Faced with three new casinos opening in New York City over the next few years, New Jersey legislators have begun considering an expansion of the state’s casino industry beyond Atlantic City.
A proposal to add casinos in Northern New Jersey has split legislators. Some want to compete with New York City casinos to keep gambling dollars in the Garden State. However, others believe a better solution is to invest more in Atlantic City.
“We’ve got a gun to our heads,” New Jersey Sen. Vin Gopal (D) told Politico. “Those gambling dollars that we would see in North and Central Jersey are going to go across state lines the second these casinos open.”
Racetracks Favor Expansion
The expansion efforts come after New York awarded three downstate casinos in December. That included a $5.5 billion expansion of Resorts World at the Aqueduct Racetrack in Queens, which is adding 2,000 table games this week.
In the Garden State, expansion backers believe gaming jobs and revenue will leave New Jersey if they don’t add casinos to Northern New Jersey.
The Meadowlands and Monmouth Park racetracks, which offer horse racing and sports betting, also are pushing to bring full-scale casinos to the properties to better compete with New York City casinos and also to help sustain the racing industry.
“The most important question for the Legislature and the governor is: How do we as a state keep the gaming revenue in New Jersey?” Monmouth operator Darby Development CEO and Chairman Dennis Drazin told Politico. “The state has an obligation to recognize the mega casinos popping up across state borders, and to evaluate carefully.”
Some backers have predicted that some Atlantic City properties will close after the New York City casinos are operational. New Jersey Gov. Mikie Sherrill (D) has yet to weigh in on the issue.
South Jersey Lawmakers Oppose Plans
Despite some concerns over increased competition from NYC casinos, the issue may not get resolved this year, as a bipartisan agreement appears unlikely at this stage. South Jersey Democrats may also oppose adding casinos in the north that could steer revenue away from Atlantic City.
Additionally, New Jersey residents would have the final say on any plan. The state constitution allows for casinos only in Atlantic City. An amendment would have to be passed by voters before any expansion could get underway.
New Jersey voters haven’t been open to that in the past. They rejected a similar constitutional amendment in 2016. That proposal saw 78% of citizens vote against the referendum.
The push for expanded gaming in the state comes after Atlantic City’s casino industry has struggled for several years. In recent months, online gaming revenue has surpassed live casino revenue at times.
That continued in March, with the state’s nine casinos reporting $236.7 million for the month and online gaming operators reporting $272.1 million.
