New Jersey voters could play a big role in determining whether to approve two new casinos in the northern part of the state.
Under the proposed legislation, the new casinos will pay a higher tax on gaming compared to 8% that existing casinos in Atlantic City currently pay. A portion of this tax revenue, 49%, would go to Atlantic City to compensate from the expected loss of business, another 49% would go to counties and municipalities, and 2% would be to the state horse racing industry. The proposed plan would also require that the two new casinos be in separate counties and at least 75 miles from Atlantic City.
“The question of gaming outside of Atlantic City has long been debated,” said Sweeney. “Now is the time for the voters to decide. Fourteen months ago, I proposed a framework for any proposed expansion to North Jersey. This plan is consistent with those principles.”
Even with the provisions that will benefit Atlantic City, the resolution has met some opposition.
“North Jersey casinos would be disastrous for our local economy, driving jobs and investment out of our region,” said state Sen. and former mayor of Atlantic City James Whelan via Twitter.
The Casino Association of New Jersey also noted that the Atlantic City market has finally started to stabilize in 2015, after it had been seriously hit by competition from neighboring states and the last thing Atlantic City needs now is competition from within the state.
In order to have the question on next year’s ballot, resolution SCR-185 would have to be approved by both houses of the legislature over two legislative years, meaning a vote in the lame-duck session this month and another one by mid-2016. The resolution could also be approved in one year if it got 60% majority votes in both legislative houses 90 days before going on the ballot.
In July, Assemblyman Ralph Caputo proposed a constitutional amendment, which would allow three new casinos in the northern part of the state but state lawmakers abandoned plans to approve a ballot referendum for November 2015, claiming there wasn’t enough time to drum up support in the legislature.
