CASINO SECRETS

December 18, 2008 Blog

Casinos generally don’t reveal statistics on their operations, but after doing some extensive research on the Atlantic City casino operations, I came up with some revealing facts.

In 2005, 35 million people visited the 14 Atlantic City casinos. That comes to nearly three million per month or 96,000 per day, making Atlantic City the most frequented tourist attraction in America.

These same casinos generated $5 Billion in gaming revenue, an average of $142.86 per customer and day. Because slot machines have a high rate of payback, it takes quite a while to get rid of that much cash. Every time the slot machine spits out money, it is counted as winnings and the slot machine keeps a tally for you. You can readily see why a gambler’s “winnings” can be many times the amount he actually spends. The money is “recycled” until nothing is left. It can take hours, but players always manage to get rid of their money. That is why many gamblers claim that it is simply entertainment.
 

CASINOS AS BENEFACTORS

When the casinos opened in 1978, we were told that taxes would go down. New Jersians now carry the highest tax burden in the nation. Property taxes are double the national average with the average private home-owner paying $15,000 per annum. One fourth of our Social Security income goes to pay taxes on our suburban 45-year-old rancher, with 3-bedrooms, a single bath and crawl space.

Any candidate for public office who fails to put tax relief foremost on his platform hasn’t the ghost of a chance to get elected. In 2005, Democratic Senator, John Corzine, campaigned successfully for the office of Governor with promises to ease the tax burden. One of his first acts as Governor was to raise the sales tax from 6% to 7%. Political talk about lowering property taxes has gone on for years, contributing to global warming.

In January, 2007, State politicians grudgingly agreed to cut property taxes for everyone except senior citizens living on Social Security (like us). Few have seen any relief, however, because any reduction in property taxes is more than compensated by higher assessments. Haddon Heights citizens met in a church on June 26, 2007 to protest the sudden hike in their property taxes. The 100-year-old house of one senior citizen was re-assessed for three times its previous value! The owners feared losing the home they had lived in for decades.

Casinos like to boast about how many jobs they create and the generated taxes “which benefit seniors, the disabled and economic revitalization programs in New Jersey.” They employ PR people to inform the public about all the benefits they receive from gambling. And they hire clever accountants who manage to keep profits down and owners rich.

One third of Atlantic City’s casinos reported losses for 2005! We have all heard that 2008 was a bad year for the casinos. Don't expect any tax money from them this year!

In order to escape taxation, the “Casino Reinvestment Development Authority” (CRDA) was formed. Yesterday's December 16 edition of the Press of Atlantic City announced the opening of  the Atlantic City Express Service (ACES), a new $20 million double decker train that brings gamblers to A.C. from New York and Philadelphia. That is how casinos "benefit seniors, the disabled and economic revitalization programs in New Jersey.”