The Arkansas Casino Gaming Amendment of 2018
Graduated taxation and distribution of proceeds.
(a) For each fiscal year, a casino licensee’s net casino gaming receipts are subject to a net casino gaming receipts tax as follows:
(1) 13% on the first $150,000,000 of net casino gaming receipts or any part thereof;
(2) 20% on net casino gaming receipts exceeding $150,000,001 or any part thereof;
(b) Each casino licensee shall be subject to the same income, property, sales, gross receipts, use, employment, and other taxation as any for-profit business located in the county and city or town in which the casino is located, except that no sales or gross receipts tax shall apply to casino gaming receipts or net casino gaming receipts.
(c) The net casino gaming receipts tax shall be distributed as follows:
(1) 55% to the Arkansas General Revenue Fund
(2) 17.5% to the to the Arkansas Racing Commission for deposit into the Arkansas Racing Commission Purse and Awards Fund to be used only for purses for live horse racing and greyhound racing by the Franchise holders, as the case may be, and then to be apportioned as set forth in section (e),
(3) 8% to the county in which the casino is located, and
(4) 19.5% to the city or town in which the casino is located, provided that the casino is not located within a city or town, then the 19.5% dedicated to the city or town shall go to the county in which the casino is located.
(d) On the last day of each month, the Treasurer shall transfer the 17.5% of revenues derived by the taxes levied under this Amendment referenced in section (c)(2) to the Arkansas Racing Commission to be distributed to the Franchise holders as follows:for the period prior to January 1, 2024,60% shall be distributed to the Franchise holder operating a franchise to conduct horse racing, and 40% shall be distributed to the Franchise holder operating a franchise to conduct greyhound racing; and for each calendar year thereafter, pro rata to the Franchise holders based upon the total respective amounts of each Franchise holder’s pari-mutuel wagering handle during each respective immediately preceding calendar year from wagers placed on and off-track on the Franchise holder’s live races (horse or greyhound, as the case may be) conducted at the Franchise holder’s licensed premises.
(e) On the last day of each month, the Treasurer of State shall transfer the other percentage allocations made in section (c) to the designated entities.