1. Spectacular growth, but the demand for gambling is not unlimited In the United States, casino-style gambling has exploded over the past 35 years, from just two states (Nevada and New Jersey) to 40 states in 2014. Outside of Nevada (which alone has over 200 establishments ), the United States has more than 700 casinos, including significant facilities owned by Indian tribes. Of the 20 largest metropolitan areas, 17 have casinos within an hour's drive. Nonetheless, as the recent closure of three Atlantic City, New Jersey properties shows, consumer demand is not endless and cannibalization occurs if too many casinos target a given population. 2. Convenience gambling pays a high tax rate compared to other embezzlement Las Vegas is a "tourist destination," but most US casinos use the "convenience gambler," who lives less than an hour's drive from the establishment. Outside of Nevada, state governments (and the casino owners themselves) are trying to limit the number of operating casinos. This policy offers owners the option of oligopoly-type profit margins (before local gambling taxes) and allows states to impose high tax rates (30% or more is not unusual) on the income of individuals. games, without destroying the owners' return on investment. Other forms of consumer diversion, such as restaurants and movies, have lower rates, such as a 5-6% sales tax.
Compared to commercial properties, tribal casinos pay much lower taxes, if any, as they receive special treatment under federal law. As a result, states where tribal property dominates, such as California, receive less gambling taxes than they would otherwise. 3. Average losses per patron