Atlantic City Mayor Wants Local Government To Get A Piece Of Sports Betting RevenueWhile The City Receives A Cut Of Table Game Gambling, Tax Revenue From Sports Betting Heads To The State Government |
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Atlantic City’s new mayor is not thrilled that tax revenue from sports betting generated in the city’s casinos is not directly going to Atlantic City.
Mayor Marty Small Sr. took over the position last month after former mayor Frank Gilliam resigned following a guilty plea to embezzling $87,000 from a youth basketball club he cofounded.
He told attendees of a recent meeting of the city’s Taxpayer’s Association that he thinks that at least some of the money taxed from sports betting in Atlantic City casinos should be allocated to the city government. Currently, more than $36 million in tax revenue from sports betting has been collected in New Jersey and it goes directly to the state government.
“In 14 months, New Jersey has overtaken Las Vegas as the No. 1 sports betting destination, and a lot of it has to do with the success of Atlantic City and online,” said Small. “But we don’t get one penny. … That’s unacceptable.”
Small is somewhat correct in his assertion about the Garden State’s lucrative sports betting market. While it has overtaken Nevada on multiple occasions for total sports betting handle, New Jersey’s thriving market is based on the success of its mobile and online betting platforms and not from tourists at Atlantic City’s brick-and-mortar sportsbooks.
Last month, New Jersey released figures for gaming revenue in September. Those numbers revealed a record-setting $445.6 million sports betting handle. It was the biggest handle in state history. Of the $445.6 million, $374.2 million of that came from online operators.
The state launched sports betting in June of 2018. In its first year of operation, operators accepted $3.2 billion in wagers on sporting events with most of it coming through online action.
Despite the disparity between the two platforms, most online platforms are run by casino operators that have properties in Atlantic City. If Small has his way, he would use some of the revenue to help offset costs city residents face on their property taxes.
“My first, and foremost goal, as it was as council president and will continue to be as mayor, is more rateables for the city and more revenue streams to offset our taxes,” said Small.
According to a report from the Press of Atlantic City, local municipalities that house racetracks get a piece of the tax revenue generated from those businesses. Atlantic City does not currently receive any tax revenue from sports betting at its casinos, but does get a cut of the revenue from all other forms of gambling.
In neighboring New York, sports betting revenue is taxed at 10 percent and while most heads to the state government, a portion of it is sent back to the host counties.
Michael Pollock, managing director of non-paristan consulting agency Spectrum Gaming Group, told the Press of Atlantic City that the state government has never been keen on sending more money to the local government of Atlantic City.
“There has never been a great deal of confidence in the municipal government of Atlantic City to effectively manage its finances,” said Pollock.
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