New Jersey’s Takeover of Atlantic City Could Continue Despite County Opposition

Posted on: November 12, 2025, 04:50h. 

Last updated on: November 12, 2025, 04:51h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.
  • Atlantic City remains under the control of New Jersey
  • The county executive wants Atlantic City to self-govern and the casinos’ property tax plan tossed

Atlantic City’s governance has been under the state’s control since 2016, when the casino town faced significant fiscal and budgetary problems. It could remain that way for at least another half-decade.

Atlantic City takeover New Jersey
The Showboat Hotel and Hard Rock Hotel & Casino are pictured along the Boardwalk, with an old, rundown car in the foreground. Many residents in Atlantic City continue to seek an economic upswing, something the state’s takeover that began in 2016 was supposed to deliver. (Image: Getty)

In 2016, New Jersey lawmakers and Gov. Chris Christie (R) took control of Atlantic City amid a $100 million budget deficit caused by what state officials said was poor governance, runaway expenses, high taxes, and a crippling local economy due to five casinos closing between 2014 and that year.

Atlantic City has since stabilized. Gov. Phil Murphy (D), who criticized the state’s takeover, pledged during his 2017 campaign to hand back control to the city. The Democrat flip-flopped on the matter and signed a bill in 2021 that extended the takeover through November 2026.

Lawmakers in Trenton on both sides of the political aisle are readying legislation to extend the state’s control of the city.

State Sen. John Burzichelli (D-Gloucester) is behind a statute to extend the takeover by five years. Sen. Vince Polistina (R-Atlantic) is finalizing a bill to extend the state’s control through 2036.

Local Opposition 

One elected official not in favor of extending the Atlantic City takeover is Atlantic County Executive Dennis Levinson. During a wide-ranging interview with Casino.org in April, Levinson criticized the state for the current status of Atlantic City.

I want Atlantic City to succeed. I want it to thrive, but our streets are deplorable. The lighting is bad. We can’t even synchronize the lights. These are basic fundamental things that cities have to do,” Levinson said.

“If someone is in control of something, they have responsibility for it. The mayor and council’s hands are tied. The state controls the city, from fruit to nuts,” Levinson continued. “In 20 years, you can’t tell me state control has made Atlantic City a more desirable area.”

Levinson did acknowledge that the casinos “are extremely desirable” with “the top chefs and top entertainment in the world.” But he said the state has let Atlantic City down, “either by design or by incompetence,” and that it is “deteriorating.”

State lawmakers believe the state’s takeover has been a success.

Since 2016, the State of New Jersey has been an active partner with Atlantic City in managing its operations and addressing significant debt issues. With increased gaming competition from New York City and the ongoing desire by North Jersey legislators for gaming in North Jersey, it’s more important than ever that the State and City continue working together for the benefit of all residents,” Polistina said recently.

In April, Murphy told the Press of Atlantic City that the city is “heading in the right direction.”

You’ve got a successful partnership,” the governor said. “We’ve done a lot of really good things together. You have to have a very compelling rationale to break that partnership up.”

PILOT Talks Also Expected

Along with the bills to consider further extending the state’s takeover, lawmakers in Trenton are set to mull legislation related to the nine casinos’ payment-in-lieu-of-tax (PILOT) program.

The PILOT coincided with the state’s takeover, as casinos contested their property tax assessments after five resorts shuttered and business floundered. The PILOT was designed to ensure that casino property taxes were delivered to state and local governments on time.

The PILOT bill is based on the previous year’s gross gaming revenue generated by the nine casinos. Polistina has suggested making the PILOT “continue in perpetuity.”

Levinson is opposed to the PILOT, too.

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. 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 asked Polistina in a February letter.