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Las Vegas Gaming Giants Warn Tax Take Threatens UK Expansion

22 December 2003

UNITED KINGDOM – As reported by the UK Independent: "American Casino operators are demanding that the Treasury introduce a tax rate of no more than 20 per cent on gaming profits before they will invest large sums in the gaming industry, which is to be deregulated next year.

"Las Vegas operators such as Harrah's and MGM Mirage will not build the large resort casinos, envisaged as a key part of the Government's deregulation plans, unless gaming duty is cut substantially.

"…Large casinos pay 40 per cent tax at the moment, although smaller, provincial casinos pay lower tax rates depending on their profitability. The more profit a casino makes in the UK, the higher the tax rate it pays.

"…MGM, which owns the Bellagio and MGM Grand in Las Vegas, recently signed a casino development deal in partnership with Newcastle United football club but it stipulated that lower tax would be a condition of the deal going ahead.

"…It is understood, however, that the US casinos would be willing to accept a slightly higher rate of 20 per cent in negotiations with government…"

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