But several states that have approved casinos in recent years have charged higher taxes and fees to developers, and that has some analysts questioning if Massachusetts is surrendering too much.
“At 25 percent, I don’t think the taxpayers are getting enough of the benefit,’’ said Jeff Hooke, a Washington investment banker who has studied the fees and tax rates extensively. “The state is giving a legal monopoly… . How many businesses get a legal monopoly?’’
Pennsylvania, where casinos began opening in 2007, takes 55 percent of every dollar spent on slot machines and 16 percent from black jack or other table games. Illinois has a graduated tax rate that runs as high as 50 percent and collected about 34 percent last year.
Gambling supporters say that the state has an interest in keeping tax rates low enough to protect profits for casino developers. They argue that overly high taxes and fees could limit casinos’ ability to finance facilities with hotels and other amenities that would employ more people. Many of the highest-taxing states lack hotels in their casinos.
A 25 percent rate, they say, will amount to hundreds of millions of dollars to fortify city and town budgets and bolster government services, from arts organizations to transportation projects to schools and fire departments.
The bill would also authorize one slot machine parlor, taxed at 49 percent. Casinos would pay the state an initial licensing fee of at least $85 million, while the slot parlor would pay a $25 million licensing fee. The bill has support from legislative leaders, as well as Governor Deval Patrick.
Since Patrick first proposed casinos four years ago, before the full effect of the economic downturn, the deal for casinos has gotten better. Proposed tax rates have dropped from 27 percent, and licensing fees have decreased from $200 million each.
Senator Stanley C. Rosenberg, an Amherst Democrat who has helped lead the casino debate, said the state does not want to chill the industry.
“You can kill the goose that lays the golden egg, and our job is to keep that goose healthy,’’ said Rosenberg.
