The bill is seen as a way to help jump-start the nation's second-largest gambling market, which is struggling with the poor economy and competition from casinos in neighboring states.
Current law requires at least 500 rooms. The most successful casinos have 2,000. Many existing casinos invested hundreds of millions of dollars and oppose lowering the bar.
The Seminole Indian tribe has indicated its interest in building a small Hard Rock casino on the Boardwalk if the bill passes.