As reported several days ago by local news outlets in New Jersey, the Atlantic City Council has called for the local community to gain a bigger percentage of the state’s taxes that its gambling venues pay on generated sports betting revenues. According to a recent report by The Press of Atlantic City news outlet, the City Council of Atlantic City regulatory body of nine members passed a crucial resolution several days ago mainly to support a proposition which was floated by the city’s Mayor Mr. Small Sr.
According to the Mayor’s proposition, it would involve the state of New Jersey’s lawmakers to redirect around 1.25% of generated sports betting revenue taxes directly to the city so that those funds can be redirected towards Atlantic City’s public safety and other programs. The same newspaper also shared that the currently active taxation from 2018 is accessed alongside other taxation laws against gross gaming revenues which are generated by the city’s sportsbooks and by their online partners.
Casino Reinvestment Development Authority
If the City of Council’s and Mayor’s proposition is established, the city’s sportsbooks and their partners will pay bigger taxes while all proceeds will go towards supporting business schemes which are currently managed by the state’s governmental agency Casino Reinvestment Development Authority. This governmental agency was founded back in 1984 and since its inception, it is mainly responsible for navigating the spending of casino-generated reinvestment funds in both private and public projects which should benefit Atlantic City as well as other New Jersey regions.
From its inception until April of 2008, the Casino Reinvestment Development Authority spent around $1.5 billion on various projects in the city as well as around $300 million on projects throughout the state. Reinvestment funds are always received from the state’s gambling facilities which by the current state laws are required to contribute at least 1.25% of their accumulated gross gaming revenues towards private and public projects which benefit the city as approved by the Casino Reinvestment Development Authority.
The Casino Reinvestment Development Authority today consists of seventeen members including six public members who are always appointed by the state’s Governor as well as confirmed by the state’s Senate. Then, there are also two members included who are recommended by the Senate President and once again appointed by the state’s Governor. There are also two members included as recommended by the General Assembly’s Speaker. Then, two members with two-year contracts are appointed by the state’s Governor and one member comes from the state’s Casino Control Commission.
Atlantic City Dissatisfaction
As reported by The Press of Atlantic City newspaper, Atlantic City is very unhappy as it did not receive any proceeds from the city’s sportsbooks and their partners even though the current system gifts massive funds to the communities which host sports betting-friendly Meadowland Racetrack and Monmouth Park Racetrack. The Mayor was the one to warn lawmakers of this big disparity and he even testified before the state’s General Assembly board.
The Mayor told the committee’s state legislators that Atlantic City needs this cash to offset accumulated losses. In one of his official press releases, the Mayor said that they are not asking for something that no one gets. He also added that this is going to be the ultimate fight and he plans on sticking with the taxpayers. The Casino Reinvestment Development Authority has gained around $1.6 million from the currently active 1.25% tax on sports betting revenues since last year while the state’s host municipalities and counties for Monmouth Park Racetrack and Meadowlands Racetrack have netted together around $2 million.