The nearly 50-year old federal excise tax on gaming revenue could be abolished if U.S. Senator Harry Reid has his way.
Reid last week announced he had attached a provision to a Senate transportation bill that would repeal the .25 percent tax on Nevada gambling revenue, thus saving casinos about $100 million.
The bill still has to pass the U.S. House of Representatives and be signed into law by President Bush.
The excise tax, which originated in the 1950s, was originally levied at the rate of 10 percent. Since then it’s been modified from time to time and currently applies only to race, sports and multi-race (more than 20 consecutive games) keno bets.