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 continuous fall in gaming revenues from its 12 land casinos overall. Finally, it has Web casinos prepared to launch on 26th, and things are looking up from the revenue stream standpoint november.
Then again it gets another smack into the real face from the tax man.
Tax Assessment Reversal for Borgata
Just What turned out to be considered a huge victory for MGM Resorts International and Boyd Gaming wasn’t so much for the already faltering coffers of Atlantic City; the two video gaming behemoths got a 61 percent reduction in property taxes on their jointly owned Borgata Hotel and Casino which also is actually certainly one of the less miserable profit disasters in town and now AC has to return pre-paid taxation monies to your two companies.
They can blame it regarding 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 evaluation of $2.26 billion. No doubt there was 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, while the thing that is last needed had been to possess to accomplish a huge payback if they already are on financial thin ice and in risk of financial hypothermia.
‘ This is a blow that is devastating Atlantic City,’ tax attorney A. Paul Genato told Bloomberg News via email. The expert that is financial some $48.8 million happens to be owed to MGM and Boyd for the tax years of 2009 and 2010.
That’s a lot of potato chips.
Show Me the Money
The bigger question now facing the struggling city is exactly how the heck they are going to make this payback happen.
Asked by Bloomberg about the tax action, AC’s director of revenue and taxation Michael Stinson cut to the chase: ‘We certainly do not have $50 million sitting in the bank.’
With that reality staring the beleaguered metropolis into the face, they’ve been doing the same you or I would do in this situation: at minimum purchasing some time, if nothing else, with an appeal that is anticipated. But wait, there’s more misery in the future; Borgata’s more recent 2011 and 2012 assessments have additionally been challenged by MGM and Boyd, and while no judgments have been rendered there as yet, this may be the blow that gives Atlantic City a true technical knockout if it goes the way in which of the past years’ decisions.
If those choices do go MGM and Boyd’s way, 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 possibility that they’ll 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 time that is same in 2012; all 12 for the city’s casinos combined made a fairly meager gambling industry profit of $240.2 million for the month this 12 months.
Just Six 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 small bit.
It’s only been fifty per cent of a year since on-line poker became legal in Nevada, and the Nevada Gaming Control Board (NGCB) is moving slowly with regards to expansion of any sort beyond the card game that is popular. Having said that, the Board is looking at some feasible regulatory changes nonetheless.
‘We’re only half a year into poker,’ said 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 perhaps not rushing anything. With only two legal sites up thus far Station Casinos-owned UltimatePoker.com and Caesars Entertainment Corp.’s WSOP.com brand the Board is maybe not about to approve any more sites until the prevailing sites’ technology is reviewed and assessed by independent testing laboratories, in addition to the Control Board’s own in-house lab. (Obama, take note: this is how you do it.)
‘Nevada is poker only,’ reiterated Burnett. ‘That was the intent that is legislative the beginning and the board has no plans to complete such a thing otherwise.’
Exactly What the Board is looking 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 Anything Goes, In Theory
All that is technically prohibited in the bill is race 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 through the outcome had been to take conservative steps,’ 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. We think we are taking wise steps.’
Another essential topic the Board is reviewing is the matter of interstate compacts for on the web poker, something that is most likely going to be critical for Internet gaming to thrive into the Silver State on the haul that is long. By having a population of more or less 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’s going to 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 isn’t any reason to expect he will not comply.
An additional few days, Delaware will join Nevada with online gaming, unfurling poker plus a few casino games to begin with when they launch on Halloween. Then on November 26th, nj-new Jersey will bring their Web casinos into the online universe with a complete choice of classic casino games, including poker, needless to say.
Ultimately, it could make more sense for more centralized regional servers to handle whole parts of the U.S., if state and federal legislation complies. At a recent regulatory meeting in Philadelphia, nj State Assemblyman John Amodeo (R) talked about a possible new bill that will allow on the web gaming hardware and computer software to be situated outside of actual Atlantic City land casinos ( as they are now required to be), opening the floodgates to a more nationwide online 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.’
Sporting Potential UK CEO Says Footballers Gambling with Payday Loans
The CEO of Sporting Chance, a business that can help professional athletes with gambling problems, says you would be surprised where they obtain money that is betting from.
You might have seen the adverts for payday loans on TV or on a billboard those services that will immediately cash your paycheck as financing, only asking for an insanely high interest price in return. You might have even used one in a pinch. But you’ve probably never considered the fact an athlete that is professional simply take advantageous asset of this service to help put a bet or two on the side.
Yet that’s exactly what some UK footballers are doing to fund 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 referrals are related to gambling, and soccer that is many end up in a recurring pattern where they should make use of payday loans to continue betting.
‘It’s not uncommon to enjoy a player in a cycle of payday loans and gambling,’ Bland told BBC Radio 5. ‘We are dealing with a whole 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 place bets. We’ve had some of those during the last couple of years, so the vicious group continues.’
This may appear odd to your normal working Joe, whom wonders how a professional athlete could squander millions of dollars a year on gambling. But according to Bland, that can really be part of the issue. At least one athlete has told him that the issue ended up being that almost always there is plenty of money getting into his pockets, meaning that it’s always available and able to wager on a moment’s notice.
‘We’ve caused players who possess lost up to £7 million ($11.3 million) in three years in gambling,’ Bland said. ‘ nevertheless the specific young man I’m talking about said ‘it’s the quantity of bets I’m putting. I’m placing 50 bets a day…it’s affecting my life, it is affecting my performance…it’s affecting what kind of father i will be.”
Athletes Are Bettors
And while that might seem like an instance that’s out from the norm, it’s no secret that athletes around the world love placing bets that are big. And some soccer that is former in the British have fessed as much as losing lots of money in their careers.
For example, Stoke City winger Matthew Etherington publicly admitted to having a gambling issue earlier in his career. Based on him, he lost about £1.5 million ($2.4 million) wagering 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 is what had been most offered to him.
‘ I don’t think the payday loans were about whenever we had been gambling, otherwise I could possibly be one of [the players that turned to them] myself,’ Etherington has said.
‘It just snowballed to where I became often spending my thirty days’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 hot topic in the UK in recent months. Rangers midfielder Ian Black was suspended for 10 matches earlier huuuge phone number this year for gambling on at least 160 matches throughout the last seven years, while Crystal Palace striker Cameron Jerome faced a £50,000 ($80,000) fine for breaking Football Association guidelines related to betting.