NJ Casinos May Get Loans and Restricted Tax Breaks

NJ Casinos May Get Loans and Restricted Tax Breaks

Nine casinos in the Atlantic City could benefit because of new bills introduced in the New Jersey Assembly this week. The bills propose loans and restricted tax breaks to gaming properties.

Pandemic-linked relief for casinos

The gaming properties of the state were shut down on March 16, after which the casinos suffered considerable losses. Before this, the state was leading the country in terms of casino revenue growth amongst newly legalized markets and reported 21 continuous months of gains in gross gaming revenue (GGR). Workers at these properties have also been hit hard as they have been furloughed for over almost two months. Atlantic City politicians, union officials, and industry analysts are now worried about these businesses and jobs.

NJ Casinos May Get Loans and Restricted Tax Breaks

Two bills- Assembly Bill 4031 and 4032 now seek to provide some relief. Of these, Assembly Bill 4031 proposes interest-free loans for payment of property taxes to the Atlantic City. The loans will be funded by the Property Tax Relief Fund of the state, will provide tax breaks to senior citizens and lower-income households.

Assembly Bill 4032 proposes a tax break for gaming properties. It suggests that the breaks could be utilized to “rehire and employ former employees”. The money could also be used for marketing their services. The bills were sponsored by Democratic lawmakers, Senate President Stephen Sweeney, and Assembly Majority Leader Louis Greenwald.

Legislators question the bills

None of the bills enjoy equivocal support from the legislators. Northfield Democrat Vince Mazzeo and Buena Vista Township Democrat John Armato are concerned that the bills would take funding away from the needy and seniors. Mazzeo said that the casino industry needs help but the state cannot utilize the Property Tax Relief Fund. This fund is utilized for the Homestead Rebate program.

On the other hand, Steve Callender, the president of the Casino Association of New Jersey, suggests that he is looking for some relief from the legislators soon. He is also the senior vice president of eastern regional operations for Eldorado Resorts, the parent company of Tropicana Atlantic City. Callender added that a relief bill is necessary for the industry and its employees to move on after the pandemic is over. He added that COVID-19 is the biggest health risk of their life which has caused great loss to life and their state and local economy.

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.