New Jersey Tax Court reduces value of Borgata

Oct 28, 2013 7:38 PM

A decision by the New Jersey Tax Court last week reduced the value of the Borgata Hotel and Casino from the previous $2.26 billion to $870 million.

That was good news for co-owners Boyd Gaming Corp. (BYD) and MGM Resorts International (MGM) since it will provide them with a tax rebate of about $48 million for the 2009-2010 tax years. However, it probably will require each owner to take a $700 million charge to reflect the lesser value of the property.

As for the city, officials said they would appeal the decision.

“This is a devastating blow for Atlantic City…We certainly don’t have $50 million sitting in the bank,” an official said.

Ray Poirier is the longtime executive editor at GamingToday.

Contact Ray at Ray[email protected].

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