Miss America Casino Funding Deal Under Scrutiny by New Jersey Lawmakers
Miss America Casino funding deal under scrutiny by New Jersey lawmakers
The Miss America Organization (MAO) secured a lucrative deal with New Jersey’s Casino Reinvestment Development Authority (CRDA) in 2017, involving nearly $4 million in casino funding aimed at supporting the pageant’s annual event in Atlantic City. However, this significant funding is now facing scrutiny from various state lawmakers who argue it’s a questionable allocation of tax dollars.
The call to reevaluate the funding has intensified following a recent email scandal involving top officials of the MAO and CEO Sam Haskell, who was implicated in inappropriate remarks directed at past contestants. New Jersey Assemblyman Vincent Mazzeo (D-Atlantic) has voiced the need for the CRDA to reassess its financial commitments, stating, “It’s time to rethink and prioritize how it spends its money, starting with the subsidy to the MAO.”
While Mazzeo expressed a desire for Miss America to continue its long-standing residence in Atlantic City, he insisted it should do so without reliance on CRDA funds.
CRDA’s Funding Mechanism
The CRDA’s financial support originates from a $5-per-night hotel fee imposed on guests at Atlantic City’s seven casinos, along with a $3 daily parking fee. Furthermore, the agency collects 1.25 percent of gaming revenue through the Investment Alternative Tax (IAT), which is typically designated for non-gaming improvement projects. However, the funds have primarily been allocated to manage the city’s debt under ongoing financial oversight of Atlantic City.
Additionally, the CRDA enforces a nine percent luxury tax on hotel stays and entertainment ticket sales, as well as a three percent alcohol consumption tax.
Since 2014, the Miss America pageant has been held at Atlantic City’s Boardwalk Hall. Recently, Gretchen Carlson, Miss America 1989 and former Fox News anchor, replaced Haskell as the Chairwoman of the Board of Directors.
Concerns Over Fiscal Responsibility
Assemblyman Chris Brown (R) has joined Mazzeo in questioning the justification for the $4 million subsidy, highlighting the pageant’s declining audience and waning marketability. Brown emphasized the need for the CRDA to consider the broader impacts of such funding on the public.
The original agreement established in February 2016 involved a total payout of $11.9 million over three years, as it was believed that hosting the pageant would provide a boost to Atlantic City’s tourism amidst declining visitors.
Conclusion
The funding deal with the Miss America Organization has become a point of contention among New Jersey lawmakers, with its future uncertain following the controversies surrounding the organization. As discussions evolve regarding the best use of public funds, the implications for both the pageant and Atlantic City’s tourism economy are at the forefront of local legislative agendas.
