The Nevada teacher’s union bid for a 44% increase in the gaming tax ended today when Harrah’s, Station Casinos, and Wynn Resorts (WYNN) agreed to a compromise: a room tax passed on to customers. Instead of the gaming tax going to referendum, a non-binding question about the room tax will be on the ballot in November. The increased funds were requested as a way to finance higher teachers’ salaries and educational improvements. The room tax would be increased from ~10% to 13%.
While the casinos that helped work out the deal were clearly happy with the outcome, Deutsche Bank sees those casinos that have a disproportionately high amount of hotel rooms potentially suffering. The casinos who attract less affluent gamblers may also see a small dent in their bottom line as potential gambling funds are diverted to the extra tax.
Sadly, Deutsche can’t be bothered to remind us which ones those are.