Republican State Sen. Joe Pennacchio has called for slot machine gambling to be allowed at horse racetracks in the New Jersey.
Pennacchio’s legislation, SCR14, proposes forming a consortium of Atlantic City’s casinos to operate the machines. The legislation proposes a 50 percent tax rate for the racinos. Atlantic City casinos pay an 8 percent rate, which Pennacchio believes is bad business for the state.
“We are leaving untapped money on the table,” Pennacchio wrote on the Senate Republicans’ official website. “The monies generated would be constitutionally dedicated with dollars going to Atlantic City infrastructure, the horse racing industry, the consortium and state taxpayers.”
According to data from 2021, New York’s seven racinos generated $2.2 billion in revenue, generating $932 million in tax receipts. In comparison, all Atlantic City casinos contributed $707 million in state and local taxes. Pennacchio said the Garden State should take advantage of growing demand and benefit from racino revenues.
“Why does New Jersey continue to sit on the sidelines and have New York take advantage of a lucrative market that we should also be engaged in? A racino at the Meadowlands alone would be a game changer for New Jersey taxpayers,” Pennacchio said.
Pennacchio says the legislation would result in further growth in the casino industry in Atlantic City. Tax receipts generated from slot machine gambling would be constitutionally dedicated, with dollars going towards Atlantic City infrastructure, the horse racing industry, the consortium and taxpayers.
