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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 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 Web casinos willing to introduce on November 26th, and things are finding out about from the revenue stream point of view.
However it gets another smack within the real face from the income tax man.
Tax Assessment Reversal for Borgata
Just What turned out to be described as a huge victory for MGM Resorts International and Boyd Gaming was not so much for the already faltering coffers of Atlantic City; the two video gaming behemoths got a 61 % decrease in property fees on their jointly owned Borgata Hotel and Casino which also happens to be certainly one of the less miserable profit disasters in city and now AC has to return pre-paid taxation monies to 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 evaluation of $2.26 billion. Without doubt there had been champagne that is celebratory the MGM and Boyd Gaming conference spaces over that decision. But Atlantic City leaders needed to be putting their fists through some walls, due to the fact final thing they needed had been to own doing a huge payback if they happen to be on financial thin ice plus in danger of financial hypothermia.
‘ This will be a devastating blow to Atlantic City,’ income tax attorney A. Paul Genato told Bloomberg News via email. The financial expert states some $48.8 million happens to be owed to MGM and Boyd for the tax years of 2009 and 2010.
That’s a complete lot of chips.
Show Me the Money
The larger question now facing the city that is struggling how the heck they will make this payback happen.
Expected by Bloomberg in regards to the tax action, AC’s director of revenue and taxation Michael Stinson cut to the chase: ‘We certainly don’t have $50 million sitting in the bank.’
With that reality staring the beleaguered metropolis into the face, these are typically doing the same you or i might do in this situation: at least purchasing 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 been rendered there as yet, this may be the blow that provides Atlantic City a genuine knockout that is technical it goes the way of the previous years’ choices.
If those choices do go MGM and Boyd’s way, at 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 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 almost 13 % in September, when comparing to the same time duration in 2012; all 12 of the town’s casinos combined produced fairly meager gambling industry revenue of $240.2 million for the month this 12 months.
Just Half A Year In, Nevada Gaming Commission Considers Online Changes
The Gaming Control Board is reviewing and revising after six months of online poker in Nevada. a little bit.
It’s only been half of a 12 months 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 popular card game. Having said that, 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 want to prove out poker first.’
Slow But Steady Wins the Competition
And even with poker, the Board is not anything that is rushing. With only two legal sites up so far Station Casinos-owned UltimatePoker.com and Caesars Entertainment Corp.’s WSOP.com brand the Board is maybe not likely to approve any more sites until the present sites’ technology has been evaluated and evaluated by independent evaluation laboratories, along with the Control Board’s own lab that is in-house. (Obama, take note: this is the way you do it.)
‘Nevada is poker only,’ reiterated Burnett. ‘That was the legislative intent from the beginning and the board has no plans doing anything otherwise.’
What the Board is taking a look at in regards to regulatory tuneups revolve around additional technical requirements for online poker, and also some language alterations to match up with statutory changes that went into effect via Assembly Bill 114 during the latest legislative session.
Almost 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 going slowly and cautiously beyond poker, if at all.
‘we 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 choice. I think we’re taking wise steps.’
Another essential topic the Board is reviewing is the matter of interstate compacts for on the web poker, something that is probably going to be crucial for Internet gaming to thrive into the Silver State over the long haul. 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 in order to 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.
In another couple of days, Delaware will join Nevada with online gaming, unfurling poker plus a few casino games for starters when they launch on Halloween. Then on November 26th, New Jersey will bring their online casinos into the online universe with a full collection of classic casino games, including poker, of course.
Ultimately, it might make more sense for more centralized regional servers to carry out entire parts of the U.S., if state and legislation that is federal. At a current regulatory meeting in Philadelphia, New Jersey State Assemblyman John Amodeo (R) discussed a possible new bill that would allow on the web gaming hardware and software to be situated outside of actual Atlantic City land gambling enterprises ( because they are now required to be), opening the floodgates up to a more nationwide online gaming scenario.
Speaking to the Press of Atlantic City, Amodeo suggested that ‘ultimately, we’re able to see Las Vegas handle everything west of the Mississippi, and Atlantic City could handle every thing east of the Mississippi.’
Sporting Potential UK CEO Says Footballers Gambling with Payday Loans
The CEO of Sporting Chance, a company that can help professional athletes with gambling issues, says you’d be amazed where they manage to get thier gambling money from.
You might have seen the advertisements for payday loans on TV or on a billboard those solutions that will instantly cash your paycheck as a loan, only asking for the insanely interest that is high in return. You might have also used one in a pinch. But you’ve probably never considered the fact a professional athlete might just take benefit of this solution to help place a bet or two on the side.
Yet that’s just what some UK footballers are doing to invest in their gambling habits, based on Colin Bland, the CEO of Sporting Chance 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 need to utilize payday loans to continue betting.
‘It’s not uncommon to have a player in a cycle of payday loans and gambling,’ Bland told BBC Radio 5. ‘We are working together with a whole lot more current football players. We have had players who have got caught up in the scenario of taking out loans that are payday place bets. We have had some of these during the is huuuge safe last couple of years, so the vicious group continues.’
This might appear odd to the average working Joe, whom wonders how a professional athlete could squander vast amounts 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 presssing problem ended up being that there’s always plenty of money entering his pockets, meaning that it’s always available and able to wager on a moment’s notice.
‘we have caused players who possess lost up to £7 million ($11.3 million) in 3 years in gambling,’ Bland stated. ‘ nevertheless the specific young man I’m referring to said ‘it’s the number of bets I’m putting. I am placing 50 bets a day…it’s impacting my life, it’s affecting my performance…it’s affecting what kind of father I am able to be.»
Athletes Are Bettors
And while that might sound like an instance that’s out from the norm, it’s no key that athletes around the world love placing bets that are big. And some soccer that is former in the UK have actually fessed as much as losing plenty of cash during their jobs.
For example, Stoke City winger Matthew Etherington publicly admitted to having a gambling issue earlier in his career. In accordance with him, he lost about £1.5 million ($2.4 million) gambling on poker, horse racing, and dog racing during their career. And while he relied on loan sharks to meet his gambling needs, that’s only because that’s what was most available to him.
‘ I do not think the payday loans were about whenever 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 happened to be frequently 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 become a hot topic in the UK in recent months. Rangers midfielder Ian Black was suspended for 10 matches earlier 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 rules related to wagering.