Nevada is a state dependent on taxes from gambling. The state has no income tax and low corporate taxes outside the gaming industry. Nevada collected more than $800 million in gambling taxes on $10 billion of gambling revenues in 2009, according to the American Gaming Association. Nevada has a progressive scale for taxes on gambling revenues.
Nevada Gaming Fees and Taxes
The State of Nevada collects gambling taxes through a combination of fees and tax rates. Casinos and other businesses that have slot machines or table games must pay annual and quarterly fees to maintain the gaming licenses. The gambling tax rates are paid on the gross gaming revenue of the casinos with non-restricted gaming licenses.
Gaming Tax Rates
Casinos and other establishments with a Nevada non-restricted gaming license must pay taxes on the gross gaming revenues earned each month. The taxes are based on the revenues for the previous month. As of March 2011, the rate is 3.5 percent on the first $50,000 in revenue, 4.5 percent on revenues from $50,000 up to $134,000 and 6.75 percent on gambling revenue over $134,000 for the month. Total taxes due on $134,000 in revenue would be $5,530 and $67.50 in tax is added for every $1,000 in revenue above $134,000.
Unrestricted License Table and Machine Fees
A casino with more than 15 slot machines and/or gaming tables will have an unrestricted Nevada gaming license. For this license, the casino must pay an annual fee of $250 and a quarterly fee of $20 for each slot machine in the casino. Gaming table fees are on a sliding scale based on the number of games in the casino. For one table, the annual fee is $100 plus a quarterly fee of $12.50. For larger numbers of tables, the annual fee can be as high as $1,000 plus a quarterly fee of up to $580 per table game.
Restricted Gaming License Fees
A restricted gaming license is for an establishment with 15 or fewer slot machines and no table games. Holders of restricted gaming licenses only pay the machine fees and no other gaming tax. The annual fee on slot machines for a restricted gaming license is $250 per year. Quarterly machine fees range from $81 to $121 per machine depending on how many slot machines are in the business.