New Jersey legislators introduced on Friday a bill that if approved, would result in the construction of two casinos in the northern part of the state. Currently, Atlantic City is the only place within New Jersey’s borders where casino gambling is legal.
State Senate President Steve Sweeney told media that the proposed legislation calls for a statewide referendum on whether two new casinos should open doors in North Jersey. The vote would be held in November 2016 and the ballot question on the matter would not specify the locations for the gambling venues.
However, the New Jersey Legislature needs to give the nod to the proposed deal first in order for state residents to be able to cast their votes. Here it is important to note that if people vote in favor of the proposed construction of new casinos outside Atlantic City, this would be the most significant change implemented in the state’s casino law since 1978, when the first casinos opened doors in the seaside resort.
Commenting on the latest announcement, Mr. Sweeney said that the question for gambling expansion outside Atlantic City has long been discussed and that now it is up to voters to decide whether they want casinos in North Jersey. According to the legislator, new gambling venues in the northern part of the state would “revitalize an industry” that is extremely important to New Jersey’s economy.
Under the proposed legislation, a portion of the revenue generated by the potential new casinos would go to Atlantic City in a bid to help its struggling economy. Last year, four of the city’s twelve casinos closed doors and more than 8,000 people remained unemployed.
The news about the possible opening of gambling venues outside the city was not welcomed by everyone. The Casino Association of New Jersey noted that the seaside resort’s casino industry has started to stabilize in the last few months, after it had been seriously hit by competition from surrounding states. According to members of the association, the last thing Atlantic City needs now is competition from within the state.
East Rutherford is one of the potential locations for a casino in North Jersey. Earlier this year, gambling operator Hard Rock International proposed the addition of a $1-billion resort and sports complex at the existing Meadowlands Racetrack. Jersey City is the other likely candidate for a host of a new gambling venue. There, business magnate Paul Fireman proposed a luxury resort costing more than $5 billion.
Under the proposed bill, the new casinos need to be located no less than 75 miles from Atlantic City. What is more, they are to pay a much higher tax on gaming revenue than the 8% one that existing gambling venues currently pay. Hard Rock offered to contribute 55% of its overall revenue to the state.
Tax revenue from the two new casinos would first go to a special Investment Fund that would distribute the money to various causes. During the first 15 years of the new venues’ operations, 49% of the money would be contributed to Atlantic City’s casinos to compensate for their losses, another 49% would go to counties and municipalities, and 2% would be contributed to the state horse racing industry.
