New Jersey state senators consider tax break for Atlantic City casinos

Last week, two New Jersey state senators introduced a plan to give tax breaks to Atlantic City's eight surviving casinos in an attempt to make up lost revenue for the city. reported that State Senate president Stephen Sweeney (D., Gloucester) and Sen. James Whelan (D., Atlantic) introduced the legislature, which will allow the casinos to pay $150 million in place of taxes for two years. The plan will help give the city a predictable revenue stream without casino tax appeals that take place each year.

"This plan will help stop the bleeding," Whelan told

Virtual Event

Hotel Optimization Part 3 | January 27, 2021

With 2020 behind us and widespread vaccine distribution on the horizon, the second half of the new year is looking up, but for Q1 (and most likely well into Q2) we’re very much still in the thick of what has undeniably been the lowest point of the pandemic. What can you be doing now to power through and set yourself up for a prosperous 2021 and beyond? Join us at Part 3 of Hotel Optimization – A Virtual Event on January 27 from 10am – 1:05pm ET for expert panels focused on getting you back to profitability.

"Atlantic City needs this type of stabilization, which is critical to maintain the thousands of jobs and investment dollars in the market and enable further diversification to stimulate growth," Kevin Ortzman, president of the Casino Association of New Jersey, told the Miami Herald.

If the plan goes through, the casinos would owe $120 million per year after two years, as long as Atlantic City's annual gambling revenue stays between $2.2 billion and $2.6 billion. If it falls between $1.8 billion and just under $2.2 billion, the payment would be $110 million. If revenue drops between $1.4 billion and just under $1.8 billion, the payment would be $90 million, and if it falls below $1.4 billion, the annual payment would be $75 million.

According to the Press of Atlantic City, passing these measures will be necessary to keep the ailing Trump Taj Mahal open, which closed one of its hotel towers last weel. Additionally, the casino proposed to close the entire property by Dec. 12, jeapordizing the jobs of the hotel's 3,000 employees. 

Casino revenue in Atlantic City dropped to half its 2006 peak of $5.2 billion as a result of increased competition as casinos operations spread to nearby states.