The Power to Destroy: The Psychology of Gaming Taxation

October 12, 2008

Gaming Law Review & Economics, Volume 12, Number 5


Today’s gaming taxation and regulation policies reflect a history of marginalization. Privilege taxes are imposed by default with little consideration given to the economic effects of over taxation. Public policy requires that a more holistic approach be adopted, as “taxation in our country is not just a revenue-producing device; it is also a policy-shaping device.” Instead of taxing gaming as if it were a corollary to the vices, the economic stability of the industry requires that policymakers adopt tax schemes that are informed by facts. While the industry is obliged to fairly contribute to the costs of government, unjustified destruction by taxation is a real and continuing threat.

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