New York launches RFP for new casinos rising the taxation to 64% - page 2.

bitterguy28

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Quote from: qwertyup23 on October 25, 2021, 10:08:44 AM

Wait, what?! 64% tax for the establishments and regulation of Casinos? That would definitely put a toll to both present and potential business owners that plan on starting on such state. Just like what Justice Marshall mentioned: "The power to tax involves the power to destroy."

well there are still many state for them to target creating their business , though i think New York see this opportunity as their state is a fast growing in terms of gambling businesses and gamblers.

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If the government plans on maintaining such tax rate, then the citizens must feel the changes brought about it. Better government expenditure and project development should be expected with this kind of outrageous tax implementation.

eventually the New York State will realize this , because gamblers and businesses will try exiting their city and will look for more appropriate and fair in terms of taxations .

Fundamentals Of

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I cannot open the link posted in the OP but I think 64% is way too high. Whether it is only imposed to sports bettors or to casino players does not matter. It does not take away the fact that it is already a very heavy tax responsibility for players.

The state government has probably reasons for this. Perhaps they want to discourage gambling from its people that is why they increase the taxes to the highest level to discourage gamblers and casinos alike. But I doubt this one. Or perhaps they want to create a big revenue from it. But with a tax as high as 64%, this is not going to be effective.

sovie

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Quote from: gagux123 on October 25, 2021, 04:56:06 PM

wooow, is this true!!?

Well, I'm not American and I don't live in New York, but could someone explain to me, how this could harm the city by carrying out this abusive increase in taxes?
Slow down the local economy!!?
Discourage casino companies/businesses or something like that??

As I wrote in an earlier post, I think this will have a negative impact on New York's finances.
I think the rulers expect a lot of income from such huge taxes. However, this can be very illusory, because nowadays moving a company even abroad is not a very big problem, especially an Internet company.
In my opinion, the decision to raise taxes will backfire and the bookmakers will move out of New York, making it less money coming in to the city pocket.

gagux123

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wooow, is this true!!?

Well, I'm not American and I don't live in New York, but could someone explain to me, how this could harm the city by carrying out this abusive increase in taxes?
Slow down the local economy!!?
Discourage casino companies/businesses or something like that??

Kasabus

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That could be high but the government knows that this is a lucrative business, and the fact that they still operate, means they are profitable. The sports betting industry is a billion-dollar industry, so the government will certainly benefit big time from this increase since the majority of the money in circulation in the sports betting industry is coming from US soil.

sovie

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Quote from: harizen on October 25, 2021, 03:51:51 PM

As far as the article is concerned, the 64% tax just applied to online sports betting and not on the usual casino games on land-based casinos.

Don't know how the setup of land-based casinos is there but maybe there is part of it where gamblers can place bets online right at the casinos. People should not overreact to the figure of 64% without seeing the whole "tax matrix", breakdown, and what is covered regarding taxation.

Then I'm sorry I missed it.
If this is just about online betting on sports, I think setting such a high tax will be a shot in the foot. After all, if I had run such an bussiness there, then at the mere news that the authorities had such ideas, I would start looking for a new place for my company headquarters.

harizen

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As far as the article is concerned, the 64% tax just applied to online sports betting and not on the usual casino games on land-based casinos.

Don't know how the setup of land-based casinos is there but maybe there is part of it where gamblers can place bets online right at the casinos. People should not overreact to the figure of 64% without seeing the whole "tax matrix", breakdown, and what is covered regarding taxation.

sovie

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Quote from: fiulpro on October 24, 2021, 01:47:33 PM

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According to the matrix, “for a two-platform provider and four operator schemes, the proposed tax rate is 64%”

New Hampshire currently taxes 51% income and Pennsylvania taxes 36%, making the New York rate the highest in the country for sports betting.

The New York state gaming commission has issued a request for the proposals which are due 10 December apparently which would raise the gambling tax to 64% ( proposed) it's already way over the top. They have also issued information about the unlicensed casinos in the area. They wanna choose the official tenders, therefore these measures are supposed to attract those parties.

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Resorts World Aqueduct Casino (owned by Genting) and Empire City Casino (owned by MGM Resorts), gambling properties that have already been licensed to run slot machines in the area, are speculated to be among the interested parties.

https://www.gamblinginsider.com/news/13616/new-york-launches-rfps-for-new-casinos-and-decides-64-tax-for-online-sports-betting

What do you think about these unreasonable tax rates ? ?
These are not only over the top but also going to push the companies away.

It seems that it is only about land-based casinos. Even if such a huge tax were to be introduced, I am sure that any online casino registered in New York would quickly move its headquarters to another state or even country.
I don't know what the state government is doing, but such a high tax could backfire. Instead of increasing revenues, they can reduce them through the emigration of companies and the creation of underground untaxed casinos.

carlfebz2

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Quote from: avikz on October 25, 2021, 12:31:04 PM

Lol! 64% on profit or revenue? I believe it's the revenue!

But I would say it's a wise decision by the government. New York houses the most billionaires in the world and one of the most costliest cities. Also the income of the city people are amongst the highest as well. So people living in New York wouldn't mind spending on sports betting. Also the government will get what they always want, taxes!

But the wise business houses will eventually pass on the cost to the people only or they would have to look for value added services to survive!

For sure that would really be on revenue and not for net profit but i have checked out and trying to clarify out on here
https://www.yogonet.com/international/noticias/2021/10/21/59830-ny-regulators-launch-rfp-for-new-casinos-agree-on-64por_ciento-tax-for-online-sports-betting
but i cant really see the precise one.So lets just presume atm.

Government are the ones who could really set out rules.whether you do like it or not then you would still needed to comply or else
then you do simply close or stop your business.

magneto

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Quote

The New York state gaming commission has issued a request for the proposals which are due 10 December apparently which would raise the gambling tax to 64% ( proposed) it's already way over the top. They have also issued information about the unlicensed casinos in the area. They wanna choose the official tenders, therefore these measures are supposed to attract those parties.

These statements are inherently contradictory.

Jacking up your gambling taxes to 64% is not going to attract anyone to establish in your state. Rather, it is just going to be encouraging illegal junket activity for than anything else. Certainly not something that you would want as a regulator.

If the aim is combatting illegal gambling joints, this is certainly not the way to go.

If the aim is to raise more revenue, this is not the way to go either - search up "paradox of thrift".

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Quote from: fiulpro on October 24, 2021, 01:47:33 PM

Quote

According to the matrix, “for a two-platform provider and four operator schemes, the proposed tax rate is 64%”

New Hampshire currently taxes 51% income and Pennsylvania taxes 36%, making the New York rate the highest in the country for sports betting.

The New York state gaming commission has issued a request for the proposals which are due 10 December apparently which would raise the gambling tax to 64% ( proposed) it's already way over the top. They have also issued information about the unlicensed casinos in the area. They wanna choose the official tenders, therefore these measures are supposed to attract those parties.

Quote

Resorts World Aqueduct Casino (owned by Genting) and Empire City Casino (owned by MGM Resorts), gambling properties that have already been licensed to run slot machines in the area, are speculated to be among the interested parties.

https://www.gamblinginsider.com/news/13616/new-york-launches-rfps-for-new-casinos-and-decides-64-tax-for-online-sports-betting

What do you think about these unreasonable tax rates ? ?
These are not only over the top but also going to push the companies away.

While these taxes may seem high you can guarantee that any gambling company would jump at the chance to take a chunk of the New York market even at such rates. Casinos and all kinds of gambling institutions are pure money making machines with seriously low overheads and people almost giving their money away in this form of entertainment. While these gambling companies might be serving a purpose and should be regulated rather than banned, they are almost definitely not good for the wider society because they contribute so little back. At least this way tax money can be redistributed back into communities or constructive projects rather than just benefiting a few shareholders.

uneng

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These are populist measures used by politicians to show the poors they are taxing the riches, so they become a kind of Robin Hood in the eyes of the media and the public in general. But in fact these are harmful measures, because they are creating an unfavorable environment for businesses in their territory, what will lead companies to leave to another states or to also raise the costs of their services for gamblers (the final customers).
In the end the state of New York will be the most prejudiced one, because it will lose income due to the greed and selfishness of its politicians. While for casinos companies and gamblers it isn't a problem at all, since there are dozens of another states where gambling is a welcome economical activity.

avikz

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Lol! 64% on profit or revenue? I believe it's the revenue!

But I would say it's a wise decision by the government. New York houses the most billionaires in the world and one of the most costliest cities. Also the income of the city people are amongst the highest as well. So people living in New York wouldn't mind spending on sports betting. Also the government will get what they always want, taxes!

But the wise business houses will eventually pass on the cost to the people only or they would have to look for value added services to survive!

qwertyup23

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Wait, what?! 64% tax for the establishments and regulation of Casinos? That would definitely put a toll to both present and potential business owners that plan on starting on such state. Just like what Justice Marshall mentioned: "The power to tax involves the power to destroy."

If the government plans on maintaining such tax rate, then the citizens must feel the changes brought about it. Better government expenditure and project development should be expected with this kind of outrageous tax implementation.

Hydrogen

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Residents fleeing california and new york for texas and florida has been a trend for awhile now.

Quote

Texas, Florida Gain House Seats After Census Shuffle as California, New York Lose

Six states will gain congressional seats – with Texas leading the pack by picking up two – as the South became the fast-growing region over the past 10 years, according to the first set of data released by the U.S. Census Bureau.

https://www.msn.com/en-us/news/us/texas-florida-gain-house-seats-after-census-shuffle-as-california-new-york-lose/ar-BB1g4Nkn

....

Texas passing laws against abortion. May have been intended to deter residents immigrating into the state. Negative news trends involving florida could also serve a similar goal. To deter those who support policies which led to the destruction of california and new york from negatively influencing the region.

If they demand 64% taxes, they need better transparency, better accountability and better management of tax revenues. I think its fair to say most americans are not happy with the current status quo.

fiulpro

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Quote

According to the matrix, “for a two-platform provider and four operator schemes, the proposed tax rate is 64%”

New Hampshire currently taxes 51% income and Pennsylvania taxes 36%, making the New York rate the highest in the country for sports betting.

The New York state gaming commission has issued a request for the proposals which are due 10 December apparently which would raise the gambling tax to 64% ( proposed) it's already way over the top. They have also issued information about the unlicensed casinos in the area. They wanna choose the official tenders, therefore these measures are supposed to attract those parties.

Quote

Resorts World Aqueduct Casino (owned by Genting) and Empire City Casino (owned by MGM Resorts), gambling properties that have already been licensed to run slot machines in the area, are speculated to be among the interested parties.

https://www.gamblinginsider.com/news/13616/new-york-launches-rfps-for-new-casinos-and-decides-64-tax-for-online-sports-betting

What do you think about these unreasonable tax rates ? ?
These are not only over the top but also going to push the companies away.

Topic: New York launches RFP for new casinos rising the taxation to 64% - page 2. (Read 226 times)