Atlantic City just got hit by another storm recently; this one, financial. (Image source: LarryRivera.com)
Poor Atlantic City.
It gets battered by hurricanes, has its revenues siphoned off by ever-increasing competition from surrounding states like Pennsylvania and Maryland, and has seen a seven-year drop that is continuous gaming profits from its 12 land casinos overall. Finally, it has Internet casinos ready to launch on November 26th, and things are finding out about from the revenue stream viewpoint.
However it gets another smack within the face from the tax man.
Tax Assessment Reversal for Borgata
Just What proved to be considered a huge victory for MGM Resorts International and Boyd Gaming was not so much for the currently faltering coffers of Atlantic City; the two gaming behemoths got a 61 percent reduction in property fees on the jointly owned Borgata Hotel and Casino which also happens to be one of the less miserable profit disasters in town and now AC has to return pre-paid income tax monies towards the two companies.
They can blame it on the Tax Court of New Jersey, which reassessed the casino that is top-grossing the Garden State at $870 million, a huge drop from its 2010 assessment of $2.26 billion. Without doubt there was celebratory champagne in the MGM and Boyd Gaming conference spaces over that decision. But Atlantic City leaders must be putting their fists through some walls, while the thing that is last needed was to own doing a huge payback once huuuge review they already are on financial thin ice and in danger of monetary hypothermia.
‘ This is a devastating blow to Atlantic City,’ taxation attorney A. Paul Genato told Bloomberg News via email. The expert that is financial some $48.8 million is currently owed to MGM and Boyd for the tax years of 2009 and 2010.
That’s a complete great deal of chips.
Show Me the Money
The bigger question now facing the struggling city is just how the heck they are going to make this payback happen.
Expected by Bloomberg about the tax action, AC’s director of taxation and revenue 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’re doing the same you or I would do in this situation: at least purchasing some time, if nothing else, with an appeal that is anticipated. But wait, there is more misery in the future; Borgata’s more recent 2011 and 2012 assessments have also been challenged by MGM and Boyd, and while no judgments have been rendered there as yet, this may be the blow that provides Atlantic City a genuine technical knockout if it goes the way of the previous years’ decisions.
If those decisions do go MGM and Boyd’s method, at exactly what point is Atlantic City going to be in danger of becoming the next Detroit? MGM and Boyd might need to reassess the chance that they’ll win the battle(s), but lose the war, in the event that whole burg eventually ends up drowning in its own economic offal.
Atlantic City’s casino revenues dropped very nearly 13 percent in September, in comparison to the time that is same in 2012; all 12 of the city’s casinos combined produced fairly meager gambling industry profit of $240.2 million for the month this 12 months.
Just 6 Months In, Nevada Gaming Commission Considers Online Changes
After 6 months of online poker in Nevada, the Gaming Control Board is reviewing and revising. a small bit.
It’s only been half a year since internet poker became legal in Nevada, and the Nevada Gaming Control Board (NGCB) is moving slowly in terms of expansion of any kind beyond the popular card game. That said, the Board is looking at some possible changes that are regulatory.
‘We’re only six months into poker,’ said NGCB Chairman A.G. Burnett. ‘For now, we should first prove out poker.’
Slow But Steady Wins the Competition
And even with poker, the Board is maybe not rushing such a thing. With only two appropriate sites up so far Station Casinos-owned UltimatePoker.com and Caesars Entertainment Corp.’s WSOP.com brand the Board is perhaps not about to approve any more sites until the present sites’ technology has been evaluated and examined by independent evaluating laboratories, also the Control Board’s own lab that is in-house. (Obama, just take note: this is one way you are doing it.)
‘Nevada is poker only,’ reiterated Burnett. ‘That was the legislative intent from the beginning and the board has no plans to do such a thing otherwise.’
Exactly What the Board is looking at in terms of regulatory tuneups revolve around additional technical requirements 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 session that is legislative.
Very Nearly Such A Thing Goes, In Theory
All that is technically prohibited in the bill is competition 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 believe our intent from 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 regulatory boards to make that decision. I think we are using prudent steps.’
Another important topic the Board is reviewing is the matter of interstate compacts for online poker, something that is probably likely to be critical for Internet gaming to thrive in the Silver State on the long haul. By having a population of just about 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 so that you can stay afloat in what will 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 is no reason to expect he won’t comply.
An additional day or two, 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 selection of classic casino games, including poker, of course.
Ultimately, it could make more sense for more centralized regional servers to address entire chapters of the U.S., if state and legislation that is federal. At a recent regulatory meeting in Philadelphia, New Jersey State Assemblyman John Amodeo (R) talked about a possible new bill that will allow on line gaming hardware and software to be situated outside of actual Atlantic City land casinos ( since they are now required to be), opening the floodgates up to a more nationwide on line gaming scenario.
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 Chance UK CEO Says Footballers Gambling with Payday Loans
The CEO of Sporting potential, a company that can help professional athletes with gambling issues, says you would be amazed where they get their wagering money from.
You’ve probably seen the adverts for payday loans on TV or on a billboard those solutions that will instantly cash your paycheck as a loan, only asking for an insanely high interest rate in return. You may have even used one in a pinch. But you’ve probably never considered the fact that an athlete that is professional simply take advantageous asset of this service to help spot a bet or two on the side.
Yet that’s what some UK footballers are doing to finance their gambling habits, according to Colin Bland, the CEO of displaying potential a charity that helps athletes deal with addiction. Based on the organization, about 70 percent of its recommendations are associated to gambling, and soccer that is many end in a recurring pattern where they have to utilize payday loans to continue betting.
‘It’s quite normal to have a player in a period of payday loans and gambling,’ Bland told BBC Radio 5. ‘We are working together with a lot more current football players. We have had players who have got caught up into the scenario of taking out payday advances to put bets. We’ve had several of those throughout the last couple of years, so the vicious circle continues.’
This may sound odd to the working that is average, who wonders how a professional athlete could squander millions of dollars per year on gambling. But according to Bland, that can actually be part of the issue. At least one athlete has told him that the problem was that almost always there is plenty of cash entering his pouches, which means that it is always available and able to wager on a moment’s notice.
‘we have caused players who’ve lost up to £7 million ($11.3 million) in 3 years in gambling,’ Bland said. ‘ But the specific man that is young’m talking about said ‘it’s the amount of bets I’m placing. I am placing 50 bets a day…it’s impacting my life, it is affecting my performance…it’s affecting what type of father i could be.”
Athletes Are Bettors
And while that might seem like an instance that’s from the norm, it is no secret that athletes around the globe love placing bets that are big. And some soccer that is former in the UK have fessed up to losing lots of money in their careers.
For example, Stoke City winger Matthew Etherington publicly admitted to having a gambling problem earlier in his career. Based on 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 meet his gambling requirements, that’s only because that’s what had been most available to him.
‘ I don’t think the payday loans were about when we had been gambling, otherwise I would probably be one of [the players that turned to them] myself,’ Etherington has said.
‘It just snowballed to where I happened to be frequently spending my month’s wages and then lending cash off loan sharks,’ he said about his gambling addiction.
The gambling habits of high-profile soccer players have become a topic that is hot the UK in recent months. Rangers midfielder Ian Black was suspended for 10 matches earlier this year 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.