The New Jersey Assembly Appropriations Committee expected to take up two relief bills September 17 geared towards helping the casino industry devastated by the coronavirus pandemic. The outbreak forced the casinos to shut down for almost four months, beginning in mid-March.
One bill results in changes to the casino taxes and fees paid by the industry. An amended version passed the Senate in June, according to the Press of Atlantic City. The second piece of legislation provides a tax credit on sports betting revenue.
The one bill cuts back gaming revenue taxes for 12 months from the re-opening date on July 2, does away with hotel fees through the end of the year, defers certain licensing fees, and allows for a 100 percent deduction of provisional gaming credits and coupons against gross revenues on a permanent basis.
The legislation also distributes $100 million of Covid-19 federal grant money to the state Economic Development Authority to aid small businesses. Senate amendments cut back the time casinos could receive gaming revenue tax reductions and got rid of a break on parking and tourism promotion fees.
Based on recent industry performance, the bills could defray $93 million is taxes and fees during a 12 month period.
The Assembly introduced the sports betting bill in May. The legislation permits casinos to obtain a credit from the promotional wagers and free bets offered to patrons—after the first $12 million from internet wagers and after the first $8 million from in-person bets.
Another relief bill that let casinos seek interest-free loans to offset operational costs has stalled.
