A card room operating in Spokane Valley, Washington is asking the city, which lowered its taxes in 2015 from 10 percent to 6 percent, to lower them further to help it compete against two card rooms in the city of Spokane whose taxes are even lower: 2 percent.
Attorney Eric Sachtjen, representing Ian Riley, owner of the Black Pearl, spoke before the city council November 13 to make his plea. He argued that Riley is at an unfair disadvantage because his competitors pay a lower tax rate.
The attorney stated: “My client is estimated to pay about $280,000 in gaming tax to the city of Spokane Valley … the tax, at 6 percent, is three times what the city of Spokane charges. If my client were to pick up and move a few miles west, they’d save two-thirds of that tax and move jobs from the city of Spokane Valley to the city of Spokane.”
The two cities collect a comparable amount in gaming taxes each year.
Riley said he was happy that three years ago the city lowered its taxes on the Black Pearl, but said, “We got a reduction, and we were obviously pleased with that,” Riley said. “It helped us. It was great. But, unfortunately, things go up and we can’t do anything to increase our revenue.”
He hinted he might move the casino to Spokane if he doesn’t get the tax break he seeks. He said, “I think we’d look at all options on the table. From a business point of view, you need to consider all options. We are responsible for 105 peoples’ incomes and livelihoods, so if we were on a level playing field, it would be great.”
Spokane Valley Mayor Rod Higgins said that “might be difficult,” despite the fact that the Black Pearl, “is a valued business.”
The casino made about $4.8 million two years ago after expenses. Washington’s card room industry has been in decline since the turn of the millennium because of rising wages and competition from larger Indian casinos.
