A lot has been going on with the casino industry in Atlantic City over the past couple of years. Not long ago, a new bill was presented that, if approved, would lower the tax rate set on these casinos. NJ’s casino PILOT bill has formally received assembly approval today!
This is big news for the casino companies here. It will likely have a big impact on New Jersey’s entire gambling industry.
Here’s what you need to know!
Assembly Formally Approved NJ’s Casino PILOT Bill
New Jersey has long been one of the world’s most successful gambling destinations. Atlantic City is a true casino hub, featuring many world-class gambling properties. This city struggled immensely in 2020, yet fared well throughout the majority of 2021.
Some of the smaller casinos here have recently complained about the tax rate set on their revenue. Some even told officials they faced possible closures if this tax rate was not lowered. As a result, lawmakers came up with a new PILOT bill that would lower the tax rate set on New Jersey’s casinos.
The vote to approve this bill took place yesterday. To the surprise of some analysts, it passed by a 21-14 margin. All Senate Republicans voted against this bill, arguing the casino industry is doing well and this bill will end up raising taxes for Atlantic City residents. Republican Senator Vince Polistina spoke about his decision to vote against it to the media this week.
“There was a sense at least the Republicans and South Jersey senators recognized this bill does some things that are necessary, but also has some problems still in need of work on,” Polistina said. “We continue to have very productive conversations with the administration, the industry and the county. I think we have the ability to continue to talk and make it fair and build consensus, so it does not result in litigation.”
This bill will now go to Governor Murphy’s desk. If approved there, the casinos in Atlantic City will see their annual tax revenue increase by $10 to $15 million next year. That is still a far lower smaller tax increase than what would be seen if the bill did not gain approval. Stay tuned for updates!
New Jersey’s Sportsbooks Broke Another Record in November
New Jersey was one of the states responsible for the Supreme Court removing PASPA in 2018. It was one of the first states to legalize sports betting and is now the world’s most successful sports gambling hub. The sportsbooks here have broken monthly revenue records on several occasions this year.
This November has proven to be the best month in history for the sports betting industry here. In fact, this was the best month for this industry by a large margin. Many were surprised to see just how much money the sportsbooks here managed to bring in.
New Jersey’s sportsbooks saw an astounding $114.8 million in total gross gaming revenue over the month. That represents a large jump from the previous revenue record of $84.2 million. The state also saw a new handle record of $1.26 billion.
The vast majority of this revenue came from NFL betting. Football has helped to bring many states around the country an incredible amount of sports betting revenue. The NFL playoffs are just around the corner and sports bets are expected to increase, as a result.
NJ’s casino PILOT bill should help the gambling properties in Atlantic City up and running. That is great news for the sports betting companies operating inside these casinos. We’ll be sure to offer a final revenue report for December as soon as these reports come out.
Casino Revenue Remains High Leading into 2022
Casino revenue has been steadily increasing around the US this year, too. Many major casino hubs have set new revenue records this year. That includes Las Vegas and Atlantic City, where some of the most expensive casinos in the world are located.
November is proving to be a very successful month for the US casino industry. Many states are seeing impressive revenue figures. Some are even setting new all-time records over the course of this month.
Pennsylvania shattered its casino revenue record in November. The casinos here managed to bring in $432 million in GGR last month. That represents a more than $6.5 million increase when compared to October of this year.
Not every casino hub is experiencing revenue surges. Illinois saw its casino revenue come out to $104 million in November. That is a 4.7% decrease compared to October. Several new casinos are set to open in this state over the next few years, including one in Chicago.
Are you surprised that NJ’s casino PILOT bill was approved? How will the casino industry here fare in 2022? Let us know in the comments section below.