With a dire warning from Senate President Steve Sweeney that as many as four Atlantic City casinos could close, a bill modifying the “payment in lieu of taxes” (PILOT) law to provide tax relief to casinos cleared the Assembly Appropriations Committee on Monday and will be up for a vote by the full Assembly and the state Senate this coming Monday, December 20.
The bill proposes changes to PILOT that would reduce the amount expected from casinos by exempting sports betting and online casino revenue from the calculations.
An Assembly version of the bill, A5587, was amended to match verbiage from a version that passed a Senate budget committee on December 6, according to the Press of Atlantic City.
Under the bill, PILOT revenue from Atlantic City’s nine casinos would reportedly fall to $110 million in 2022, down from the $165 million that would have been paid without the exemption.
Some Support, Some Opposition
The response to the modification is mixed. Sweeney pushed the bill with a heavy warning that as many as four casinos could close in Atlantic City without the relief.
“We made some mistakes in the PILOT bill,” Sweeney said, as quoted by nj1015.com. “We created some big cliffs. If we don’t fix them, we run the risk of closing four casinos.”
Not everyone thinks the reductions are a good idea, though. Sue Altman, the executive director of the New Jersey Working Families Alliance, told newstimes.com: “New Jersey’s tendency to give the casino industry whatever it wants is problematic. We need to stop doing that. We are sick and tired of watching big, powerful corporations like casinos pay less than their fair share in taxes.”
Atlantic City Mayor Marty Small Sr. supports the bill, despite data showing it would result in nearly $5 million less for Atlantic County. In a report by the Press of Atlantic City, Small noted that, while there would be a reduction in revenue, that loss is offset by new pools of money the city can use for infrastructure.
Bob McDevitt, president of Local 54 of the Unite Here union, which represents casino workers, pointed to huge job losses if relief isn’t approved.
“Our members and their families have suffered terribly during the pandemic and resulting meltdown in the economy,” McDevitt told The Associated Press. “As we exit the pandemic and begin the recovery process, it is essential that Atlantic City’s hotel and gaming properties remain stable“.
“The choices in my mind are clear: do nothing and risk the loss of thousands of jobs, or immediately pass this legislation and provide a foundation for stability and growth in the future.”
The bill needs approval by the full Senate and Assembly before it can go to Democratic Gov. Phil Murphy for his signature.
While support for the bill is far from unanimous, there appears to be strong support within the legislative branch as lawmakers voice concern about possible job losses from casino closures. Still, some opponents to the bill have complained that the vote next week will take place during the lame duck session.
