ATLANTIC CITY, NJ (`) — New Jersey lawmakers are considering a measure to exempt Atlantic City from taxes generated from the state’s thriving sports betting market.
A state Senate committee introduced legislation Thursday that would divert a 1.25% tax on sports betting, which currently goes to the Casino Reinvestment Development Authority to boost Atlantic City.
The bill would instead give the money to the city to use for local property tax breaks.
The amount at stake is about $2 million a year, according to the bill’s sponsor, Senator Troy Singleton, a Democrat from southern New Jersey.
Mayor Marty Small has long complained that his city does not receive a variety of state-imposed taxes on aspects of the casino and tourism industries, including parking, luxury and hotel room taxes. Sports betting is another area where the state taxes taxes but the city receives nothing, the mayor said.
“Anybody in this room, and there’s about 25 of us, can go to Atlantic City,” Small said. “Once we park our car, that’s the parking fee. We go to the bar and buy a drink, that’s a luxury tax. We go to our room, this is the room tax. We’re going on a late night show, that’s luxury tax again. Then we make a sports bet; this is sports betting tax.
“Guess what the residents of Atlantic City got out of our stay?” he asked. “Zero. When do we get our piece of the pie?”
State Senator Vincent Polistina, a Republican representing the Atlantic City area, said the city will get ample tax breaks as part of a revised payment in lieu of the tax bill approved by the legislature in December.
He opposed the bill, saying any changes to funds going to the casino reinvestment agency must come after a “global discussion” of Atlantic City’s current situation and future, particularly with other New York City casinos coming soon are to be approved.
New Jersey led the nation in terms of the size of its sports betting market since shortly after the first legal bets were placed in 2018. Most recently, it lost its top spot nationally in January when New York State allowed mobile sports betting and zoomed past New Jersey.
Singleton said state lawmakers are constantly talking about giving money back to the people.
“It’s literally giving taxpayers money back,” he said. “If we’re serious about affordability, here’s an opportunity.”
The bill still requires full Senate and Assembly approval.
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