The bill lowers the tax on the racino’s net win from the current 26% to 10% on the first $10 million in a year then moves upward to 26% on anything above that figure. Actually, the new law that won’t take effect until July 2010, is available to any track that earns less than $14 million. But, Ruidoso Downs is the only track that qualifies.
Supporters of the bill said the state can’t afford the $11 million loss in revenue if the track were to close. Also, the community of Ruidoso would lose some $29 million in revenue.
Hubbard is the former CEO of Hollywood Park racetrack in California and Pinnacle Entertainment Inc. (PNK).
And, in Indiana, a House committee has approved a tax reduction for the Blue Chip Casino, owned by Boyd Gaming Corp. (BYD). The bill would provide a $15 million tax deduction over five years.