Atlantic City: New Tax Act as a lifeline for many casinos

There is reason to be happy for the casinos in the US gambling metropolis Atlantic City. As has now become known, the authorities do without a wealth tax from now on. For this purpose, the “Casino Aid Bill” law was specially signed. For numerous casinos that had more and more economic problems, this means rescue and hope for the old days. The law means that the taxes should now flow into the region. While there is relief in de casinos, the reform of others met with criticism.

Taxes to County and City

The casinos do not remain completely free of taxes. From now on, the levies to County and the city are obliged. The amount of these payments depends on the different income of the land -based casinos. All yields on sports betting and online gambling are therefore not taken into account when calculating. The main reason was the high costs that the casinos of IT companies and providers have to pay.

The money could be used for the maintenance of the dilapidated schools in Atlantic City, as is the result of a message. All taxes that the Casinos Paying the state of New Jersey remain unaffected by the new law. Casinos have to pay 15 percent on online gambling, 13 percent on sports betting and 9.25 percent inpatient gambling.

Relief in the case of casino managers

Those responsible at the New Jersey Casino Association were relieved. The association announced that the new regulation was an urgent measure to ensure that the casinos can continue to exist. “The New Jersey (Canj) casino association is very pleased that legislators have accepted the changed pilot program. It will save thousands of jobs and grant security and stability, ”it said in a press release from the association.

The law would not only benefit the casinos, but also Atlantic City, as the city can expect fixed income. This makes it possible to promote the infrastructure. Joe Lupo, President of the New Jersey (Canj) Casino Association and Hard Rock Casinos, mentioned in early December that the casinos would not want to pay any more.

Rather, the operators are aware of their obligations, but due to the costs only to pay an appropriate amount. However, the argumentation of the casino operators did not encounter approval everywhere. Don Guardian, a former mayor of Atlantic City, expressed that the falling tax rates for the casinos are taken over by the rest of the citizens and that they have to play the gap filler. In the coming year, the casino is expected to make taxes of $ 110 million. With the old law, the amount would still be almost $ 170 million.

Many casinos were in front of that

From the former boom from the 70s and 80s, there is hardly anything to be felt in Atlantic City. For four of the still nine remaining casinos, the law comes to focus. According to media reports, these were about to be closed. Economically, the casinos were able to relax easily this year. This was particularly due to the positive development of sports betting and the Online gambling game. However, the land -based turnover is still under that from 2019. Only two casinos have succeeded in increasing sales. In contrast, seven casinos should have accepted an average of 22 percent.