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Casinos taxed on complimentary drinks

Wednesday, March 1, 2000 | 11:12 a.m.

THE ASSOCIATED PRESS

TRENTON, N.J. -- Complimentary drinks on the casino floor come with a price to the gaming hall, an appeals court ruled.

Casinos must pay state sales tax on the value of the alcohol they give away to gamblers, the Appellate Division of state Superior Court ruled in a defeat for TropWorld Casino and Entertainment Resort and the Grand casinos.

TropWorld Casino and Entertainment Resort changed its name to Tropicana Casino and Resort in 1996, the same year that the Grand became the Atlantic City Hilton.

While last week's case dealt with a limited amount of sales tax, an attorney for Tropicana said more than $2 million in taxes owed on complimentary drinks industrywide is at stake.

In Thursday's case, the judges ruled that the Grand owes $158,466 from 1991 through 1994 and TropWorld owes the state $504,774 from 1990 to 1995.

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