NJ’s Casino PILOT Bill Has Gained Assembly Approval

Phil Murphy Governor NJ Casino Background

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.

Atlantic City’s PILOT Bills Will Receive a Vote Next Week

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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.