The proposal for the expansion of New Jersey’s gambling industry outside Atlantic City cleared on Thursday its first legislative hurdle. The resolution is expected to be placed before voters at the November ballot.
Currently, casino gambling is only allowed in Atlantic City. The proposed legislation calls for the construction of two new casinos in North Jersey. However, the state Constitution first needs to be amended.
The resolution has met strong opposition, with South Jersey legislators arguing that if approved, it would cause more damage to the already struggling Atlantic City. For years now, the once-popular gambling hub has been losing customers to venues in neighboring states. If new casinos are built in New Jersey, the city will have to cope with in-state competition as well.
Despite the vocal opposition, the proposed legislation cleared its first legislative hurdle on Thursday. The New Jersey Senate budget committee approved the resolution with an overwhelming majority.
According to proponents of the plan, the establishment of two gambling venues in the northern part of the state would help New Jersey remain competitive in a constantly expanding gambling market, create numerous jobs for residents, and bring billions of dollars in casino revenue both to North Jersey and Atlantic City, thus giving the latter the opportunity to remodel and revitalize its casino industry.
Two legislators voted against the casino measure on Thursday, with Sen. Jeff Van Drew being one of those. Commenting on his decision not to support the gambling expansion, he said that he believes it would result in more Atlantic City casinos closing doors in the years to come. In 2014, the gambling hub saw four of its twelve casinos close doors and thousands of people employed at those lost their jobs.
After months of heated debates between Senate President Steve Sweeney and Assembly Speaker Vincent Prieto, the two legislators agreed on Monday on a compromise resolution to be put before voters in November. The two officials had previously presented two separate but very similar bills for the expansion of the state’s gambling industry.
After clearing its first hurdle, the proposal still needs an approval from both the state Senate and Assembly before being placed before New Jersey residents. The bill needs to be passed by three-fifths of all legislators before August.
If eventually approved by voters, the proposed legislation would require that gambling operators who manage existing casinos in Atlantic City be given the chance to own no less than 51% in each of the two new casinos.
However, those operators would need to apply for a casino license within 60 days, under a last-minute change in the bill that was introduced on Thursday. Under the former version of the proposed legislation, gambling companies would have had 6 months to apply for ownership.
In addition, operators of the two new casinos would have to invest at least $1 billion in each new gambling hall, thus ensuring that they would be major entertainment centers and not just “slots in a box.”
