New Jersey Gov. weighs casino expansion plans outside Atlantic City

As New York moves closer to authorizing up to three full-scale casinos in or near New York City, New Jersey Gov. Phil Murphy has said he is open to considering casino development outside Atlantic City to retain gambling revenue and tourism within state lines.

Murphy, speaking to The Press of Atlantic City, said the state must evaluate how any expansion could affect Atlantic City, which remains the only location in New Jersey where casinos are currently permitted.

“If it’s a zero-sum question between New York and New Jersey, I want the gaming dollars and the tourism and everything that goes with it on the New Jersey side,” Murphy said. “But I’m also conscious of what the impact would be on Atlantic City.”

The governor acknowledged the city’s seasonal activity: “As we meet in June, we’re in the sweet spot. This place is humming.” He added that while he remains open to casino expansion, any decision would require a clear understanding of the consequences for Atlantic City’s economy.

The discussion comes as two Democratic state senators, Paul Sarlo of Bergen County and Vin Gopal of Monmouth County, introduced a bill in May proposing a constitutional amendment to permit casinos at the Meadowlands Racetrack in East Rutherford and Monmouth Park Racetrack in Oceanport. Both venues already operate sports betting and host horse racing.

The proposed referendum would ask voters whether the state constitution should be amended to allow the legislature to authorize casino gaming at those racetracks.

Tax revenue from the new casinos would be directed toward property tax relief, special education, state pension funding, and horse racing industry assistance. The bill also includes a provision allocating 10% of tax revenue from the proposed casinos to support tourism in Atlantic City.

New Jersey voters rejected a similar proposal in 2016, with 80% voting against the measure. However, Sarlo said the intent now is to respond to potential competition from Manhattan.

“This plants a flag to send a message to New York State that if they open a casino in Manhattan, that New Jersey is ready to respond to the competition,” Sarlo said.

Murphy has not publicly endorsed the bill but said any expansion plan must balance the state’s interests.

“I want to maximize gaming dollars and tourism in the state of New Jersey, including in Atlantic City,” he said. “We’ve worked so hard to get Atlantic City to where it is; I don’t want to give that up.”

Several casino operators with interests in Atlantic City are among those seeking one of the anticipated New York licenses. Bally’s has proposed a project in the Bronx, Caesars Entertainment has announced plans for Times Square, and Hard Rock is pursuing a location next to CitiField in Queens.

Casino executives in New Jersey have expressed concern about the impact of a New York expansion on their in-person gaming revenue, which many say has not returned to pre-pandemic levels. While online gaming and sports betting provide additional income, those streams are often shared with third-party providers.

Mark Giannantonio, president of the Casino Association of New Jersey, said it is necessary to adapt. “We know this is coming,” he said. “Now is the time to really redevelop Atlantic City so that it’s able to attract a broader spectrum of customers.”

Jeff Gural, operator of Meadowlands Racetrack, said he supports Murphy’s position and believes a local casino could help retain revenue within New Jersey.

“The governor is right: We need to keep that money in New Jersey, not going over the bridge,” Gural said.

Gural also indicated he is willing to accept a higher tax rate for a Meadowlands casino than the rate applied in Atlantic City. He did not name a specific figure but said it would be in line with whatever rate New York applies to its local casinos.

Murphy reiterated his position, stating that while the success of Atlantic City is important, the state must also account for potential revenue shifts due to regional competition.

“I don’t want to lose a lot of gaming dollars or tourism to New York when we could have kept it in New Jersey,” he said.