Record Tax Income for Atlantic City Casinos Primarily Attributable to iGaming
### Casino Revenue Fund: A Century of Helping Seniors and Disabled in New Jersey
Over four decades ago, New Jersey made history when it opened the first Boardwalk casino in Atlantic City. The state's lawmakers intended to turn this gambling hub into a cause for the greater good. Thus, the Casino Revenue Fund was created in 1976, before the first boardwalk opening in 1978.
The Casino Revenue Fund is responsible for collecting gaming taxes, parking fees, hotel room charges, forfeited winnings, regulatory fines, and progressive slot jackpot taxes from Atlantic City and online casinos. Its purpose? To benefit the entire state, not just the beach region.
In the 2023 fiscal year (July 1, 2022, to June 30, 2023), the fund recorded a remarkable achievement: $504 million in tax revenue. Gaming taxes accounted for $494.86 million.
So, what does the Casino Revenue Fund do with all this money? It helps eligible seniors and disabled residents by reducing their property taxes, covering rents, utilities, phones, gas, transportation, and electricity bills, and providing healthcare services.
Interestingly enough, the first time the Casino Revenue Fund surpassed the half-billion-dollar mark was in the 2023 fiscal year.
iGaming: Boosting the Fund's Coffers
Nine years ago, New Jersey decided to expand its commercial gaming industry with iGaming. These are interactive online slots and table games. However, it wasn't until 2013 that online casinos went live, after legal challenges related to internet gambling were settled.
It took a few more years for online gaming in the Garden State to bloom. In 2017, iGaming's gross gaming revenue (GGR) was $245.6 million, $298.7 million in 2018, and $482.7 million in 2019.
But things changed drastically in 2020, thanks to the COVID-19 pandemic. As Atlantic City's brick-and-mortar casinos shut down, remote players flocked to online platforms, causing GGR to surge to over $970.3 million. In 2021, the figure jumped to almost $1.37 billion.
In 2022, iGaming revenue reached an astounding $1.66 billion. And that's not the end of it; this year through August, it's outpacing 2022 by almost 15%.
The Casino Revenue Fund, initially established to collect Atlantic City casino taxes, now receives 15% of the iGaming revenue. This inflow has significantly boosted the fund's capacity to help those in need.
For instance, the Senior Citizen and Disabled Resident Transportation Assistance Program, run by NJ Transit, is heavily reliant on the Casino Revenue Fund. According to Jim Smith, a spokesperson for NJ Transit, "This program... serves as a lifeline for seniors and people with disabilities, providing them with transportation for essential needs like non-emergency medical trips, shopping, and nutrition."
It's worth mentioning that the Casino Revenue Fund's deposits increased by 10% from the 2022 fiscal year, during which it received approximately $457.6 million.
It's an Online World Now: Brick-and-Mortar Casinos Struggle
Online casinos and sports betting are growing rapidly, while the nine casinos in Atlantic City's shore area aren't quite keeping up. iGaming revenue climbed a staggering 22% from 2021 to 2022. Yet, Atlantic City brick-and-mortar casino revenue increased by less than 2%.
However, the land-based casino executives believe that all gaming revenue should not be seen as equal. Much of the income generated by online gaming and sports betting goes to their interactive partners, like FanDuel and DraftKings. Moreover, these online players and mobile sports bettors don't spend their money in Atlantic City on food, drinks, lodging, or entertainment.
