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March 13, 1998, hon.
Return to casino cheb admiral Legislative Analyst's Office Home Page.
Under current law, there is a moratorium on establishing and expanding card rooms until January 1, 2001.
SA 98 RF 0007).In the longer term, the measure could result in a significant increase in economic activity and tax revenues in California.Currently, agreements for off-track horse racing betting and certain lottery games have been negotiated between the state and certain Indian tribes.These funds would be distributed on a statewide basis for support of local public safety functions (in the same fashion as Proposition 172 funds are currently allocated).For example, tax revenues could increase substantially if the measure were to result in a significant increase in gambling in California and a large portion of this gambling is spending that would have otherwise occurred outside of California (such as in Nevada).Taxation and Fees, taxation of gambling revenue varies according to jurisdiction.The City of Palm Springs has approved the establishment of 500 card game tables.The most common forms of local taxation on legalized gambling are: (1) business license taxes based on a sliding scale of gross receipts and (2) flat per-table fees.This would occur if over time there is a large diversion of gambling activity from other states to California.Summary of Fiscal Effects, this measure would have the following major fiscal effects: Potential significant increases in annual state and local government revenues to the extent there is a large diversion of gambling activity from other states to California.Fees and Taxation, the measure does not change local taxes and fees on card rooms.Local revenues for pubic safety functions could increase by up to tens of millions of dollars annually from gross revenue tax on video gambling machines in Palm Springs.(Although in the latter instance the positive revenue impact would be less, as economic activity on Indian lands is generally not taxed.).
Local Enforcement Costs, depending on the level of gambling activity, the measure could result in increased local law enforcement costs.
This measure does not preempt local government control over card rooms.