Colorado Gaming Profits Down for the Month of August

On September 16th, 2008, the year-long decline in casino profit slowed down in August, according to the data released by the Colorado Division of Gaming. The state's mountain casino facilities posted profit of $68.2 million last month, which dropped by 5.3% from August 2007 when the gaming industry recorded a $72 million in adjusted gross proceeds (total wagers minus the payouts).

The industry has suffered a double-digit drop much of the year, including the fourteen percent drop in July and twelve percent drop in June. Casino officials have pointed the slowdown to the weakening economy, rising gasoline prices and smoking ban, which affected casinos in Black Hawk, Cripple Creek and Central City in January. The industry is supporting a November ballot referendum that would allow the gaming jurisdictions to hold local referendums to change the casino wagering limit from $5 to $100, expand the twenty four hour operation and offer craps and roulette.

Most of the new revenue that will be generated from the measure would be given to the state's community colleges. The initiative, which is officially known as Amendment 50, would also cap taxes on casino revenue at 20% and remove the authority from regulators to raise the tax rate. If the wager limit is raise, any tax hikes on the gaming industry would require voter approval. Currently, regulators have the power to increase casino profit taxes to forty percent.

06 October 2008
News Submitted by:
Jessica Kellerman

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