US is divided over Casino Licence Fees
As a new wave of gambling legalisation is coming to the US but the arguments now are over the prohibitive price tags attached to the casino and racing licences. There are a number of states that have embraced or are seriously considering the expansion of wagering, this is as the lawmakers are wondering what to charge for the gambling licences.
Massachusetts is set to make the bar high for the nation, as it is expected to legalize expanded gambling in the autumn, and they are thinking of charging up to a $1bn for two casino licences. But other states are thinking of a much lower fee. Ohio could charge up to $65m per licence.
There are always conflicting arguments, as some want the licence fees in the hundreds of millions, in the long run it could backfire with more bankruptcy filings and gambling halls devoid of amenities.
As the gambling legalisation is pushed forward, most of the states across the US will probably take two very different approaches to the charging of licence fees. States like Massachusetts, Indiana and New York are tipping the high end of the scales and will have very large fees.
But states like Ohio, Pennsylvania and New Hampshire will have much lower fees but they will still be substantial. Even with the seemingly modest fees, it could cause problems for the casino companies amid the economic downturn.