A court in New Jersey has been granted a 90-day stay concerning a decision to throw out a state law that would give huge tax breaks to Atlantic City casinos.
Judge Grants 90-Day-Stay Pending Appeal
On August 29, 2022, Superior Court Judge Michael Blee ruled that changes to the casino payments-in-lieu-of-taxes (PILOT) law which were passed and approved by the state in 2021 were enacted on dubious grounds and were in breach of the state Constitution as the amendments were made in favor of the industry and not for a public purpose.
Non-profit organization Liberty and Prosperity filed the lawsuit challenging the constitutionality of the PILOT law amendments which would see casinos enjoy tens of millions of dollars in tax breaks by cutting out online gambling and sports betting revenues from calculations of gross gaming revenue (GGR).
In September, the state filed a motion for a stay of the ruling as it appeals the case to the Supreme Court.
Status Quo Must be Maintained as Parties Await Decision from Higher Court
Granting the 90-day-stay, Judge Blee said the status quo must be maintained until a higher court gives its decision on the constitutionality of the 2021 legislation, adding that the state was right to ask for a stay as the case revolves around a constitutional issue.
