ABSTRACT
The rapid spread of casino gaming, Indian reservation gaming and riverboat gaming is a new phenomenon in today's tourism and hospitality industry. The fast-growing gaming has brought not only tremendous revenue for the industry but also significant tax revenues for the gaming states. Looking for funds to finance its welfare reform, the federal government is considering imposing a 28% tax withholding on winnings over $7,500 of three games: slot machine, keno and bingo. The purpose of this study is to analyze the potential impact of the proposed new gaming tax withholding on gaming revenues and profits.