New Jersey Fights to Preserve Tax Breaks for Casinos Amidst Economic Concerns in Atlantic City

The Garden State is requesting a court order to temporarily halt a judgment that invalidated a substantial tax incentive for gambling establishments. New Jersey claims that if the decision isn’t suspended during their appeal, Atlantic City’s economic stability will be severely jeopardized, and all the projected benefits of the tax break will vanish.

A magistrate will deliberate on the state’s petition on October 7th. He previously determined that the tax incentives, enacted in 2021, were implemented in a manner that breached the state’s constitution. These incentives saved casinos significant sums by excluding online and sports wagering revenue from their total gambling income, which forms the basis of their tax calculations.

Naturally, not all parties are pleased with the state’s attempt to preserve these tax advantages. One organization, the Liberty and Prosperity Association, contended that the state hasn’t demonstrated how granting casinos preferential treatment actually benefits the overall economic well-being of Atlantic City.

Christopher Glaum, the director of the gaming regulation department, emphasized that if the amendment is overturned, the prior rules would be reinstated. This situation could possibly result in a decrease in reinvestment within casino resort properties, mirroring the period between 2009 and 2017. Such a decline would carry substantial economic and societal consequences for Atlantic City and the entire state.