Atlantic City Casino Property Tax Talks Delayed, as State Budget Complicates Matter

Posted on: March 2, 2025, 12:00h. 

Last updated on: March 2, 2025, 12:00h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.
  • Atlantic City casinos pay a collective property tax
  • The tax is based on the prior year’s gaming revenue
  • Talks to extend the tax scheme have slowed

Discussions about Atlantic City casino property taxes have been shelved days after New Jersey Gov. Phil Murphy (D) unveiled an unprecedented spending plan for the state’s 2026 fiscal year.

Atlantic City casino property tax PILOT
Hard Rock, The Wheel, and Ocean Casino Resort in Atlantic City. The nine casinos in Atlantic City pay a collective annual property tax that’s based on their yearly gaming revenue, but their assessed property values. (Image: Shutterstock)

Since 2017, the nine casinos in Atlantic City have each paid a share of a collective property tax that’s based on the amount of money they won from gamblers in the previous year.

Known as payment-in-lieu-of-taxes, the PILOT program was designed to guarantee the timely payment of tax money to the state and Atlantic County, a guarantee that disappeared after five casinos closed between 2014 and 2016 that prompted the remaining resorts to contest their property tax assessments and therefore delay critical tax money to government coffers.

The current PILOT expires at the end of 2026. Atlantic County remains challenging the state’s 2021 decision to remove iGaming and online sports betting revenue from the property tax calculation. County officials say the adjustment has reduced the county’s share by $14 million over the past three years.

Atlantic City Casino Assessments

Murphy plans to partially fund his record $58.05 billion budget by increasing taxes on iGaming and online sportsbooks to 25%. Online casino revenue is currently subjected to a 15% tax, while online oddsmakers share 13% of their hold with Trenton.

With Murphy’s online gaming tax hikes paired with Atlantic County’s ongoing lawsuit challenging the 2021 PILOT amendment, state lawmakers working with the governor’s office on the property tax extension have opted to slow their talks.

State Sen. Vince Polistina (R-Atlantic), a member of the Senate State Government, Wagering, Tourism & Historic Prevention Committee, confirmed that the PILOT talks with Murphy had paused. Polistina is supportive of extending the PILOT scheme but not about raising taxes on online gaming.

We have a city that has been crippled from a tourism perspective for brick-and-mortar, and we have [downstate] New York gaming on the horizon,” Polistina told the Press of Atlantic City. “I don’t believe right now is the time to raise taxes on any gaming operations.”

Murphy’s record spending pitch includes more than $1 billion in new taxes.

“As property taxes, tolls, groceries, gas, and utility bills skyrocket, Murphy’s reckless spending continues,” a statement from New Jersey Senate Republicans read. “It’s time for Democrats to adopt our cost-saving proposals before it’s too late.”

County Official Seeks PILOT Landing

Dennis Levinson, Atlantic County’s longtime executive, wants to ditch the PILOT program. Levinson says the structure benefits the casinos at the expense of county residents.

I fail to comprehend why other states with casino gaming have been able to assess casino properties without the need for a PILOT that results in our taxpayers paying more,” Levinson wrote Polistina in a letter dated Feb. 11. “Why is this unique to New Jersey? Why is the NJ Legislature unable to provide a mechanism for proper tax assessments of casinos without putting the burden on our hardworking families who already contend with the highest state taxes in the country?”

Levinson said Polistina has refused to communicate with him. The two have long been political foes, but Levinson says he remains “willing to work together.”