Iowa Legislature Eyeing A Casino Tax Change This Year

Iowa Legislature Eyeing A Casino Tax Change This Year

Gambling expansion in Nebraska is impacting the gambling tax revenue in Iowa, it’s neighbor. Now the state is eyeing changes to the casino tax structure in light of the coronavirus pandemic.

Why are Iowa legislators thinking about casino tax change?

One of the main reasons why the Iowa legislature may discuss possible changes in casino taxation this year is the competition with the neighboring state of Nebraska, which voted for gambling expansion last November and opens up opportunities for multiple casinos in the state. New casinos could be upcoming in South Sioux City, Omaha, and Lincoln.

Iowa Legislature Eyeing A Casino Tax Change This Year

Western Iowa casinos have been responsible for bringing a third of gambling taxes from the state. With Nebraska adopting a more lenient approach to gambling, Iowa casinos will have significant competition and their tax revenue will be negatively impacted. The Iowa gambling industry and legislature is worried that their tax figures could be lower at times of severe crisis. The state is already reeling under the pressure of decreased revenue because of the coronavirus pandemic.

Legislature will discuss the issue

Senate Majority leader Jack Whitver spoke to Radio Iowa and said,

“That’s an industry that has been hurt severely through the pandemic, as many others have as well.” He added that there is a debate on tax changes in the state for casinos which could be brought up for discussion this year. He said that the pandemic has hurt the economy of the state “severely.”

Whitver noted that the legislature wants to save jobs and keep their casino gambling industry strong. Therefore, it would think about making changes to the casino tax structure to protect the business, jobs, and revenue. It is unclear what kind of changes the legislature is eyeing but given Whitver’s comments and Nebraska’s forthcoming competition, it is likely that casinos will be given some relief in taxes and will be encouraged to continue operating as usual.

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.