Legislators near deal to put North Jersey casinos on ballot

Rich McGrath, spokesman for Senate President Stephen Sweeney, confirmed Tuesday that legislative leaders are discussing a proposal to ask voters to approve up to two casinos in North Jersey.

In New Jersey, casino gaming is allowed only in Atlantic City. Permitting casinos outside Atlantic City would require a constitutional amendment, which must be approved by voters.

McGrath said any plan would require the two casinos to be located far outside Atlantic City’s geographic area and would have to provide revenue to Atlantic City to aid the city’s economy, “to help local taxpayers and to support the economic transformation of Atlantic City into a destination.”

Lawmakers would have to approve a ballot question by either a three-fifths majority in both the Assembly and state Senate or by a simple majority vote in two consecutive legislative years.

If lawmakers choose to try the latter, they would have to move fast. The proposed amendment must be printed and placed on the desks of lawmakers 20 days before the first vote, and there must be a public hearing before the vote. The legislative year ends Jan. 12.

Democratic lawmakers tried to get the question on the November 2015 ballot but couldn’t agree on the number and locations of the new casinos. By agreeing on no more than two casinos, legislative leaders have solved one of the main sticking points.

Developers have proposed casinos in the Meadowlands and Jersey City.

Opposition to North Jersey casinos is strong in South Jersey, where experts and lawmakers say new casinos would have a devastating impact on Atlantic City and the surrounding region.

Assemblyman Chris Brown, R-Atlantic, tried to scuttle a vote on the ballot question with a resolution last year.

“The vote to allow North Jersey casinos is what I have been fighting against for over two years,” Brown said. “I will continue my honest, steadfast opposition to the Democrats' plan to allow North Jersey casinos.”

Assemblyman Vince Mazzeo, D-Atlantic, said it’s “ludicrous to think that the answer to a saturated gaming market is to saturate it further.”

“I invite my colleagues from North Jersey to come down to Atlantic City and meet with those whose jobs and families hang in the balance,” Mazzeo said.

Sen. Jim Whelan, D-Atlantic, said he didn’t know any of the details of the proposal “because I’m opposed to North Jersey casinos, and I’m not part of the conversations.”
“I hope it doesn’t happen, and I’m going to oppose it,” he added.

Moody’s Investors Service recently said new casinos expected to open in New York, Pennsylvania, Maryland and Massachusetts over the next three years will eat more into Atlantic City revenues.

The report didn’t mention the possibility of North Jersey casinos, which state lawmakers say will help recapture casino revenue that’s going to other states.

Even as most existing New Jersey casinos are drawing more money in a less-crowded Atlantic City market, “increased competition will keep the heat on incumbents, and (we expect) that the number of casinos in Atlantic City will likely continue to shrink,” the report said.

Getting the casino expansion question on the ballot would only be half the battle. Voters would ultimately decide whether Atlantic City loses its state monopoly on casino gaming.

A Fairleigh Dickinson poll in June found that 56 percent of New Jersey residents oppose building casinos outside Atlantic City, while just 37 percent support it.