New Jersey’s Casino Control Commission approved a plan that will allow Caesars Entertainment Operating Co to lease operations at Bally’s and Caesars Atlantic City to a newly formed operating company, according to the Press of Atlantic City. The company also owns Caesars Atlantic City, which will remain under the parent company.
The move is part of Caesars Chapter 11 bankruptcy reorganization.
Under it restructuring, Caesars split the company into a real estate trust and an operating company. Under the plan, the real estate company would then lease operations to a newly created company, the Press reported.
“After a decade of decline, Atlantic City’s casino industry is turning around,” said Matthew B. Levinson, chairman and CEO of the commission. “It is my hope that when the reorganization process is complete, Caesars and Bally’s will be able to focus on growing their business just like other operators in New Jersey.
“The reorganization plan was hammered out through a very contentious Chapter 11 bankruptcy process,” Levinson said. “Before it becomes effective, the plan needs a variety of approvals from this commission as well as from the division (of Gaming Enforcement).”
As part of the agreement, the new real estate trust will not be required to need a full casino license but will instead need to apply for a Casino Service Industry License, the Press reported.
In another matter, the Press also reported that Atlantic County will actually receive more casino tax money than it did in 2016 under the state’s casino payment in lieu of taxes program.
County officials have been fighting with the state over the percentage of PILOT funds it will receive from casinos. County officials say they were initially promised 13. 5 percent of the about $120 million casinos will pay, but the state is giving the county about 10.4 percent.
However, that translates into $12.5 million for the year, better than the $11.9 million the county received last year, the Press said.
County Administrator Jerry DelRosso acknowledged to the paper that the county will get more money from the casinos, even with the smaller share, but he said a “huge credit” owed to Atlantic City this year from successful tax appeals will still cause a tax hike for other towns.
