Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LAS VEGAS-Nevada teachers will stop stumping for a ballot initiative aimed at raising taxes on casinos’ gambling win to pay for higher teacher salaries and other educational improvements in exchange for support from three major casino operators for a higher room tax in its stead.

The Nevada State Education Association this week it had reached the agreement with Harrah’s Entertainment, Station Casinos, and Wynn Resorts Ltd. Included in the negotiation were key members of the legislature and the governor, according to the NSEA.

The ballot initiative would have raised the state’s tax on large casinos to 9.75% from 6.75%, a 44% increase. The compromise calls for the three casino operators to back an advisory question related to the hotel tax on this year’s ballot, and to encourage the Nevada legislature in 2009 to raise the room tax as high as 13% from its current 9%. A tax increase would require a two-thirds majority of the legislature and would raise an estimated $180 million in its first year. And with $30 billion of construction creating tens of thousands of new hotel rooms over the next few years, that figure would grow quickly.

Unlike an increase to the gaming tax – which polls had found most Nevada voters support — casino operators would pass the room tax along to customers. In a note to clients this week Deutsche Bank gaming analyst Bill Lerner said an increase in the tax on gaming win by casinos would have resulted in an estimated 6% decline in EBITDA statewide.

The decision by the NSEA to drop the ballot initiative comes six weeks after a Nevada state court ruled that the NSEA’s petition to raise casino taxes was properly written and that it may be used to gather signatures for a ballot initiative. The plaintiff in the case was the Nevada Resort Association. Carson City District Court Judge Miriam Shearing rejected the NRA’s claim that the changes made to the petition by the NSEA left it with the same flaws as a previous petition that the same judge had rejected.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.