Vegas Bob wrote:
Well here we go again. today's
www.amcostarica.com has an article on page 2 about how the government needs more income so they are considering increasing the taxes on the casinos. Part of these taxes may be based on the operating hours......this after they (Laura Chinchilla) closed the Casinos for 10 hours a day. If it wasn't for the chicas,I think I would have to seriously think about moving.I really am having a problem dealing with the stupidity in CR. Well maybe this will help them come to their senses.
Actually, the way I read it, this might mean that they would now allow some casinos to stay open 24 hours per day IF they pay the higher fee. Here is the relevant part of the article:
Quote:
Casinos pay a flat fee as a form of license now. The proposal would raise the amounts based on the number of hours a casino is in operation. Theoretically there is a presidential degree limiting the hours, but lawmakers still are talking about permits of from 10 hours to 24 hours a day.
Casinos operating 10 hours a day would pay 947,000 colons ($1,656) a month instead of the current 120,000 ($210).
Casinos operating 24 hours a day now pay 320,000 colons ($560) a month.
The legislation would up that to 1.8 million colons ($3,147). Licenses for a slot machine would go from the current 100,000 colons ($175) a month to 630,000 colons ($1,101).
Whenever taxes are discussed, lawmakers seem to be unaware of the concept of diminishing returns. In this case casino operators are likely to take steps to reduce their taxes.
I think the last part of that quote is particularly relevant. I really doubt this tax will make them anywhere close to as much as they think it will. If this tax passes, it will probably mean that the
less profitable casinos will reduce their taxes by reducing their hours and/or reducing the amount of slot machines they have or, in the most extreme (and marginal) cases, possibly shutting down altogether. OTOH, for the busier more profitable casinos, such as the HDR, I don't think the extra $1446 will make that much difference AND it might be well worth the extra $1491 to EXPAND BACK to staying open between 5am and 3pm. To the degree any casino can't handle the extra ~$50/day, they probably shouldn't be open during those hours any way. This is particularly true of places like the HDR when you consider how much they're ALREADY paying in license fees for all those slots machines (I'm guessing at least 2-3 dozen

) at $175 a pop. In that respect, this won't be as good for them as it was staying open 24 hours a day for just $560/mo (plus slot fees), but if their casino is making even half as much of what I think they are, the HDR will still be able to make more than enough money after taxes for it to be worthwhile to operate 14 hours a day or even expand their hours back up to 24.
The MOST likely result of all this is that they'll take out some of those slots since it is rare that anywhere close to all of them are being used at one time anyway. Many slots may not even clear $1101/mo and the probably close to the same amount of money would still be wagered, just on fewer machines. But who really cares about the slots anyway besides some of the chicas. Besides that, the chicas with the real slot addictions are often the ones to avoid.
Admittedly, the impact on the sleepier casinos is another matter. As I said before, this MIGHT cause SOME to shut down altogether (probably ones that few of us ever go to). However, if those places are so marginal they can't handle these increased fees, then they probably shouldn't be operating to begin with. AND, beyond that, if they're really that slow, probably few gamblers will be at all impacted. Besides, whatever few gamblers they did have will likely simply shift their activities over to one of the other casinos that remain, thereby increasing those casinos' businesses (just as most have simply shifted the hours that they gamble in response to the changes in hours of operation). And I'm sure the recreational occasional gamblers who don't wind up gambling elsewhere will still find other places in CR to spend their money during their trips. Admittedly, some hardcore gamblers will go (or move) to more gambler friendly countries, but I don't think there are really that many people who come to CR JUST for gambling such that not being able to gamble before 3PM is really that huge a deal.
And to the extent that SOME places might close down or curtail their hours, the DEMAND for gambling is unchanged. To the degree that some places will cut back or close because of this, the demand will have to go elsewhere (or elsewhen). That means that instead of seeing so many casinos with dealers sitting idle or at best dealing to just 1-2 gamblers, the casinos will have to man those tables fewer hours per day and will see more gamblers at each table during the remaining hours that they are open. How many of you gamblers out there really did that much gambling between the hours of 5am and 3pm and how many of you that did haven't just shifted your gambling to later in the day? I'm guessing the answer is very few to both questions. All that translates to greater operating efficiency for the casinos that remain which might more than offset any increase in taxes they have to pay. The inconveniences of possibly having to choose from a smaller list of casinos, having to wait until midafternoon to gamble and having to sit at slightly more crowded tables to gamble seem like they'd be very slight to me.
The only real losers in all this are the casino employees who might be put out of work. Casinos that WERE doing marginal business between 5am and 3pm WEREN'T staffing their casinos that heavily during those hours anyway so the numbers of casino employees that were really seriously effected were something substantially less than 1/3. To the extent this has just shifted demand to later in the day, SOME of those employees have been able to just shift their hours as well. To the extent that SOME casinos MIGHT shut down completely, demand will mostly shift to the remaining casinos and some of the evening employees who MIGHT be put out of work will shift their employment over to those remaining casinos as well. To the extent that some of those employees won't be able to shift their working hours or place of work, well that's unfortunate but them's the breaks. This isn't ICE where anybody owes them a "make-work" position where they can sit around idle most of the time and get paid for it. I really don't think the real number of workers who will lose their jobs because of this are really as significant a Bob is suggesting.
Now I know Bob is going to disagree with me, so let's hear it.