New Jersey's top elected Democrat has introduced
legislation to expand gambling beyond Atlantic City, with a proposal that could
go before voters next year.
The proposal, released Friday by Senate President Stephen
Sweeney (D., Gloucester), would allow two casinos in separate counties in towns
at least 75 miles from Atlantic City, which is still reeling from a wave of
casino closures last year.
Under Sweeney's proposal, a little less than half of the
revenue netted by the state from the new casinos would go toward the
"recovery, stabilization or improvement" of Atlantic City, with other
revenue going toward programs for seniors, the disabled, and "other such
purposes as the Legislature provides by law." After 15 years, the share of
revenue going to Atlantic City would decline.
Sweeney said in a statement that the expansion was
necessary to "revitalize" the casino industry in New Jersey, "so
that we can compete with neighboring states, generate the revenue needed to
revive Atlantic City, and contribute to economic growth."
His proposal was denounced by officials representing
Atlantic City, who said added competition would hurt the beleaguered Shore
resort.
Sen. Jim Whelan (D., Atlantic) said the proposal would be
"disastrous for our local economy." Assemblyman Chris Brown (R.,
Atlantic) said it would put "thousands more of our local middle-class
families out of work."
Atlantic City Mayor Don Guardian, a Republican, likened
the proposal to placing four Dunkin' Donuts stores at one intersection.
"It will be impossible for all four businesses to
survive," he said. "Sure, you can say that each Dunkin' Donuts store
is more than 100 feet away from each other, but that doesn't negate the fact
that it is an oversaturation of Dunkin' Donuts."
With its dense population, North Jersey is "a
healthy, robust market" for two casinos, "even though this area is
becoming increasingly saturated," said Alex Bumazhny, gaming analyst for
Fitch Ratings.
But he said new casinos would create "significant
pressure in Atlantic City," which has faced increased competition from
casinos in Pennsylvania and upstate New York. While Atlantic City has started
to stabilize after four casinos closed in 2014, Bumazhny said, adding casinos
in the northern part of the state "could result in further closures."
The proposal "potentially could be neutral for
Atlantic City," depending on the revenue directed there, Bumazhny said.
"But for casinos themselves in Atlantic City, it's definitely a
negative."
A spokesman for Sweeney said he intended to hold a vote
on the proposed constitutional amendment during the current legislative
session, which ends in January. If the measure garnered a three-fifths majority
in both houses - or if it passed twice in two legislative years - it could go
on the ballot in 2016.
Ballot measures do not require Gov. Christie's approval.
The Republican governor has said he favors expanding gambling to North Jersey.
His office did not respond to a request for comment Friday on Sweeney's
proposal.
Assembly Speaker Vincent Prieto (D., Hudson) on Friday
described the proposal as part of "an ongoing discussion."
"The Assembly may well have its own ideas about how
best to bring gaming to North Jersey, stabilize Atlantic City, and support
programs for senior citizens and the disabled," Prieto said.
Lawmakers in North Jersey and other areas outside
Atlantic City have been pushing for expanded gambling. One proposal that didn't
advance this year would have allowed three casinos to be located in Essex,
Hudson and Bergen Counties.
Sweeney's proposal does not specify where the casinos
would go; locations would be determined through legislation.
For Sweeney, who is expected to run for governor in 2017,
the possibility of casinos in a variety of counties "is a great
negotiating tool," said Patrick Murray, a political analyst at Monmouth
University.
"This is not about economics; it's about
politics," he said.
Trade unions voiced support Friday for Sweeney's
proposal, which "will provide a real boost to trade workers and will be a
forceful benefit to the state's economy," said William T. Mullen,
president of the New Jersey State Building and Construction Trades Council. The
union has urged Sweeney to run for governor.
Public opinion, however, could pose a hurdle. A Fairleigh
Dickinson University PublicMind poll in June found 56 percent of New Jersey
adults opposed to opening casinos outside Atlantic City and 37 percent in
favor.
The Casino Association of New Jersey said Friday that it
opposed Sweeney's proposal. "We do not believe that North Jersey casinos
are a prudent option to help" protect the interests of Atlantic City, the
association said in a statement. "The last thing this community needs is
more competition from within our own state's borders."
Some were more optimistic.
"I don't know that they have an ocean up there,
OK?" said Glenn Straub, the Florida developer who bought the shuttered
Revel casino and plans to reopen it. "We have nostalgia. They don't have
any nostalgia."
Source: Philly.com
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