The governor of New Jersey is hoping to tax the casinos for the millions they hand out in freebies. This action, if passed, could affect all those visiting A.C. lured by room, cash and food comps.

Those of you who are not familiar with Atlantic City should know that busses full of gamblers are the driving force in A.C.. Many seniors ride the bus for a day's excursion, cash in coupons, partake of their free buffet and enjoy walking the boardwalk. Others filling those casinos during weekdays are lured by the many free room comps offered.

Will be interesting to see how far this goes as the casinos will definitely oppose this action.

Beth

Beth,

That seems kind of backwards. I'd think if someone was to get taxed, it would have to be the people being given the freebies.

I've always wondered if the casino's get a tax write-off for comps. It seems it's an expense of doing business. I always kind of figured that's why the rate posted on the back of the door is so high. Thought that's what they probably write-off.

Sounds to me like the State of NJ is trying to tax A.C. out of business, and they'll keep coming to Las Vegas.

Jeff & Ralph,

They call the comps a marketing expense, and since it is nothing they sell, they do not believe it should be taxed.

It is unclear at the moment whether the Governor is talking about also taxing the entertainment comps given away. Here are some released figures:

"Casinos gave away 1.9 million rooms valued at $155.7 million during the first nine months last year, according to the latest Casino Control Commission data. That amounted to 65.6 percent of their rooms, according to a Press of Atlantic City analysis.

Casinos also gave away 13.7 million meals valued at $171.5 million during that period."

I will keep checking to see what happens.

Beth

MGM/Mirage has reacted to the taxing of comps in Atlantic City by putting plans on hold for a future resort at the Jersey shore.

"TRENTON, N.J. -- The future of a $1.5 billion casino in Atlantic City has come into question after Gov. James McGreevey proposed new taxes for casinos in his state budget proposal, officials said.

MGM Mirage has halted planning on the casino temporarily, becoming the first company to acknowledge that McGreevey's budget proposals have given it second thoughts about expanding in the state."

It was stated they will, however, continue to go ahead with plans on the Borgata Hotel/Casino as it is too far along to stop now.

This is not good news for those of us who visit Atlantic City as any new casino/hotel would be welcomed.