Atlantic City is home to many of the country’s biggest and most popular casinos. In recent months, some of the casinos here have been faced with possible closures due to high tax rates. A measure proposed recently now hopes to prevent the closing of Atlantic City casinos.
This measure would lower the tax rates set on the casinos here. Not everyone supports this measure, though.
Here’s what you need to know about this situation.
Officials Work to Prevent the Closing of Atlantic City Casinos
New Jersey has long been the most successful gambling hub in the Eastern United States. Atlantic City has been a major gambling destination for decades. In 2020, the casinos here were forced to shut down for months and some felt the city’s gaming industry was on the brink of collapse.
Things have largely recovered through 2021. Tourism numbers have been increasing and gambling revenue is up. Unfortunately, several of the casinos in Atlantic City are still facing possible closures due to high tax rates and sub-par revenue earnings.
Recently, officials presented a bill called S4007 to amend the current PILOT bill that taxes the state’s casinos. Under this bill, the basic PILOT payment will decrease to $110 from the current $165 million. Eight Democrats support this bill, arguing that it will prevent the closing of Atlantic City casinos. Senate President Steve Sweeney, who sponsored this bill, spoke about its impact to the media this week.
“We made mistakes (in the original PILOT bill), and if we don’t fix them we run the risk of closing four casinos,” he said.
S4007 has become a major point of contention for lawmakers around the state. Many feel that raising taxes for state residents to save casinos is unfair. It’s a complicated issue and one that will take time to settle. We’ll be sure to offer more updates on S4007 over the next few months.
New Jersey’s Sports Betting Industry Faces Stronger Competition
It’s clear that the casinos in Atlantic City are still facing difficulties. Many are still benefiting from their sports betting operations. As many are aware, New Jersey allows both land-based and online sports betting, both of which bring in a massive amount of revenue each month.
New Jersey’s status as the country’s sports gambling hub may not last forever. This is due to a rise in competition from neighboring states. As the months go on, the sportsbooks in New Jersey face more and more competition from other betting destinations.
A huge amount of attention has been put on New York’s sports betting industry. The first sportsbooks went live here in 2019. Interestingly, the state only allowed land-based sports betting in the state. A measure to finally allow online sportsbooks was approved this year and many feel the internet betting platforms will begin to seriously compete with the ones in Atlantic City.
Pennsylvania is also home to a very large and successful sports betting industry. Revenue from the state’s sports betting platforms has been steadily increasing throughout 2021. Some feel that it’s only a matter of time before Pennsylvania develops the most successful sports gambling industry in the United States.
A drop in sports betting revenue could also contribute to the closing of Atlantic City casinos. Analysts remain interested in how things will play out.
More Casinos are Set to Open in the Northeastern United States
New Jersey’s sports betting industry is facing more competition every year. There is no doubt that this state remains the casino hub of the East Coast, though. It seems certain state leaders are now interested in seeing if they can begin to attract more casino gamblers, too.
That includes leaders in New York. This state is currently home to many casinos, nearly all of which are located in the Upstate area. Certain lawmakers feel it’s time to expand this industry and want to see a major casino-resort open its doors in New York City.
The push to open a NYC casino is gaining more support. Many feel it will help to boost tourism and revenue for the state. It will also help gambling fans in New York City to keep money in the state, rather than into New Jersey.
Pennsylvania also seems interested in opening more casinos. Connecticut may, as well. The entire Northeastern US is turning into a major gambling hub and many new gaming options are set to become available here in the future.
Will Bill S4007 prevent the closing of Atlantic City casinos? How do you think New Jersey’s gambling industry will fare in 2022? Let us know in the comments section below.