We all hate the dreaded word, taxes. Most everyone hates filing and especially paying up. For casinos, each state requires a certain amount to be paid to be able to remain in operation. Top casinos around the US will pay the set amount in order to offer their services to customers. In Atlantic City, the Borgata Casino is owed a ton of money in tax refunds from the city and now refuses to pay any more taxes until they are paid.
The casino is owed over $170 million in tax refunds and has stated they will not be paying up until they receive some of the money. The casino has requested $62.5 million from Atlantic City, to be paid immediately, and a court has agreed. Atlantic City is on the brink of bankruptcy and has declared they simply cannot pay the casino that much money.
The general counsel for the Borgata, Joe Corbo, stated that the decision to demand the funds and stop paying taxes did not come lightly to casino owners. The casino has been patient, giving the officials of the city plenty of time to pay the amount owed or try to create good-faith negotiations. But after years of non-payment and delays, the casino does not want to wait any longer.
The city is in dire straits and paying the casino would hurt the city even further. Lawmakers of the state are trying to find a solution to help, even considering taking over the finances of AC. The overall debt currently stands at $240 million for Atlantic City. With gambling expanding in neighboring states, residents of New Jersey are visiting other areas, and Atlantic City is not getting the revenues they once were. Casinos are even being considered in the northern portion of the state to try and keep players from visiting other states for casino gaming.