In New Jersey and proposed legislation that would see Atlantic City receive even more of the tax revenues generated by the eastern state’s burgeoning sportsbetting industry has reportedly made it out of committee.
According to a Thursday report from the Associated Press news service, the measure floated by New Jersey State Senator Troy Singleton late last year calls for the proceeds from a 1.25% gross sportsbetting revenue tax currently funding the Casino Reinvestment Development Authority to be exclusively diverted to the coffers of Atlantic City. The Democratic sponsor purportedly detailed that the successful passage of his legislation would see the community of approximately 38,000 people receive about $2 million more every year to help assuage the impacts of a coronavirus-related fall in visitation and a series of restrictive payment in lieu of tax (PILOT) agreements.
Booming business:
New Jersey was one of the first American states to legalize online and land-based sports wagering following the 2018 revocation of the Professional and Amateur Sports Protection Act (PASPA). The jurisdiction of almost 9.3 million inhabitants has since gone on to become one of the country’s most lucrative bookmaking markets with an impressive $194 million in taxes earned from well over $1.5 billion in aggregated revenues.
Indisputable inequality:
The mayor for Atlantic City, Marty Small (pictured), reportedly threw his weight behind Singleton’s legislation earlier in the year after long complaining that his community receives very few benefits from a range of state-imposed tourism industry taxes such as parking and hotel room duties. The 47-year-old purportedly noted that sportsbetting levies represent another area where the state profits at the expense of his city.
Reportedly read a statement from Small…
“Everyone in this room can drive to Atlantic City. Once we park our car, that’s parking tax. We go to the bar and buy a drink, that’s luxury tax. We go into our room, that’s the room tax. We go to a late-night show, that’s luxury tax again. Then we place a sports wager, that’s sportsbetting tax. Guess what the residents of Atlantic City get from our stay? Zero. When are we going to get our slice of the pie?”
Confident critic:
However, New Jersey State Senator Vincent Polistina reportedly told the news service that he intends to oppose Singleton’s measure because Atlantic City is already benefitting from ample tax relief under a revised PILOT arrangement state legislators approved in December. The Republican purportedly furthermore proclaimed that any changes to the way the Casino Reinvestment Development Authority is funded need to come following a ‘global discussion’ on the Atlantic County city’s present situation and its future.
Significant signal:
Going forward and the Associated Press reported that Singleton’s proposition could now be put to votes before the New Jersey State Senate and New Jersey General Assembly before the start of the summer. The 48-year-old legislator purportedly told the news service that his measure represents a way for New Jersey to ‘literally give money back to taxpayers’ and show voters that the state is ‘serious about affordability’.
