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Report: Gambling industry paid out $38B in taxes

By WTOP Staff

KIMBERLY PIERCEALL
Associated Press

LAS VEGAS (AP) — The gambling industry nationwide paid out a jackpot-worthy $38 billion in federal, state and local taxes in 2013, according to a report from the American Gaming Association.

It’s the first time the group has added tribal casinos, casino-game makers and some online gambling into the mix for its annual study of the industry’s impact in the U.S. The Associated Press obtained a copy of the report’s tax revenue figures before its release Tuesday.

Of the $38 billion in total tax revenue, $10 billion came directly from gambling, the report said. Worker income and Social Security taxes as well as casino property taxes, and more, accounted for the rest.

The numbers could be conservative, according to the firm that conducted the study.

Closely held tribal casinos reveal little about private revenue, so the study considered agreements the tribes have with states governing how much is contributed to local governments and data provided to state gaming boards. It didn’t account for personal income taxes that individual gamblers may have paid for any big winnings.

The American Gaming Association commissioned Oxford Economics to study the industry’s total economic impact. The numbers arrive as developers and industry officials continue to push for casino properties in cities and states normally unaccustomed to the sounds of ringing slot machines, with government leaders betting on a tax windfall.

“The results prove that that bet is paying off,” Geoff Freeman, the association’s president, said of the report’s numbers.

Freeman is expected to talk about the industry’s economic impact at a Tuesday morning press conference as the association’s annual G2E conference kicks off at the Sands Expo and Convention Center just off the Las Vegas Strip.

Some parts of the country are not sold on gambling’s potential to pay out.

In Massachusetts, for example, voters there are expected to decide if the state’s nascent gambling industry should be undone or not.

And bets on the gambling industry have proven shaky in New Jersey, where multiple Atlantic City casinos have closed this year and left thousands out of work. Freeman doesn’t expect the troubles there to affect the industry’s numbers next time, though. He pointed to the gambling industry’s expansion into Maryland, Pennsylvania and elsewhere — the same growth that many say caused Atlantic City’s recent failings because it has become less of a unique draw.

“It’s not that there’s lower demand for casino gaming, it’s that there’s more competition,” said Adam Sacks with Oxford Economics.

The Las Vegas area, though, has seen its slot and table-game gambling revenue rise year-over-year in recent consecutive months. The number of travelers also has picked up despite the growth of tribal hotel-casinos and online gambling.

Hotel-casinos in the Las Vegas area are increasingly relying on dining and drink sales, nightclubs, shopping and attractions to bolster bottom lines. MGM Resorts, for one, is partnering with AEG to construct a sports and performance venue linked to a new pedestrian shopping and entertainment district that the casino giant has dubbed The Park near its New York-New York and Monte Carlo properties.

“If you want gaming to thrive, you need to diversify the economy,” Freeman said.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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