Atlantic City Casinos – Given how much money is thrown into casino sites every year, you may think a casino appealing for tax reductions on its income is a bit of a stretch.
Casinos are arguable of America’s most opulent entertainment places, yet the adage “the house always wins” isn’t entirely true.
Indeed, the gambling business in the United States was worth $44 billion per year before COVID-19, and it is anticipated to surpass that figure now that internet gambling is permitted. Is it really necessary for them to have a tax break?
Casinos around the country are still pursuing tax breaks from state governments before deciding whether or not to set up shop in their respective cities and states. Negotiating tax reductions as an incentive for adding jobs to an area will be a part of a casino’s offer.
Many casino patrons may wonder why some establishments are given preferential treatment over others.
And the latest tax relief issue has arisen in Atlantic City, where the area’s casinos are campaigning for tariff reductions.
Are Atlantic City Casinos Under Threat?
Tax benefits for Atlantic City’s casinos are needed, according to one union president, Bob McDevitt, to keep thousands of casino workers employed.
Over the pandemic, the coronavirus forced the temporary shutdown of Atlantic City casinos, and there are fears that more limitations will be imposed during the winter months.
Although Atlantic City has recovered, casinos around the country are now operating with significantly reduced personnel levels, which has had an impact on the labor market.
Meanwhile, casinos have informed outgoing state Senate President Steve Sweeney that four of Atlantic City’s nine gaming establishments are on the verge of closing due to financial restrictions imposed by COVID-19.
This could put thousands of jobs at risk, according to McDevitt, who stated, “As we exit the pandemic and begin the recovery process, it is critical that Atlantic City’s hotel and gambling properties remain stable.”
“The choices in my mind are clear: do nothing and risk the loss of thousands of jobs, or approve this law quickly and lay the groundwork for future stability and growth.”
State legislators are debating a proposed bill on the tax break. It would allow casinos to make contributions to Atlantic City, Atlantic County, and the city’s school system instead of property taxes.
The proposal’s most important feature, however, is that it would eliminate internet sports betting and gambling tax requirements.
Case For Axing Online Tax
The immense income potential in these revenue streams is why casinos are so eager to cut their tax liabilities from online activities.
Online gambling revenue in New Jersey is taxed at 15%, although revenues from land-based activities like casino halls are taxed at only 8%. The casinos want to reduce the higher tax rate.
In New Jersey, online sports betting and internet casino gaming are permitted, accounting for 46% of casino income. Casinos are already making millions of dollars by taking and profiting from these internet wagers, but they are also paying more in taxes as a result.
Naturally, the casinos are unhappy with the higher online rate, and if they can persuade the state to remove (or at least reduce) these tariffs from the calculations, they will likely benefit financially.
And their argument has some logic to it. After all, launching an online casino costs millions of dollars, and the profits are split among the host casino, technology providers, game providers, and a slew of other stakeholders. The casinos, on the other hand, are the ones who pay the tax on bets, which is why they are seeking relief.
It remains to be seen whether this is successful, but, certainly, Atlantic City’s casinos will not give up without a fight. The bill is now in the hands of a state Assembly committee, and it must be approved by both the Senate and the Assembly before it can be sent to Gov. Phil Murphy.
You can visit local online casinos such as Keluaran SGP websites.
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