Casino License ‘Warehousing’ Bill Advances in New Jersey

A bill to prevent casino owners from closing casinos in Atlantic City and then sitting on their casino license for a later re-opening has advanced in the New Jersey Assembly. The bill was written in response to the closing of the Trump Taj Mahal casino in October. The bill, aimed at billionaire Carl Icahn (l.), would block casino license holders from closing a casino and then later re-opening for five years. It would be retroactive to January 2016.

A New Jersey Assembly committee has cleared a bill designed to keep Atlantic City casino owners from closing their properties and then later re-opening them under better labor conditions.

The bill was specifically drafted to address the closing of the Trump Taj Mahal casino in October. Owner Carl Icahn—President-elect Donald Trump no longer had a stake in the casino—closed the property in the midst of a long labor dispute. That led to fears he would try to re-open the casino as a non-union shop.

The bill would disqualify a casino license applicant from holding a casino license for five years after “substantially” closing a casino. The bill was approved by the state Assembly’s Tourism, Gaming and the Arts Committee and now will go to the full Assembly for a vote. The state Senate approved the bill in October.

 “Essentially what we’re trying to do is prevent casino owners from manipulating the licensing system and abusing rank-and-file casino workers,” Assemblyman John Burzichelli told the Press of Atlantic City. “Given Atlantic City’s struggles, the last thing we want to see is a casino owner taking advantage of bankruptcy laws and pocketing a license or, even worse, stripping workers of benefits and denying them a fair wage because they couldn’t come to the table and strike an agreement.”

Governor Chris Christie is likely to veto the bill.