Untaxed Ohio casino freebies must be reviewed, panel urges

Associated Press

COLUMBUS

Failing to tax more than $650 million worth of promotional freebies at casinos and racinos has been a direct hit to Ohio’s school districts and local governments, and the practice should be reconsidered, a divided legislative panel recommended Monday.

In its strongly worded report, the Joint Committee on Gaming and Wagering urged state lawmakers to consider revoking tax exemptions to the gambling parlors “to protect the interests of Ohio’s schools, local government and taxpayers.”

A technical analysis of spending and revenue data since 2012 didn’t bear out industry claims that offering free money to customers ultimately increased taxable income at Ohio gambling houses, the report said. The analysis, conducted by the office of state Sen. William Coley, a Middletown Republican who heads the committee, showed no pattern between how much a casino spent on promotional freebies and its overall revenue.

“The results raise serious questions as to whether it is in Ohio’s best interest to continue with the current tax exemption on promotional play,” the report said.

Penn National Gaming spokesman Bob Tenenbaum said the casino operator strongly opposes elimination of promotional spending tax credits.