AC revenues are threatening social funds
As casino revenues in Atlantic City decline, the amount designated for social funds is lowering as well.
US.- New Jersey’s casino hub, Atlantic City, is assessing further restructuring in its gambling laws in order to end the economic crisis. As casino revenues in the city are slowing down, State’s social organisations are perceiving less money to help residents in need. State legislators are debating potential resolutions to boost the industry.
Earlier this week, the New Jersey Senator Ray Lesniak introduced a bill to accelerate the opening of former Revel casino, now known as TEN. Its owner, Glenn Straub, is lobbying to avoid the payment of a gambling license to legalise casino activities in the upcoming venue under the explanation that the gaming salon would be operated by a third party.
Sen. Lesniak’s project would back Straub’s attempts by allowing owners of regional hotels, such as TEN, “to lease portion to casino operator under certain circumstances.” The Senator also stated: “It makes no sense to have a landlord go through the same lengthy review as a casino operator and stands in the way of opening and creating business activity and employment.”
State’s authorities are seeking further inversions in order to relive the city’s economic situation, which went through a deep decline over the past years, with the closure of 5 casinos and the loss in the general revenues. Recently, the New Jersey Division of Gaming Enforcement admited that the drop of revenues is jeopardising the State’s financial of social funds.
“They continue to be funded, but at a much lower level, and that affects, ultimately, the ability to deliver the service at that high level that we enjoyed for a while,” explained Senator Jim Whelan, who serves on the Casino Revenue Fund Advisory Commission. “In some cases it’s an inconvenience; in some cases, it’s just really a total loss, where they’re just not able to maybe get to the nutrition site on a daily basis the way they were previously.”