New Jersey legislators have eventually come to an agreement on a question to be put before voters on the November ballot regarding the potential expansion of the state’s gambling industry outside Atlantic City.
The deal put an end to continued heated debates on which one of the two proposed legislations should be presented to voters. Last year, New Jersey Senate President Steve Sweeney and Assembly Speaker Vincent Prieto introduced two separate but very similar bills for the establishment of two casinos in North Jersey.
Essentially, the proposals differed in who should operate the new gambling venues and how much of the revenue they generate should go to Atlantic City in a bid to help it fight off in-state competition. Under Sen. Sweeney’s plan, both facilities would have been managed by current Atlantic City gambling companies and half of their tax revenue would have gone to the once-popular gambling hub. However, the operators would have been allowed to work with outside partners who could have owned up to 49% in the new casinos.
Under Assembly Speaker Prieto’s bill, only one of the new facilities should have been run by an operator that had already introduced its services within the state border. Thus, major gambling companies would have been given the chance to enter the New Jersey market.
For months, top legislators have tried to reach an agreement on which one of the two plans was better for Atlantic City and the state as a whole. And the deal was struck on Monday, just a day before the end of the two-year legislative session.
The sponsors of the two rivaling plans had to make certain compromises in order for an accord to be reached and the best possible proposal to be put before voters. On Monday, Gov. Chris Christie together with both Sen. Sweeney and Assembly Speaker Prieto announced that a $1-billion investment minimum would be imposed on developers of both casino projects. Thus, they would have to build gaming and entertainment complexes and not just “slots in a box.”
What is more, under the new bill, the current Atlantic City gambling operators would have half a year to propose casino projects for the northern part of the state. And if they fail to come up with such plans, both licenses would be offered to any company that is interested in entering the New Jersey gambling market.
Sen. Sweeney’s bill was passed by the Senate on Monday. The Assembly-backed proposal is expected to be introduced today, with the investment provision being added to it. The compromise plan for the expansion of the state gambling industry needs to be voted in favor of by three-fifths of New Jersey legislators before August in order to be added to the November ballot.
