A judge has ruled that Atlantic City violated an agreement to repay millions of tax dollars to the most successful casino in the city.
The settlement stems from tax appeals filed by the Borgata. The Borgata had reached a settlement of $88.25 million with the city for tax years 2011 to 2014.
Monday's ruling finds the city in breach of the settlement and allows Borgata to pursue a trial on the tax appeal in tax court. But the judge ordered the parties to continue mediation and regularly report back to the court.
The ruling comes as Atlantic City is set to run out of money on Friday.
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Two measures to help the city's finances are being held up by a disagreement between Gov. Chris Christie and the Democratic leader of the Assembly.