Proponents of the two separate plans for the expansion of New Jersey’s gambling industry outside Atlantic City seem to be in heated debates on which one of the two proposals should be put before voters at the November ballot.
Under both plans, two new casinos are to be built in North Jersey and a portion of the revenue generated by the venues would go to Atlantic City as a means to boost the once-popular gambling destination’s economy. The two bills, however, differ in the amounts of money that are to be contributed to the struggling casino resort.
On Monaday, the Mayors of three North Jersey cities issued a joint statement backing the plan proposed by Assembly Speaker Vincent Prieto. The Jersey City, Newark, and Paterson Mayors pointed out that the Assembly-sponsored bill was the better deal for North Jersey. Under Mr. Prieto’s plan, less tax revenue from the two new gambling venues would go to Atlantic City and more would be used to help surrounding North Jersey communities.
As for the other bill, it was proposed by New Jersey Senate President Steve Sweeney and was backed by the state Senate. Under Sen. Sweeney’s plan, half of the money generated by the two North Jersey casinos would go to Atlantic City. The other half would go to the remaining 564 municipalities across the state.
What is more, his proposal calls for the two new gambling venues to be managed by existing Atlantic City casino operators. Under the Assembly-backed plan, only one of the new casinos would be operated by a company that already owns a gaming facility in Atlantic City.
Both the Senate and the Assembly need to agree on one plan and it would then be put before voters at a November statewide referendum. New Jersey residents will have the opportunity to cast their vote on whether the state Constitution should be amended so that to allow gambling expansion outside Atlantic City.
Here it is important to note that the ballot question will not specify the municipalities that are to host the potential new casinos. However, Jersey City and the existing Meadowlands Racetrack in East Rutherford are currently the most talked-about locations.
Last year, real estate developer Jeff Gural and gambling operator Hard Rock International proposed the addition of a $1-billion full-scale casino resort at the East Rutherford-based racetrack. In addition, Paul Firemen, known to be the founder and former Chairman of Reebok International, announced plans for a $4.6-billion hotel and casino complex in Jersey City.
A hearing on the two casino bills is slated to be held on January 7.
