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Friday, September 17, 1999
Copyright © Las Vegas Review-Journal
MGM Grand: Tax laws keeping gamblers from high-end slots
Associated Press
DETROIT -- MGM Grand casino officials say Michigan's tax laws are keeping rich-blooded gamblers from playing their Detroit casino's high-end slots.
Thirty slot machines that accept bets of $20 to $500 tokens at MGM Grand's Detroit casino get virtually no play, MGM Grand Inc. Chairman J. Terrence Lanni said.
He blamed a state tax law that doesn't allow residents to deduct gambling losses from winnings. Meanwhile, Casino Windsor advertises "tax-free winnings in Canada."
Although Casino Windsor recently replaced its two $500 slot machines with $100 ones, the high-end slots do quite well, spokesman Jim Mundy said.
"If they're not playing them at the MGM Grand Detroit, well all I can say is they certainly play them here," he told The Detroit News for a report Wednesday.
MGM will review whether it keeps all of its high-end slots, Lanni said.
"The Legislature should consider the business going across the river," he said.
That's highly unlikely, said John Truscott, spokesman for Gov. John Engler.
"Gambling is a form of entertainment. You don't get to deduct other entertainment expenses. You can't deduct the price of movie tickets. The whole thing seems ridiculous."
Federal tax law allows gamblers to claim a deduction for gambling losses up to the amount of their winnings.
Casino Windsor's billboards advertising "tax-free winnings" have drawn criticism from MGM Grand officials, who contend the message is misleading. Although gambling winnings are not taxed in Canada, Americans who bring their winnings back must report them on their income tax returns.
Paula Smith, 42, of Detroit, said the MGM slots are not worth it at any price.
"I can't wait until the other casinos open," she said Tuesday as she left the casino. "Maybe they will let people win when there is competition."
MGM Grand's temporary casino was the first to open in Detroit, on July 29. Two more casinos are expected to open downtown within the next several months.
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