Atlantic City’s Casino Revenue Fund Sets New Record

Article by : Erik Gibbs Oct 4, 2023

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Atlantic City’s casino industry contributed over $504 million in taxes and fees during the last fiscal year. This significant revenue helps fund various programs across the state, particularly benefiting vulnerable residents.

The funding for these programs is generated through taxes imposed on different aspects of the casino gaming industry, including total gaming revenue and progressive slots.

The Casino Revenue Fund was established in 1976 to utilize state revenues from casino gambling to reduce property taxes, rental costs, utility charges and more for eligible senior citizens and disabled residents.

The fund’s authorized use was later expanded to include additional health and transportation services for these residents. For instance, more than $436.6 million from the fund was allocated to the Community Care Program Individual Support in the 2023-24 state budget.

This program offers services like household chores assistance and training to residents of state-licensed residential facilities, aiding them with self-care and habilitation-related tasks.

NJ Transit also received over $38.9 million from the fund for its Senior Citizens and Disabled Residents Transportation Assistance Program. It offers essential transportation services to senior citizens and individuals with disabilities for non-emergency medical trips, shopping and nutrition.

Jim Smith, spokesperson for NJ Transit, emphasized the significance of the Casino Revenue Fund in supporting the operation of the Senior Citizen and Disabled Resident Transportation Assistance Program.

Over the past decade, the rise of casino gaming in the region has significantly boosted the fund’s balance. In 2013, casino tax revenue fell to $214.6 million as the Atlantic City casino market faced challenges.

The economic downturn of that period led to the closure of four casinos in 2014 and another in 2016. In 2015, the fund generated its lowest revenue since 1987, amounting to $205.9 million, due to these closures.

However, with the reopening of two casinos, the legalization of sports betting and the continuous growth of online gaming, the fund’s revenue has steadily increased.

Jane Bokunewicz, who serves as the director of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism at Stockton University, provided insights into the significant impact of internet gaming on tax revenue for the state of New Jersey’s Casino Revenue Fund and the CRDA.

Bokunewicz pointed out that the increased volume of internet gaming activity, combined with the higher tax rate of 15% compared to 8% for slots and table revenue, has resulted in substantial growth in total gaming taxes.

These taxes were collected by the state of New Jersey, especially after the COVID-19 pandemic.

Bokunewicz stressed the importance of continued state support for the casino industry’s internet gaming initiatives to ensure the sustainability of this vital revenue source, which plays a crucial role in funding essential programs and supporting the marketing and redevelopment of the Tourism District.

Throughout the years, local officials have expressed concerns about the amount of tax revenue leaving Atlantic City and South Jersey to fund programs and projects elsewhere in the state.

Mayor Marty Small Sr.’s administration is actively working to identify additional revenue sources for Atlantic City residents.

Mayor Small emphasized that while the city does not directly receive funds from casino taxes, it benefits from a $2 fee per occupied casino hotel room.

Small mentioned that he is actively collaborating with the front office to explore additional revenue sources, mainly since they could not secure funds from the CRDA for sports gaming.

The mayor reaffirmed the ongoing commitment of his administration to enhance revenue for the taxpayers of Atlantic City. He wanted a larger share of casino tax revenue to support the city.