New Jersey Governor looks to revitalize Atlantic City

Palmieri brings to the Casino Reinvestment Development Authority more than 30 years of experience in planning and economic development, Christie said in a statement this week. He previously directed redevelopment in Boston and Hartford, Connecticut.

Christie, a first-term Republican, is trying to help Atlantic City prosper after gambling revenue fell 9.6 % in 2010, the fourth-straight year of decline amid competition from nearby states. The governor signed legislation in February creating a state-controlled tourism district around the casinos, expanding marketing of the resorts and easing regulations.

“We have plenty of gaming experience in this city; what we needed now was a leader, that was much more important to me,” Christie said today in Atlantic City. “We’ve given the CRDA broad new authorities and responsibilities. We need someone with both the experience and bearing to execute those things.”

Palmieri said he hopes to see expansion of Atlantic City International Airport’s role in the region’s economy, as well as development at local hospitals. He said he plans to focus on continued growth of the seaside resort as a tourist destination and possibly create a technology hub.

“The economy has not been helpful to Atlantic City and competition has not been helpful,” Palmieri said. “Obviously, the casinos serve as the base for everything else that happens here.”

Christie said he wants Atlantic City to overtake Las Vegas as the largest U.S. gambling center by playing on “what makes this city unique.” “You’d have to be stupid to go to Las Vegas in the summer,” Christie said. “If you want to gamble in the summer, why would you go to the middle of the desert? But unfortunately, we haven’t given people a reason to recognize their own misguided ways.”

Atlantic City was a decaying resort area until New Jersey legalized casino gambling in 1976 and limited it to the one location. The first casino, Resorts International, opened in 1978. Revenue rose steadily each year, reaching a peak of us$ 5.2 billion in 2006.

Wagering then tumbled for four straight years, to us$ 3.6 billion in 2010, after nearby states including Pennsylvania, New York and Delaware allowed slot machines. Six of the 11 casinos went through bankruptcy or restructuring. The casino authority’s previous executive director, Thomas Carver, resigned in February.

Atlantic City needs a “fresh” leader who will look at revitalization of the entire area, not just the gambling halls, said Bob Griffin, CEO of Trump Entertainment Resorts, which operates two casinos there.

Griffin is president of the Casino Association of New Jersey, which represents the casinos in Atlantic City. “We’re a large part of the economic engine in this region, but we’re not the only one and there are a lot of things that need to be cleaned up,” Griffin said in an interview. “Going outside and getting somebody who is fresh was absolutely the right thing to do.”