MGM Resorts paid $900 million to Boyd Gaming for their 50% of Borgata. Now, MGM has it all.
Boyd Gaming not only gets $900 million, they’ll also pocket half of any future tax settlement that MGM/Borgata reaches with the bean counters of Atlantic City.
NOTE: The $900 mil deal is based on the VALUE of the Borgata’s entire business, not just the old dumping ground it sits on.
The sale places a fair market value of the Borgata Casino at $1.8 billion. Too bad Atlantic City won’t benefit in that number.
Did you know…..The city’s #1 casino will only have to pay taxes under the PILOT bill? That’s IF a judge tells them to start paying their taxes again. The Borgata has been Atlantic City’s top-performing casino since it opened back in 2003.
THE PILOT BILL uses this formula to determine who pays what….
- gaming revenue
- hotel rooms
- property size
A judge said the Borgata’s assessed value is only $850 million. Borgata is currently paying NO taxes, as sanctioned by a judge who said AC owes Borgata well over $150 mil, due to tax appeals.
According to the Press of Atlantic City, the timing of the sale prevents the deal from having any impact on what Borgata pays under the new law.
Did Atlantic City officials once again got schooled by the big and powerful casinos?
NOTE: Borgata skipped last two quarterly tax payments. Atlantic City owes Borgata over $160 million in back tax refunds.
According to reports, Borgata was billed $29 million annually, for property taxes.