By
Jane Shaw
Senior Editor Updated: 12/06/2023
We count on Jane to inform our readers about the latest slot games in the US market. With her passion for video games and a degree in engineering, she’s our gambling tech expert. Jane’s also active in our blog section, where she tackles the curiosities and changes in the industry.
Casino Reinvestment Development Authority
According to recent reports, the Atlantic City Casino Reinvestment Development Authority (CRDA) is set to experience a significant change in its leadership. This comes following claims that Sean Pattwell, the current executive director, plans to step down from his position. This development was reported by ROI-NJ, a New Jersey media outlet. At present, the exact timeline for Pattwell’s departure remains unclear.
Pattwell, who assumed the role of executive director at CRDA on April 1, 2022, came from a background in the insurance industry. He also has a range of qualifications, including a Bachelor’s degree and three Master’s degrees. According to ROI-NJ, he is leaving the CRDA to pursue other opportunities.
The CRDA has played a pivotal role in New Jersey’s economic landscape, especially in Atlantic City, since its establishment in 1984. The authority was formed following a 1976 state constitutional amendment that legalized casino gambling in Atlantic City.
This 1984 law mandated that each casino license direct 2.5 percent of its gross gaming revenue to the state or reinvest 1.25 percent of its gaming income through the CRDA. Over the years, Atlantic City casinos have consistently chosen the reinvestment option. However, the CRDA’s handling of these funds has been a subject of controversy.
Controversy has arisen because the CRDA’s mission is to reinvest this revenue and taxes into projects and programs that bring meaningful and positive change. However, this mission has been questioned by many Atlantic City residents in recent years.
One notable controversy involved the CRDA’s financial support for the Miss America pageant, which was hosted annually at Boardwalk Hall. The agency was criticized for providing over $4 million yearly to the Miss America Organization. Facing backlash, the CRDA ceased this subsidy after the 2019 event, leading to the pageant’s relocation to Mohegan Sun in Connecticut.
In 2018, a state audit conducted by then-New Jersey State Auditor Stephen Eells brought to light several issues within the CRDA, including inefficient use of funds, accounting discrepancies, and overpayment to vendors due to inadequate negotiations.
The CRDA, defended by then-chair Robert Mulcahy, insisted that it was audited annually by a top independent accounting firm, resulting in clean opinions confirming its financial controls. He said:
I want to make sure that the public understands that the Casino Reinvestment Development Authority is audited annually by one of the top independent accounting firms in the nation.
Data shows that the CRDA’s funding streams are diverse, including collecting 1.25 percent of brick-and-mortar gaming revenue from each casino. Additionally, it levies a luxury tax on hotel revenues at 9 percent, collects 3 percent of alcohol sales, 9 percent of entertainment receipts, and a nightly $3 per vehicle parking charge from the casinos.
With Pattwell’s impending departure, the CRDA is gearing up for a national search to find its next executive director. Pattwell’s annual salary as the executive director was $175,000, as shown in state employee records.
The change in leadership comes at a crucial time for the CRDA, as it continues to navigate its role in supporting Atlantic City’s economic growth and development amid ongoing scrutiny and challenges.
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