Atlantic City just got hit by another storm recently; this one, financial. (Image source: LarryRivera.com)
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 drop that is continuous gaming profits from its 12 land casinos overall. Finally, it has Internet casinos willing to introduce on November 26th, and things are finding out about from the revenue stream viewpoint.
However it gets another smack in the face from the tax man.
Tax Assessment Reversal for Borgata
What ended up to be described as a victory that is huge MGM Resorts International and Boyd Gaming was not a great deal for the currently faltering coffers of Atlantic City; the two gaming behemoths got a 61 percent decrease 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 taxation monies towards the two companies.
They can blame it in 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 ended up being celebratory champagne in the MGM and Boyd Gaming conference rooms over that decision. But Atlantic City leaders must be putting their fists through some walls, once the final thing they needed ended up being to have to complete a huge payback when they are usually on financial thin ice as well as in risk of monetary hypothermia.
‘ This will be a blow that is devastating Atlantic City,’ income tax 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 is clearly a complete great deal of chips.
Show Me the Money
The bigger concern now facing the struggling city is exactly how the heck they’re going to make this payback happen.
Asked by Bloomberg about the tax action, AC’s manager of taxation and revenue Michael Stinson cut to the chase: ‘We certainly don’t have $50 million sitting in the bank.’
With that truth staring the beleaguered metropolis within the face, they’re doing a similar thing you or I would do in this situation: at minimum buying some time, if nothing else, with an anticipated appeal. But wait, there is 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 could be the blow that offers Atlantic City a true technical knockout if it goes just how of the past years’ choices.
If those decisions do go MGM and Boyd’s way, at exactly what point is Atlantic City huuuge live chat going to be in danger of becoming the next Detroit? MGM and Boyd could need to reassess the likelihood that they will win the battle(s), but lose the war, in the event that whole burg eventually ends up drowning in its own monetary offal.
Atlantic City’s casino profits dropped nearly 13 % in September, in comparison with the same time period in 2012; all 12 of the town’s casinos combined made a fairly meager gambling industry revenue of $240.2 million for the month this year.
Just 6 Months In, Nevada Gaming Commission Considers Online Changes
The Gaming Control Board is reviewing and revising after six months of online poker in Nevada. 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 regarding expansion of any kind beyond the card game that is popular. That said, the Board is looking at some possible changes that are regulatory.
‘We’re only 6 months into poker,’ said NGCB Chairman A.G. Burnett. ‘For now, we want to prove out poker first.’
Slow But Steady Wins the Competition
And also with poker, the Board is maybe not rushing anything. 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 planning to approve any more web sites until the existing sites’ technology was evaluated and examined by independent assessment laboratories, also the Control Board’s own lab that is in-house. (Obama, take note: this is how you are doing it.)
‘Nevada is poker only,’ reiterated Burnett. ‘That was the legislative intent from the start and the board has no plans to accomplish such a thing otherwise.’
Exactly What the Board is evaluating in regards to regulatory tuneups revolve around additional technical needs for online poker, and also some language modifications to match up with statutory changes that went into effect via Assembly Bill 114 during the latest session that is legislative.
Nearly Anything Goes, In Theory
All that is theoretically prohibited in the bill is competition and sports book wagering online; but Assembly Majority Leader William Horne, (D-Las Vegas), who sponsored the legislation, says he concurs with Nevada’s regulators about moving slowly and cautiously beyond poker, if at all.
‘I think 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 choice. I think we are using wise steps.’
Another important topic the Board is reviewing is the issue of interstate compacts for on the web poker, something that is probably likely to be crucial for Internet gaming to thrive in the Silver State on the haul that is long. With a population of almost 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 just what will be an increasingly competitive market in the coming years. It’s expected that the Board will be Governor that is asking Brian to push forward with this request, and there is absolutely no reason to expect he will not comply.
In another day or two, Delaware will join Nevada with online gaming, unfurling poker plus a casino that is few for starters when they launch on Halloween. Then on November 26th, New Jersey will bring their Web casinos into the online universe with a complete choice of classic casino games, including poker, of course.
Ultimately, it will make more sense for more centralized regional servers to carry out entire chapters of the U.S., if state and legislation that is federal. At a recent regulatory meeting in Philadelphia, nj-new jersey State Assemblyman John Amodeo (R) talked about a possible new bill that would allow on the web gaming hardware and pc software to be situated outside of actual Atlantic City land gambling enterprises ( 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 Potential UK CEO Says Footballers Gambling with Payday Loans
The CEO of Sporting Chance, an organization that can help professional athletes with gambling dilemmas, says you would be surprised where they get their gambling money from.
No doubt you’ve seen the adverts for payday loans on TV or on a billboard those solutions that will instantly cash your paycheck as that loan, only asking for an insanely high interest rate in return. You might have even used one in a pinch. But you’ve probably never considered the fact that an athlete that is professional just take advantage of this solution to help spot a bet or two on the side.
Yet that’s what some UK footballers are doing to invest in their gambling habits, based on Colin Bland, the CEO of Sporting potential a charity that helps athletes deal with addiction. Based on the organization, about 70 percent of its recommendations are related to gambling, and soccer that is many end up in a recurring pattern where they should utilize payday loans to continue betting.
‘It’s quite normal to have a player in a cycle 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 within the scenario of taking out loans that are payday put bets. We have had some of these over the last couple of years, so the vicious circle continues.’
This could seem odd to the normal working Joe, who wonders how a professional athlete could squander vast amounts per year on gambling. But according to Bland, that can really be part of the problem. At least one athlete has told him that the presssing problem ended up being that almost always there is plenty of money coming into his pouches, which means that it is always available and ready to wager on a moment’s notice.
‘We’ve worked with players who’ve lost up to £7 million ($11.3 million) in 36 months in gambling,’ Bland stated. ‘ nevertheless the particular man that is young’m speaing frankly about said ‘it’s the number of bets I’m putting. I’m placing 50 bets a day…it’s impacting my life, it is affecting my performance…it’s affecting what type of father I am able to be.”
Athletes Are Bettors
And while that might sound like an instance that’s from the norm, it’s no secret that athletes around the world love placing big bets. And some former soccer players in the British have actually fessed up to losing lots of cash throughout their professions.
For instance, Stoke City winger Matthew Etherington publicly admitted to having a gambling problem earlier in his career. In accordance with him, he lost about £1.5 million ($2.4 million) betting on poker, horse racing, and dog racing during his career. And while he relied on loan sharks to meet his gambling needs, that’s only because that is what was most available to him.
‘ I do not think the payday loans were about when we had been gambling, otherwise we may possibly be one of [the players that turned to them] myself,’ Etherington has said.
‘It just snowballed to where I became usually spending my month’s wages and money that is then lending loan sharks,’ he said about his gambling addiction.
The gambling habits of high-profile soccer players have develop into a topic that is hot the UK in recent months. Rangers midfielder Ian Black was suspended for 10 matches previously 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 guidelines related to gambling.