New Jersey Might Consider Allowing Slots at Area Horse Racing Tracks

Article by : Erik Gibbs Feb 15, 2024

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New Jersey State Senator Joe Pennacchio advocates the introduction of slot machine gambling at horse racetracks in the state. His proposed legislation, SCR14, envisions the creation of a consortium comprising Atlantic City’s casinos to oversee the operation of these machines.

The legislation suggests a substantial 50% tax rate for the racinos, highlighting a significant contrast to the 8% rate paid by Atlantic City casinos—an arrangement Pennacchio deems unfavorable for the state.

Expressing his viewpoint on the Senate Republicans’ official website, Pennacchio contends that there is untapped financial potential that the state is neglecting.

He emphasizes that the funds generated from this initiative would be constitutionally allocated, benefiting various sectors such as Atlantic City’s infrastructure, the horse racing industry, the consortium and ultimately, the state’s taxpayers.

As per 2021 data, New York’s seven racinos raked in $2.2 billion in revenue, resulting in $932 million in tax receipts. In contrast, Atlantic City’s casinos contributed $707 million in state and local taxes.

Senator Pennacchio contends that New Jersey should seize the opportunity presented by this burgeoning demand and tap into the revenue potential offered by racinos. He questioned why New Jersey remains on the sidelines, allowing New York to capitalize on a lucrative market that the Garden State could also be part of.

He also emphasized that establishing a racino at the Meadowlands alone has the potential to be a game-changer for New Jersey taxpayers. According to Pennacchio, the proposed legislation holds the promise of fostering additional expansion within the casino industry in Atlantic City.

The tax revenues stemming from slot machine gambling, as outlined in the legislation, would be constitutionally earmarked.

Pioneering new avenues in revenue generation, New Jersey stands alone as the sole state to have introduced fixed-odds horse wagering at its racetracks. A substantial 30% share is devoted to the nine casinos in Atlantic City, providing essential support to the city’s economic vibrancy.

To foster comprehensive growth, an additional 7% of the tax proceeds is dedicated to fueling economic development initiatives in Atlantic City, contributing to the ongoing progress and prosperity of the municipality.

Approximately 3% allocation is set aside to benefit the horsemen, acknowledging and fortifying their pivotal role in the flourishing racing industry of the state.

Colorado is poised to join this innovative approach. Proposing a strategic distribution plan, 60% of the generated tax funds are slated for the state pension program, a move designed to bolster the welfare of public employees.