In a groundbreaking fiscal year, Atlantic City’s thriving casino industry has made its mark, contributing over $504 million in taxes and fees to state programs for the 2022-2023 fiscal year. This outstanding amount showcases the teamwork between traditional casinos and online casinos in New Jersey as they join forces to help people in need across the state.
The Casino Revenue Fund
Established in 1976, the Casino Revenue Fund was envisioned as a means for casinos to give back to the community. Its mission was to provide financial support for reducing property taxes, rent, utilities, and more for eligible senior citizens and disabled residents in New Jersey. Over the years, this fund’s reach has expanded to include health and transportation services.
Where Does the Money Go?
A significant chunk of the $504 million earned in the past fiscal year was set aside for the Community Care Program Individual Support. This program aims to lend a helping hand to folks by providing various services like assisting with household tasks, offering training, and assisting in the recovery of residents living in state-licensed facilities.
Furthermore, the NJ Transit industry has been a big winner, getting $38 million from this fund. Their program, designed for senior citizens and disabled residents, takes care of essential transportation needs. It ensures seniors and those with disabilities can access crucial trips like medical appointments and grocery shopping, making their lives easier.
The Ups and Downs of Contributions
The journey to achieve this impressive $504 million contribution has been quite a story. Just a few years ago, Atlantic City faced tough times as several casinos like the Atlantic Club, Showboat, Revel, Trump Taj Mahal, and Trump Plaza shut down, causing a drop in earnings.
However, the industry’s determination, online gaming, and legalized sports betting injected new life into the city. As per online-casinos-nj.com, online casino sites have played a vital role in boosting the funds ever since the state legalized it in 2013. Online gaming in the state carries a higher tax rate of 15%, surpassing the 8% tax rate for physical casino games.
This difference significantly fueled the fund’s growth, especially after the challenges the COVID-19 pandemic caused. Most people played at online casinos during the period because of the restrictions in place that limited movement.
In 2023, Atlantic City casinos continued their impressive success despite a Q1 decrease in profits, and in August, they raked in a whopping $531 million in earnings, a 13% rise from the year before. This includes earnings from physical casinos, online gambling in New Jersey, and sports betting.
Hard Rock led the pack, pulling in over $59 million, a solid 10% jump in land-based earnings. Golden Nugget wasn’t far behind, boasting $54 million and a remarkable 21% surge in Atlantic City operations. Meanwhile, Borgata Casino secured the top spot with nearly $118 million in revenue despite a slight 2.3% dip from the previous year.
Looking Ahead to 2023-2024
In a city known for its bright lights and endless possibilities, Atlantic City’s casinos are more than just entertainment hubs; they are beacons of hope, supporting those who need it most. As the new fiscal year unfolds, we can anticipate even greater success and continued growth, reaffirming Atlantic City’s position as a vital economic engine for New Jersey.
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