Tuesday, Oct. 19, 2004 | 8:59 a.m.
LINCOLN, Neb. -- Two casinos in Nebraska would generate more than $90 million in tax revenue if the legislature's gambling plan is approved by voters, an economist said Monday.
Jerome Sherman, a former economist at Creighton University and University of Nebraska-Lincoln, announced his findings at a Capitol news conference with Sen. DiAnna Schimek of Lincoln.
The legislature's casino gambling measure, known as Amendment 3, asks voters to legalize two casinos anywhere in the state.
The details of where the casinos would go will be worked out later by lawmakers.
But Sherman, using data from existing casinos in Council Bluffs, Iowa, said an Omaha casino would generate $65 million in gambling taxes alone.
He said the casino also would generate $8.6 million in property taxes and another $2.8 million in sales and other taxes.
A second casino outside the Omaha area would generate another $15.6 million, he said, bringing the total to some $93 million.
"My conclusion is that Amendment 3 would provide a tremendous economic benefit to the state both in terms of taxes and economic stimulation," Sherman said.
Sherman said he offered to do the study for free after the legislature and a group called Keep the Money in Nebraska both got casino gambling measures on the Nov. 2 ballot.
Keep the Money in Nebraska, a coalition of groups, wants voters to approve four proposals -- including two constitutional amendments -- that would authorize two casinos in Omaha. It also would allow 4,900 video poker and slot machines in locations across the state, generating tax revenue for the state and local governments.
The proposal will appear on the ballot as Initiatives 417 through 420.
Schimek said the $93 million would equal the amount of corporate taxes now paid by 15 of the largest corporations in Nebraska.
Sherman said the three Council Bluffs casinos generated $401 million in revenue last year. Of that, 83 percent -- or some $333 million -- came from Nebraska gamblers, Sherman said.
Sherman's estimate assumed that many of the Nebraska gamblers would eschew going to Iowa and other states to gamble in casinos if casino gambling is approved in Nebraska.
Both gambling plans are supported by Las Vegas casino interests.
Under Keep the Money in Nebraska's plan, the first $15 million in revenue at any of the two proposed casinos or slot machine locations would be taxed at 36 percent, which would raise $5.4 million in taxes.
Revenue after that would be taxed at a 20 percent.
Of the casino taxes collected, 75 percent would go to the state's general fund, and lawmakers would decide how to spend it. Twenty-five percent would go to the community where the casino is located.
That means that for the first $100 million in casino revenue, the state would get about $16.8 million -- an amount equal to about six-tenths of one percent of the state's annual general fund budget.
The host community would get about $5.6 million.
The casino would walk away with $77.6 million, not counting its expenses.
archive
