Off-reservation Indian gaming is an extremely controversial topic, because it is exempt from local taxation. Simply put, the incredible tax-exempt status of a tribal operation creates a distinctly unfair advantage over local businesses. Existing businesses including, but limited to, restaurants, truck stops, gas station/convenience stores, retail shops, cinemas, race tracks, and hotels will no doubt lose sales volumes and employees to a tribal operation. The resulting gross receipts diverted from existing businesses are subtracted from the local tax base, reducing collections by local governments, county governments, and the state. New Mexico Economic Consultants did a particularly extensive study on the subject. In its study, NMEC measured the total impact on the economy in Dona Ana County by considering both the direct and indirect effects of changes in spending.
Using impact analysis, NMEC found it possible to estimate the effect of changes in spending associated with the proposed Anthony casino on income, employment, and local tax collection under alternative scenarios. The study was extensive. It can be read here: The analysis contained in the NMEC study shows that "the positive impacts of the proposed Anthony casino could be negligible once its effect on other businesses is considered. Under reasonable assumptions, the loss of revenue by existing business could significantly offset the benefits of the new casino on local economic activity. Moreover, the loss of gross receipts tax revenue to the state and local governments could total up to $6,500,000 per year."
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