Clock running out on New Jersey Casino referendum

The apparent collapse of the proposal sparked anger among proponents, who said new casinos would generate hundreds of millions of dollars in tax revenue for New Jersey and thousands of jobs.

Sens. Paul Sarlo and Ray Lesniak, who supported legislation authorizing a statewide referendum to permit gambling outside of Atlantic City, said it was highly unlikely the question would make it onto the ballot in November.

“I’m very disappointed. It’s not happening this year. That’s a huge policy mistake.”, said Mr. Lesniak, a Union County Democrat.

Assemblyman Chris Brown, a Republican representing the Atlantic City area, said his efforts to oppose a gambling expansion were validated by the apparent lack of political consensus behind a referendum this year.

“I will continue to fight North Jersey casinos this year, next year, the year after, and every year until Atlantic City has fully transitioned into a destination resort. We have proven North Jersey casinos are not inevitable and efforts to stop them are having an effect.”, Mr. Brown said.

While lawmakers in both chambers have said there won’t be a referendum in November barring an unexpected turnaround, the Legislature’s top leaders haven’t officially confirmed the decision. Supporters said there is scant chance the ballot question will be resurrected in the coming weeks.

A spokesman for Senate President Steve Sweeney, a Democrat, declined to comment. Mr. Sweeney has voiced support for a gambling expansion, but previously said it would be best to wait another year to build consensus in the Legislature and support among voters.

Assembly Speaker Vincent Prieto, a Hudson County Democrat who supports a November referendum, said through a spokesman that no votes are scheduled now. Still, discussions are ongoing, he said, and lawmakers are “mindful of the deadline.”

Jeff Gural, owner of the Meadowlands Racetrack who unveiled a USD 1 B casino venture with Hard Rock International, said he was “extremely disappointed” the ballot question wasn’t moving forward this year.

“I’m very surprised. I thought we made a terrific presentation, and I assumed the state would need $500 million in tax revenues and 4,000 jobs,” Mr. Gural said. He added that he wasn’t abandoning his plans to build a casino at the track, which borders MetLife Stadium.

State polls showed the effort could benefit from additional time. A Fairleigh Dickinson University PublicMind poll last month showed that 56% of state residents opposed expanding gambling outside Atlantic City, while 37% supported it.

Krista Jenkins, the poll’s director, said backers would have a difficult time winning if they put the measure before voters this fall.

Patrick Murray, executive director of the Monmouth University Polling Institute, said delaying a referendum benefits both Atlantic City, which is struggling to rebound, and South Jersey Democrats who are facing tough re-election bids this year.

Mr. Murray said fighting among lawmakers over whose district would gain a casino helped fuel the referendum’s collapse this year. “Part of the reason it died was everybody wanted a casino,” he said, “and that wasn’t going to happen.”

Last month, there appeared to be political momentum behind a 2015 referendum. Gov. Chris Christie, a Republican, said he supported putting the expansion before voters as soon as possible, provided a portion of tax proceeds helped Atlantic City.

In recent weeks, developers unveiled flashy renderings of casinos proposed to rise near the Meadowlands Racetrack in Bergen County and Liberty National Golf Course in Jersey City.

Other jurisdictions sought to get a piece of the action, as well. Newark officials said they were seeking an operator to build a gambling mecca in the city’s downtown.

To persuade lawmakers, backers of the Meadowlands and Jersey City proposals promised to funnel a significant amount of the projects’ revenue to the state, with a portion set aside to bolster Atlantic City. The troubled seaside resort has seen its share of the regional gambling market decline precipitously as casinos in Pennsylvania, Connecticut and New York have opened.

Construction trade unions, a power broker in Democratic state politics, had lined up behind a 2015 ballot question. Mr. Sweeney, who is eyeing a possible run for governor in 2017, is a union ironworker and labor leader.

Rick Sabato, president of the Bergen County Building and Construction Trades Council, said Mr. Sweeney met with the union last week to explain his position on waiting on a referendum. Mr. Sabato said he was frustrated by the outcome, but that he still considered Mr. Sweeney an ally.

Mr. Sarlo said supporters should now turn to making sure the question passes next year.
“This should not deter us for having a concerted get-out-the-vote effort for next year because if we don’t bring gambling to North Jersey, we will be out of the gaming business forever,” he said.