Owning a casino, gambling hall, poker room or racetrack might seem like a very profitable venture, but that quickly changes when a massive tax bill hits the doormat.
Casinos in Philadelphia, Delaware and New Jersey face hefty tax bills this year due to exceptions made in the past. These bills could hurt the long-term future of the aforementioned businesses and the current assessments will be fought out in court over the next few months, perhaps even years.
The Harrah’s Philadelphia Casino & Racetrack received a property-tax bill of $5,000,000, making them the biggest tax paying entity in the region, not even just the state of Delaware. The Casino & Racetrack had appealed toe valuation of $218 million of their 65 acres of property on the Delaware river, but to no avail.
Other casinos in the region, such as Parx Casino in Bensalem and several Atlantic City casinos, have successfully fought to have their tax bill reduced based on the premise that they were not nearly as profitable as suggested, and that competition took away some of their competitive edge.
The added tax revenue that casinos across the East Coast are set to bring in is key for states and counties and the last word hasn’t been said on these enormous assessments, valuations and eventual tax bills.