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On June 3 Hard Rock International and Meadowlands Racing & Entertainment will unveil plans for a North Jersey casino.
Casino expansion outside of Atlantic City is still an unsettled issue the state is considering to bolster New Jersey’s falling gaming revenue.
The partnership (Hard Rock International currently owns 16% of Meadowlands Racing) has named its proposed casino the Hard Rock Casino Meadowlands, which will be located next door to the new Grandstand built at the Meadowlands Racetrack.
During the press conference, the group will reveal renderings of the proposed casino as well as fly through video, exciting project details, and more, according to a media statement by the two companies.
“New Jersey Casinos could generate more than $400 million in yearly revenue, which could fund critical priorities, such as property tax relief for seniors and veterans’ programs, in addition to helping rebuild Atlantic City and create more than 10,000 jobs in the area,” the group stated in the media release.
Atlantic City has held on to its gambling monopoly with a vice like grip since the first casino, Resorts, opened its doors in 1978, two years after the state passed a referendum to allow casino style gaming.
That being said, with plummeting revenue and the closure of four casinos in 2014, the writing is now on the wall for Atlantic City. Relinquishing that monopoly is something that might now be in Atlantic City’s best interests.
Governor Chris Christie is in favor of northern New Jersey casino expansion, and longtime Atlantic City guardian and State Senate President Steve Sweeney has also come around to the idea.
To ease the minds of Atlantic City advocates like Sweeney, the recent North Jersey casino proposals are calling for these new properties to pay an exorbitant tax rate compared to Atlantic City – 55% compared to 8%. Some of that revenue would go straight into AC’s coffers – something the city sorely needs – to help reinvigorate the city’s economy and strengthen gaming.
“Our plan is to share some of that with Atlantic City to help them rebuild and recover. I look at this as a win for the taxpayers and for Atlantic City,” Meadowlands Racing Chairman Jeff Guraltold The Associated Press.
Gural also said he was fine with paying the “Pennsylvania rate” of 55%.
Even with groups like Hard Rock/Meadowlands submitting proposals, it would take considerable alacrity to get a referendum on casino expansion outside of Atlantic City on the 2015 ballot, as the deadline to file is in June.
But 2016 would be a good possibility, and the measure would likely be assisted by the increased voter turnout in a presidential year election.
Hard Rock and Meadowlands aren’t the only interested parties.
During his keynote address at G2E in October of 21014, Las Vegas Sands Chairman Sheldon Adelsonindicated his desire to build in North Jersey now that the area no longer smells like “a pig farm.”
Another potential suitor is MGM, which already owns a 50% stake in the Borgata, one of Atlantic City’s true success stories.
MGM CEO Jim Murren was upbeat about North Jersey during a recent press briefing at the American Gaming Association offices where he said, “The market opportunity up north is vast. If that were to pass, MGM would be interested in pursuing it.”
If a North Jersey Casino is approved – something that would require not only legislative support, but a statewide referendum to achieve – the casino would almost certainly have the opportunity to launch online gaming platforms in the state.
Sans Sheldon Adelson and Las Vegas Sands, those receiving a license to build in North Jersey would likely launch an online casino in New Jersey to go alongside land-based gaming.
This could bring about an interesting and completely novel dynamic, as it would mark the first major land-based casino expansion in a state offering online gaming – Nevada’s constantly changing landscape excluded.
Theoretically, the company’s online casino could be up and running long before the brick and mortar property opens for business, allowing Hard Rock or MGM (which already offers online gaming through Borgata) to cobble together a database before their first patron steps through the door.
Image Sasha Davas / Shutterstock.com
It’s June. For lawmakers who want to have a referendum on the ballot this November, it’s time to scramble.
The deadline for the state legislature to submit public questions for the November ballot is August 3rd. If lawmakers like state Senator Raymond Lesniak and state Senate President Stephen Sweeney want to have us voting on whether casino operators may build and operate casinos outside of Atlantic City this Fall, they need to do one of two things by August 3rd:
Pass it with a supermajority (60% of the vote) within one legislative session
Pass it with a simple majority (50% or greater) in two legislative sessions
The ballot measure regarding the proposed development of up to three casinos in northern New Jersey is known as the New Jersey Northern Casinos Amendment (ACR 300). In its current form, it seeks to amend the Casino Control Act to allow for up to three casinos to be built in Bergen, Essex, and Hudson counties. An undisclosed portion of the revenue from these casinos would be used to fund Atlantic City’s continuing redevelopment. Even after years of unwavering support for keeping casino gambling contained to Atlantic City, Christie recently stated that he is in favor of the referendum.
The question of amending New Jersey’s Casino Control Act to allow for casinos to be built outside of Atlantic City has been a hot topic in recent years. When the Act was first signed into law, it specified that legal casino gambling in New Jersey could only happen within Atlantic City’s borders. This worked great at the time – Atlantic City became the East Coast’s gaming hot spot. Then casinos began to open in New York, Pennsylvania, and New England, drawing North Jersey gamblers and their money out of state.
With Atlantic City struggling to keep players in New Jersey, lawmakers proposed altering the law to allow casinos to operate in the state’s densely-populated northern half. Governor Christie and South Jersey lawmakers with an interest in Atlantic City’s future pushed hard against this, and in 2011, Christie signed a moratorium on any discussion of a casino outside of Atlantic City until 2016.
Despite this moratorium, legislators are talking. Governor Christie’s campaign to revitalize Atlantic City has been a flop. By the end of 2014, Christie was ready to discuss the possibility of a North Jersey casino with the state legislature. Currently, these are two likely players:
Earlier this month, Hard Rock casino operators Jeff Gural and Jim Allen unveiled the concept art for their proposed new resort, Hard Rock Meadowlands, at the Bergen County Business Expo at the Meadowlands Racetrack.
At the event, Bergen County Executive Jim Tedesco, state Senators Loretta Weinberg, Raymond Lesniak, and Paul Sarlo, and Assemby Speaker Vincent Prieto gave their support for Hard Rock Meadowlands.
If ACR 300 is passed and the majority of New Jersey voters approve it next Fall, this could be the next casino to open in the Garden State. If all goes smoothly, Hard Rock’s representatives said it could be open and operating by Fall 2016.
As we’ve discussed in an earlier article, Jersey City has been proposed as a home for New Jersey’s first casino outside of Atlantic City.
This project, currently known as “Liberty Rising,” is being kept under much tighter wraps than Hard Rock Meadowlands. Artistic renderings of the proposed resort exist, but have not yet been made available to the public. All we know right now is that this casino will likely be significantly larger than Hard Rock Meadowlands, rising to 95 stories and including much more than just a casino and hotel. Liberty Rising, which is being spearheaded by Reebok mogul Paul Fireman, would likely court a more affluent clientele than Hard Rock Meadowlands.
A recent poll showed that only 36% of New Jersey residents approve of expanding casino gambling beyond Atlantic City’s borders. Even if ACR 300 does make it to the November ballot, there’s no guarantee it will pass. First, it just has to make it through the state Senate.