Earlier this month, NJ governor, Phil Murphy authorized NJ’s Casino Reinvestment Development Authority (CRDA) to collect a sports gambling tax. The bill will see a 1.25% increase in all activities in the state. Unfortunately, this doesn’t come as good news to the good folks of AC. And this is due to the mismanagement of monies collected by the CRDA in the past. Which, the NJ Office of the State Auditor ruled the residents were correct in their claims against the agency. So with that said, we expect things could heat up very soon over this spike in taxes.
Should The CRDA Receive A Sports Betting Tax?
The truth is if the funds were going towards the right causes, then there wouldn’t be an issue here today. In fact, the mission of CRDA is to attract tourism to Atlantic City. Although as the state auditor has proven, that didn’t happen. As of now, the CRDA collects most of it from casino parking charges.
With the funds collected the agency should have reinvested the money back into the community. Unfortunately, that’s not where the money’s going. In fact, there are several cases of mismanagement of funds by the CRDA. One that stands out to the residents in AC is the $4 million that went towards the Miss America beauty pageant. The interest in the event was at an all-time low, and the city could have used those funds for more important things.
Press of Atlantic City Slams CRDA
The tone was loud and clear in an article released by the Press of Atlantic City in October. So if you missed it, don’t worry, we have you covered right here! “The CRDA began so NJ officials could spread some of the windfalls from casino gambling. The plan was to do it with little transparency or public accountability.” The Press of AC would go on to call the CRDA a “40-year-old gambling cash cow.”
As a response, Robert Mulcahy, chairman of the CRDA took no responsibility. Instead, he pointed his fingers at the state and blamed them for why the agency fell into chaos. So what’s he saying? That the NJ state auditor is a fabricator and that their findings are not factual? We are curious Mr. Chairman; please explain. Until then, do you think it’s right to pay sports betting taxes to this agency?