Extortion Is a Heavy Burden
Personally, I dislike government reliance on gambling for revenue, but this is emblematic of a mindset:
OUT OF EVERY DOLLAR lost at Twin River, the state gets approximately 61 cents. If expectations panned out, the state would get $254 million from Twin River this year. In June, the owners offered the state $500 million upfront if lawmakers would slice the rate by more than half. Legislative leaders refused.
Holloway, of Moody’s, said “the state has — and I think it is pretty well known — a pretty onerous tax rate, and this property has produced a far lower level of revenues and earnings than was anticipated at the time the project was started.”
And now Standard & Poor’s credit rating agency is forecasting bankruptcy of the gambling hall. Who could be surprised that losing 61% of every “sale” — before accounting for expenses — would leave a company vulnerable?
Confirming, once again, what we already know: Our state government is a destructive force.