Atlantic City casino taxes up for third consecutive year

A new report shows that taxes and fees paid by Atlantic City casinos have risen for a third consecutive year.

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A new report shows that Atlantic City casino taxes have risen for a third consecutive year.

The document, published by New Jersey's Division of Gaming Enforcement, shows that taxes paid by NJ casinos have bloomed to almost $219 million.

Compared to taxes reported in the 2017 fiscal year, the increase is marginal at only 0.16%. But compared to 2016's results, the difference is more noticeable: a 4.5% increase.

It is believed that the rising taxes are due to increased internet gaming within the state. Speaking to Press of Atlantic City, Rummy Pandit an executive director at Stockton University said:

“In 2015, taxes on internet gaming revenue represented 11 percent of total gaming revenue taxes and have increased incrementally year-over-year,” 

Pandit also noted that for the six months ending June 30th, 2018, internet gaming revenue taxes accounted for 20% of total gaming revenue taxes.

NJ casinos pay higher taxes than other states. Nevada, for example, charges their casinos 6.75% on gross gaming wins. Atlantic City casinos pay 8% in taxes. Online gambling in NJ is taxed even more severely at 15%. However, these taxes are nothing compared to the figures proposed for PA online casinos - which could be as high as 54%.

The higher tax rate for NJ online casinos has been praised by some analysts. The opening of the Ocean Resorts Online Casino and Hard Rock Online Casino NJ is also expected to have an impact on tax revenue.

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