Casino taxes rise in Atlantic City
The taxes and fees increased for the third consecutive reporting period in Atlantic City.
US.- According to a recent report from the New Jersey Division of Gaming Enforcement (DGE), the casino industry in Atlantic City paid approximately US$219 million in taxes and fees during the 2018 fiscal year, ended June 30, 2018.
The results released by the DGE show that taxes and fees were up for the third consecutive reporting period, driven by a rise in internet gaming activity. The numbers show taxes paid on total gaming and progressive slots, and fees paid on hotel rooms and parking spaces.
Rummy Pandit, executive director of the Lloyd D. Levenson Institute of Gaming, Hospitality & Tourism at Stockton University, said that despite the fact that gross revenue tax has been consistent over the past three calendar years, the growth seen in the total gaming revenue tax has “therefore, come primarily from increases in the internet gross revenue tax.”
“In 2015, taxes on internet gaming revenue represented 11 percent of total gaming revenue taxes and have increased incrementally year-over-year. For the six months ended June 30, 2018, internet gaming revenue taxes represented 20 percent of total gaming revenue taxes,” said Pandit, as Press of Atlantic City reported.
Moreover, local gaming analyst Anthony Marino said that online gaming revenue is one of the reasons of the increase: “Online gaming creates more tax revenue.” He said that the state was smart to tax internet gaming at a higher rate when compared to slot and table games while also keeping it below what other gaming markets have.
