Gubernatorial Candidate Alexis Hill Wants to Raise the Nevada Gaming Tax to Match Other States
Nevada Gubernatorial Candidate Alexis Hill (Courtesy of her campaign)
Alexis Hill is a huge underdog in the race to be Nevada’s next Governor, and she’s putting all her chips on a controversial proposal to increase taxes on gambling operators.
The current gaming tax is just 6.75%, lower than any other state in the country, and Hill says it’s time to change that.
Nevada runs on gambling, with casinos being the heartbeat of the economy. As a result, the industry has a major influence on politics. Inevitably, Hill’s proposal will get pushback from casino operators and casino workers’ unions, but she’s hoping to counteract that with messaging about making rich corporations pay their fair share.
Hill currently trails her rival — current Attorney General Aaron Ford — in the polls, as well as in endorsements and fundraising. However, Hill has proposed a bold set of policy changes that are gaining attention, with the increase to Nevada’s gaming tax rate drawing the most controversy.
Las Vegas Casino Operators Hold Tremendous Political Sway
Nevada’s 6.75% gaming tax rate hasn’t changed since 2003. Even then, it only increased by half a point, which reflects how deeply the casino industry has woven itself into state politics. Challenging the low rate hasn’t worked out well in the past for other politicians who have tried it.
Hill told Nevada Independent reporters that she doesn’t have a specific new rate in mind and said that she would speak with gaming companies regarding any potential change.
The decision not to present a specific number may be a strategy to fend off immediate attacks by opponents. In the meantime, she’s starting a conversation that the state has long refused to have.
Her argument is that Nevada’s current tax structure hurts ordinary residents, while benefiting the ultra-rich. Speaking with News 4 Reno last month, she said that residents feel “nickel-and-dimed every time you do anything,” while the people who have the capacity to pay proper taxes get away with low rates.
In other words, she’s framing it as a means to avoid raising taxes elsewhere.
Nevada’s Political Addiction to Gambling
While raising taxes on casinos, not citizens, is the headline of Hill’s challenge, there’s an underlying argument to be made about the state’s overreliance on a single industry. Gaming and hospitality dominate Nevada’s economy. That makes it vulnerable to shocks, such as a pandemic, recessions, and a change in consumer behavior. The COVID-19 shutdowns showed this vulnerability in brutal fashion, leading to some of the country’s highest unemployment rates almost overnight.
Hill’s larger goal is to distance the state from the casino industry a bit and diversify its economy. She’s calling for greater support for small businesses through access to emergency loans and tax exemptions. She wants to create the Nevada Works program, which would create a significant number of apprenticeships and jobs, while improving the state’s infrastructure.
She’s also skeptical about those who are pitching data centers as the next big frontier of Nevada. She wants to halt tax breaks for data centers while researchers study their water consumption and greenhouse gas emissions. She also argued that the relatively small number of jobs they create doesn’t justify the generous incentives the government gives them. Both of her competitors, Attorney General Ford and Gov. Joe Lombardo, are in favor of data center development.
Big Ideas May Offer the Best Hope in a Lopsided Battle
Hill faces a massive uphill struggle if she’s to have any hope of winning. Ford has spent a relatively uncontroversial two terms in office as Attorney General, though he has recently been the subject of an ethics investigation. He also benefits from a high public profile and a well-oiled fundraising apparatus. Hill struggles in these areas, but her proposals might resonate with a public that has historically low levels of trust in political establishments.
Economic anxiety about housing costs, childcare expenses, and the cost of living is increasing. Her plans for a rent freeze, universal pre-K, and making big corporations pay more speak to the real pressures that Nevada families feel. Hill’s argument at its core is that Nevada has run the same play for decades while leaving too many Nevadans behind.
While Polymarket users give her just a 0.4% chance of winning the Democratic primary, the root of her gaming tax proposal might capture the attention of other political candidates in the state.
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