“Britney Bill” Tax Breaks, Designed to Lure A-List Entertainers to Atlantic City Casinos, Could Help City Come Back

Posted on: October 7, 2015, 02:53h.

Last updated on: October 7, 2015, 03:07h.

Casino.org Staff Writer Read More

Expertise: Commercial Gaming.

Britney Spears Britney Bill New Jersey tax breaks — Let me entertain you: the “Britney Bill,”a tax credit for A-list artists who routinely perform in Atlantic City and other areas within the state, is being considered by New Jersey lawmakers. (Image: whatsthet.net)

The so-called “Britney Bill” might soon be signed into law in New Jersey. The State Government, Wagering, Tourism & Historic Preservation Committee has approved the measure, which would provide tax breaks for top-level entertainers who regularly perform in Atlantic City and can pull in the massive crowds the casinos need to make bank these days.

First introduced in January by State Senators Tom Kean (R-District 21) and James Whelan (D-District 2), S-2721 “provides gross income tax credit for A-list performing artists for income derived from certain live performances contracted for and rendered within the Atlantic City Tourism District on a recurring basis and within the State.”

The “Britney Bill” is a reference to Britney Spears’ residency show at the Planet Hollywood in Las Vegas, precisely the type of program New Jersey wishes to attract to its casinos.

Kean and Whelan believe the measure will boost the struggling economy in the east coast gambling mecca and the state as a whole. Whelan, who represents Atlantic City, said bringing premiere talent “will help pump revenue into the local and state economy, create jobs, and at no cost.”

But Who’s A-List?

One concern stemming from the five-page bill relates to how the Garden State would determine whether an act is qualified to be labeled “A-list.”

According to the language included in the proposal, the final decision would be in the hands of the Secretary of State. Governor Chris Christie appointee Kim Guadagno currently holds that office, a 56-year-old former attorney.

Britney Spears, Bruce Springsteen, Taylor Swift, Rihanna, and Pharrell Williams are all unquestionably A-listers, but what about Jersey icon Frankie Vallie? The Secretary of State labeling and grouping performers seems difficult, and highly controversial.

Qualifying criteria is forthcoming, but will likely be based on ticket and record sales, along with national award recognitions.

The bill doesn’t only lend itself to musicians and entertainers, but also dancers, actors, comics, and athletes. To qualify, the performer must be contracted on at least four occasions in Atlantic City during the calendar year.

“There’s tremendous value in the ability to consistently draw world-class entertainment here, especially considering widely successful A-lister residencies in Las Vegas, where there’s no income tax,” Kean said.

Atlantic City Sunshine

It’s been rather dreary and gray for Atlantic City over the past few years, as neighboring states have legalized land-based gambling to their constituents, thus eliminating the need to travel to the beachfront town.

Kean and Whelan speculate that making the resort city a hub of big-name acts would revitalize the boardwalk, but not everyone agrees giving the already-rich performers tax breaks is logical.

“Wealthy entertainers don’t pick concert venues for their tax rates,” Gordon MacInnes, president of the New Jersey Policy Perspective said. “The only folks gaining income since the Great Recession are those in the top tax brackets … They’re the least in need of tax breaks.”

New Jersey’s version of the “Britney Bill” is expected to be taken up by the Senate Budget and Appropriations Committee.

Regardless of whether the legislation becomes law, optimism remains for Atlantic City.

PokerStars is on its way to the online gaming market, and its land-based partner Resorts Casino will soon open the first-of-its-kind Internet gaming lounge.

That might not totally save the struggling town, but it’s a good start.

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stevenorton October 7, 2015

This is positive news for Atlantic City, encouraging A List entertainers to play AC more frequently, by offering an attached tax incentive. But in my view it needs some tweaking. We discovered at Resorts in AC and at our casino/resort on Paradise Island, that both jurisdictions are very different than Las Vegas. Vegas today, has 40 million visitors, but the great majority come no more often than once a year, so a long running show, like Britney Spears is appealing to new visitors each week. Atlantic City, at its peak, hosted 35 million customers, but with our convenience to Philadelphia, NY City, Baltimore and Washington DC; we could only use a major star, Like Frank Sinatra, 4 times a year, performing 4 shows a weekend. But in the 1,700 seat Super Star Theater, that meant a maximum of 27,000 potential customers. For stars, like Madonna, Britney and Billy Joel, they perform in much larger arenas, than even the Boardwalk Hall, so 2 full performances at the BW Hall would exceed a full 16 shows at Resorts. The AC visitor is very different than those going to Vegas. Our peak visitor totals were around 35 million, as many as 40% arriving on line rum busses from NY City, Philadelphia, Baltimore, Washington and all points in New Jersey. Because of our nearness to 33 million US residents, we never attracted air service, that would have allowed us to reach all on North America, like Las Vegas. In fact our 35 million visitors were probably no more than 5 to 6 million individuals, many visiting 10 or 20 times a year. So we had to have a constantly changing lineup at our Super Star Theater. If you are going to include performances at the Boardwalk Hall or other larger venues, it may be impractical to include a minimum of 4 visits annually, before the tax breaks commence. It is reasonable to require 4 visits at Theaters with less than 2 thousand seats, but the bill should not require more than one or two major annual events at the Boardwalk Hall, or on the beach, possibly 2 shows at each event. Without this change, I am afraid we will discourage performers, like Madonna or Britney.