Senate
Bill 2575, which was introduced concurrently with Assemblyman John
Burzichelli’s (D-District 3) Assembly Bill 4187 in identical text and language,
would amend the current law on how license holders proceed in closing and
opening casinos.
The
bill seeks to disqualify casino license applicants if the person or entity
behind the bid “substantially closed” a casino property in the previous five
years. The definition of “substantially closed” would be defined by the state’s
Division of Gaming Enforcement (DGE) and give additional powers to the gaming
regulatory authority.
The
text of SB 2575 suggests that operators who intentionally close a casino with
plans to later reopen the venue under a new name with new labor contracts would
qualify as owners who “substantially closed.”
The
clause makes no secret about its intended target, even though it doesn’t
directly reference Carl Icahn or the soon-to-shutter Trump Taj Mahal. After a nasty labor dispute, the
billionaire announced the casino resort would be closing on October 10.
The
Taj shutdown will mark Atlantic City’s fifth casino closing since
2014. Icahn says he stands to lose $100 million on the entire undertaking,
but others believe he has more sinister plans.
“This
bill encourages casino owners to keep their properties open and rebuild
Atlantic City rather than keep their license and throw thousands of families to
the curb,” Sweeney said.
Ongoing Labor Disputes
Icahn
has been in a heated battle with the Unite Here Local 54 labor union that works
at the Trump Taj Mahal. The billionaire developer acquired the flailing
property in February by purchasing Trump Entertainment Resorts.
The
union, which represents bartenders, wait staff, cooks, and housekeepers,
demanded the restoration of member health and pension benefits, plus higher
hourly wages. A bankruptcy judge allowed Icahn to reduce certain benefits for
an interim period, in order to bring the casino resort out of the red.
But
the union, which represents about 1,000 of Taj’s 2,800-employee workforce,
eventually lost its patience and initiated several protests, all of which fell
on deaf ears when Icahn wouldn’t relent.
“Icahn
Enterprises was willing to endure a tough situation when we thought we could
emerge successful,” Icahn said in a letter to employees. “We wish this story
could have had a different ending. We will do everything we can to manage the
closure in the best way possible.”
Sweeney in Retrograde
Some
in New Jersey believe Icahn is “warehousing” the casino gambling license, and
will reopen the resort under a new name, and with a new labor force. Sweeney’s
bill would prevent him from doing just that.
And
regardless of the fact that SB 2570 isn’t presently on the books, the Senate
president is making sure it would apply to Icahn, by including a provision that
makes the legislation retroactive to January 1, 2016.
“Casino
owners shouldn’t be able to misuse bankruptcy laws and gaming regulations in
order to warehouse a license or take money out of the pockets of casino workers
and strip them of benefits simply because they refuse to come to a labor
agreement with their employees,” Sweeney told the Press of Atlantic City
this week.
Source: Casino.org
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