ATLANTIC CITY – The state announced today new financial reporting requirements affecting the casino industry.
The changes should improve reliability of financial information and timeliness in reporting, according to Acting Director David Rebuck.
“At the same time, the statutory mandate that financial information be consistent, comparable, and publicly-available remains largely unchanged,” Rebuck said in a release.
“The public should be assured that the financial results of the casino industry in Atlantic City will be as open and transparent as they have been in the past.”
According to the Division of Gaming Enforcement, there were four primary goals:
1. Increasing the Division’s financial oversight of casino licensees and their parent companies through documents and reports that are already prepared internally, thereby decreasing its reliance on “prescribed” forms and reducing redundancy;
2. Maintaining the current level of transparency of the casino industry by posting the same financial reports and statistics on the Division web site as those currently in place;
3. Incorporating the standard reporting conditions typically imposed in conjunction with financial petitions into the Division regulations to ensure uniform application industry-wide and enhancing the Division’s financial oversight; and
4. Requiring the ongoing submission of financial filings, as opposed to the filing of up to five years of data at one time to the Division during the periodic review of a casino’s continuing qualification.
The changes are in response to re-regulation of the industry under Senate bill S12.
Also, there will be a requirement that each licensee and parent company file financial projections on an annual basis with the Division. For casino operators in Atlantic City, this submission will replace the filing of the Annual Financial Stability Forecast forms, as well as the multi-year License Renewal Forecasts, according to the Division.
The Division stated that this will enable the state to more effectively monitor their financial stability. Previously, parent companies periodically filed financial forecasts for up to a three-year period and were not subject to an annual filing requirement like casino operators.
This regulation will provide the Division with more current financial information and eliminate the historical reliance on multi-year forecasts that typically become outdated after the first year, the Division stated.