Brief: LV Hilton, Desert Inn to receive tax refunds

The refund is related to promotional chips casinos give away to entice people to gamble. In 1995, the Nevada Legislature said payments to gamblers playing with promotional chips could be deducted by casinos from overall gaming win to reduce their tax liability.

At issue Friday was whether that decision applied retroactively to taxes paid before 1995. The state Gaming Control Board ruled that the Legislature's decision was a change in the law, and therefore meant only losses from that point forward could be deducted. The Desert Inn and Hilton, on the other hand, argued that the Legislature was simply clarifying the law, meaning its interpretation was retroactive.

The Commission agreed with the industry, but on a split vote, with Commissioners Brian Sandoval and Sue Wagner dissenting. The Desert Inn will receive a $146,000 refund, and the Hilton a $111,656 refund. Including those refunds, the state has refunded casinos $1.3 million related to the promotional chip losses issue.

The Board may appeal the case to the state courts.

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