One of the few benefits that come from casinos are the tax revenues they generate. Now that is taking at hit in Atlantic City.
All of the casinos have appealed their property tax bills, arguing the properties are worth much less because of the increased competition for surrounding states. As a result, Atlantic City is poised to receive tens of millions of dollars less in tax revenue from the casinos, according to this report.
The Sands received $19 million in refunds. Caesar’s Entertainment, which owns Bally’s, Caesar’s, Showboat and Harrah’s, got back $27 million. Trump is appealing. Even the Revel, which just opened, has already appealed its tax bill.
Atlantic City depends heavily on the casinos to fund the government since they are the few big businesses in town. But the reduced tax bills underscores how lawmakers are wrong to depend on gambling as a way to fund government operations. The revenue is unreliable. Not to mention, more gambling leads to higher costs – including, crime, divorce and bankruptcy – that all taxpayers ultimately pay. In the end, a public policy built on gambling is a losing hand.
