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New Jersey lawmakers had not introduced legislation to renew Atlantic City’s casino tax agreement as of Nov. 9, according to The Press of Atlantic City. The payment-in-lieu-of-taxes program, known as PILOT, expires at the end of 2026 unless lawmakers adopt another five-year agreement.
Expiration would return casino tax payments to a system based on assessed property values.
PILOT Uncertainty Affects City Budget and Police Talks
Atlantic City received $54.4 million in PILOT payments in 2025. Atlantic County received $18.6 million that year.
The pending renewal is affecting city budget planning and negotiations with Police Benevolent Association Local 24. The union has been without a contract since the start of the year. It said the city has cited the need for a PILOT agreement before finalizing a contract.
“Everyone in the city is waiting on the state legislature’s casino pilot bill to pass so the city can plan their budgets ahead,” the union said, according to The Press of Atlantic City.
How the Casino Tax Agreement Changed
The original PILOT legislation was adopted in 2016, followed by a revised version in 2021.
The 2021 amendments excluded online casino and online sports betting from the definition of gross gaming revenue. Those changes reduced casinos’ payments replacing property taxes by about $55 million annually.
The state cited competition from other states and the COVID-19 pandemic’s effects as reasons to protect casinos.
Atlantic County Executive Dennis Levinson said in March that PILOT had improved city finances and reduced costly casino tax appeals. In June, the county received $15 million to settle its lawsuit against the state over the 2021 amendments.
Seven Legislative Sessions Remain
State Sen. Vincent J. Polistina said renewal discussions were ongoing, according to The Press of Atlantic City. He expressed hope that legislation would be adopted before year-end.
The legislative calendar has seven sessions remaining: two in November and five in December.
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Source: As reported by The Press of Atlantic City.
