Atlantic City Mayor Marty Small Sr. has called for the city to receive a direct cut of sports betting tax in New Jersey, arguing it has played a key role in the success of the state’s regulated market.
Speaking at a meeting of the Atlantic City Taxpayer’s Association, Small said that the city should have more control over income from sports betting taxes.
At present, the Casino Reinvestment Development Authority collects 1.25% of all sports bets, which is then used for tourism and marketing programs in Atlantic City. However, the state has exclusive control over these funds.
Small, who came into office in early October, said one of his main goals as Mayor is to ensure the city is better rewarded for the role it has played in helping the growth of sports betting in New Jersey.
“In 14 months, New Jersey has overtaken Las Vegas as the number one state for sports betting, and a lot of it this success is to do with Atlantic City,” he said. “But we don’t get a penny of it, which is unacceptable.
“People come into Atlantic City and they bet on sports. One day they will bet on college football, and then the next night it will be the NFL. We love them, but guess what; they stay in a hotel for three days and we don’t get a penny.”
New Jersey launched legal sports wagering in June 2018 and the state has seen huge growth in that time, with its market now challenging the long-established Nevada market.
In September, New Jersey sports betting revenue hit a record $37.9m, while its handle amounted to $445.6m. Nevada, meanwhile, posted revenue of $39.1m and a handle of $546.4m for the month, but it was the first time it had bettered New Jersey’s results since June..