Atlantic City is experiencing a huge boom right now. The legalization of sports betting and new casino expansion is helping to bring in more revenue than ever before. This week, a Senate hearing took place to ensure that Atlantic City casinos are helping to fund the local community.
It’s great to see gaming establishments here working to ensure the locals in the area reap the rewards of their success. Now is the perfect time to look at just how much revenue here has increased over the past few years. Let’s get into it!
Revenue Earnings in Atlantic City Over the Years
For many years, Atlantic City was the only area on the East Coast that offered legal casino gaming options. This small city was one of the most popular gambling destinations in the world, featuring some top casinos operated by major gaming companies. Between 2005 and 2015, however, this area saw a major decline.
During the recent economic recession, Atlantic City’s total GDP decreased by an astounding 21.4%. Fortunately, things are taking a huge turn.
Gambling revenue here has increased here every month for the past year. Many analysts directly attribute the legalization of sports betting for this increase in revenue. Back in May of 2018, the US Supreme Court ruled PASPA unconstitutional. Every state now has the ability to set its own laws on sports betting.
New Jersey was the first state to officially legalize this industry. All casinos in Atlantic City operate sportsbooks, which in turn help to generate more overall revenue. Now, lawmakers in this state want to ensure that the money being earned from these gaming venues is being spread throughout the city.
Atlantic City Casinos Need to Invest into Local Economy
This week, a Senate hearing took place in Trenton, New Jersey. Lawmakers want to hear how casinos are helping the local community. One of the leaders of this hearing, David Rebuck, claimed that casinos are on the rise, and earnings from these establishments are going back into the local economy.
“The real issue here is the casinos today understand that they are intimately related to the success of Atlantic City as a municipality for their success,” he said.
Rebuck realizes what happened just a few years ago. Once the Atlantic City casinos failed, the local area failed, as well. Everyone wants to ensure this does not happen again.
There are a number of new measures lawmakers are discussing. Some are calling for a cap on the number of casinos that can operate here. Others want to see a new casino licensing structure. To their credit, many of the casinos in this city are completely open to helping locals.
Atlantic City’s Gambling Tax Structure
According to David Rebuck, Atlantic City casinos are bringing the state more than $132 million every year. Gross gambling revenue in the state is taxed at 8.5%. The taxation of online gambling and sports betting is also bringing in huge amounts of revenue for New Jersey.
Things are looking great for both casinos and workers in Atlantic City. With the massive revenue earnings, some are calling for tax rates to go up. For now, there’s no indication that is happening.
Lawmakers in New Jersey seem happy with the earnings from casinos. If tax rates are increased, these casinos (particularly the ones on the lower-earnings side of things) will not be happy. Higher taxes may even force some of these establishments to close down.
Officials here simply want to make sure that locals are benefiting from the rise in gambling. With 5,000 new jobs created here over the past few years, this certainly appears to be the case.
Do you think Atlantic City casinos should focus more on helping the community? What steps should lawmakers take to ensure this happens?