In the eastern American state of New Jersey and legislators reportedly approved a bill earlier this week that would look to help the nine casinos located in Atlantic City to recover from the devastating financial impacts of the coronavirus pandemic.
According to a Thursday report from the Associated Press news service, the legislation would exempt casinos in the seaside resort community from having to pay tax on their first $90 million in promotional credits including free-play vouchers for the next two years. The proposition, which must now be endorsed by New Jersey Governor Phil Murphy, would also purportedly excuse these venues from some of the state’s 8% gambling tax should their in-person gaming receipt levels fall below those recorded during the comparable pre-pandemic month beginning from March of 2019.
Coronavirus consequences:
Gambling-friendly properties in Atlantic City, which include the Resorts Casino Hotel and Borgata Hotel Casino and Spa venues, reportedly saw their aggregated gross operating profit for 2020 decrease by 80% year-on-year owing to the coronavirus pandemic. This situation has purportedly not been helped by the fact that these enterprises have only recently been allowed to return to operating at full capacity following last year’s complete 108-day shutdown.
Candid contention:
The Associated Press reported that the text of the legislation asserts that the coronavirus pandemic had caused ‘a catastrophic and unprecedented economic contraction’ that upset the economy of Atlantic City and is destined to ‘have significant negative and long-lasting impacts on casino employees and Atlantic County residents’. The bill purportedly furthermore contends that it is now necessary for ‘the state to take action to ensure the continued viability of the Atlantic City region’s financial condition’ while simultaneously assisting the county’s population ‘in dealing with the financial and economic problems resulting from the coronavirus pandemic.’
Missing measures:
Although the proposed legislation is likely to be welcomed by the New Jersey casinos, which additionally encompass the Bally’s Atlantic City and Ocean Casino Resort properties, it reportedly did not include several associated respites that had featured in its first instalment late last year. These purportedly embraced waivers on a range of taxes and fees such as the per-machine duty for slots.
Supplementary reckoning:
The Associated Press reported that members of the New Jersey State Senate and New Jersey General Assembly moreover approved a measure Thursday that would ask voters to approve a constitutional amendment legalizing sports wagering on teams and events based in ‘The Garden State.’ The legislators are likewise soon purportedly due to consider a bill that would allow religious and charitable groups to remotely run bingo and raffle games alongside a similar instrument to permit such organizations to keep and use any resultant proceeds.