Newark alters regulations to compete for casino

The Newark Municipal Council has voted to approve several amendments to a redevelopment plan that includes a clause to allow for licensed casinos and gaming.

City officials including Mayor Ras Baraka and Essex County Executive Joseph DiVincenzo strongly back a casino to anchor a downtown district that would include entertainment, convention and retail. But the plan could only be possible if a constitutional amendment is approved to allow a referendum on opening new casinos in other areas of the state.

Baraka and DiVincenzo have already started development talks with casino operators for a potential integrated resort that would show a Newark casino would be best for the state. “Newark needs this more than any other city in the state,” Baraka said. “We are talking millions of dollars of revenue lost that we can recapture here in the state of New Jersey.”

If state legislation is approved, Newark would still have to compete with proposed facilities in Jersey City and the Meadowlands. A draft bill was introduced earlier this year by Assemblyman Ralph Caputo that would allows casino gaming in Essex, Bergen and Hudson counties. But efforts to get a proposal on this November’s ballot failed at the first hurdle.

Caputo said he plans would resume next year with hopes of putting it to residents who head to the polls for the 2016 presidential election. “Our job here is to save the gaming business,” said the Assemblyman, adding the regulation changes puts Newark “in the position that in the event we approve it, and voters approve its, they’ll be in a position to compete.”

Proponents of the plan say casinos in North Jersey could help draw gamblers who may be heading to New York, Pennsylvania and Connecticut. It comes after Atlantic City saw its worst ever year in 2014 with a quarter of the casino resorts shutting down, 8,000 workers losing their jobs and casino revenue down to an eight-year low.

Atlantic City has tried several moves to reinvigorate its gaming industry including online casino gaming in state borders and allowing mobile gaming at racetracks. But as revenue continues to fall and state didn’t meet its budget last year, lawmakers are now considering changing the law introduced almost 60 years ago that only allows casino in Atlantic City.