The Senator’s legislation, SCR14, would form a consortium of Atlantic City’s casinos to operate the machines. Unlike the current tax rate, where Atlantic City casinos pay 8% of gross tax receipts, the New Jersey racinos would generate 50% of the tax receipts which is keeping them in line with what New York receives from its racinos.
“We are leaving untapped money on the table,” said Pennacchio (R-Morris/Passaic). "The monies generated would be constitutionally dedicated with dollars going to Atlantic City infrastructure, the horse racing industry, the consortium, and state taxpayers.”
In 2021, New York’s seven racinos accounted for $2.2 billion in revenue. New York State taxpayers realized $932 million in tax receipts. The Yonkers racinos alone generated $614 million in tax revenues in the year 2022; compared to all Atlantic County casinos which contributed $707 million in state and local taxes.
Profits distribution allocated to the consortium would be based on a formula of the presence of each casino in Atlantic City. The larger their presence the greater their share of the profits. Pennacchio claims this would result in further growth in the casino industry in Atlantic City.
“Why does New Jersey continue to sit on the side lines and have New York take advantage of a lucrative market which we should also be engaged in? A racino at the Meadowlands alone would be a game changer for New Jersey taxpayers," concluded Pennacchio.
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