A recent court decision awarding the equivalent of 20% of Atlantic City’s annual revenues to a local casino is a credit negative for the city, Moody’s Investors Service said.

A New Jersey state court ruled last week that Atlantic City owed its largest taxpayer, Borgata Casino, a $50 million property tax refund. The casino had argued that since its gambling business has contracted over the last several years, the city should reduce its property tax assessment. The court’s agreement with this argument makes the casino the first one to have its property tax assessment changed based on this argument.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.