Atlantic City Faces Bankruptcy

by San Antonio Attorney

Atlantic City, popularly known for casinos that can be at par with other major cities such as Las Vegas, is suffering from financial troubles.  The city has been experiencing this problem for the past few years.

Four out of the eight popular casinos have suffered financial troubles for the past few years.  The city’s revenue has dropped by 8% last year.  The four casinos along the city’s hallmark boardwalk have been closed due to tough competition from nearby states resulting into the layoff of more than 8,000 jobs.

Chris Christie, Governor of New Jersey has sparked outrage when he recently rejected the state legislation that would have saved the city from its debilitating condition.

This proposed legislation was vetoed by Christie, which lead the public into disappointment since these funds would have saved the sinking city.  These funds, which were typically remitted to the state, would have been directed to the city instead to alleviate its financial problems.

The bills, if it was approved, would have permitted casinos to make a full payment of an annual lump sum instead of being burdened by taxes.  This would have shielded casinos from tax appeals that would potentially damage total assessed value.

In response, Christie released an official statement from his office.

Christie stated that the Atlantic City government has been given several chances over five years along with two city administrations to resolve their structural budget issues and over-the-top spending.  Christie added that he will not request taxpayers to continue to tolerate in ‘waste and abuse.’

Atlantic City’s funds will likely be depleted within three weeks following Borgata casino’s notice on Feb. 5 that it will no longer pay taxes unless the city relinquishes the tax refunds amounting to $62.5 million.

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