Borgata To Stop Paying Taxes To Atlantic City
Judge Says Friday That AC Must Pay $62.5 Million
Atlantic City owes its largest casino more than $170 million in tax refunds, and now the casino says it is done paying taxes until it gets a large chunk of it back.
The Borgata casino says it wants $62.5 million from the city immediately and a court agreed Friday, according to a report from the Associated Press. Atlantic City, which has considered bankruptcy, says it can’t pay it.
“We did not come to this decision lightly,” Joe Corbo, the Borgata’s general counsel, said. “We have been tremendously patient, giving city officials every opportunity to pay the amounts we are owed, or to engage us in good-faith negotiations. But after years of delays and unsuccessful appeals by the city, we can wait no longer. We have a fiduciary duty to the shareholders of our parent companies to pursue collection of the amount we are owed, which currently stands at over $170 million with interest.” Borgata is owned by Boyd Gaming and MGM Resorts.
Thanks to the dire situation Atlantic City faces, New Jersey lawmakers are currently mulling over a plan to take over the city’s finances. Atlantic City’s overall debt stands at $240 million.
Gambling expansion in neighboring states have led to the city’s casino gambling market contracting from $5.2 billion in 2006 to just $2.4 billion last year.
The Borgata had nearly $700 million of that casino win, up eight percent year-over-year.
In addition to the court battle to recover the tens of millions from Atlantic City, the Borgata is still fighting for $9.6 million from poker pro Phil Ivey. The casino claims Ivey cheated it in mini-baccarat sessions from 2012, though Ivey says the technique he used was “sheer skill.”
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