Atlantic City: Casinos before the end?
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The casinos in Atlantic City have been fighting for survival for some time, and tax cuts are now planned. They should ensure that the casino landscape of the former gaming metropolis does not thin out further. A possible rescue could be the abolition of wealth tax. According to US media reports, the government in New Jersey is currently discussing a corresponding draft law.
Four casinos in front of the
The golden years in the former gaming metropolis have long been over. The city’s numerous casinos experienced the high phase in the 1970s and 1980s. However, nothing can be felt from the hype at that time. Only Atlantic City counts nine casinos. According to the US media, four of them are at risk and could soon close their gates forever.
The government in New Jersey wants to prevent this and plan to abolish the property tax for the casinos in Atlantic City. Steve Sweeny, chair of the Senate, has already submitted a draft law to free the remaining casinos from the payment of wealth tax. In compensation, they should pay financial taxes to the municipality and County in a different way. The money is then planned for local educational institutions.
Departure of a gaming metropolis. The gaming industry is the figurehead of Atlantic City and at the same time the largest employer in the city. However, industry has been stunning for years. The future of the former gaming metropolis looks correspondingly dark. The competition in the neighboring states is too great. Pennsylvania, Maryland and New York recently legalized casinos and attract gigantic customer crowds that are conversely missing in Atlantic City.
Ruin by wealth tax
The current discussion about wealth tax for Casinos Does not appear for the first time in this form. The tax in the Senate of New Jersey was discussed in 2014. At the time close five casinos in Atlantic City. Nine establishments remained that had to accept a significant loss of market in the course of the closings. Thereupon there was a lawsuit against the tax claims that were divided into several individual cases.
Some dishes approved the casinos’ objection and gave this right. This created a big one Financial hole in the city treasury by Atlantic City, which SWEENEY addresses in his most recent speech. So the financial damage had already occurred. In his eyes, adhering to the wealth tax is not expedient. Rather, the alternative taxes are the right approach.
Should the draft law achieve a majority in the Senate, the casinos in Atlantic City would have to pay significantly less taxes. For 2023 one would Sum of $ 110 million (USD) attack. The equivalent of $ 55 million less than the corresponding property tax claim.
Online gambling not taken into account. Similar to USA, online gambling is becoming increasingly important in the United States. In New Jersey, digital gaming offers are legal and many of the casinos in Atlantic City also offer their range of games on the Internet. However, the income would not be taken into account in the future taxes.
Fair conditions through draft law?
The draft law is recorded in New Jersey with mixed feelings. Don Guardian, a former mayor of Atlantic City, has commented critically and feared that the eliminating funds Completed by the taxpayer Need to become.
In this regard, Joe Lupo, President of the New Jersey Casino Association (Canj), said that the individual casinos in Atlantic City were aware of their social and economic obligations. Accordingly, it is not the intention to escape your own responsibility. All facilities are willing to make your contribution. However, it is necessary to adapt the current circumstances, otherwise threatens the Supergau.
Canj. The “Casino Association of New Jersey” is the leading association of the casino industry in Atlantic City and the common voice of all industry representatives. It consistently consists of laws and initiatives to promote industry. The protection and expansion of jobs within the industry is also part of the area of the Canj. The umbrella organization has set itself the task of creating an upward trend of the local casino industry and making it competitive again.
According to US media reports, whether the casinos are ultimately released from wealth tax will be decided this year. The Senate of New Jersey strive for a rapid decision And will vote on the draft law in the coming days. The redistribution of the tax burden of the casinos has top priority, since the gaming industry is still the driving economic power in Atlantic City.