Advertising and marketing might take 30 percent of the gross. And with the increasing competition on Mississippi's Coast and in upstate Tunica County, profit margins have been taking a hit. Profits before taxes and interest payments for a handful of Coast casinos are less than 13 percent, according to a recent report by Prudential Securities of New York. For a couple of casinos the margin is hovering around ground zero. And with talk in the state Legislature of raising taxes to pay for an increase in teacher salaries, more than a few casino operators are getting a bit edgy.
Casino gambling is a big-volume, cash business.
And Jackson lawmakers could have the same impression a customer might have watching those workers in jumpsuits clear out the slot machine hoppers and table game drop boxes. Just look at all that money. Denise von Herrmann, associate professor of political science at the University of Southern Mississippi, said a tax increase on casino gambling might do more harm than good. That translates into a loss of jobs. Von Herrmann isn't suggesting that the casino industry pay less or more in state or local taxes.