The leading establishment revenues can duplicate its competitor’s whilst having paid half-billion dollars in taxes since its opening in 2003.
US.- No more than a week ago, Borgata casino looked at its best after announcing a US$50 million investment in the renovations of the Atlantic’s complex. The establishment that prides itself in providing 5,803 jobs and most taxes incomes for New Jersey State is, since yesterday, avoiding to pay US$7.2 million in taxes, whilst they claim that Atlantic City owes them US$170 million in tax appeals.
The extraordinary amount could lead the city to declare bankruptcy if the encounters with the casino come to a bad end. The court stated that Atlantic City must pay at least US$62.5 million for taxes generated in 2009 and 2010. Meanwhile, New Jersey’s justice allowed both parts to stop any transaction until they reach a mutual agreement.
No statement was made by Borgata operators, but they keep discussing the legal terms with the city, especially when the city failed to pay US$88.25 million since December 31, 2014. The million dollar deal was made between Atlanta city and Borgata for tax years 2011 to 2014.
The land-based casino industry is finding hard lately to catch up with incomes generated by online gaming industry. Besides, a lot of companies take advantage of the city losses as they convince tax court that they should pay less because their business is not big enough to be charged that much.
“We did not come to this decision lightly. We have been tremendously patient, giving city officials every opportunity to pay the amounts we are owed, or to engage us in good-faith negotiations. But after years of delays and unsuccessful appeals by the city, we can wait no longer. We have a fiduciary duty to the shareholders of our parent companies to pursue collection of the amount we are owed, which currently stands at over $170 million with interest,” explained Joe Corbo, Borgata’s general counsel.