New Jersey Sues Beleaguered Atlantic City Over Its Last Remaining MoneyGov. Christie Announces Lawsuit While State Tries To Take Over AC |
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Even though the state is working on a plan to take over its finances, New Jersey has filed a lawsuit against the beleagured seaside gambling town.
Led by Gov. Chris Christie, the Garden State is suing to try to make sure most of the $10 million Atlantic City has left in its coffers ends up going to the school district.
Christie said in a Monday press conference that Assembly Speaker Vincent Prieto, along with Atlantic City Mayor Don Guardian, is standing in the way of a path out of Atlantic City’s dire financial situation.
“What the Speaker wants to do is, he has made a very clear position here: that there is nothing more important than rich public sector union contracts.” Christie said. "Not Atlantic City’s school children, not the rightful debts that are owed to bond holders who have helped finance this large asset on the part of the Atlantic City government, not the casinos who have been overtaxed over the years and a court has made a judgement that they’re owed over $200 million [that] the City took by force from them with the right to tax illegally.
“None of that stuff matters more than a lifeguard getting a pension,” Christie added. "Nothing else matters more than a Deputy Police Chief getting a $320,000 pay out, on their way out the door, by the way after they’ve been making $198,000 a year.
Christie has said that he won’t let Atlantic City file for bankruptcy. Atlantic City’s debt stands at $240 million, of which $160 million is owed to the Borgata in the form of a tax refund.
By most accounts, the fortunes of Atlantic City look even worse if voters in November decide to end its decades-long monopoly on Las Vegas-style casinos. The referendum could lead to two casinos in north Jersey, which some believe would cause further closings in Atlantic City, which has eight casinos these days after four closed in 2014. It could also block Revel, the most expensive casino in Atlantic City’s history, from re-opening under different ownership.
Though its casino gambling market has been cut in half since 2006, New Jersey does have more than 90 percent of the regulated online gambling market in America. The online gambling sites, which must be based out of Atlantic City, generated more than $148 million in revenue last year. Last month, the world’s largest poker site launched in the Garden State, giving an immediate boost to online gaming there, though the figures won’t be out until later this month.
Amaya Gaming last week received a six-month renewal of its license for PokerStars
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