Inconveient truths about Iowa’s casino business

Cedar Rapids’ casino is a means to an end for operator Peninsula Pacific — it’s the legally required “front” for their access to both online sports and, eventually, online casino gambling.

Casinos nationally are moving online. Their goal is 24/7 real time access for every smartphone and wallet in the country. Their new market will target digitally-primed young men (and women), not seniors playing slots in casinos. Recent initial studies of seven states found casino revenue declined as online sports betting increased. Remember that.

Peninsula Pacific justifies Cedar Rapids’ casino because Iowa loses money to Nebraska’s casinos, saying … ”we have a very big gap to fill.” We should look at the money Iowa loses to its own casinos first.

The state gets only 6.75% tax from online gambling — lowest in the entire country except for Nevada. National average is 19%, and New York gets 51%.

The Legislature should raise the online tax to 22% for a start, (same as Iowa’s casino gambling tax). Casinos also need to pay taxes on their promotional bets instead of deducting them.

Casino donations to charities are essentially tax deductions which buy community support and good — will. There is, however, an inconvenient truth here not mentioned. Unfortunately — of the staggering amount of money that casinos make, 70% of it comes from problem or addicted gamblers.

Antonia Russo

Solon