SLOT MACHINE REVENUE IN NM DOWN FOR SECOND YEAR IN A ROW
The state tribal casinos, racinos and non-profits reported $984.7 million net win last year, which was about $25 million short of 2013. The state collected about $130 million from tribal revenue sharing, track and non-profit taxes on the nearly $1 billion in profits. That was about 1% less for the state budget than the previous year.
Net win from table games at the tribal casinos are not taxed, and the state receives no report on those revenues. Although the tribes paid $66.4 million to the state last year on slot revenue, that was about 3.1% less than the previous year. The tribes pay from 2% to a little over 10% in revenue sharing, depending on total revenue and other considerations.
Revenue at the five state racetracks actually increased a little less than 1% last year, but their payment to the state increased by 1.3% to a little more than $62.7 million. The tracks pay 26% of their slot net win to the state.
Non-profit income fell last year about 1% last year to about $10.4 million. They pay the state about 10% of their net win.
An article on this report in the Albuquerque Journal can be read by clicking here.
A couple of things need to be taken into consideration in light of these figures. First, tribal income and the revenue sharing is based on tribal reports, not on any careful examination of tribal operations by the state. The whole tribal reporting system is sort of an honor system, backed up by NO hard date coming out of the machines. The tracks and non-profits are monitored very carefully by the NM Gaming Control Board, so their figures are much more likely to be accurate.
Second, many reporters and analysts wonder when New Mexico is going to reach its gambling “saturation point.” According to most of the date from Gaming Control Board, New Mexico reached the “saturation point” in 2012. Sunray Park racino, the Pojoaque Buffalo Thunder casino, and the Mescalero Apache Inn of the Mountain Gods casino have been teetering on the edge of insolvency for several years.
There is no question that some New Mexico casinos are going to go belly-up in the future. It will be interesting to see if the tribes stiff their creditors and tell them that they have sovereign immunity and to stay off their sovereign land.
All the wonderful promises about generating prosperity and economic pump-priming are circling the toilet. The main thing casinos generate are gambling addicts.
It’s sure time for the government, both tribal and state, to get out of the predatory gambling business.
