The Borgata casino is asking a judge to order Atlantic City to pay more than $62 million in tax refunds that the court has already determined the casino should get.
The move could lead to seizure of some city assets, or even a municipal bankruptcy filing.
The city missed a Sunday deadline to pay refunds for 2009 and 2010, which were ordered by a tax court that found the city had assessed the casino’s property at too high a level given Atlantic City’s declining gambling market.
The casino tells The Associated Press the city owes it more than $150 million in refunds, including other tax years.
Atlantic City Mayor Don Guardian has said the city could be forced into bankruptcy if it has to pay all at once.