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[h=1]New Jersey plans vote on expanding casinos beyond Atlantic City[/h]
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[h=5]MONICA CABRERA / THE MORNING CALL[/h]Analysts have said putting casinos in northern New Jersey would create competition for Sands Casino Resort Bethlehem, where table games are popular among many patrons bused in from the New York metro area.
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Wayne Parry, Of The Associated Press
1:57 pm, December 11, 2015
ATLANTIC CITY, N.J. — New Jersey plans to let voters decide next November whether to approve two new casinos in the northern part of the state.
State Senate President Steve Sweeney says lawmakers have agreed to seek a referendum on two new casinos in separate north Jersey counties.
Analysts have said that would create competition for Sands Casino Resort Bethlehem, where table games are popular among many patrons bused in from the New York metro area.
The state Constitution currently restricts casinos to Atlantic City and an amendment would be required to allow them in other places.
The most commonly mentioned location for a northern New Jersey casino is at the Meadowlands Racetrack in East Rutherford, just outside New York City. Hard Rock International and the Meadowlands Racetrack unveiled plans in June for a $1 billion casino at the sports complex, next to the stadium where the NFL's New York Jets and Giants play.
Other proposals would locate a casino in Jersey City, where footwear magnate Paul Fireman has proposed a casino resort costing as much as $5 billion. Other less specific proposals have been floated for Newark, and several other northern counties.
The move comes as Atlantic City's casino market continues to shrink, beset by eve-increasing competition. Last year, four of the city's 12 casinos closed, putting more than 8,000 people out of work. The surviving casinos have just begun to see their revenue increase with less competition.
The ballot question would not specify locations for either casino, and crucial details would remain to be worked out by the Legislature if the new casinos were approved. Among the questions: How much tax they would pay? And, how much money would Atlantic City receive as compensation for the expected loss of business due to in-state competition?
If voters agree to amend the state Constitution to permit casinos beyond Atlantic City, it would mark the biggest change in legalized gambling since casinos began operating here in 1978. It also would mark an existential challenge to Atlantic City's eight casinos, but would also provide them a lifeline of new revenue from hefty taxes the new casinos would pay.
A key element of expanding casinos to northern New Jersey is having them pay a much higher tax rate than the 8 percent the Atlantic City casinos pay. An unspecified portion would be sent to Atlantic City to help compensate it for the inevitable loss of customers.
The plan to approve a referendum faces strong opposition from southern New Jersey lawmakers.
[h=1]New Jersey plans vote on expanding casinos beyond Atlantic City[/h]
|
[h=5]MONICA CABRERA / THE MORNING CALL[/h]Analysts have said putting casinos in northern New Jersey would create competition for Sands Casino Resort Bethlehem, where table games are popular among many patrons bused in from the New York metro area.
ADVERTISEMENT
Related Content
Wayne Parry, Of The Associated Press
1:57 pm, December 11, 2015
ATLANTIC CITY, N.J. — New Jersey plans to let voters decide next November whether to approve two new casinos in the northern part of the state.
State Senate President Steve Sweeney says lawmakers have agreed to seek a referendum on two new casinos in separate north Jersey counties.
Analysts have said that would create competition for Sands Casino Resort Bethlehem, where table games are popular among many patrons bused in from the New York metro area.
The state Constitution currently restricts casinos to Atlantic City and an amendment would be required to allow them in other places.
The most commonly mentioned location for a northern New Jersey casino is at the Meadowlands Racetrack in East Rutherford, just outside New York City. Hard Rock International and the Meadowlands Racetrack unveiled plans in June for a $1 billion casino at the sports complex, next to the stadium where the NFL's New York Jets and Giants play.
Other proposals would locate a casino in Jersey City, where footwear magnate Paul Fireman has proposed a casino resort costing as much as $5 billion. Other less specific proposals have been floated for Newark, and several other northern counties.
The move comes as Atlantic City's casino market continues to shrink, beset by eve-increasing competition. Last year, four of the city's 12 casinos closed, putting more than 8,000 people out of work. The surviving casinos have just begun to see their revenue increase with less competition.
The ballot question would not specify locations for either casino, and crucial details would remain to be worked out by the Legislature if the new casinos were approved. Among the questions: How much tax they would pay? And, how much money would Atlantic City receive as compensation for the expected loss of business due to in-state competition?
If voters agree to amend the state Constitution to permit casinos beyond Atlantic City, it would mark the biggest change in legalized gambling since casinos began operating here in 1978. It also would mark an existential challenge to Atlantic City's eight casinos, but would also provide them a lifeline of new revenue from hefty taxes the new casinos would pay.
A key element of expanding casinos to northern New Jersey is having them pay a much higher tax rate than the 8 percent the Atlantic City casinos pay. An unspecified portion would be sent to Atlantic City to help compensate it for the inevitable loss of customers.
The plan to approve a referendum faces strong opposition from southern New Jersey lawmakers.
