Real estate developer would rather wait six years for North Jersey casino

Gural, speaking at the East Coast Gaming Congress at Harrah’s Resort, suggested the politics for a North Jersey casino would be more favorable for him after casinos open near New York City.

“I don’t want to see this come on the ballot and lose again,” he said. “I’d rather wait six years and wait until New York is either open or getting ready to open, at which point I think the voters will say, ‘Wait a second. What are these Atlantic City people arguing? That opening a casino in northern New Jersey will hurt their business when there are three casinos opening in southern New York that are going to wipe them out?’”

Gural was one of five speakers on a panel about the future of gaming in New Jersey. The panel was moderated by The Press of Atlantic City’s casino reporter Nicholas Huba.

After the panel discussion, Gural acknowledged waiting for casinos to open in New York could create more competition for his desired Meadowlands casino.

“We’re slicing up the same pie,” he said. “But there are enough people. Don’t forget, the toll to go over the bridge is about $16 or something like that.”

Assemblyman Ralph Caputo, a supporter of North Jersey casinos, said he learned some lessons after voters overwhelmingly rejected a ballot question last November that would have ended Atlantic City’s state gambling monopoly.

The referendum lacked detail, such as the tax rate the new casinos would pay, and it was a mistake to give license preference to current Atlantic City casino owners, said Ca-puto, D-Essex. He added opponents of North Jersey casinos ran an effective campaign, tying the ballot question to the public’s distrust of politics.

“The fact is the people did not trust the politicians in Trenton,” he said.

But Assemblyman Vince Mazzeo, D-Atlantic, disagreed that just a few tweaks to the ballot question’s language would ensure its future passage. He noted voters rejected the referendum nearly 80 percent to 20 percent.

“The way it was defeated, I don’t see it being passed the second time,” Mazzeo said. “I don’t know how you come back from those numbers. Eighty to 20 percent is a pretty significant amount.”

The forum featured similar arguments about expanding gambling. Gural and Caputo said North Jersey casinos would generate millions in tax revenue for the state. Mazzeo and Assemblyman Chris Brown said the new casinos would draw gamblers away from Atlantic City, further harming the resort’s fragile economy.

“A North Jersey casino would simply cannibalize Atlantic City,” said Brown, R-Atlantic.

Brown said the state could learn a lesson from Las Vegas, which realized casinos were sprouting up in other states and diversified its economy to create nongaming attractions. But that took time, he said.

“It took them over 10 years, but they managed to basically get themselves to about 85 percent nongaming revenue as their engine, 15 to 20 percent is gaming revenue,” Brown said. “When Atlantic City gets there, we will be in a position where we can survive and compete with other gaming within the state.”

The forum touched on other subjects. Borgata Hotel Casino & Spa President and COO Tom Ballance said it would be a bad idea to raise the 9.25 percent tax rate Atlantic City casinos pay on their gambling revenue.

The New Jersey casino tax rate, much lower than neighboring states, allows the casino owners to significantly invest in their properties, Ballance said.

“You do not see buildings like this one (Harrah’s) in Pennsylvania with a 54 percent tax rate,” he said.

But Gural said the rate should be higher.“It’s time taxpayers get a fair shake,” he said.