Union leaders and UNITE HERE members stood in solidarity with federal workers at Tuesday’s Emergency Committee on Federal Workforce & Funding Reductions to propose a solution to the impending budget crisis caused by extremists in DC. With 145,000 federal workers and more than $100 billion in federal contracts in 2023, Virginia stands to lose more than most through the misguided and cruel attacks of President Trump and Elon Musk’s DOGE team. Their unified message was, “Don’t leave tax dollars on the table at Virginia’s casinos.”
Written testimony submitted to lawmakers and leaflets handed out to the crowd demonstrated that Churchill Downs and VA’s metro area casino operators pay less than half the effective tax rate levied on gaming companies in nearby states West Virginia, Maryland, and Pennsylvania. In 2024, VA metro area casinos paid a 19% effective tax rate on casino slots and table games compared to 50% in DE, 48% in WV, and 42% in MD and PA. Churchill Downs paid even less on their Historical Horse Racing (HHR) slot machines, which are nearly identical to casino slots. In neighboring MD casino slots are taxed at 53% compared to the paltry 15% effective tax rate that Churchill Downs paid for their HHR slot machines in VA. Each of these companies, currently operating in Virginia, also run gaming operations in these nearby states and contribute at the required higher tax rates. It just makes common sense. Virginia lawmakers should adjust tax rates accordingly.
Ginny Diamond, President of the Northern Virginia Labor Council, stated, “Virginia communities should not suffer due to the misguided actions of extremists in DC. It’s a no-brainer. Adjusting these tax rates appropriately could generate as much as $329 million in additional tax revenue that benefits Virginia residents. The Commonwealth cannot afford to leave that money on the table, especially with the impending budget crisis and hundreds of thousands of Virginians newly unemployed.”
Delegate Josh Cole (Fredericksburg), who serves on the Emergency Committee, agreed, stating, “Lawmakers legalized commercial casinos and Historical Horse Racing (HHR) slot machines in 2018 because of the promise of additional revenue for the Commonwealth and local governments. Now is the time for these gaming companies to step up and deliver.”
The message to lawmakers was simple. Don’t leave gaming tax money on the table. With more than $329 million on the line, and the Commonwealth in desperate need of new revenue, we cannot afford to wait to adjust these tax rates appropriately.
The NoVA Labor Council is one of nearly 500 state and local labor councils of the AFL-CIO and are the heart of the labor movement. We are democratically elected bodies dedicated to represent the interests of working people at the state and local level. We mobilize our members and community partners to advocate for social and economic justice and we strive daily to vanquish oppression and make our communities better for all people—regardless of race, color, gender, religion, age, sexual orientation, or ethnic or national origin.
UNITE HERE Local 25 represents over 7,500 non-managerial employees working in all hotel and casino departments, including: housekeeping, public space, dining room, banquet, room service, kitchen, stewarding, bar, mini-bar, front desk, PBX, bell and door services, concierge, night auditing, laundry, valet, maintenance, night cleaning, purchasing and receiving, and storeroom. More than 40 hotels and other related businesses employ our members and are under contract to our union. This accounts for many of the major properties in the hotel industry within Washington, D.C. and its suburbs.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250410114567/en/
Churchill Downs and VA’s metro area casino operators pay less than half the effective tax rate levied on gaming companies in nearby states West Virginia, Maryland, and Pennsylvania.
Contacts
Media Contact: Benjy Cannon, 202-714-1567, bcannon@unitehere.org
