Record Casino Taxes Empower New Jersey Communities
Date: 2023-10-02 Author: Kirill Zagoruyko Categories: CASINO
Atlantic City's casino industry contributed a staggering $504 million in taxes and fees in the last fiscal year, a record amount that is critical to supporting various programs for vulnerable residents across the state.
Casino Income Fund Empowers Vulnerable New Jersey Residents
The Casino Revenue Fund, created in 1976, was created to direct state casino gambling revenues toward essential services for eligible seniors and people with disabilities, including reductions in property taxes, utility services, and additional health care and transport services.
In the latest state budget for 2023-24, more than $436.6 million from the fund was allocated to individual support for the community care program, The Press of Atlantic City reports. This initiative provides residents of state-licensed facilities with important services such as home assistance and self-care training.
In addition, NJ Transit received more than $38.9 million from the fund specifically for its Senior and Disabled Transportation Assistance Program. This program is vital for seniors and people with disabilities as it offers county-coordinated transportation for non-emergency medical travel, shopping and meals, acting as a lifeline to their daily needs.
The fund has had fluctuations in its history, reaching a low of $205.9 million in 2015 due to the economic downturn and the closure of several casinos. However, the opening of casinos, combined with the legalization of sports betting and the growth of online gaming, has revitalized the fund. Internet gaming in particular has seen a significant increase in tax revenue, with the tax rate on Internet gaming being 15%, compared to 8% for revenue from slot machines and tables.
Atlantic City is looking for new ways to generate revenue despite concerns about tax drain.
Jane Bokuniewicz, director of the Lloyd D. Levenson Institute for Gaming, Hospitality and Tourism at Stockton University, emphasized the importance of supporting the online casino gaming industry's efforts to maintain this vital revenue stream.
Although local officials have expressed concerns about the drain of tax revenue from the city and South Jersey, Mayor Marty Small Sr.'s administration continues to explore opportunities to increase revenue for Atlantic City. Although the city does not receive direct funding from casino taxes, it benefits from a $2 fee for each occupied casino hotel room, generating millions in revenue.
The surcharge, which took effect in March 2022, has already generated more than $3.8 million this year, mostly aimed at improving public safety. At the same time, the New Jersey gambling industry showed strong growth in August, surpassing the results of the previous year. Casino revenue remained stable with moderate growth, while online gaming and sports betting saw strong growth, indicating a positive trend for the state's gaming sector.
Casino Income Fund Empowers Vulnerable New Jersey Residents
The Casino Revenue Fund, created in 1976, was created to direct state casino gambling revenues toward essential services for eligible seniors and people with disabilities, including reductions in property taxes, utility services, and additional health care and transport services.
In the latest state budget for 2023-24, more than $436.6 million from the fund was allocated to individual support for the community care program, The Press of Atlantic City reports. This initiative provides residents of state-licensed facilities with important services such as home assistance and self-care training.
In addition, NJ Transit received more than $38.9 million from the fund specifically for its Senior and Disabled Transportation Assistance Program. This program is vital for seniors and people with disabilities as it offers county-coordinated transportation for non-emergency medical travel, shopping and meals, acting as a lifeline to their daily needs.
The fund has had fluctuations in its history, reaching a low of $205.9 million in 2015 due to the economic downturn and the closure of several casinos. However, the opening of casinos, combined with the legalization of sports betting and the growth of online gaming, has revitalized the fund. Internet gaming in particular has seen a significant increase in tax revenue, with the tax rate on Internet gaming being 15%, compared to 8% for revenue from slot machines and tables.
Atlantic City is looking for new ways to generate revenue despite concerns about tax drain.
Jane Bokuniewicz, director of the Lloyd D. Levenson Institute for Gaming, Hospitality and Tourism at Stockton University, emphasized the importance of supporting the online casino gaming industry's efforts to maintain this vital revenue stream.
Although local officials have expressed concerns about the drain of tax revenue from the city and South Jersey, Mayor Marty Small Sr.'s administration continues to explore opportunities to increase revenue for Atlantic City. Although the city does not receive direct funding from casino taxes, it benefits from a $2 fee for each occupied casino hotel room, generating millions in revenue.
The surcharge, which took effect in March 2022, has already generated more than $3.8 million this year, mostly aimed at improving public safety. At the same time, the New Jersey gambling industry showed strong growth in August, surpassing the results of the previous year. Casino revenue remained stable with moderate growth, while online gaming and sports betting saw strong growth, indicating a positive trend for the state's gaming sector.
