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Study on Harrah's casino suggests revised legislation would have offered fair deal to taxpayers

Harrah So did the revised HB553 offer a fair deal to the state? A study commissioned by Gov. John Bel Edwards attempts to answer that question, and both sides can probably find something they like in what a consulting group found. The biggest takeaway — perhaps bolstering the case of those who pushed for the tougher deal — is that the tax rate Harrah’s would have paid under the Senate-amended legislation that died would have been similar to that paid by casinos in other states. The study by Chartic, a Boston-based consulting firm, found that Harrah’s would have paid a tax rate of between 27 percent and 31 percent, depending on how much the casino collected from gamblers. Under the deal, the more money the casino won, the lower its tax rate would have been because the bill established a minimum tax payment of $80 million annually. (The minimum now is $60 million.) The Beau Rivage casino in Biloxi pays just 12 percent in taxes, but it faces competition because Mississippi did not create a monopoly casino on its Gulf Coast, as Louisiana did for the New Orleans casino, Chartic found. The Encore Boston Harbor will be paying a 31 percent tax when it opens next year, the consultant found, while Rivers Casino & Resort Schenectady, in upstate New York, pays 38 percent and the MGM National Harbor in Maryland pays 39 percent. So Caesars officials — who did not respond to a request for comment on the study — could argue that the 27 to 31 percent tax rate contemplated under the revised HB553 would be too high, compared with Mississippi.

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