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Experts: Higher Taxes Devalues Illinois Casino License10 April 2003ILLINOIS – As reported by the ChicagoGov. Blagojevich is grossly mistaken if he believes a sale of the state's 10th casino license will net Illinois taxpayers $350 million, especially if lawmakers heed his call to pass another gambling tax increase, experts said Wednesday. "`Blagojevich just devalued the 10th license to $0, in our view,' read a news release from gambling analysts at Deutsche Bank Securities on Wall Street. `With the threat of higher taxes, we do not believe any investors would be willing to put any more money into a new license.' "The governor's budget proposal calls for legislators to raise the tax rate on top-grossing casinos to 70 percent from 50 percent and increase casino admissions taxes to $5 from $3 each. The increases, he says, would generate at least $203 million a year. "Blagojevich also penciled in a one-time windfall of $350 million from the sale of the 10th license, which is set to be bid--and the sale proceeds shared with the state--because of alleged wrongdoing by Emerald Casino Inc. "…The gambling tax increase to 50 percent from 35 percent in July caused analysts to devalue the 10th license to around $350 million. The state's share if the license were sold for that amount, however, would be $200 million if Emerald pays out an expected $150 million in liabilities to its creditors and investors…" |