Property Tax Plummet for Borgata is Sucker Punch for Atlantic City

Property Tax Plummet for Borgata is Sucker Punch for Atlantic City

Atlantic City just got hit by another storm recently; this one, financial. (Image source:

Bad Atlantic City.

It gets battered by hurricanes, has its revenues siphoned off by ever-increasing competition from surrounding states like Pennsylvania and Maryland, and has seen a seven-year continuous drop in gaming revenues from its 12 land casinos overall. Finally, it has online casinos willing to introduce on November 26th, and things are looking up through the revenue stream point of view.

However it gets another smack into the real face from the tax man.

Tax Assessment Reversal for Borgata

What ended up to be considered a huge victory for MGM Resorts International and Boyd Gaming was not a great deal for the currently faltering coffers of Atlantic City; the two video gaming behemoths got a 61 percent lowering of property fees on the jointly owned Borgata Hotel and Casino which also is actually certainly one of the less miserable profit disasters in town and now AC has to return pre-paid income tax monies towards the two companies.

They can blame it on the Tax Court of New Jersey, which reassessed the top-grossing casino in the Garden State at $870 million, a huge drop from its 2010 assessment of $2.26 billion. No doubt there had been celebratory champagne in the MGM and Boyd Gaming conference spaces over that choice. But Atlantic City leaders had to be putting their fists through some walls, as the final thing they needed ended up being to own to complete a huge payback once they already are on financial thin ice as well as in risk of financial hypothermia.

‚ This is a blow that is devastating Atlantic City,‘ income tax attorney A. Paul Genato told Bloomberg News via email. The expert that is financial some $48.8 million is now owed to MGM and Boyd for the tax years of 2009 and 2010.

That is clearly a lot of potato chips.

Show Me the Money

The larger concern now facing the city that is struggling exactly how the heck they are going to make this payback happen.

Asked by Bloomberg in regards to the tax action, AC’s manager of revenue and taxation Michael Stinson cut to the chase: ‚We certainly don’t have $50 million sitting in the bank.‘

With that truth staring the beleaguered metropolis within the face, these are typically doing the same you or i might do in this situation: at minimum purchasing some time, if nothing else, with an appeal that is anticipated. But wait, there’s more misery in the future; Borgata’s more recent 2011 and 2012 assessments have also been challenged by MGM and Boyd, and while no judgments have actually been rendered there as yet, this could be the blow that provides Atlantic City a real knockout that is technical it goes just how of the past years‘ choices.

If those decisions do go MGM and Boyd’s way, at exactly what point is Atlantic City likely to be in danger of becoming the next Detroit? MGM and Boyd might need to reassess the possibility that they will win the battle(s), but lose the war, in the event that whole burg ultimately ends up drowning in its own offal that is financial.

Atlantic City’s casino revenues dropped almost 13 % in September, when comparing to the same time duration in 2012; all 12 associated with city’s casinos combined produced fairly meager gambling industry profit of $240.2 million for the month this 12 months.

Just Six Months In, Nevada Gaming Commission Considers Online Changes

After half a year of online poker in Nevada, the Gaming Control Board is reviewing and revising. a bit that is little.

It’s only been half a 12 months since internet poker became legal in Nevada, and the Nevada Gaming Control Board (NGCB) is moving slowly in terms of expansion of all kinds beyond the card game that is popular. That being said, the Board is looking at some possible changes that are regulatory.

‚We’re only six months into poker,‘ said NGCB Chairman A.G. Burnett. ‚For now, you want to prove out poker first.‘

Slow But Steady Wins the Battle

And even with poker, the Board is not rushing such a thing. With only two legal sites up so far Station Casinos-owned and Caesars Entertainment Corp.’s brand the Board is not likely to approve any more web sites until the present sites‘ technology has been evaluated and assessed by independent testing laboratories, along with the Control Board’s own lab that is in-house. (Obama, take note: this is how you are doing it.)

‚Nevada is poker only,‘ reiterated Burnett. ‚That was the legislative intent from the start and the board has no plans to do any such thing otherwise.‘

What the Board is evaluating in terms of regulatory tuneups revolve around additional technical requirements for online poker, and also some language modifications to match up with statutory changes that went into effect via Assembly Bill 114 during the latest legislative session.

Very Nearly Any Such Thing Goes, In Theory

All that is technically prohibited in the bill is battle and sports book wagering online; but Assembly Majority Leader William Horne, (D-Las Vegas), whom sponsored the legislation, says he concurs with Nevada’s regulators about going slowly and cautiously beyond poker, if at all.

‚we think our intent from the outcome had been to take steps that are conservative‘ Horne said of SB 114. ‚Nothing prohibits [the control board] from going beyond poker and we want our boards that are regulatory make that choice. We think we are using prudent steps.‘

Another essential topic the Board is reviewing is the issue of interstate compacts for online poker, something that is probably going to be critical for Internet gaming to thrive into the Silver State on the long haul. With a population of almost 2,759,000 (compared to soon-to-be-competitor New Jersey’s 9 million), Nevada needs other states in order to enter their online games legally in order to stay afloat in what will be an increasingly competitive market in the coming years. It’s expected that the Board will be Governor that is asking Brian to push forward with this request, and there isn’t any reason to expect he won’t comply.

An additional few days, Delaware will join Nevada with online gaming, unfurling poker plus a casino that is few to begin with when they launch on Halloween. Then on November 26th, New Jersey will bring their Web casinos into the universe that is online a complete selection of classic casino games, including poker, of course.

Ultimately, it will make more sense for more centralized regional servers to deal with entire chapters of the U.S., if state and federal legislation complies. At a present regulatory meeting in Philadelphia, nj-new jersey State Assemblyman John Amodeo (R) discussed a possible new bill that would allow online gaming hardware and computer software become situated outside of actual Atlantic City land casinos ( as they are now required to be), opening the floodgates up to a more nationwide on line gaming scenario.

Speaking to the Press of Atlantic City, Amodeo suggested that ‚ultimately, we could see Las Vegas handle everything west of the Mississippi, and Atlantic City could handle every thing east of the Mississippi.‘

Sporting Chance UK CEO Says Footballers Gambling with Payday Loans

The CEO of Sporting potential, an organization that can help pro athletes with gambling issues, says you would be amazed where they get their wagering money from.

No doubt you’ve seen the ads for payday loans on TV or on a billboard those solutions that will straight away cash your paycheck as that loan, only asking for the insanely high interest price in return. You may have even used one in a pinch. But you’ve probably never considered the fact that a professional athlete might just take advantageous asset of this solution to help spot a bet or two on the side.

Yet that’s what some UK footballers are doing to finance their gambling habits, based on Colin Bland, the CEO of displaying potential a charity that can help athletes deal with addiction. According to the organization, about 70 percent of its referrals are associated to gambling, and many soccer players end up in a recurring pattern where they should use payday loans to continue betting.

Vicious Circle

‚It’s not uncommon to truly have a player in a period of payday loans and gambling,‘ Bland told BBC Radio 5. ‚We are working with a lot more football that is current. We have had players who have got caught up within the scenario of taking out loans that are payday spot bets. We have had several of those during the last couple of years, so the circle that is vicious.‘

This could seem odd to the working that is average, whom wonders how a professional athlete could squander huge amount of money per year on gambling. But according to Bland, that can actually be part of the problem. At least one athlete has told him that the issue was that there’s always plenty of cash getting into their pockets, which means that it is always available and able to wager on a moment’s notice.

‚we have caused players that have lost up to £7 million ($11.3 million) in three years in gambling,‘ Bland said. ‚ nevertheless the specific young man I’m talking about said ‚it’s the quantity of bets I’m putting. I’m placing 50 bets a day…it’s impacting my life, it’s affecting my performance…it’s affecting what type of father I am able to be.“

Athletes Are Bettors

And while that might seem like an instance that’s from the norm, it is no secret that athletes around the globe love placing bets that are big. And some former soccer players in the UK have fessed as much as losing plenty of cash during their careers.

For instance, Stoke City winger Matthew Etherington publicly admitted to having a gambling problem earlier in his career. Based on him, he lost about £1.5 million ($2.4 million) wagering on poker, horse racing, and dog racing during their career. And even though he relied on loan sharks to fulfill his gambling needs, that’s only because that is what had been most offered to him.

‚ I don’t think the payday loans were about when we had been gambling, otherwise I may possibly be one of [the players that turned to them] myself,‘ Etherington has said.

‚It just snowballed to where I happened to be usually spending my thirty days’s wages and money that is then lending loan sharks,‘ he said about his gambling addiction.

The gambling habits of high-profile soccer players have develop into a hot topic in the UK in recent months. Rangers midfielder Ian Black was suspended for 10 matches earlier this year for gambling on at least 160 matches on the last seven years, while Crystal Palace striker Cameron Jerome faced a £50,000 ($80,000) fine for breaking Football Association guidelines related to wagering.