Atlantic County and the State of New Jersey have settled their legal fight over changes to the casino payment-in-lieu-of-taxes (PILOT) law. The agreement, finalized on April 2, ends years of litigation and will bring the county about $59 million more than it would have received without the lawsuit.
The conflict began after lawmakers amended the PILOT law in 2021, removing online gambling and sports betting from the formula used to calculate casino payments. Atlantic County objected, arguing that the change unfairly reduced its share. County Executive Dennis Levinson led the challenge, claiming the amendment cost the county roughly $14 million.
“I am elated with this settlement and extremely grateful for the efforts of our legal counsel,” Levinson said. “It was a hard-fought battle.”
The original PILOT law, passed in 2016, aimed to stabilize payments from Atlantic City casinos. However, the 2021 changes reduced the total amount casinos had to pay, sparking the legal dispute.
Talks between Levinson and Department of Community Affairs Commissioner Jacquelyn Suárez earlier this year helped move the process forward. Levinson also thanked County Commissioner Ernest Coursey for playing a key role in keeping negotiations on track.
“This has been a long and expensive battle for both sides,” Levinson said. “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 supported the resolution, saying it offers a more productive path for Atlantic County. “The long saga of Atlantic County litigation needed to end so that we can move forward with addressing the challenges in Atlantic City,” he 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.”
Levinson said he never considered walking away from the case. “Throughout my career, I have tried to do the very best for the people I represent,” he said. “This case tested my resolve, but it was too important to simply dismiss as some had suggested.”
The resolution puts an end to a multi-year legal battle and allows the county to shift its focus back to managing local needs and planning for the future.
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