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Posted At : September 4, 2008 10:44 AM | Posted By : D McKee
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Detroit,Taxes,Tribal,Atlantic City
Atlantic City's high pajandrums are contemplating permitting as many as six new casinos (not counting Revel or the on-hold Pinnacle Entertainment project), further diluting a challenged market. Does this mean the existing casinos will get a commensurate reduction in their tax rate?
Why do I get the feeling the answer to that question is a scornful, "No"? Serves me right for applying logic to the situation.
Casino companies' best argument for keeping Nevada's privilege tax rate the lowest in the nation is that, theoretically, there's no limit to the number of casinos that can be built in the Silver State. Conversely, a market where casinos are limited by statute -- let's use Detroit as an example -- can justify a higher impost, especially since the government is providing a protected oligarchy for a handful of operators.
But were Detroit, say, to lessen the oligarchy by allowing in a fourth or fifth operator, it's only reasonable that everyone involved gets a tax break. After all, they're going to be divvying the same customer pie into smaller slices. Governments, unfortunately, tend to think that More = More, so that's never gonna happen. But it should.
While we're on the subject of Detroit, it required a vaudeville hook the size of a construction crane, but America's biggest political embarrassment is finally being dragged from the stage. Back when I was covering the awarding of Detroit's three casino licenses, the surrounding intrigue took such bizarre turns that, were it a novel, it would be deemed too lurid for credibility. Now, thanks to the stranger-than-fiction antics of Kwame M. Kilpatrick, Las Vegans have something new about which to feel smug, as the bumpy mayoralty of Oscar Goodman looks quaint and wholesome by comparison. (I like Oscar but he has his, uh, moments.)
"we need to get some $ from those Monkeys!!!!" Yes, everbody's favorite scumbag and slime bucket, "Casino Jack" Abramoff is back in the news today (in which Sen. John McCain makes a cameo appearance as one of the good guys). The quote above is from one of Abramoff's many infamous e-mails -- which McCain helped bring to light -- and the "Monkeys" are Native Americans, in case you were wondering.
Casino Jack is scheduled to be sentenced today on more of his seemingly endless litany of crimes. "I am not a bad man," Abramoff writes to the judge. No, Jack, you are a bad man and I hope the judge throws the book at you.
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