WAYNE PARRY Associated Press
ATLANTIC CITY – New Jersey lawmakers offer financial relief to Atlantic City casinos to help them continue to recover from the coronavirus pandemic by exempting two of the calculations industry’s fastest growing revenue streams on how much casinos should pay the city.
This would reduce payouts for some casinos, including Borgata Hotel Casino & Spa, while imposing higher payouts on others, including Hard Rock Hotel & Casino Atlantic City.
The bill, which was introduced Monday morning by a state Senate committee, is the renewal of a measure requiring casinos to make payments in lieu of taxes in Atlantic City that was first enacted five years ago, when the city was reeling from the closure of five of its 12 casinos.
There are currently nine casinos.
Easily able at the time to show that their businesses were worth less in a declining market, casinos have successfully appealed their property tax assessments year after year, helping to drive huge holes in the budget. Atlantic City.
The payment in lieu of taxes invoice, known as PILOT, was enacted to give casinos and the city some certainty over their finances in exchange for banning gambling halls from appealing their tax assessments.
âBill PILOT actually saved Atlantic City,â said Joe Tyrell, regional vice president of Caesars Entertainment, which owns Caesars Atlantic City, Harrah’s Resort Atlantic City and Tropicana Atlantic City. âWithout the PILOT you wouldn’t have had Hard Rock open, you wouldn’t have had Revel reopened as Ocean. Casinos were appealing their taxes.