New Jersey state Sen. Vince Polistina thinks the time is right to resume supplying funding through the Casino Reinvestment Development Authority (CRDA) to help with projects involving Atlantic City casinos and other matters across the state. The CRDA has not been distributed funding in six years because the money has been funneled into dealing with Atlantic City’s debts instead.
Talks have been heating up in regards to the payment in lieu of tax (PILOT), while Atlantic County and the state settled on a lawsuit stemming from 2021. The county received $15 million in the settlement agreement.
With Atlantic City is falling into place, Polistina believes it’s a good time to re-invest into the CRDA.
Funds had been reallocated because of debt
According to the Press of Atlantic City, Atlantic City had reached $524 million in debt, which is a main reason why the CRDA did not get funding the last six years. The investment alternative tax (IAT) had been redirected to pay off the debt.
Because of sports betting, IAT has grown unexpectedly over the years. Polistina is ready to redirect the money, he told the Press of Atlantic City:
“CRDA is the main redevelopment entity in the city, and so we have got to get that money back there. They really need resources to be able to do things that need to be done, so we must get them funding.”
Atlantic City Mayor, Marty Small Jr., wants that funding, and even called out Polistina in a statement:
“The Great City of Atlantic City deserves that funding and more. Not to mention that we already receive no money from parking, luxury tax and sports gaming.
“When that Senator (Polistina) had an opportunity to tax relief for Atlantic City by making sure Atlantic City got a small percentage of sports gaming revenue, he blocked it.”
Polistina responded that the entire region needed help. He envisions the CRDA working with the Economic Development Authority (EDA) on future projects that help Atlantic City and surrounding areas.
How much debt has IATs paid back?
IATs are made up of a 1.25% tax on Atlantic City casinos and 2.5% on online gambling revenues. Because of the online gaming increasing since the pandemic, the IAT tax has grown rapidly.
Atlantic City has received $269 million in IAT funds since 2019, which has helped pay the debt. The city got $68.17 million in 2024 alone.
Polistina said that talks about re-funding the CRDA have been underway over the last five or six months. He also noted that Gov. Phil Murphy is committed to a solution before the end of his term in January 2026.
Polistina is hoping to figure out a plan by November of this year.
