Atlantic County reaches $15 million settlement in casino PILOT lawsuit

Atlantic County has reached a $15 million settlement with the state over litigation stemming from amendments to the casino payment-in-lieu-of-taxes (PILOT) law, officials said Tuesday.

The settlement, finalized on April 2, resolves a dispute over 2021 changes to the PILOT law that excluded online gambling and sports betting from the calculation of gross gaming revenues. County Executive Dennis Levinson said the agreement will result in the county receiving approximately $59 million more than it would have without the legal challenge.

“I am elated with this settlement and extremely grateful for the efforts of our legal counsel,” Levinson said in a statement. “It was a hard-fought battle.”

The PILOT law, introduced in 2016, was originally designed to stabilize tax payments from casinos. The county sued over its share of the payments and later challenged the 2021 amendments, which reduced the total amount casinos were required to pay. Levinson has estimated the county lost about $14 million under the revised formula.

A February meeting between Levinson and Department of Community Affairs Commissioner Jacquelyn Suárez helped pave the way for the resolution. Levinson credited County Commissioner Ernest Coursey with facilitating discussions that led to the agreement.

“This has been a long and expensive battle for both sides,” Levinson added. “Past and present county commissioners and municipal officials stood by me throughout this arduous process. Their enduring support helped bring this settlement to fruition.”

State Senator Vince Polistina called the agreement a step forward for the region.

“The long saga of Atlantic County litigation needed to end so that we can move forward with addressing the challenges in Atlantic City,” Polistina said. “The people of Atlantic County are better served through the collaboration, communication and negotiation we have demonstrated with the administration rather than prolonged litigation and acrimony from some.”

“Throughout my career, I have tried to do the very best for the people I represent,” Levinson said. “This case tested my resolve, but it was too important to simply dismiss as some had suggested.”