Atlantic City just got hit by another storm recently; this one, financial. (Image source: LarryRivera.com)
Poor Atlantic City.
It gets battered by hurricanes, has its profits siphoned off by ever-increasing competition from surrounding states like Pennsylvania and Maryland, and has seen a seven-year continuous drop in gaming profits from its 12 land casinos overall. Finally, it has online casinos ready to launch on November 26th, and things are looking up from the income stream point of view.
However it gets another smack in the real face from the income tax man.
Tax Assessment Reversal for Borgata
Exactly What proved to be considered a huge victory for MGM Resorts International and Boyd Gaming wasn't a great deal for the currently faltering coffers of Atlantic City; the two gaming behemoths got a 61 per cent decrease in property taxes on their jointly owned Borgata Hotel and Casino which also happens to be certainly one of the less miserable profit disasters in town and now AC has to return pre-paid tax monies towards the two companies.
They can blame it on the Tax Court of New Jersey, which reassessed the top-grossing casino in the huuuge casino Garden State at $870 million, a huge drop from its 2010 evaluation of $2.26 billion. Without doubt there was champagne that is celebratory the MGM and Boyd Gaming conference rooms over that decision. But Atlantic City leaders must be putting their fists through some walls, due