Today is one the most consequential days in the gambling history of New Jersey as the future of the casino industry in the Garden state is expected to be determined.
New Jersey lawmakers are going to vote on the financial aid package intended to help the struggling gambling industry. Considerable changes, proposed by Gov. Chris Christie need to be made. New Jersey’s governor vetoed the bills that were proposed in November.
In addition, lawmakers are going to discuss the plans for establishment of casino venues in the northern part of New Jersey and residents will have the final say on the matter.
Regardless of the measures that are to be taken at today’s meeting, they will have a huge impact on the gambling matters of the state for decades.
The first matter lawmakers have to handle is related to the referendum regarding the gambling expansion outside Atlantic City. Both the Senate and the Assembly proposed bills, but they greatly differ from one another. The Senate bill proposes limiting the number of operators allowed to apply for a license. They demand only companies that are already available in Atlantic City to be authorised to run a North Jersey-based casino. The bill also suggests 49% gambling tax revenue to be generated from the new casinos.
The Assembly proposal includes giving a license to a company that is currently not available in New Jersey. They also propose a gambling tax revenue of 35%.
The two proposals are to be incorporated into one bill before being submitted to the Legislature. For the time being, the availability of casino venues is restricted to Atlantic City. Although no official information on the matter has been released, various suggestions about the location of the new casinos were put forward. Jersey City and East Rutherford are said to be the two most likely locations.
Later today, lawmakers are expected to take a stance about the so-called PILOT bill. If it passes, the remaining Atlantic City-based casinos will be enabled to make special payments instead of annual property taxes. People with knowledge on the matter are convinced that the proposal would be beneficial to both parties. Casinos will have a clear vision on their costs while the Atlantic City officials will not have to deal with tax appeals. The latter had a devastating effect on the economy of the city since the struggling casinos have repeatedly requested tax deductions.
All that comes at a time when Atlantic City casino venues are trying to bring their old glory back. The downfall that started in 2014 made four of them close doors for visitors, which, therefore, affected the economy in a negative manner. The city is still recovering from the losses. According to market analysts urgent actions need to be taken, otherwise Atlantic City may file for bankruptcy.
