New Jersey lawmakers introduced on Monday a bill that would allow the launch of three new casinos in the northern part of the state.
Under the New Jersey constitution, casinos are only permitted in Atlantic City. South Jersey legislators stated that they did not approve of the proposed bill, as the opening of new venues would certainly have a negative effect on the struggling Atlantic City gambling industry. Back in 2014, four casinos closed doors and the city posted a decline in annual gaming revenue for eighth consecutive year.
The legislation would call for voters to give their approval for a ballot referendum that would allow the construction of three casinos in Essex, Hudson, and Bergen Counties.
According to Assemblyman Ralph Caputo (D-Essex), one of the bill’s sponsors, the Meadowlands Racetrack will likely be where the Bergen County casino is to be located. Hudson County will probably locate its casino in Jersey City. The Essex County casino location is yet to be determined.
Assemblyman Caputo also commented that they would like for the referendum to be included in the November election. Yet, he pointed out that this is to be decided by Senate President Stephen Sweeney and Assembly Speaker Vincent Prieto. The New Jersey Legislature will have to vote in favor of the proposed legislation before August 3, in order for the casino question to be included in the November ballot.
Last week, Gov. Chris Christie said that he would support the launch of casino properties in North Jersey only if a portion of their revenue goes to Atlantic City and its struggling gambling industry.
As previously reported, New York-based real estate developer Jeff Gural and Florida gaming company Hard Rock International had expressed interest in adding a casino to the existing Meadowlands Racetrack in Bergen County. In addition, businessman Paul Fireman proposed the construction of a $4.6-billion casino and entertainment resort on the Jersey City waterfront.
Assemblyman Caputo, who is Chairman of the Assembly Tourism, Gaming and Arts Committee, commented that not only the northern part of the state would benefit from the proposed legislation, but also Atlantic City and South Jersey as a whole. In other words, North Jersey casinos would contribute millions of dollars in tax revenue to the suffering casino resort. Furthermore, casino employees who worked at the shuttered Atlantic City venues would be given preferences for jobs at the potential North Jersey facilities.
No information has been given as to how much exactly Atlantic City would receive in tax revenue. Yet, Assemblyman Caputo estimated that between $200 million and $300 million would be annually contributed to the city.
As mentioned above, the proposed legislation is to meet strong opposition from South Jersey lawmakers. According to them, any new casinos outside Atlantic City would draw its customers away and would result in further declines in revenue.
Assemblyman Caputo, in turn, argued that their main purpose is to attract New Jersey residents back to local gambling venues, as it is currently losing customers to casinos at neighboring states.
