The New Jersey state Senate on Monday passed by a vote of 38-1 the $90 million purse subsidy agreement reached between the Atlantic City casinos and the racetracks. The deal had previously been approved by the state House, so it will now go to Gov. Jon Corzine for his signature.
A clause in the agreement also gives the Atlantic City casinos a tax break on "comps" that the casinos give out. Under the clause, the combined value of free slot-machine plays--"comps"--issued by casinos in excess of $90 million per year would be tax exempt. According to the New Jersey Casino Control Commission, last year the casinos issued $90 million in comps, which generated $7.2 million in tax revenue.
The racetracks also agreed as part of the deal to not seek to add video lottery terminals over the next three years.