Atlantic County Will Receive $15.7 Million From NJ to Remedy Gaming Tax Dispute
Posted on: June 13, 2025, 09:12h.
Last updated on: June 13, 2025, 09:59h.
- Atlantic County will receive $15.7 million from the state through a one-time payment
- The funds are to cover county property tax losses after state lawmakers amended the casinos’ PILOT
- The 2021 PILOT amendment removed iGaming and online sports betting from the property tax calculation
Atlantic County is closer to being made whole for what county officials said was outstanding tax revenue from iGaming and online sports betting that state lawmakers wrongly stripped from the region that’s home to Atlantic City and its nine casino resorts.
In 2021, New Jersey lawmakers, at the request of the nine casinos down the shore, passed legislation that removed iGaming and online sports betting revenue from the state’s annual calculation that determines how much the resorts collectively pay through their payment-in-lieu-of-taxes (PILOT) program.
The PILOT was afforded to the casinos in 2016 after five casinos closed and the remaining properties contested their real estate assessments. The legal challenges stalled the timely delivery of property taxes to the state and county.
PILOT bases the casinos’ property tax obligations on the amount of gross gaming revenue (GGR) they generated in the prior year.
The casinos successfully lobbied lawmakers to remove GGR from iGaming and online sports betting, claiming that much of that money goes to the physical casinos’ internet partners, such as DraftKings and FanDuel. Since those third-party entities have little or no brick-and-mortar presence in Atlantic City, the resorts argued they shouldn’t have to pay property tax on that income.
County Appeal
Following the PILOT tax adjustment, Atlantic County filed a lawsuit against the state, alleging that by removing iGaming and online sports betting from the casinos’ property tax bill, the county received considerably less money.
In a separate 2016 lawsuit resolved through a consent order, Atlantic County’s mandated share of the PILOT money was increased to 13.5%. The county claimed in its 2021 lawsuit that the change to the PILOT calculation violated the consent order.
State courts agreed with Atlantic County, which led to a settlement. This week, the state Local Finance Board, a unit of the New Jersey Department of Community Affairs, signed off on paying the county $15.7 million to make the county whole. The money will come through the state issuing a bond.
Speaking with Casino.org on Friday morning, Atlantic County Executive Dennis Levinson said the $15.7 million, which brings the county close to $59 million in additional property tax revenue than it would have received had the county not sued the state in 2016 and 2021, simply pays the county back.
All this does is make us whole — it is money owed to us,” Levinson told Casino.org. “We were running into a deficit here. We had to jump through hoops to make sure our tax rate was stable.”
Levinson explained that Atlantic County is the “second-poorest” in New Jersey.
“I have an obligation to [my constituents.] I represent the casinos, of course, but I have other obligations,” Levinson added.
Through the settlement, Atlantic County will receive the $15.7 million as a lump sum and then return to collecting quarterly property tax payments through the PILOT with iGaming and online sports betting revenue included. The state will bridge the tax gap between what the casinos actually pay and what the county receives.
2025 Revenue
Through four months of 2025, GGR from Atlantic City casino slot machines and table games is down 2% to $855.4 million. Oddsmakers have also seen declines, as sports betting win is 18% lower at $357.6 million. Online betting accounted for 96% of the bets from January through April.
In contrast with sports betting and brick-and-mortar, online gaming continues to surge. iGaming revenue during the four months totaled more than $908.4 million, a 21% year-over-year gain.
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