Oregon Considering Changes to Gambling Tax Breaks

Currently, lawmakers from the state of Oregon are trying to approve a new bill that would change current gambling tax rules.

In Oregon, like in some other US states, certain gambling losses can be written off by gamblers when they calculate their taxes. But, this might soon change…

…because lawmakers are considering a proposal that would take away those deductions.

Of course, casinos are trying to prevent it and the fight is officially on. It is being led by the Confederated Tribes of the Grand Ronde Community which says that the losses would be a burden to their operations.

Approved by the Senate

Senator Mark Hass, the Chairman of Oregon Senate Finance Committee, is the official sponsor of the Senate Bill 212 (SB 212).

The new Oregon bill was already approved by the state Senate back in March this year…

… so now it has to the approval from the House but has already encountered some obstacles along the way.

The House Revenue Committee is actually stopping further development of the bill. Also, the tribe that operates the Spirit Mountain Casino has ed forces with the Oregon Tribal Gaming Alliance (OTGA) to oppose the bill SB212.

Less Money for The Casinos

According to the tribe, approving this bill would bring some serious reductions in the casino’s revenue. Why?

Well, last year, 2% of the gamblers on gambling machines ed for 50% of the casino’s revenue. If SB 212 gets approved, gamblers would be more inclined to lower the amount they are willing to gamble.

“Nobody will gamble if they can’t write off their losses… The money from those customers goes toward us being able to provide essential governmental services,” a tribe lobbyist said.

Some of those services include the state’s education programs, health care, public safety, and cultural resources, according to the chairman of the OTGA, Gary George. He told that the tribal gaming revenue is key to Oregon’s rural economy.

Almost $151 million in earnings from gaming went to tribal government services and $98.6 million to tribal community services through 2015, according to the OTGA.

More Details on The Current Law

According to Oregon law, all gamblers can deduct gambling losses when they are calculating taxable income…

…but solely up to the amount that they won.

Some tribes in the state, such as the Coquille, also want to expand their operations in the state of Oregon. The Coquille have already started the process of launching a casino in Medford, but SB 212 might come in the way of those plans.

Modernization of Oregon Sports Betting

Oregon plans on revamping the state’s sports betting strategy…

…by introducing mobile sports betting for the wagers wishing to bet on the NFL among other sports events.

Up until now, the state lottery has been in charge of sports betting, so now the istration wishes to remodel and modernize this type of gambling by introducing a mobile app.

The plan is to, in the beginning, allow players to bet only on the outcome of the game, but also to introduce other football-related bets in the near future.

Source:

“Oregon considering changes to gambling tax breaks”, Erik Gibbs, calvinayre.com, May 27, 2019.