Casino Referendum Part of Expected Record Ad Spending in New Jersey

Along with a public referendum on building two new casinos in northern New Jersey, the state’s voters also will decide two other referendums in November. With pro and con forces on the casino issue promising large campaigns, advertising on the three questions could easily top $100 million, analysts says.

New Jersey voters are about to see a huge blast of advertising trying to influence them on three important ballot questions—led by a plan to build two new casinos in the state—to be decided in November.

Along with a referendum question on allowing two casinos to be built in the northern part of the state—which would be the first New Jersey casinos allowed outside of Atlantic City—are two other questions concerning the state’s pension payments to public workers and on dedicating a gas tax for transportation funding. The transportation question is expected to pass a Senate vote for inclusion on the ballot.

That means public workers unions and advocacy groups could set a record for spending on referendum issues that could top $100 million, according to analysts.

According to Bloomberg News, under state law, as long as the groups don’t explicitly urge the election or defeat of either a candidate or issue, they’re allowed in many cases to raise and spend unlimited sums on advertising and aren’t required to disclose donors.

“Without a doubt, it will be the most expensive ever,” Jeff Brindle, executive director of the New Jersey Election Law Enforcement Commission told Bloomberg. “There is such an intense interest not only on the part of the public but also special interests.”

Bloomberg noted that the Citizens United decision by the U.S. Supreme Court in 2010 allowed as free speech unlimited spending by corporations, labor unions, and the wealthy, often through super political action committees that are technically independent from candidates and must reveal their contributors. But the decision also led to increasing contributions to non-profit groups that spend money on campaigns even though their primary purpose isn’t supposed to be politics. Those groups do not have to disclose their donors.

That could leave New Jersey ripe for spending by not-for-profit advocacy groups which in this case could spend more money on the ballot questions than is spent on this year’s presidential election in the state, the news service said.

The casino and pension issue—the question would pass a state constitutional amendment that requires public pensions be fully funded—are likely to create the most spending.

The casino question would allow two new casinos to be built in the state near the New York City market. Proponents say it will bring jobs and revenue to the state lost to casino competition in other states. Opponents, however, say the casinos will further erode the Atlantic City casino market and devastate the resort.

Polls suggest the state’s voters are evenly split on the plan and groups have been formed to both push and oppose the plan. Both have promised major advertising campaigns.

Brindle pointed out to Bloomberg that a 2012 referendum to allow casinos in Maryland led to about $90 million in spending. That level of spending also could lessen money available in the state for the presidential and congressional races, the report speculated.