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 profits siphoned off by ever-increasing competition from surrounding states like Pennsylvania and Maryland, and has seen a seven-year continuous fall in gaming revenues from its 12 land casinos overall. Finally, it has Internet casinos willing to introduce on 26th, and things are looking up from the revenue stream standpoint november.

However it gets another smack into the 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 so much for the already faltering coffers of Atlantic City; the two gaming behemoths got a 61 percent lowering of property fees on their jointly owned Borgata Hotel and Casino which also happens to be certainly one of the less miserable profit disasters in town and now AC has to return pre-paid income tax monies to 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 champagne that is celebratory the MGM and Boyd Gaming conference spaces over that decision. But Atlantic City leaders had to be putting their fists through some walls, because the very last thing they needed was to own to accomplish a huge payback if they are usually on financial thin ice plus in danger of monetary hypothermia.

’ This is a blow that is devastating Atlantic City,’ taxation 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 a complete great deal of chips.

Show Me the Money

The bigger concern now facing the city that is struggling exactly how the heck they will 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 do not have $50 million sitting in the bank.’

With that truth staring the beleaguered metropolis within the face, they are doing a similar thing you or I would personally do in this circumstance: at minimum purchasing some time, if nothing else, with an anticipated appeal. But wait, there’s more misery to come; Borgata’s more recent 2011 and 2012 assessments have additionally been challenged by MGM and Boyd, and while no judgments have actually been rendered there as yet, this might be the blow that gives Atlantic City a real knockout that is technical it goes the way of the past years’ choices.

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

Atlantic City’s casino profits dropped nearly 13 per cent in September, in comparison to the time that is same in 2012; all 12 for the town’s casinos combined made a fairly meager gambling industry revenue of $240.2 million for the month this year.

Just Half A Year In, Nevada Gaming Commission Considers Online Changes

After 6 months of online poker in Nevada, the Gaming Control Board is reviewing and revising. a bit that is little.

It’s only been fifty per cent of a 12 months since on-line 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 said, the Board is looking at some feasible regulatory changes nonetheless.

’We’re only six months into poker,’ stated NGCB Chairman A.G. Burnett. ’For now, we want to first prove out poker.’

Slow But Steady Wins the Competition

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 existing sites’ technology was reviewed and evaluated by independent evaluating laboratories, also the Control Board’s own lab that is in-house. (Obama, simply take note: this is one way you are doing it.)

’Nevada is poker only,’ reiterated Burnett. ’That was the intent that is legislative the beginning and the board has no plans to accomplish such a thing otherwise.’

Just What the Board is taking a look at in regards to regulatory tuneups revolve around additional technical needs for online poker, and also some language adjustments to match up with statutory changes that went into effect via Assembly Bill 114 during the latest legislative session.

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 moving slowly and cautiously beyond poker, if at all.

’I think our intent through 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 decision. I think we are taking wise steps.’

Another important topic the Board is reviewing is the matter of interstate compacts for on line poker, something that is probably going to be critical for Internet gaming to thrive into the Silver State over the long haul. By having a population of pretty much 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 to be able to remain afloat in what’s going to be an increasingly competitive market in the coming years. It’s expected that the Board will be asking Governor Brian Sandoval to push forward with this request, and there’s absolutely no reason to expect he won’t comply.

In another couple of days, Delaware will join Nevada with online gaming, unfurling poker plus a few casino games first of all when they launch on Halloween. Then on November 26th, New Jersey will bring their Web casinos into the universe that is online a full collection of classic casino games, including poker, needless to say.

Ultimately, it will make more sense for more centralized regional servers to handle entire chapters of the U.S., if state and legislation that is federal. At a current regulatory meeting in Philadelphia, nj State Assemblyman John Amodeo (R) talked about a possible new bill that would allow online gaming hardware and software become situated outside of actual Atlantic City land gambling enterprises ( since they are now required to be), opening the floodgates to a more online gaming scenario that is nationwide.

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 everything east of the Mississippi.’

Displaying Potential UK CEO Says Footballers Gambling with Payday Loans

The CEO of Sporting Chance, a business that helps pro athletes with gambling problems, says you would be surprised where they obtain betting money from.

You might have 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 an insanely interest that is high in return. You might have also used one in a pinch. But you’ve probably never considered the fact a professional athlete might take benefit of this solution to help put a bet or two on the side.

Yet that’s precisely what some UK footballers are doing to finance their gambling habits, in accordance with Colin Bland, the CEO of Sporting potential a charity that helps athletes deal with addiction. Based on the company, about 70 percent of its referrals are associated to gambling, and soccer that is many end up in a recurring pattern where they have to utilize payday loans to continue betting.

Vicious Circle

’It’s not uncommon to enjoy a player in a period of payday loans and gambling,’ Bland told BBC Radio 5. ’We are dealing with a lot more football that is current. We have had players who have got caught up into the scenario of taking away loans that are payday put bets. We’ve had some of these during the last couple of years, so the vicious circle continues.’

This may seem odd to your typical working Joe, who wonders how a professional athlete could squander millions of dollars a year on gambling. But according to Bland, that can actually be part of the issue. At least one athlete has told him that the presssing problem was that almost always there is plenty of cash coming into their pockets, meaning that it is always available and ready to wager on a moment’s notice.

’We’ve worked with players who possess lost up to £7 million ($11.3 million) in three years in gambling,’ Bland stated. ’ But the particular man that is young’m speaing frankly about said ’it’s the number of bets I’m placing. I’m placing 50 bets a day…it’s affecting my life, it’s affecting my performance…it’s affecting what sort of father I’m able to be.”

Athletes Are Bettors

And while that might seem like a case that’s out from the norm, it’s no key that athletes around the world love placing bets that are big. And some former soccer players in the UK have actually fessed up to losing plenty of money throughout their jobs.

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

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

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

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


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