The Greater Atlantic City Chamber of Commerce provided the Senate Budget and Appropriations Committee with written comments opposing Senate Bill 3064. In its current form, this bill would double the gross revenue tax on internet gaming from 15% to 30%. The comments that were sent on behalf of the Board of Directors focused on how the proposed hike would adversely impact Atlantic City’s casino industry and put it at a significant competitive disadvantage to New York State, which was looking to reduce its gross revenue tax to 25%. Additionally, the Greater AC Chamber urged the Legislature to direct its attention to the reduction of illegal gaming sites, where as many as 42% of New Jersey online gamblers were wagering, by considering new efforts to direct law enforcement to crack down on these offshore companies while providing social awareness campaigns. The Chamber concluded its remarks with a red flag regarding the direct impact the doubling tax would have on the health of casino properties who are currently using internet gaming revenue to “balance their books” amidst fierce regional competition.
Unlike other parts of the state, the economic reality of the South Shore region is heavily reliant on the casino industry, which remains the largest employer, supporting approximately 23,000 individuals. Atlantic City’s casinos have strategically utilized internet gaming revenue to “balance their books” amidst fierce regional competition. Increasing this tax, especially without enforcement efforts to eliminate unlicensed competitors, will directly threaten their financial stability. Casinos that rely on internet gaming revenue may close, impacting employment. We’ve seen the consequences firsthand: in 2009, when casinos faced similar pressures, it resulted in several closings, leaving thousands of residents without viable employment alternatives. Atlantic County experienced the highest foreclosure rate in the nation. We cannot allow our region to suffer this economic instability again.
