While neighboring countries recorded huge tax revenue collections, Atlantic City seems to lag behind, making New Jersey to miss the top 10 spot.
Since 2015, the amount of tax revenue collected from Atlantic City is only $237 million. This tax is in spite of gaming investors promising to fetch real money online casino gambling sites.
The small revenue performance has made many from this Garden State say that something might be wrong somewhere.
One of the gaming investors in the area is Jeff Gural, the owner of Meadowlands Racetrack.
Gural said that although his bid to bring gambling activities to North Jersey failed in 2016, he believes that Atlantic City should do more than what the current report indicates.
“It is a shame that Atlantic City with all its gaming investments would not at least bring New Jersey somewhere closer to 10. Other states have done wonderfully well with many hitting over $400 million,” Gural argued.
Atlantic City gaming facilities currently pay 8% of their total revenue collection to Trenton as well an extra 1.25% which is an obligation pay to the community for various development projects.
Market observers and gaming stakeholders say that the amount gaming companies are required to pay meager compared to what other gaming investors pay in neighboring states.
In its recent report published this year on the performance of different states about 2016 gambling tax and collections, AGA concluded that New Jersey is the only state in the U.S after Nevada, which has a 6.75% tax requirement.
The report indicates that while the 2008/9 U.S. recession hard-hit Nevada, it is not the case with best casino in Atlantic City, which should be collection much higher tax revenue.
Although more than five gaming facilities have shut down in Atlantic City since 2014, that is not reason enough for the remaining casinos to record low tax revenue.
The Neighboring States Flourish
Chris Brown, one of the Assemblymen also shares the same sentiments with Gural. Brown’s version though is for the tax code to scrutinize with the aim of making necessary amendments.
“I firmly believe that while other states indicate better performance, casinos should be done to pay a fair share,” Brown said.
In aggregate, the casino industry injected industry injected over $8.85 billion to the U.S. economy in 2015. Here is a list of the top 10 states and their performance:
1. Pennsylvania- $1.37 billion
2. Nevada $881.5- million
3. New York State- $864.1 million
4. Indiana- $622.1 million
5. Louisiana- $591.2 million
6. Illinois- $500.6 million
7. Ohio- $484.6 million
8. Missouri- $436.9 million
9. Maryland- $415.9 million
10. Rhode Island State- $333.5 million