Travis,

When I said they pay taxes on bad debts, I meant gaming tax, in Nv its about 7%.
Casinos pay on gross revenue. In the pit, thats every dollar that drops in the hole. A marker is signed and dropped in the hole. It is taxable, whether it is paid or not. It is taxable whether the customer wins or loses.

I believe this is true in Ms and Ac also.

I doubt if they pay IRS taxes on them, but 7% is a big number to pay on money you might never see. Gaming tax is much higher in the other gaming markets.