Atlantic Metropolis officers have lengthy voiced their frustration with the truth that native residents don’t immediately profit from authorized sports activities betting occurring of their city.
Sports activities bettors on the Meadowlands FanDuel Sportsbook line as much as place their wagers in 2018. New laws in New Jersey seeks to redirect a portion of the sports activities betting tax to learn Atlantic Metropolis taxpayers. (Picture: AP)
Authorized sports activities betting in New Jersey started in June of 2018 lower than a month after the US Supreme Court docket struck down the federal regulation that had beforehand banned such playing outdoors of Nevada. Cell operations went dwell that August.
Gross gaming income (GGR) from sports activities betting is topic to an 8.5% tax on in-person bets. On-line sportsbook income is taxed larger at 13%.
Sportsbook revenue — no matter the place it originates — is moreover subjectto a 1.25% add-on tax. That cash is at the moment earmarked for the On line casino Reinvestment Improvement Authority (CRDA). The CRDA funds are to “be used completely for tourism and advertising and marketing packages for the Metropolis of Atlantic Metropolis.”
The 1.25% sports activities betting tax equated to roughly $3.8 million final yr for the CRDA.
Senate Invoice 854 seeks to reallocate the 1.25% on to Atlantic Metropolis. If the laws passes and is signed by New Jersey Governor Phil Murphy (D), the cash can be used to decrease property taxes for metropolis residents. Sen. Troy Singleton (D-Moorestown) is the first sponsor.
SB854 narrowly handed the Senate Funds and Appropriations Committee at present by a 3-2 vote. It now strikes to the total Senate for added consideration.
One thing for the Folks
Atlantic Metropolis Mayor Marty Small Sr. (D) has been adamant since taking workplace within the fall of 2019 that his constituents deserve a bit of the sports activities betting pie. The politician, who received his first full four-year time period in November, factors out that not one of the varied supplemental add-on taxes friends incur at Atlantic Metropolis resorts profit Atlantic Metropolis residents.
Small highlighted the truth that the parking tax, meals and beverage tax, lodge occupancy tax, and sports activities betting tax all go in the direction of both the state or CRDA — not Atlantic Metropolis’s coffers.
When are we going to get our slice of the pie?” Small lately questioned.
Host cities outdoors of Atlantic Metropolis the place retail sports activities betting operates are afforded some monetary profit. East Rutherford, dwelling to the Meadowlands’ FanDuel Sportsbook, receives 0.75% of the sports activities betting revenue. Oceanport, dwelling of Monmouth Park’s Caesars Sportsbook, collects 0.5% of the sportsbook GGR.
Atlantic Metropolis Management
Atlantic Metropolis was positioned underneath state management in 2016 because it confronted chapter. Then-Gov. Chris Christie (R) and the Democratic-controlled Legislature voted to imagine fiscal management of the on line casino city as its funds spiraled into disarray due to the closings of 4 casinos between 2014 by means of that yr.
Final June, present Gov. Phil Murphy (D) prolonged the state takeover for an extra 4 years. The takeover offers Trenton most decision-making powers relating to Atlantic Metropolis’s governance.
New Jersey lawmakers added on the 1.25% sports activities betting tax by means of laws handed in 2018 and signed by Murphy. As a substitute of slicing Atlantic Metropolis into the 1.25% sports activities betting tax as a beneficiary, lawmakers opted to redirect the city’s share to the CRDA attributable to its remaining underneath state oversight.
