A bill to prevent Atlantic City casino operators from closing casinos and then re-opening with lower wages for workers has passed a Senate committee and will now get a full vote.
The bill was introduced in response to the planned closing of the Trump Taj Mahal casino in Atlantic City. Proponents are worried that the announce closing of the Taj is a ploy to then re-open later with reduced wages for workers. The city’s largest casino workers union has been on strike at the casino since July.
The bill was proposed by New Jersey Senate President Stephen Sweeney and would disqualify a casino license applicant for five years if that person “substantially” closes a casino in the state. The bill was approved by the state’s Senate Budget and Appropriation Committee.
The bill amends existing law that gives gaming regulators the responsibility to require license holders to abide by certain standards. The bill would update those standards to “prevent the manipulation of bankruptcy law and gaming licensing.”
The Taj Mahal—owned by Carl Icahn—cited its ongoing struggles with the union Unite HERE of Local 54 when announcing the casino would close this month.
The bill lets the Division of Gaming Enforcement determine what constitutes a “substantial closure” of a casino. It would be retroactive to Jan. 1, 2016, but would not apply to other casino licenses held by the owner.
The bill now goes to full Senate for a vote.
