New Jersey plans 2016 referendum on expanding casinos beyond Atlantic City

ATLANTIC CITY, N.J. – New Jersey voters would be asked in November whether to approve two new casinos in the northern part of the state under an agreement unveiled Friday by state lawmakers.

The deal announced by Senate President Steve Sweeney calls for a November 2016 referendum on whether to approve two new casinos in separate northern New Jersey counties. The ballot question would not specify locations for either casino.

Tax revenue from the new casinos would go to help Atlantic City compensate from the expected loss of business; to each county and municipality for tax relief for senior citizens and the disabled; and to the state’s struggling horse racing industry. It does not specify the tax rate the new casinos would pay.

If voters agree to amend the state constitution to permit casinos beyond Atlantic City, it would mark the biggest change in legalized gambling since casinos began operating in the seaside resort in 1978.

It also would create an existential challenge to Atlantic City’s eight casinos at the same time providing them a lifeline of new revenue from hefty taxes the new casinos would pay.

“The question of gaming outside of Atlantic City has long been debated,” Sweeney said. “Now is the time for the voters to decide. Expanding gambling to north Jersey is the best way to revitalize an industry that is important to the state’s economy so that we can compete with neighbouring states, generate the revenue needed to revive Atlantic City and contribute to economic growth.”

Atlantic City Mayor Don Guardian spoke of the pain of watching 8,000 people lose their jobs last year when four of the 12 casinos closed.

“Whole families lost their only source of income after being ‘Day One’ employees at the casinos that they had invested their whole lives in,” he said. “Auxiliary services that depended on the thriving casinos died a slow death as each casino went dark and no longer needed their services. Dentists, lawyers, teachers, bankers, real estate agents, restaurant owners, and just about everyone who made a living in Atlantic City and the surrounding areas felt the terrible effects of broken promises from expanded casino gambling and oversaturation of the market.”

The Casino Association of New Jersey said, “The Atlantic City market finally started to stabilize in 2015, after years of cannibalization by casinos in neighbouring states. The last thing this community needs is more competition from within our own state’s borders.”

The most commonly mentioned location for a northern New Jersey casino is at the Meadowlands Racetrack in East Rutherford, just outside New York City. Hard Rock International and the Meadowlands Racetrack unveiled plans in June for a $1 billion casino at the sports complex, next to the stadium where the NFL’s New York Jets and Giants play.

Another leading proposal is for Jersey City, where footwear magnate Paul Fireman has proposed a casino costing up to $5 billion.

A requirement in the bill that the new casinos be located at least 75 miles from Atlantic City would appear to knock Oceanport out of the running, where officials wanted to offer casino gambling at the Monmouth Park Racetrack.

A key element of expanding casinos to northern New Jersey is having them pay a much higher tax rate than the 8 per cent the Atlantic City casinos pay. Hard Rock has offered to pay a 55 per cent tax.

The proposal would send all tax revenue from the new casinos into a New Jersey Investment Fund. For the first 15 years, 49 per cent of the money would go to Atlantic City to compensate for their expected losses; 49 per cent to counties and municipalities for tax relief for seniors and the disabled; and 2 per cent to the horse racing industry.

For the 10 years that follow, the amount sent to Atlantic City would decrease by 3 per cent a year and the amount sent to counties and municipalities would increase by 3 per cent a year. After that, Atlantic City would get 19 per cent of the new tax revenue a year, while counties and towns would get 79 per cent.


Follow Wayne Parry at


This story has been corrected to show that Assembly Speaker Vincent Prieto is not part of the deal.