It's time to dissolve the casino PILOT bill, not make changes
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It is time to dissolve the casino PILOT, not make it worse. The Casino PILOT bill is a form of corporate welfare. Casino gambling is authorized in our state constitution only in Atlantic City for the express purpose of revitalizing our local economy.
Online gambling needs to support the constitutional goal of redeveloping our city. The current effort to change the Casino PILOT is completely tone-deaf. This is a time to regulate online gambling to ensure more in-person visits to Atlantic City. This is not a time to cut taxes for online gambling, which would be an economic incentive for casinos to undermine the hospitality industry.
The current PILOT gives casinos a degree of property tax stability that regular residential and commercial taxpayers do not enjoy. The casino industry is making more money now than they ever have. This last quarter was a record quarter for the casino industry.
The initial Casino PILOT bill was created in the context of a casino market where multiple casino properties were closing and the property tax ratable base was in a freefall. It was a bad situation. Today’s casino gaming market is nothing like that market. In the years since the original Casino PILOT bill was passed multiple casinos have reopened, the market has grown, revenues have increased, and a degree of stability has been accomplished.
The idea behind such an extraordinary and sweetheart deal for the casinos was the desire to bring stability to both the casino economy, as well as municipal and county budgeting. Since progress has been made toward that goal, any action of the Legislature to change the Casino PILOT should be to eliminate the special deal for the casino industry, not to serve up another strong dose of corporate welfare, which is the main ingredient in the Sweeney/Armato revised Casino PILOT bill.
In-person gambling revenues are down. In-person gambling revenues are down not just compared to 2020, but also when compared to 2019. Online gambling revenues are skyrocketing. This combination of factors is a huge risk to the idea of Atlantic City as an employment driver for our region. The more people who stay away from casino buildings and gamble on their digital device, the less people there are to flow through town.
Foot traffic is essential for the nongambling attractions within casinos and the business climate surrounding the casino buildings. The growth of online gaming and the accompanying reduction of foot traffic in town is troubling. We need visitors to eat meals, watch shows, and shop in our stores both inside and outside the casinos.
The Steve Sweeney/John Armato bill that changes the Casino PILOT bill is the latest example of a corporate welfare push for the casino industry. The bill would exempt the revenues earned through online gambling and sports betting from the Casino PILOT calculation to reduce what casinos have to pay in property taxes. Online gambling has become increasingly more lucrative for the casino industry since it was permitted.
Casinos like online gambling as it reduces the overhead expense required to capture people’s money. The growth of online gambling means increased profits for casinos and less jobs for people in the Atlantic City area. The new bill being pushed by lame duck legislators Steve Sweeney and John Armato would mean even less employment for our region, a bigger tax break for the casino industry, and more corporate profit. The Sweeney/Armato corporate welfare bill needs to be defeated.
Jesse O. Kurtz is Atlantic City’s Sixth Ward Councilman — @CouncilmanKurtz
