Fifteen U.S. lawmakers are now up in arms against Caesars Entertainment Corp.’s real estate investment trust (REIT) plan, which will provide the beleaguered gaming and entertainment firm a favorable tax treatment, Reuters reported.
In a letter dated May 26, the legislators cautioned Treasury Secretary Jacob Lew from approving Caesars’ REIT plan, saying that doing so would amount to giving the bankrupt gaming firm a taxpayer subsidy.
The letter, according to the news outlet, was signed by 14 Democrats and one Republican, Representative Frank LoBiondo, who represents Atlantic City, New Jersey, where Caesars owns the Bally’s and Caesars casinos. An affiliate of Caesars also owns a Harrah’s casino in Atlantic City.
“The REIT would effectively shelter a considerable portion of the casinos’ profits, thus functioning as a taxpayer-funded subsidy to one of the largest casino companies in the U.S. and its private equity owners,” the US lawmakers said in their letter to Lew.