The Revel Casino Hotel in Atlantic City has been permitted by a judge to pay $26m to settle a $33m tax dispute with the city.
Bankruptcy judge Gloria Burns also indicated she would approve a request to increase the size of Revel's bankruptcy loan from Wells Fargo to $61m to pay for the tax settlement.
The deal will provide Revel with a tax cut of approximately $7m and the struggling Atlantic City with much-needed cash.
Four of the city's 12 casinos closed last year with another, the Trump Taj Mahal, in bankruptcy proceedings. The closures have left approximately 10,000 people jobless.
