Monday, 9 November 2009

Gambling Tax A Gamble On Bulgarian Jobs

Gambling Tax A Gamble On Bulgarian Jobs

Gambling is taboo for many people and a bad habit that leads to financial suicide and the undoing of families so more taxes on this is blessing from many. Casinos are scattered all around Bulgaria in every town and a source of employment of course, this is more of a concern that the gambling public who attend these places. A balancing act must be made in view of this.

Bulgarian lawmakers may find themselves inadvertently harming their own interests by applying a new gambling tax, says a gaming industry organization. According to the Bulgarian Association for Entertainment and Gambling Games, a raise in taxes on the casino industry may result in some companies folding, producing less total revenue to be taxed.

The group says that a proposed raise in gambling tax from the existing 10 percent up to 12 percent could cause an industry collapse, as the recession has already resulted in a loss of 40 percent of gaming business. As many as 40,000 jobs could be affected if casinos are forced to close by unprofitable conditions.

The association figures that any gains made under a heavier tax for the state would be more than offset by losses on closed casinos and jobless persons no longer producing taxable revenue.

The problem is similar to one in Oregon, where lawmakers who have seen video gambling revenue decline are considering taking a larger share of profits from the retailers and bar owners hosting the games.

Oregon bar operators say their profit margin is already razor thin, and any decrease in their small share in gambling operations could force closings and unemployment.

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