A bill to put a referendum before New Jersey voters to allow for casinos to expand beyond Atlantic City has been introduced, but is unlikely to be in place by the deadline for the November 2014 ballot.
State Senator Raymond Lesniak and State Assemblyman Paul Sarlo—both Democrats—introduced legislation that would allow two casinos in Northern New Jersey.
The bill comes after the announcement of a proposed $4.6 billion casino/entertainment complex in Jersey City that includes a 95-story casino, with a 100,000-seat auto racetrack and the world’s largest Ferris wheel.
The bill also would allow for a casino to be built at the Meadowlands Sports Complex, which has long been advocated by Lesniak and a number of North Jersey politicians.
Sarlo and Lesniak’s bill would tax any new casinos at 50 percent of casino revenue. Atlantic City casinos only pay 9.5 percent, and Sarlo said he expects to lower the assessment of any northern New Jersey casinos to about one third of revenues.
However, the deadline for the referendum—which would require an amendment to the state constitution if passed—is August 2, according to reports. Considering the discussion the issue has already generated, and opposition from southern New Jersey politicians seeking to protect Atlantic City, there seems little chance the referendum will be on the 2014 ballot.
A referendum on the 2015 ballot, however, seems more and more likely.
State Senate President Stephen Sweeney told Philly.com—the website of the Philadelphia Inquirer—that he is willing to consider ending Atlantic City’s monopoly, but said “the discussion’s going to start with, ‘How does Atlantic City benefit from whatever we do?’
“Lesniak’s bill gives Atlantic City $100 million a year for 10 years? That’s a good starting point, but that’s not where we’re going to finish,” Sweeney told the website. “For 30 years, Atlantic City sent money all over the state to pay for projects out of casino revenues. Now we’re going to lose 6,000 casino jobs by September in a region with the worst unemployment. We’re not going to turn our backs on Atlantic City.”
Sweeney added that the legislature “has until next July to figure it out. Nothing’s going on the ballot this year.”
Sweeney’s comments come after both he and Governor Chris Christie seemed to reverse their stance on expanding casinos in the state—or at least modified them. Both Sweeney and Christie had supported giving Atlantic City five years to turn itself around—starting in 2011—before considering expanding casinos into the northern part of the state.
But Atlantic City continues to see casino revenue falling three years into the five-year plan and now has been beset by potential casino closings. One casino—the Atlantic Club—has already closed this year and three more—Trump Plaza, Showboat and Revel—could close at the end of the summer.
Atlantic City continues to suffer from competition from casino in neighboring states, most notably Pennsylvania. But it is New York’s plan to build four casinos that is driving the move to expand casinos in New Jersey. The New York proposals put several casinos within a short drive of northern New Jersey.
Many state politicians feel that to remain competitive, New Jersey must move quickly to compete with the New York casinos. But other politicians feel that any bill must protect Atlantic City casinos as well as the state’s horse-racing industry.
Several Southern New Jersey lawmakers, have come out against the new bill and continue to push for the full five-year moratorium before considering casino expansion.
Atlantic County Assemblyman Chris Brown told the Press of Atlantic City that he does not think casino expansion is inevitable.
“I do not believe we should accept it as a foregone conclusion,” he said. “It only becomes a foregone conclusion when we say it is. I will fight to keep that off the ballot.”
Atlantic County’s other assemblyman, Vincent Mazzeo, a Democrat, and Atlantic City Mayor Donald Guardian also oppose the move.
“I’m telling you right now that I’m fighting to keep the referendum off the ballot for North Jersey casino gambling,” Mazzeo told the Press.
“I was a little surprised by that,” he said of Sweeney’s contention that a referendum could be on the 2015 ballot.
Even Lesniak said he was not optimistic about a November referendum.
“In this state, it takes three to tango—Christie, Sweeney, and (Assembly Speaker Vincent) Prieto,” Lesniak told Philly.com. “It appears we’re running out of time to get the support we need to put a referendum on the ballot this year.”
Meanwhile, a proposal to build a $4.6 billion casino project in Jersey City—led by Paul Fireman, who heads Fireman Capital Partners in Boston and is a former CEO of Reebok—has been met with general support in the state.
The proposal would include a 95-story casino hotel, a 107,000-seat motor sports stadium, the world’s largest Ferris wheel to a site near Liberty State Park and within easy reach of New York City.
The development could create 25,000 jobs.
The project—at least with a casino—could not be built unless New Jersey voters approve a referendum to expand casino gaming beyond Atlantic City in the state. A bill to put a referendum on the 2014 November ballot has been introduced in the state legislature, but it is unlikely that a bill could be passed in time and a referendum on next year’s ballot seems more likely.
Some aspects of Fireman’s plan—most notably the auto race course—are already getting some opposition.
Jersey City Mayor Steven Fulop said most of the property for the project is already available and that the project would be a boon for the city.
“The footprint is not near residential neighborhoods,” Fulop told the Hudson Reporter. “What it would do is provide a convention center, a hotel, residences, and a casino and would bring 25,000 jobs to Jersey City. This would be one of the largest projects in the county done with private dollars.”
Fulop said the project could bring $10 to $15 million in additional taxes to the city each year.
The proposal also include the world’s largest Ferris wheel, Eye in the Sky, similar to one in London, which would provide spectacular views of Manhattan and Liberty State Park.
“The Ferris wheel was originally slated for State Island, but they couldn’t get the funding in place,” Fulop said. “We have the funding in place.”
But the mayor told the paper that the proposed 107,000-seat Formula One race track is a tougher sell.
“It is important not to have a negative impact on Liberty State Park, which is a jewel,” he said. “This is very real. It has been in conversation for more than nine months, and they have already purchased the property. When someone enters New York Harbor or flies over it, they will see two iconic towers: one will be the World Trade Center tower, the other will be the 95-story tower in Jersey City.”
The group Friends of Liberty State Park released a statement saying they opposed the race track, which would generate traffic that could block access to the state park and tourist ferries at the park.
“We feel the city and others in the region may be opposed or in favor of various elements,” said Sam Pesin, president of The Friends of Liberty State Park. “The stadium is an obscene, insane and destructive proposal, and we&r
squo;re here to protect the park against the negative impacts we see as a result of the traffic. We are glad that the mayor has expressed some reservations about the stadium and hopes the mayor will continue to focus on this.”
