Score one for the Golden Nugget in Atlantic City and its peppery owner, Tilman Fertitta. Its threat to “blow up” a property-tax reform deal was sufficient to bring about a 
compromise acceptable to all sides. Under the original bill and its fixed-payment system, annual levies would have risen for casinos that arguably need the help the most. Now, that overage will be credited toward their Casino Reinvestment Development Authority payments. Also subtract the $2 million a year the Nugget would have paid the defunct Atlantic City Alliance and you’ve got a package Fertitta can accept.
As Nugget corporate counsel Steve Scheinthal put it, “We’re protected for five years; that’s a good thing. At least we have some stability and we know our taxes aren’t going to rise.”
Elsewhere, negotiations have reached an impasse between Carl Icahn and Robert McDevitt over the fate of Trump Taj Mahal. Already McDevitt’s Local 54 had stared down an Icahn and Trump Entertainment Resorts Monday-afternoon ultimatum to drop its appeal of a bankruptcy court’s revocation of pensions and health benefits. Said one source, “the union believes Carl will back down, but I don’t think he is going to.”
Neither Gov. Chris Christie (R) nor state Senate President Stephen Sweeney (D) is described as wishing to see the Taj close but neither man “wants to be seen as giving Carl a bailout.” Once that precedent is set, where does it stop? Meanwhile, the ripple effects are being felt. For instance, baker Frank Formica could lose one of his biggest customers. He’s certainly a gambler: filling massive orders for the Taj strictly on credit (and a bit of faith). “We believe that Atlantic City is close to stabilization. You can see it by the rising gaming revenue among the remaining casinos,” he says, but worries that time is in short supply. “If all the dollars in Atlantic City right now were arrows, you would have to hit the bull’s-eye with just about every one of them to get this right.”
* Despite the Department of Justice‘s ruling that Native American tribes can raise and sell marijuana (strictly on their reservations), don’t hasten to your favorite tribal casino to play slots and toke. Several additional matters will need to be adjudicated, such as whether state or tribal law takes precedence. For one example, the Chickasaw Nation has made it clear that it will defer to Oklahoma state law and neither grow nor sell. (Actually, the nation left itself a little wiggle room: “has no desire … plans to continue …”).
Departmental spokesman Wyn Hornbuckle laid out the central issue cogently. “The Justice Department is committed to dealing with tribes on a government-to-government basis. This policy statement recognizes that Indian country is incredibly diverse, and different tribes will have different perspectives on enforcement priorities that are in the best interest of their community’s public safety.” That’s probably as much clear visibility as we can hope for at this stage.
