State Senator Says Schools Are Missing Out on Millions in Casino Revenue

When Ohio voters gave the okay for casinos to hit the state more than five years ago, there was a catch.

Operators would have to pay a 33 percent tax on their revenue, calculated by subtracting “promotional credits” and payouts from their overall earnings.

A chunk of that money then would be funneled to local governments and schools.

But one state senator thinks the current equation means districts are losing big.

Promotional credits are things like “$10 in free gaming” or other methods aimed at bringing in customers. And right now, there’s no limit to how much casinos and racinos can say they gave in promotional credits.

That’s all money that could have been taxed to bring in revenue for schools and local governments, said Ohio Sen. Bill Coley.

He said over the past three years, the lost tax revenue amounts to roughly $165 million.

(Read more at NPR)