The Department of the Interior last week clarified the Trump administration’s position on whether states are allowed to tax tribal casinos for “free play.”
Tribes have long asserted that because existing gaming revenues provide the free player they have already paid revenue sharing payments.
Two years ago, the Obama administration took the same position for gaming tribes of New Mexico and against the state government, which had been collected such fees from a previous state tribal gaming compact. It said such a tax would be an illegal tax on Indian gaming.
The Trump administration, said, basically: ditto. “Our position remains the same. Free play and point play must be treated according to industry standards and Generally Accepted Accounting Principles (GAAP) by excluding both from the definition of “net win,” which forms the basis for revenue sharing calculations.”
