Lawyers representing Atlantic County and the state of New Jersey once again came before Superior Court in their legal battle over the amended casino payments-in-lieu-of-taxes (PILOT) law.
At stake is whether the calculations should include sports betting and online gaming. The state, in support of the amendments, argued against inclusion of the two revenue streams as most of the money goes to outside operators. The county charges that the amendment violates a 2018 court settlement.
On April 25, Ron Israel, the state’s attorney, said Judge Joseph Marczyk erred when he ruled February 25 that the amendment violated the settlement, according to the Press of Atlantic City.
Israel claims the decision should have been limited to whether the law can take effect before the case is adjudicated. Instead, Israel said Marczyk went further and ruled the consent order had been violated. The state filed the request for reconsideration March 17. Due process requires giving the state opportunity to address the consent order in a separate hearing, Israel said.
Ron Riccio, representing the county, argued the opposite. Riccio said he had submitted “at least 10 different occasions in which defendants were put on notice the county considered the amendment to be a violation of the consent order.”
“Judge Marczyk’s decision is entitled to respect by your honor,” Riccio said. “They have made no allegation of substantive error of law … or that legal principles were violated in any way.”
With Marczyk temporarily reassigned to Appellate court, Assignment Judge Michael J. Blee will oversee the case. Blee will rule May 2.
If the state prevails, the county stands to be deprived of $15 million to $26 million through 2026. The original casino PILOT law in 2016 was designed to create stability to income coming in to help Atlantic City financial distress resulting from successful casino tax appeals.
Under the consent order, the county was to get about 13 percent of PILOT funds calculated under the 2016 law. That law was interpreted as including online sports betting and internet gaming under gross gaming revenues.
“All we want them to do is keep their agreement, honor their commitments,” Atlantic County Executive Dennis Levinson has said.
