New Jersey voters will decide in November whether to expand casino gambling outside of Atlantic City, potentially ending its 40-year gaming monopoly.
Legislators approved the resolution to put to referendum the chance for two North Jersey casinos with required investments of $1bn each. The casinos must be located at least 72 miles from Atlantic City,and half of the taxes from casino revenues would go toward the struggling city’s finances, with the amount of aid declining over several years.
Atlantic City operators would get first priority for licences, with the process opening to others after 60 days. Locations and tax rates would be set later by enabling legislation.
So far the most reported potential locations are Meadowlands, where operator Jeff Gural proposed a $1bn casino with Hard Rock International, and in Jersey City where investor Paul Fireman proposed a casino in a $5bn mixed-use development he’s planning on the Hudson River across from Manhattan.
Atlantic City Mayor Don Guardian says if the referendum is approved at least three of AC’s remaining eight casinos will be forced to shut down due to new in-state competition. Some gaming analysts have predicted as many as four could shut.
However, the proposed new casinos are being billed as a way to capture gaming dollars that are currently going to casinos in competing states such as Pennsylvania, Delaware and New York.
Source: Fantini’s Gaming Report
