Pandemic Delays Atlantic City Casino 2020 Profit Reports
Posted on: March 31, 2020, 02:36h.
Last updated on: March 31, 2020, 02:53h.
Atlantic City casinos will have another month to disclose to the state their Q4 and full-year 2019 profit reports because of the ongoing COVID-19 pandemic that has shuttered their resort operations.
In a notice posted to the New Jersey Division of Gaming Enforcement’s (DGE) website, the state gaming regulatory agency explains the fourth quarter and 2019 annual DGE filing deadline is being extended from March 31 to April 30.
As a result of the delay in filing dates, the Quarterly Press Release scheduled for April 7, 2020, will be delayed to May 7, 2020, subject to further adjustments as needed depending on the duration of the closure,” said DGE spokesperson Kerry Langan.
New Jersey Gov. Phil Murphy (D) ordered the closure of Atlantic City casinos on March 16. The sportsbooks at Monmouth Park and the Meadowlands additionally ceased operations.
The quarterly reports reveal profits for each casino after expenses. They additionally show hotel occupancy numbers.
New Jersey has become one of the hardest-hit states by the coronavirus. Nearly 18,700 residents in the Garden State have tested positive, and the disease is responsible for 267 deaths. Atlantic County is home to 31 coronavirus cases.
The quarterly and annual DGE filings will show specifically the impact the deadly disease is having on Atlantic City’s economy, and the state as a whole. The shutdown of all non-essential business will result in an untold number of millions of dollars in lost revenue, and subsequent tax income for the government.
The New Jersey Department of the Treasury recently slashed its 2020 fiscal year revenue projections and estimates.
The impact of COVID-19 on the state, its economy, and budget and finances is unpredictable and rapidly changing. But the state believes that events surrounding COVID-19 will negatively impact the state’s economy and financial condition,” said Treasurer Elizabeth Muoio.
Muoio’s statement came along with the disclosure that the state treasury is freezing nearly $1 billion in spending. She said more than $920 million in appropriations spending has been instead moved into reserve accounts with the Office of Management and Budget.
Gaming Not Fully Halted
Unlike in most other states where casinos and tribal gaming venues are shuttered, New Jersey’s gaming industry isn’t entirely suspended thanks to its legalization of online gambling.
Gross gaming revenue (GGR) from online casinos and sports betting is taxed higher than when played in-person. Land-based gambling is taxed at eight percent, but 15 percent online.
In-person sports betting win is taxed at 8.5 percent, but 13 percent when wagered remotely. However, there’s been little to no sports to bet on during the global health crisis.
Casinos and sports betting, both in-person and online, generated $54.14 million in taxes through the first two months of the year. Of that figure, $24.22 million stemmed from internet operations – or nearly 45 percent.
Without sports betting, online casinos generated a little more than $16 million in taxes – or 30 percent of the haul. New Jersey is one of just three states with online casinos, the others being Delaware and Pennsylvania. Nevada limits its internet gambling to poker.