Atlantic City has enjoyed a monopoly on casino gambling in the Garden State for four decades. However, that may all change by the end of the year as New Jersey voters will get to decide if two casinos can come up in north Jersey. Both houses of the state legislature approved a resolution that will have voters decide on November 8th whether to approve of the two casinos.
Experts believe that this could radically change the state’s gambling industry. The state’s Senate voted 34-6 and the state Assembly 54-15 in favor of the resolution. This is despite fears among some lawmakers that any new casinos would have a negative impact on Atlantic City, which is already struggling financially. Atlantic City became a premier gambling destination in the mid 1970s when casinos were legalized. However, competition from gambling halls in neighboring states has led to the closure of four casinos in the city.
Those in favor of the new north Jersey casinos coming up claim that it would make New Jersey more competitive, create thousands of jobs, and help the state earn millions of dollars in revenue. If voters stamp their approval, Atlantic City could earn up to $200 million in taxes a year from the new casinos to offset the losses it would potentially incur from the new casinos. The remaining revenue is to be split between tax relief for senior citizens and the disables and other programs. Two percent would go towards reviving the state’s horse racing industry and to counties and municipalities where the new casinos come up, which must be at least 72 miles from Atlantic City, as per the proposal.
Officials predict that as many as four Atlantic City casinos may be negatively impacted by the new casinos, leading to their closure. Trump Taj Mahal’s new owner said he was not interested in any re-investment into the property. On the other hand, Revel, a $2.4 billion casino that shut down is expected to re-open in the summer.
Atlantic City’s Mayor Don Guardian is apprehensive about such a move and fears that it would break the city’s casino gambling monopoly which would be detrimental to the city which has been on the verge of bankruptcy. Following the crisis the state may take over some of the city’s finances. Atlantic City’s largest casino, The Borgata, also stopped paying taxes after the city owed it as much as $160 million in tax refunds, a major chunk of its $240 million debt. Currently, Atlantic City has no means to pay off the debt.
The only silver lining currently is that online gambling operators in New Jersey will still have to be based in Atlantic City. In addition, revenue from online gambling continues to grow steadily. With the launch of PokerStar NJ, the state’s online betting industry ought to receive a major boost.
