New Jersey lawmakers continue to search for new ways to give the state’s gambling industry a boost after voters rejected the referendum to approve casinos outside the territory of Atlantic City this past November. New Jersey’s gambling industry has suffered a decline which can be attributed to the growing out-of-state competition on the gambling market.
In addition, the MGM National Harbor Resort and Casino, which opened doors in Maryland on December 8, 2016, is expected to put a further pressure on the already struggling gambling market in New Jersey.
As a result, lawmakers in the state have proposed a new bill which is to allow existing casino operators to partner with the Monmouth Park Racetrack in Oceanport and the Meadowlands Racing & Entertainment in East Rutherford. The aim is to introduce specified areas inside the two racetracks where online gambling is offered.
The said online gambling centers will be referred to as internet cafes and are expected to boost the revenue of the declining horse-racing industry in New Jersey while enabling web-based casinos to legally offer their online gambling operations on the territory of the racetracks.
Anthony Marino, a local market analyst and former executive of the South Jersey Transportation Authority, remains skeptical the introduction of the new bill will bring about the desired results. According to Marino, the increased gambling opportunities on the territory of New Jersey will lead to a drop in the number of people visiting the casino resorts in Atlantic City.
The Atlantic City Expressway’s Pleasantville Toll Plaza traditionally serves as an indicator of the number of people visiting the resort. According to the reports, the number of cars passing through the toll plaza in 2009 exceeded 23.9 million. Over the past few years, however, this number has declined and stood at 18.5 million vehicles in 2015.
Marino said in a statement that allowing online casino gaming at New Jersey racetracks, such as Freehold, Monmouth Park, and Meadowlands, would likely impact visitation numbers in Atlantic City in a negative way, although probably not as much as allowing full-service casinos as was proposed in the failed referendum this past November.
If the new bill passes, New Jersey racetracks would be able to lease out space to casino operators, designated specifically for online gambling activities. Dennis Drazin, adviser to Monmouth Park, believes this would work to the advantage of both casino operators and racetracks. According to Drazin, the so-called internet cafes would provide casinos with the opportunity to expand their business. The adviser also disclosed he had already been approached by a couple of casino operators but declined to reveal their names.
The Casino Association of New Jersey has yet to make a comment on the proposal. The latter comes as a result of the New Jersey lawmakers’ efforts to expand gaming beyond Atlantic City without a referendum. Assemblyman Ralph Caputo, D-Essex, is already looking to introduce video lottery machines at racetracks since based on a ruling by former Attorney General Irwin Kimmelman in 1982, lottery terminals do not require a public referendum.
