A bill has been submitted that would lower the tax rate for Iowa’s casinos over the next three years
The Iowa House is considering legislation to lower the tax rate for licensed casinos to be comparable to that for casinos in Missouri and Nebraska. Illinois casinos pay varying tax rates based on the games offered and market volume.
Mark Joyce, a lobbyist for the management company for Diamond Jo casinos in Iowa, says that lower taxes would be a positive for local casinos. “It’s a very mature industry in Iowa, and the newer casinos in surrounding states, in particular in Nebraska, are going to be brand new,” Joyce said. “They’re going to be taxed at 20%, so for us to be able to have extra capital to put back in the properties and better compete for your business, that’s why.”
Doug Struyk is a lobbyist representing Catfish Bend Casino in Burlington, which he says must compete with new Illinois casinos. Struyk also lobbies for Caesars Entertainment, owners of the Horseshoe and Harrah’s casinos in Council Bluffs that will soon compete with the latest casino set to open in Omaha. “Tremendous amount of pressures on the industry, so we appreciate you taking a look at this,” said Stryk during the House subcommittee hearing.
The three Council Bluffs casinos saw revenue decline after the WarHorse Casino opened in Lincoln in September of 2022 and Harrah’s in Columbus opened last June. “So it will take additional investment in the facilities in Iowa to continue to be bright, shining new attractions to keep people wanting to come over and utilize the Iowa facilities instead of the Nebraska facilities,” added Stryk.
WarHorse Casino is expected to open another location in Omaha before August 2024. Representative Jane Bloomingdale of Northwood, near the Diamond Jo casino, sponsored the bill to gradually lower Iowa casino taxes over a three-year period.
