A report from the Deutsche bank has backed up advocates for allowing new casino construction in northern New Jersey saying that the state should break Atlantic City’s monopoly on casinos in the state.
The report said that the closure of four Atlantic City casinos in 2014 paired with the state’s budget shortfall at the end of the last fiscal year is creating pressure to allow for new casinos in area’s such as the Meadowlands—a prime contender for a northern New jersey casino.
One or two casinos in the north “could generate well over $500 million, putting ~$275 million into the state’s coffers and thus is a smart move for the state. In summation, it’s time for New Jersey to push forward with plans for a North Jersey casino or casinos,” the report from gaming analyst Andrew Zarnett said. “And as such, we believe that the next step is a constitutional referendum this November providing approval for gaming outside of Atlantic City.”
State politicians are currently considering putting a referendum before voters to change the state constitution and allow casinos to be built at sites outside of Atlantic City.
The report also predicts two more of Atlantic City’s eight casinos will close before the resort’s casino market stabilizes.
“Longer-term, we believe that the current wave of new development in Philadelphia, Baltimore, Prince George’s County, and New York State will continue to take its toll on the market and lead to even more resorts closing. We would expect Taj Mahal as well as a second Boardwalk casino to join the list of shuttered properties in the outer years,” the report said.
