. Last month, I wrote about a battle between the Nevada Department of Taxation and Boyd Gaming concerning whether casinos are required to pay sales tax on the value of food comps to its patrons.

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