Atlantic County Made Whole Over Outstanding Casino Property Taxes

Posted on: April 9, 2025, 07:51h. 

Last updated on: April 9, 2025, 09:51h.

Devin O'Connor @CasinoorgDevinO Read More

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• Atlantic County has reached a $15 million settlement with the State of New Jersey
• The settlement resolves a years-long legal saga
• The case stemmed from the Atlantic City casino PILOT program

Atlantic County has reached a $15 million settlement with the State of New Jersey that county officials say will make the county whole after being shorted in Atlantic City casino property tax payments.

On Tuesday, Atlantic County Executive Dennis Levinson revealed that the state had agreed to settle the county’s nearly eight-year-long lawsuit challenging a 2016 law that allowed the nine casinos in Atlantic City to stop paying traditional property taxes. The resorts were instead afforded annual payment-in-lieu-of-taxes (PILOT), with the rate being dependent on the casinos’ combined gross gaming revenue (GGR) in the prior year.

A 2021 amendment to the PILOT plan that removed online sports betting and iGaming from the annual tax calculation, county officials said, further reduced how much money the county collected from the gaming resorts. 

State Taxpayers Make County Taxpayers Whole

Since 2017, Levinson has been fighting for the county residents he represents on claims that the Atlantic City PILOT scheme wrongly hurts county property taxpayers for the benefit of the casinos and Atlantic City. In a statement, Levinson explained that the State of New Jersey agreed to provide the county with a $15 million lump sum this year and then issue quarterly casino payments through 2026 when the current PILOT plan is set to expire.

I am elated with this settlement,” Levinson said, adding that the nearly eight-year lawsuit, while costly, will result in Atlantic County receiving close to $59 million more than it would have if the county hadn’t challenged the 2016 PILOT and 2021 amendment. “It was a hard-fought battle.”

State officials and local attorneys representing Atlantic County credited Levinson for the outcome in the county’s favor.

“Throughout my career, I have tried to do the very best for the people I represent. This case tested my resolve, but it was too important to simply dismiss as some had suggested. Effective leaders need to remain steadfast in the face of challenges,” Levinson added.

Levinson long claimed PILOT hurt taxpayers in 22 county municipalities for the benefit of one. Now, it appears state taxpayers outside of Atlantic County will make up the difference through the $15 million settlement. 

Years-Long Resolution

Levinson and Atlantic County began challenging PILOT in 2017 just months after the law was enacted. Over the years, many court decisions have gone the county’s way, including rulings that the state cannot pass legislation that favors one industry over another.

The state and Levinson finalized the settlement on April 2 but delayed a public announcement until Tuesday to inform “all affected parties,” the county executive said.  

Levinson hopes state lawmakers don’t further extend PILOT when it expires next year.

“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 in February to state Sen. Vince Polistina (R-Atlantic), a member of the Senate State Government, Wagering, Tourism & Historic Prevention Committee. “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?”