Marty Small, Atlantic City’s recently installed mayor, wants the city to get a direct cut of the states’ betting taxes.
The city had played a major role in the success of sports-betting in New Jersey, he is insisting, and should be rewarded. It deserved to have more control over income derived from the betting tax, he says.
Small, who came into office in early October, was speaking at a meeting this week of the City’s Taxpayers’ Association. He said one of his main goals was to ensure Atlantic City profited from the contribution its Casinos are making.
“In 14 months, New Jersey has overtaken Las Vegas as the number one state for sports betting. A lot of it this success has to do with Atlantic City, but we don’t get a penny of it, which is unacceptable,” he said.
“People come into Atlantic City and they bet on sports. One day they will bet on college football, and then the next night it will be the NFL. We love them, but guess what; they stay in a hotel for three days and we don’t get a penny (in tax).”
The state controls all sports-betting taxes
Presently the Casino Reinvestment Development Authority (CRDA) collects 1.25% of the State’s gross betting tax revenue. It is used to bolster tourism and the marketing of Atlantic City, but is exclusively controlled by the state.
Small said he wants to see Atlantic City, host of eight sports-betting facilities, get the additional sports betting tax directly. Rather than for marketing and promotion, he wants it used exclusively for property tax relief.
“My first and foremost goal, as it was, as council president and will continue to be as mayor, is more rates for the city and more revenue streams to offset our taxes,” he said.
New Jersey led the battle in the Supreme Court that ended sports betting prohibition in May 2018. US States could now decide for themselves if they wished to allow legal sports betting.
It was New Jersey again that was first out of its blocks in joining US sports-betting Mecca Nevada. The Silver State had been excluded from the PASPA law that had banned sports betting throughout the USA since the 1990s. And yes, it had prospered greatly as a result.
And then New Jersey arrived
And then New Jersey arrived and shook things up. In June, 2019, its betting handle and revenue surpassed Nevada’s for the first time.
It did so once again before the football season arrived and the Silver State bounced back. September figures saw it bring in handle of 546.4m and revenue of $39 to the Garden State’s $445.6 and $37.9. It is expected, however, to only give Nevada a brief respite.
New Jersey gets its gross sports betting tax from a two-tier system. Its casinos and race tracks pay 8% for all in-person, land-based wagers.
Meanwhile its online sportsbooks, which have been responsible for more than 80% of its handle, pay 13%. The CRDA’s 1.25% tax comes out of the combined total.
