Atlantic City remains in a very unusual position. A growing number of lawmakers are looking at the possibility of lowering the tax rate for the casinos in this city to help ensure their survival. Reports surfaced today that Atlantic City’s PILOT bills will be voted on next week.
Many seem torn on this bill. Now is a great time to talk about what it means for Atlantic City in the long-run.
Here’s what you need to know!
The Vote on Atlantic City’s PILOT Bills Takes Place on Monday
Atlantic City has been one of the country’s top gambling hubs for decades. The casinos in this city have helped to bring New Jersey an incredible amount of money over the years. Unfortunately, high tax rates have threatened some of these gambling venues with closure in recent years.
Lawmakers are beginning to recognize that fact. Many want to act fast to protect these properties; recognizing the massive amount of money they help to bring in. Several new bills have been presented recently that, if approved, would lower the amount of property taxes the casinos here would need to pay.
It has been confirmed that the votes on Atlantic City’s PILOT bills will be taking place at an Assembly hearing on Monday, December 20. Bill A5587 would decrease the total amount of money these casinos pay in 2022 down to $110 million. That represents a major drop from the $165 million they are expected to pay next year.
Not everyone supports this decision. Many feel it’s unfair to lower taxes for casinos, only to raise tax rates for individuals and businesses in Atlantic City. Atlantic County Executive Dennis Levinson is one of the main detractors of these bills, claiming he will sue Governor Murphy if these bills end up being approved.
It will be very interesting to see how fellow officials view these bills. We’ll be sure to report on the official decision as soon as it is made.
Atlantic City’s Gambling Revenue Continues to Surge
On the surface, it might seem as if the casinos in Atlantic City have been struggling lately. The reports that four casinos may be forced to close here took some by surprise. That is particularly true, as gambling revenue seems to have been steadily increasing here throughout 2021.
This past October was another record-breaking month for the gaming industry in this state. More than $1.3 billion was wagered on sports over the month. $1.2 of that money was wagered online, rather than inside a land-based sportsbook.
Some casinos have proven to be more successful than others. The Borgata and Hard Rock Atlantic City continue to generate a huge amount of money. The smaller ones here, however, appear to be struggling.
Many analysts still feel that Atlantic City’s PILOT bills are nothing more than a way for the casinos here to increase their revenue. Many of these properties struggled immensely in 2020. Things completely turned around this year and tourism and gaming revenue in New Jersey has been steadily rising.
Certain things could end up impacting gaming revenue here. That includes New York finally allowing online sports betting. Stay tuned for more gambling revenue reports as the months go on.
Northeastern US Gambling Hubs Continue to Expand
The Northeastern United States has quickly turned into one of the largest gambling hubs in the United States. Not long ago, Atlantic City was the only state here known for its gaming options. Today, nearly every state in this region has popular gambling options available.
New York is one such state. A large number of casinos and land-based sportsbooks are currently up and running here. Many groups now support allowing a Class III casino in New York City and 2022 may be the year this gambling property is given approval.
Massachusetts is home to a huge number of popular casinos. That includes Encore Boston Harbor, one of the top-rated casinos in the country. All signs point to sports betting becoming legal in Massachusetts in 2022.
Pennsylvania and Maryland are expanding their number of gaming options, too. Both states now have legal casinos and sportsbooks operational. Expect to see more gaming options becoming available here over the next few years.
Do you expect Atlantic City’s PILOT bills to get approved next year? Are any casinos here really in danger of closing? Let us know in the comments section below.