Supremes: Commission violated Caesars’ rights
The Nevada Supreme Court has ruled that Caesars Palace does not have to pay almost $780,000 in taxes on shows at the Colosseum on the Las Vegas Strip.
In a unanimous decision last month, the court said the state Gaming Commission was “arbitrary and capricious” in the tax assessment, which took into account the years 2004 through 2008.
Caesars and other big casino companies pay a 10 percent tax on tickets to their shows. According to the Las Vegas Sun, AEG manages the Colosseum and collects the tax. Caesars then pays the state. But some tickets are sold by Ticketmaster, which adds a royalty. The disputed tax, which amounted to $797,790, was on the royalty fees.
Caesars filed suit challenging the assessment, but lost in district court in Clark County. The Supreme Court reversed that, saying the gaming commission “violated Caesars’ substantial rights.”
The court said the law is clear that the royalties are not subject to tax. “No reasonable mind could read the statute’s language otherwise,” the court concluded.
