The state legislature’s attempt to rewrite the terms of a consent order reached with Atlantic County in 2018 regarding payments by Atlantic City’s nine casinos may be upended, a Superior Court judge ruled on Friday.
While the judge, Joseph Marczyk, declined to overturn a bill signed into law by Gov. Phil Murphy in late December, Marcyzk added that the state “is subject to sanctions and/or damages” that will be calculated at a court hearing in March. That route may give county officials what they have sought: redress to make the county whole on the payments-in-lieu-of-taxes (PILOTs) that were agreed upon four years ago.
The previous settlement had directed 13.5% of the PILOT money from the casinos’ gross gaming revenue to Atlantic County. But the new law exempted online casino gaming and mobile sports betting revenue, with the latter amounting to almost 90% of all sports betting. Brick-and-mortar sportsbook wagers make up the other 10% or so.
Atlantic County officials have estimated that the updated law could cost its residents almost $30 million over the next four years.