Zona de Azar USA – Atlantic City Casinos Up 52% But in-Casino Spend a Concern

USA.- December 20th 2021 www.zonadeazar.com Despite rumours that four of Atlantic City’s nine casinos, are in financial trouble, revenues on the East Coast are actually up 52 per cent from a year ago with revenues including those from the State’s three racetracks coming in at $440m.

So far for the first 11 months of the year, revenues have come in at $4.3bn, up by almost 70 per cent.

Borgata led the way with $90m, up more than 44 per cent from a year ago, Hard Rock was next with $43m, an increase of 25 per cent whilst Ocean took in almost $31m, an increase of 30 per cent. Tropicana was next with $30m, followed by Harrah’s, Caesars, Resorts, Golden Nugget and finally Bally’s. However, all but two of the nine casinos have experienced falls in the level of in-person spend compared to 2019. Not counting Hard Rock and Ocean, the other seven casinos were down 22 per cent in the amount spent by on-premises gamblers.

A vote is pending by the Senate and Assembly on potentially lowering property taxes to Atlantic City with amendments to the PILOT bill. The plan could save casinos $55m on their tax bill.

Joe Lupo, Head of the Casino Association of New Jersey, said: “COVID-19 continues to have an adverse impact on the industry. As we rebuild and recover from the COVID-19 crisis, we must remain focused on preserving the stability of Atlantic City’s economy. The proposed S4007 amendments to the PILOT program are essential to Atlantic City and Atlantic County’s stabilization, which will protect thousands of jobs, investment dollars, as well as stimulate diversification, investment and growth. There has been a lot of misinformation about the PILOT program in recent weeks, and the Atlantic City casino industry is grateful that Atlantic City Mayor Marty Small Sr. and former Judge Steven Perskie have weighed in with their support for S4007 amendments and helped clarify that the new PILOT bill will benefit Atlantic City’s taxpayers and residents.

“The proposed S4007 amendments are not a tax break for the Atlantic City casino industry. Under the amendments, Atlantic City will receive even more funding from the casino properties in 2022 than it did in 2021. Further, Atlantic County will receive the same amount of tax revenue in 2022 under the proposed amendments as it received in 2021. Finally, the city will continue to receive far more under the PILOT program than under traditional real estate taxation. To break it down,” he added.

In 2021, Atlantic City received approximately $155m under the PILOT program with about $17.5m of that going to Atlantic County. With the proposed amendments, the city will receive approximately $165m in PILOT payments in 2022 with about $17.5m of that going to Atlantic County.

Additionally, PILOT payments will continue to increase annually by at least two per cent over the next five years, with the city likely receiving up to $180m in PILOT payments by 2026, if internet gaming revenue continues to increase.

Mr. Luppo added: “If the PILOT were eliminated, and we reverted to traditional real estate taxation, the city would only receive about $116m from the casinos, with $15.5m of that going to Atlantic County. We urge legislators to pass the amended PILOT legislation so we can get back to work in revitalizing our historic seaside destination resort.”

The Casino Association of New Jersey (CANJ) also announced that Atlantic City casinos are ready to ring in the New Year with world-class entertainment and events. Each property will be offering guests exciting parties, fine dining, and top-notch entertainment options to ring in the New Year.

“Our industry has worked hard this year to rebuild and recover, and we couldn’t be more pleased to close out the year by delivering expanded amenities and diverse offerings for regional customers to enjoy,” said Mr. Lupo added. “We are optimistic that 2022 will continue on the path of positive growth and economic development for Atlantic City and Atlantic County residents.”

Edited by: @MaiaDigital www.zonadeazar.com