Letter: Harrah’s CEO omitted tax facts

Monday, Aug. 18, 2003 | 8:42 a.m.

You gave a prime spot in the Aug. 10 editorial section to Gary Loveman, president and chief executive officer of Harrah's Entertainment Inc. His main message was the old mantra of the casino industry, "We are paying more than our fair share of taxes."

He gives various information, but only enough to produce a smoke-screen effect. He tells us that the hotel, casino and resort industry has a 4 percent profit margin, but he doesn't tell us if that is that is in Nevada, in the United States or worldwide. It's a good bet that he doesn't want us to know what it is in Nevada.

He tells us that Harrah's paid $961 million in taxes nationwide last year, and then tells us that Harrah's paid "approximately $100 million" to the Nevada treasury last year. This tells me they paid eight or nine times as much tax on U.S. operations outside Nevada, but he withholds the information I would need to interpret those figures meaningfully.

I'd like to know what percent of their gross receipts were in Nevada. I'd like to know how their profit margin in Nevada compares to the 4 percent figure he mentions. I'd like to know the variation in rates from state to state. Finally, I'd like to know how many millions in profits from Nevada were shipped to other parts of the country to set up casinos that are profitable even with tax rates several times as high as those in Nevada.

OWEN NELSON