‘Ball Is on The 5 Yard Line’ – Millions $ for Atlantic County, NJ

Yesterday, I had a definitive conversation with a senior state of New Jersey source … who confirmed that “The ball is on the 5 yard line,” meaning that a deal is within reach.

Atlantic County is close to receiving millions of dollars to resolve a many years controversy with the state of New Jersey.

For years, Atlantic County government has been in a tangle with the state of New Jersey regarding the Atlantic City casino PILOT legislation … which stands for Payment in lieu of Taxes.

The legislation has provided the Atlantic City casino industry with stability in what they pay in lieu of property taxes.

Former Governor Chris Christie and Atlantic County Executive Dennis Levinson took turns for years … calling each liars with regards to how much the Atlantic County government side of the ledger would receive.

The litigation has been expensive for Atlantic County taxpayers, costing more than $ 1.3 million since 2018, when Atlantic County won a consent order in New Jersey Superior Court before the Honorable Joseph Marczyk and Michael Blee.

Atlantic County Executive Dennis Levinson is fighting for what he believes is a $ 5 million shortfall each year from 2022 through 2024.

Levinson is going for a second bite of the apple … as Atlantic County sued the state, alleging that a change made by the state … violated the 2018 consent order that provided for a 13.5% share of the annual PILOT dollars be set aside for Atlantic County.

Specifically, Levinson’s argument pertains to the iGaming and online sports betting revenue being eliminated from the calculations … thereby resulting in what Levinson contends is a $ 5 million annual shortfall for the County of Atlantic.

On its face, Polistina rightfully defends the PILOT as follows:

In 2015, Atlantic City was nearly bankrupt, casinos were failing and shutting their doors propelling the City into financial despair. At the core of this issue were the overvalued local tax assessments of the casino properties," said Senator Vince Polistina.

The PILOT was negotiated by the Christie administration to help stabilize the City's finances and provide certainty for tax revenue from casinos each year. As we have seen, these reforms including the PILOT have changed the outlook for the City's finances. Given the financial success, I believe the PILOT should continue in conjunction with an extension of MSRA and a discussion on how IATs should be best allocated, said Polistina.

Polistina began dialog with Governor Phil Murphy and other legislative leadership in late 2024 to grapple with the upcoming expiration of the PILOT and MSRA.

Regarding Levinson’s lawsuit versus the state of New Jersey … forever appeals have kept this situation going and has denied Atlantic County potential millions of dollars due it.

New Jersey Senator Vince Polistina, R-2 has been leading the charge from his perch on the Senate Government, Wagering, Tourism & Historic Prevention Committee … regarding PILOT extension discussions.

With New York City casinos in the foreseeable future, as well as other competitive disadvantages, the Atlantic City casino jurisdiction must be provided with tax stability.

Polistina is right on this point and Levinson is wrong.

To be fair, Governor Murphy inherited this entire mess from Chris Christie … and, Governor Murphy has honorably attempted to resolve the problem ever since.

A settlement between the state of New Jersey and the County of Atlantic may be just days away regarding the protractive litigation previously outlined here.

Polistina wants Levinson and the County of Atlantic to step-up and help Atlantic City succeed … which makes a whole lot of sense … because as Atlantic City goes… So goes Atlantic County and the state.

There is no denying this fact.