Unpaid markers reduce tax receipts

Wednesday, March 14, 2001 | 11:15 a.m.

CARSON CITY -- Slow collection of casino markers has contributed to lower tax receipts this year, the chairman of the state Gaming Control Board said today.

Tax revenue this fiscal year is running 2.3 percent lower than it was a year ago and could mean a $33 million shortfall in the state budget if the trend continues.

Board Chairman Dennis Neilander told the Assembly Ways and Means Committee there has been an increase in credit play of 8 percent in recent months. Collection of those markers has not caught up.

The industry, Neilander said, does a good job in collecting its gaming debts; about 4 to 6 percent is not collected. He said he hoped there is a "high possibility of collecting" the present outstanding debts, which would mean higher tax revenues.

Neilander was questioned by Assemblywoman Chris Giunchigliani, D-Las Vegas, about the future for the gaming economy. He pointed to three fights scheduled in March in Las Vegas, positive visitor volume and strong hotel occupancy and convention bookings as indications of continued economic health.

The latest Nevada Gaming Abstract publication for 2000 showed casinos had bad debt expense of $248.8 million. That does not include write-offs for rooms, food and beverages.

On another topic, Neilander said the board recently raised the background investigative fees charged those seeking a license. That money is going to finance higher pay in the agency.

The chairman said the staff of the Control Board has "gotten 11 percent below the classified employee" pay in other agencies and there has been an "excessive turnover rate."

Gov. Kenny Guinn has recommended a 9 percent pay increase for all unclassified workers this year, 4 percent next year. Under the gaming proposal there would be a $5,000 "credential payment" to employees such as auditors, attorneys and other professionals.

Neilander said many of the employees want to stay but "people are throwing $15,000 at them to jump ship."