Funding

The Gaming Commission is funded through an annual fee per slot machine (set forth in the Gaming Act at $600 per slot) as well as additional assessments and fees to licensees and applicants.

The Commission is not funded with tax-payer monies, or state appropriations.

Initial Funding

The Gaming Act appropriated $15 million from the stabilization fund (“rainy day fund”) to fund the initial operations of the Commission. Also per the Gaming Act, these funds were paid back to the stabilization fund upon award of the first license.

Licensing Fees & Gaming Revenue Taxes

The Commission may award two types of licenses:  Category 1 license (resort-casino), and Category 2 (slots-parlor).  The fees and taxes are as follows:

License Fee Taxes on Gross Revenues
Category 1 (casinos) $85 million 25%
Category 2 (slots) $25 million 49%

The below chart shows the statutory allocation of the licensing fees:
(click to view larger)

Gaming Licensing Fund

 

Taxes on Gaming Revenues

The Commonwealth is expected to generate in excess of $300 million in annual taxes from expanded gaming.

When operational, the annual gross gaming revenues of two Category 1 licensees are estimated to reach $1.0 billion.  At 25% tax the Commonwealth would generate $250 million in direct revenues.  In addition, the Category 2 (slots-parlor) license is estimated to generate $100 million in annual revenues. At 49% tax, this would amount to an additional $49 million.

Additional benefits would accrue to the Commonwealth from Region C depending on a number of unresolved factors in that region. These factors include execution and terms of a compact with the Commonwealth and/or the Commission’s bidding of a commercial license for the region.

The below charts show the statutory allocation of taxes on gross gaming revenue:
(click to view larger)

GGR CAT 1

GGR CAT 2

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