New Jersey State Senator Joe Pennacchio has renewed his proposal for the introduction of slot machine gambling at horse racetracks in the state.
The legislative initiative put forward by the Senator, SCR14, suggests forming a consortium of Atlantic City’s casinos to operate the machines, thereby generating substantial tax revenue for the state. In contrast to the existing 8% tax rate on gross tax receipts paid by Atlantic City casinos, the proposed arrangement for New Jersey racinos would contribute 50% of the tax receipts, aligning them with the tax structure observed in New York racinos, WRNJ Radio reported.
The distribution of profits from the newly established racinos would be determined by the presence of each casino in Atlantic City, with larger casinos receiving a proportionately greater share of the profits.
“We are leaving untapped money on the table. The monies generated would be constitutionally dedicated with dollars going to Atlantic City infrastructure, the horse racing industry, the consortium, and state taxpayers,” Pennacchio said in a press release.
This bipartisan legislation finds support from Democrat Joseph P. Cryan as a co-sponsor. In the year 2021, New York’s seven racinos collectively generated $2.2 billion in revenue, contributing $932 million in tax receipts to the state. The Yonkers casinos alone accounted for $614 million in tax revenues in 2022, almost the same as the combined contribution of $707 million from all Atlantic County casinos.
“Why does New Jersey continue to sit on the sidelines and have New York take advantage of a lucrative market which we should also be engaged in? A racino at the Meadowlands alone would be a game changer for New Jersey taxpayers,” Pennacchio said. He contends that this approach would foster further growth in the Atlantic City casino industry.
Known for innovative revenue stream initiatives, New Jersey currently stands as the only state to have implemented fixed-odds horse wagering at its tracks, with Colorado poised to follow suit.
