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].