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When many think of Atlantic City, they think of casinos, slot machines and quality entertainment. When I think of Atlantic City, I think of the seniors and disabled people I have met throughout the state.
Why? Taxes levied on casinos directly fund programs for seniors and disabled people including the Pharmaceutical Assistance for Aged and Disabled (PAAD) and the Disabled Transportation Assistance Program. This keeps a large financial responsibility off of the backs of taxpayers, who already pay too much.
However, seniors and the disabled are not the only people who benefit from Atlantic City’s gambling attractions. Just last September, $33.5 million was generated from hotel taxes and fees, all of which have helped to support state operated programs that strengthen our communities. YMCAs, museums, daycare centers, and New Jersey’s Performing Art Center (NJPAC) are all beneficiaries of these fees. Here in District 34, housing developments at Grove Hill Estates in Clifton and North Oraton Homes in East Orange would not have been possible without casino revenues.
Now more than ever, revenues from casinos have a substantial role in New Jersey’s state budget. If it wasn’t for casino funding, state programs that offer social, medical, and educational services to strengthen our communities would never exist, or at least not without raising taxes. For many state public agencies, it has become imperative to preserve the value of a city facing declining casino revenues and fierce competition.
Atlantic City Casino revenues have been on the decline since 2004. Over the past year alone, revenues have dropped by 10.6 percent, giving the industry a bleak outlook. While casinos are looking to make more revenue by developing outside of New Jersey, the counter effect is that they are creating direct competition with themselves, and in doing so, are making one of New Jersey’s strongest attractions seem less attractive.
In recent years, the development of online gambling, the smoking ban, and the loss of the Miss America Pageant have had a negative impact on Atlantic City. Now added to those negative drawbacks, is the accessibility and convenience to pick and choose casinos and “racinos,” racetracks with slot machines, from nearby locations in New York, Pennsylvania, Connecticut, and Delaware.
For example, New York’s racetracks in Saragota, Monticello, and Yonkers have all converted into racinos, and have seen their revenues increase. For those looking to gamble in New York City, a short train ride to Yonker’s Raceway, is much more convenient than sitting in traffic trying to get to Atlantic City. In just eleven months, New York’s racetracks generated $639.5 million, half of which will support New York’s funding for higher education.
For decades, Atlantic City and its casinos have had a tremendous impact on tourism, the state budget, and both programs and services available for citizens. As the challenges and competition increase for casinos within the city, so must the need for understanding how vital this revenue is for the state of New Jersey.
The fact of the matter is that without casino revenues, taxes would be even higher in New Jersey, which is why we must work to keep casinos here.
What do you think? Let me know on our contact page.
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