Atlantic City’s casino-related financial crisis has been posing danger after danger to Governor Christie’s political career. Residents and guests of what is known to be one of the most popular American gambling hubs certainly expect for the situation to be stabilized. Just a mere day ago, a plan for the revival of the city was introduced. It is important to note that its preparation had been ordered by the 55th Governor of the state of New Jersey. According to it, no taxes for non-gambling acquisitions should be collected. What is more, casinos should be asked to pay more reasonable and “predictable” ones.
Not long ago, the Governor assigned to a special commission the task to carry out research on the future of Atlantic City. Researchers announced their results and suggestions on November 13, but Christie has not commented on those yet.
First and foremost, the commission highly recommended that an emergency manager should be assigned to manage the finances of the city. He or she should be given “extraordinary supervisory powers”, in order to be able to fully take care of the situation. Yet another thing that was suggested was the formation of a public-private partnership, similar to that in New Brunswick, which would help the city.
Due measures need to be taken since four of all twelve casinos in Atlantic City closed and another one is expected to be shuttered by the end of the year.
Jon Hanson, Chair of the research committee, announced the results of their study. He stated that the high effective interest rates as well as the constantly and quickly decreasing tax base affected seriously citizens, businesses, and the gaming industry. The latter was claimed to be in an indisputable danger, for each time a casino was shut down, this led to a rise in tax and a drop in revenues for the operating ones.
The committee suggested that gaming venues needed to be allowed to make “alternative tax payments” for about seven to ten years, admitting that gambling-related revenues will most probably be quite small in the months and even the years to come. This plan turned out to be similar to that proposed by Stephen Sweeney, current Senate President of New Jersey and representative of the Democratic Party. He and the Republican Governor will have to collaborate, in order for the most appropriate measures to be taken.
It is important to note that casinos should have paid all their taxes, so as to be eligible for the new program for alternative tax payments. Revel and Trump Plaza, which were shuttered back in September, together with Taj Mahal, which was just announced to close doors on December 12, owe the total amount of $30 million.
The research committee also claimed that it might be a good idea for the Division of Gaming Enforcement and the Casino Control Commission to be joined together.
