OPINION: Casinos pled poverty to get a huge tax break; Atlantic City is paying the price

OPINION: Casinos pled poverty to get a huge tax break; Atlantic City is paying the price

Article brief provided by ProPublica and The Press of Atlantic City
  • Alison Burdo, ProPublica and The Press of Atlantic City
June 2, 2022 10:23 PM
  • Alison Burdo, ProPublica and The Press of Atlantic City

Last fall, amid the second year of the pandemic, Atlantic City’s casino executives painted a dire picture for New Jersey’s Legislature. Their brick-and-mortar properties were struggling. And despite thriving online gaming businesses, casinos said they were losing most of that revenue to companies that operate the internet gambling sites.

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If policymakers didn’t cut casinos’ tax burdens, industry leaders forecast “grave danger” ahead. The state Senate president went further, warning that four of the city’s nine casinos could close.

The pitch worked. Fearing closures and layoffs, legislators moved quickly to deliver tax relief, few questions asked. “All good by me,” said Gov. Phil Murphy, who signed it on Dec. 21, one day after both chambers passed it.