Atlantic City Unexpectedly Considers Casino Expansion

March 21st, 2010 – by Glen Farmer

Though Atlantic City has been struggling to keep casino revenue above the red line, they have been failing. Double digit declines in revenue rates have become all to popular within the state. Despite the recession and ailing casinos, the state of New Jersey is currently considering the incorporation of four new casinos in Atlantic City.

The law that would bring this to light will be introduced to the legislature on Monday. This legislation will be introduced by James Whelan, a mayor turned senator. This will permit four new casinos to be established carrying a minimum of 200 rooms – a sharp decrease from the current minimum of 500 rooms.

The idea in allowing the smaller casinos would allow new locations to be established with a smaller financial investment, and subsequent smaller risk. These 200 room establishments would start small, but carry a slightly higher tax rate than the larger casinos. Rather than the 9% tax rate of the 500+ room facilities, these smaller businesses will carry a 14% tax rate to make up for the smaller amount spent in construction, staffing, and other overhead expenses. Should the 200 room establishments expand to meet the 500 room minimum within five years of opening, the difference between the two tax rates would be repaid.

According to the Associated Press, interest has already been put forward for a small scale casino in the state. The Seminole Indian Nation of Florida, who has been attempting to reach an agreement with their home state, has put in their word in opening a miniature Hard Rock Casino in Atlantic City.

Though legislators are attempting to increase the demand for casino gaming, the road to financial success is still going to be one difficult to travel in New Jersey. New Jersey Online Casinos, as well as the casinos in Pennsylvania, have been offering Atlantic City a great deal of competition.

Tags: , , , ,

Comments are closed.

Best USA Gambling Sites
Top USA Casinos
Visit Casino
Top USA Sportsbooks
Bookmaker Sportsbook
DSI Sportsbook
Top USA Poker Rooms