19Apr

CasinoAn altered plan for raising the state tax on casinos was given by the Governor Terry Branstad to the legislators, but from lawmakers and a key lobbying group, it is getting the same chilly response.

Raising the state tax on all casinos to 36 percent was recommended by Branstad in late January. Now, for the casinos, Branstad advises a “graduated” tax based on profits, in the same way individuals who make more money have higher tax rates.

Raising the casino tax was proposed by Branstad so legislators then would be able to cut the state’s top corporate income tax rate in half.

A casino’s first $25 million would be taxed at 24 percent under the governor’s proposal. At 30 percent, revenue of $50 million or more would be taxed and revenue of $75 million or more would hit the top rate of 36 percent.

Tim Albrecht, Branstad spokesman said that those casinos that had already agreed to this same 36 percent rate last decade would be primarily be impacted by the top rate, when they were able to put slot machines in the horse tracks.

Meanwhile, Branstad said that he believes it was the right thing to hold off on online gaming for at least a year; even though to allow it, Washington, D.C., will likely become the first place in the nation.

On payments for lawyers and other professionals who provide legal services to youthful and impoverished defendants is one of the most contentious issues this session has focused upon. Since mid-February, hundreds have gone unpaid, largely because in this year’s budget the Legislature did not have suitable enough money to pay for the program.

27Aug

When Surrey, B.C. councilor Bob Bose leaked details about a secret council meeting that was held to discuss a casino on the city-owned Cloverdale Fairground in October 2002, he launched a controversy that still haunts Fraser Downs and its slot machines.

The Great Canadian Gaming Corporation, which purchased Fraser Downs in March 2005, has decided to cut the number of race days at the track in order to save money, which is the latest issue in this on-going saga.

For a number of years, the horse racing industries have been dramatically losing ground to casinos and online gaming. Coming to the track are less and less people and profits are way down.

As a way to save racing by using a portion of the revenue generated to increase race purses, the push for slot machines at Fraser Downs was presented. Richer purses would bring better horses and drivers to Surrey were argued, which would mean more fans and gamblers as well. However, it did not work out that way.

In 2007, Great Canadian and the B.C. Standardbred Association signed a four-year deal that extended the season by two months and it was intended to stabilize the game but it did not happen.

Unfortunately, horse racing at Fraser Downs is in serious trouble and it is slowly fading away, even after adding the slot machines.