New Jersey lawmakers propose financial break for casinos
The program aims to help Atlantic City casinos further recover from the effects of the Covid-19 pandemic.
As the effects of the Covid-19 pandemic continue to hinder the growth of Atlantic City’s casinos, New Jersey lawmakers are proposing financial relief for the region’s properties. The relief would come by exempting two high-earning revenue streams from tax calculations.
As reported by the Associated Press, the legislation, which was discussed in the state Senate on November 15, acts as a renewal of a law first enacted five years ago when the city was affected by the closure of five casinos.
This initiative, referred to as PILOT, was designed to provide financial certainty to both the city and its casinos. This iteration of the Bill will look the exempt online gaming and sports betting from calculations on how much casinos must pay towards the city, its schools, and other programs.
AP also suggested in its report that this bill would aid some casinos, while hindering others. Caesars, for example, would see payments decrease from $17.5m to $9.4m by 2025. Harrah’s payments would also reportedly fall, going from $25.6m to $17.8m.
Conversely, Hard Rock would see its payments grow from $7.7m to $15.9 by 2025.
There are some concerns regarding the legislation, with Sen. Troy Singleton, Chair of the Senate’s Community and Urban Affairs committee, highlighting the immense growth of both online gaming and sports betting.
The Bill is yet to be passed and must yet be considered in full by the Senate.
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