Casino tax revenue tumbles 39 percent in latest month

Published 11:44 am Thursday, September 22, 2011

Taxes paid by Vicksburg’s five casinos took a nosedive in August, as did winnings statewide in Mississippi’s licensed casinos.

The city took in $467,765 during the month, nearly 39 percent less than July’s $765,149 — a figure augmented by the fifth and final device tax payment, which totaled $238,050. Each casino is required to pay $150 for each gaming device annually to the city.

Casinos here pay a 3.2 percent revenue tax to the state that is divided three ways — 65 percent to the city, 25 percent to Warren County and 10 percent to the public schools.

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To date, the city’s take is off about 5 percent from last year heading into the final month of this fiscal year. Warren County took in $230,127 in August, down more than $18,000 from July and off 6 percent for the year. Vicksburg Warren School District’s share last month was $60,686, down from $67,469 in July.

Gambling winnings at the state’s 30 casinos dropped 12 percent for the month and 9 percent from a year ago.

Casino winnings on the Mississippi River and the Gulf Coast totaled $185.1 million, down from $210.6 million in July, typically a busier month for the industry. Winnings were down from $201.7 million recorded for August 2010.

The 19 casinos along the river took in $94 million from players in August, down $6.5 million from a year ago. The 11 along the coast won $90.9 million, down $11 million from last year. Mississippi’s figures do not include Indian reservation casinos, which aren’t required to report winnings to the public.

In Louisiana, 13 riverboat casinos, the Harrah’s New Orleans land-based casino and four race track casinos recorded a 4 percent drop in winnings in August from a year ago.

Nationwide, the industry has struggled to recover from the Great Recession, which has slashed discretionary spending and business travel, and from high gas prices earlier this year. Mississippi’s casinos took a hit this spring when flooding on the river closed most riverside casinos, mostly in Tunica County. Two closed in Vicksburg when parts of buildings took on water — DiamondJacks Casino for 36 days and Rainbow Casino for 14.

New Jersey took a 20 percent hit in August as Hurricane Irene closed all casinos in Atlantic City. Nevada has not reported August figures, but showed a 3.7 percent gain in winnings in July compared to July 2010.

The Associated Press contributed to this report.