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.”
|1||Damon Impersonates Malkovich From 'Rounders'|
|2||Someone Paid €110,000 To Player Poker With Ed Norton|
|3||Jon Turner Wins CPPT Venetian Main Event|
|4||CPPT Venetian: Thomas Paul Leads Final 16 Players|
|5||CPPT Venetian: Erick Lindgren Leads Final 62 Players|
|6||Kuljinder Sidhu Wins Bellagio Cup XII Main Event|
|7||Vegas Bookmaker Fined $1.5M, CEO To Resign|
|8||Poker Strategy: Beware Of Unforced Bets|
|9||Poker Strategy With Ed Miller: Three Bet-Sizing Tells|
|10||Caesars In Talks To Sell CIE, But Would Keep WSOP|
|1||Poker Pro Folds Quads To All-In Bet In Main Event|
|2||Final Nine Set For 2016 WSOP Main Event|
|3||Fedor Holz Wins 2016 WSOP $111,111 High Roller|
|4||Man Runs Up $10K Into One Drop Buy-In Playing BJ|
|5||Phil Ivey Enters First And Only WSOP Event In 2016|
|6||Raymer Not Impressed By Being Last Former Champ Left|
|7||Mercier Proposes To Girlfriend At Final Table|
|8||Man Pays $10K To Enter Ladies Event At 2016 WSOP|
|9||2016 WSOP Main Event: 80 Players Remain After Day 5|
|10||Money Bubble Bursts In 2016 WSOP Main Event|