Atlantic City casinos won big yesterday to the tune of around $55 million after lawmakers in New Jersey passed a measure that will greatly reduce the nine resorts’ property tax bill for 2022 and beyond. Protestors gather outside the New Jersey Statehouse on December 20 to rally against a vaccination or negative test mandate required for entry into the capital building. Inside, lawmakers approved of reducing the amount of property tax Atlantic City casinos will pay next year. (Image: The New Jersey Senate and Assembly both passed S4007 on Monday . The statute, with Gov. Phil Murphy’s (D) signature, will amend the payment-in-lieu-of-tax (PILOT) program that dictates the amount of property taxes the casinos pay each year.
S4007 will remove gross gaming revenue (GGR) generated from online slot machines, table games, poker, and sports betting from the calculation used to determine how much property taxes the casinos pay in the following year. For 2022, the PILOT switch will slash the sum from $165 million to $110 million.
The bill is state Senate President Stephen Sweeney’s (D) legislative swan song, as the longtime Trenton political power player was upset in November by a Republican newcomer. I hope the governor signs it as quickly as possible,” Sweeney said of his S4007 bill. Murphy has hinted that he will sign the statute once it reaches his desk. Industry Explains Savings
Sweeney opined prior to the legislature vote that as many as four Atlantic City casinos might close without substantial cuts to the PILOT program. Though he provided no insight into those claims, the casinos say the $55 million in savings next year — plus an estimated $30 million to $65 million each year through the 2026 scheduled PILOT expiration — will steady the casino town.
The Casino Association of New Jersey (CANJ) says the PILOT savings will protect “thousands of jobs” and “provide certainty and stability” to the market.
Though Atlantic County is set to receive fewer property tax dollars under the new PILOT should Murphy ratify the law, the casino industry organization says escalating iGaming revenue will help bridge the tax loss for Atlantic […]
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