New Impact Report Shows Atlantic City Casino Industry Generated $467 Million in Tax Revenue in 2023

 

New Impact Report Shows Atlantic City Casino Industry Generated $467 Million in Tax Revenue in 2023

First-ever “2023 IMPACT: Atlantic City Casino Industry” report shows industry’s impact across the State of New Jersey – from generating millions of dollars in tax revenue that supports seniors and persons with disabilities to serving as one of the largest employers in southern New Jersey

 

Atlantic City, NJ – The Lloyd D. Levenson Institute of Gaming, Hospitality & Tourism (LIGHT) at Stockton University released a new report today in collaboration with the Casino Association of New Jersey (CANJ) called 2023 IMPACT: Atlantic City Casino Industry. According to the report, despite market challenges, the Atlantic City casino industry was able to generate $467 million in gross gaming tax revenue in 2023, representing a nearly 12% increase over the industry’s last peak in gross gaming tax revenue in 2006. The industry continues to be one of the largest employers in southern New Jersey and a source of vital tax revenue benefitting New Jersey’s most vulnerable residents.

 

“Despite its triumphs and challenges, Atlantic City continues to persevere. The casino industry remains the economic engine of not only South Jersey, but the entire State of New Jersey,” said Jane Bokunewicz, PhD, Faculty Director, LIGHT at Stockton University. “The industry has paid significant dividends to the city and state over the past five decades and will continue to play a vital role in the long-term success of the region.”

 

“As one of the largest employers in southern New Jersey, we know that when our properties are successful, so are our employees and the communities we serve,” said Mark Giannantonio, president, Casino Association of New Jersey (CANJ). “This new report from the LIGHT at Stockton University is meaningful because it helps shed light on how the revenue the casino industry generates is dedicated to supporting some of New Jersey’s most vulnerable citizens. It also shows our support for vendors from all corners of the state and the investments we are making to continue Atlantic City’s transformation.”

 

The Atlantic City casino industry still has not recovered from reductions in business since the COVID-19 pandemic, with casino wins generated from patrons at six of the nine Atlantic City properties year-to-date still lagging those from pre-pandemic periods. The industry also has faced numerous additional challenges in that same period including increases in regional gaming competition, operating expenses, inflation, labor costs, and labor shortages.

 

Despite these challenges, the casino industry has continued to make significant capital investments and remained a strong community partner. In addition, growth in online gaming revenue, which is taxed at a higher rate than brick-and-mortar gaming revenue, led the industry to record-high total gaming tax contributions for the year.

 

Highlights of the report include:

·    In 2023, Atlantic City’s casino operators realized $3.32 billion in total Net Revenue.

·    Net revenues in 2023 appear to be reestablishing the trend of increasing non-gaming net revenue share for Atlantic City, supported by industry-wide investment in non-gaming amenities.

·    Operators contributed $681.95 million in total casino taxes and fees for the calendar year.

·    Casino operators paid for municipal services like water and sewer, operations’ permits like mercantile licenses, and contributed to parking and hotel room fees. This activity, just a sample of taxes and fees paid by casino operators, when combined with the gross gaming taxes, resulted in a total of $681.95 million in contributions for the calendar year.

·    The industry contributed a record $504 million to the Casino Revenue Fund, which supports some of New Jersey’s most vulnerable residents by financing services for New Jersey’s senior citizens and persons with disabilities.

·    This contribution is measured during the State’s fiscal year, from July 1, 2022, through June 30, 2023.

·    The industry spent $632 million on goods and services, supporting vendors from across New Jersey.

·    In 2023, Atlantic City’s gaming operators generated $467 million just in gross gaming tax revenue, a nearly 12% increase from the industry’s last peak for that metric of $417.5 million in 2006 – before the launch of online and sports wagering.

·    Operators spent $258 million in capital improvements, the highest single-year reinvestment in the city since 2008, bolstering tax revenue and creating good-paying jobs.

·    The industry is one of the largest employers in southern New Jersey with 22,634 employees.

·    Atlantic City welcomed approximately 17.8 million people in 2023.

·    This was a 3.2% increase over 2022, but still down from pre-pandemic levels in 2019.

·    The casino industry is a strong community partner, donating millions of dollars to local, county and statewide organizations like the Community Food Bank of New Jersey and the Boys and Girls Club of Atlantic City.

 

Click here to view the report.

 

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About Levenson Institute of Gaming, Hospitality and Tourism (LIGHT) at Stockton University

The Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism (LIGHT) at Stockton University provides a forum for public policy discussions regarding the gaming, hospitality and tourism industries in New Jersey. The Levenson Institute engages Stockton’s faculty, students and others in research, conferences and report writing to support sound decision making among policy makers and leaders in the region’s three largest industries. Along with other Stockton University centers, institutes and programs, LIGHT is a key part of Stockton’s commitment to playing a central role in issues that are vital to the economic and social well being of our community and region.

 

About the Casino Association of New Jersey 

The Casino Association of New Jersey (CANJ) is a trade organization that provides a collective voice for the Atlantic City casino industry by facilitating the exchange of information and ideas between our industry, small businesses, Atlantic City stakeholders and the general public. The CANJ consistently advocates for legislation and initiatives that support the ongoing revitalization of Atlantic City into a world-class destination resort. A thriving casino industry drives economic growth, job creation, increased tax revenue for state and local budgets, and prosperity for city residents, hardworking families and businesses which rely on the casinos for their livelihood. Our goals are simple: protect and grow the tens of thousands of jobs the casino industry supports across New Jersey and continue Atlantic City’s transformation into a world-class destination resort. For additional information, please visit www.casinosnj.org.

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