The New Jersey state Assembly and Senate went late into Monday night to pass bill S4007 (A5587), which is an amended Atlantic City PILOT (Payment in Lieu of Taxes) program that will save the city’s nine gaming casinos and resorts close to $55 million next year.
The New Jersey gaming bill was signed into law on Tuesday by Gov. Phil Murphy..
In addition to the retail casinos in Atlantic City, many of the operators offer New Jersey mobile casinos that are available statewide.
The Senate voted 21-15 to pass the bill earlier in the day and several hours later, the Assembly approved by a 46-19-2 vote.
Casino Group Approves of Bill
One industry group in the state praised the governor and legislature’s passage of the tax relief bill.
“The Casino Association of New Jersey (CANJ) thanks Governor Murphy for quickly executing the amended PILOT program, which will protect thousands of well-paying jobs and provide certainty and stability to Atlantic City and Atlantic County over the next five years," a statement said. "Atlantic City and Atlantic County will receive more tax revenue moving forward year over year from the casino industry, and the funding provided by the amended PILOT program will help improve Atlantic City’s infrastructure and create a safer community for visitors and residents. The casino industry is committed to growing and strengthening Atlantic City’s economy as we continue to revitalize our historic seaside destination resort.”
How the Tax Relief Program Works
The amended program reduces the amount of property taxes the casinos have to pay in 2022. The savings come by removing gross gaming revenue (GGR) derived from iGaming and online sports betting from the calculation used to determine the casinos’ payment-in-lieu-of-tax property bill.
The state legislature also passed S4157, increasing the nightly hotel room tax on casinos by $3. The additional funds, also pending being signed into law, will be used for Atlantic City public safety services.
Both bills were sponsored and supported by Stephen Sweeney, the outgoing Democratic State Senate President.
NJ Sports Betting Thrives
Until New York launches its mobile sports betting program, New Jersey continues to have the most money wagered monthly in the U.S. market. In November, for the third straight month, New Jersey topped $1 billion in total sports betting handle.
It holds the national record of $1.3 billion bet in a single month, in October. It had $1.01 billion in September and $1.26 billion in November, just shy of the record it had set the previous month. Nevada is the only other state to have a $1 billion month from sports betting.
New Jersey has a record-setting month from a sports betting revenue standpoint in November. Sportsbooks generated $114.8 million in sports betting revenue, making New Jersey the first state with more than $100 million in operator revenue in a single month.
Will New Jersey continue to be the No. 1 sports betting state? We’ll know more in early 2022 when New York goes live with its mobile market.