Governor Brian Sandoval’s new .1 billion tax package, which plans on to fund education and other services, comes with a new slot machine tax. The tax will be for restricted gaming license holders with more than 500 machines or revenue of over million. Sandoval hopes to raise million through the tax.
Century Gaming, the state’s second largest slot route operator, is “probably the last traditional slot route model,” said Century Gaming CEO Steve Arntzen. They don’t do anything with food or beverage revenue, and do not own any of the bars, restaurants, or convenience stores which house their more than 3,000 games.
“It used to be that you put the equipment in a location and split up the revenue according to a formula,” Arntzen said. “It’s still pretty much done that way, but it seems to be getting bigger for the other side and smaller for us.” Arntzen claims Century should not fall into the same circle as their competitors.
The new tax plan would cut into the slot machine revenue after Century divides the results with bar and tavern owners. Currently, the slot route operators pay a flat fee per slot machine. Century continues to look for innovations as the locals market is booming. “We’re forecasting a 25 percent growth this year over 2014,” Arntzen said. “So far, we’re slightly above our forecasts.”
Golden Gaming, the state’s largest route operator, runs over 7,600 slot machines, and is also Nevada’s largest tavern owner, with 48 locations under five brands. In 2013, Century sold its route operations in Northern Nevada to another operator, who eventually flipped the locations to Golden Gaming.
