N.J. Eyes Casino In Meadowlands
By HEATHER HADDON
EAST RUTHERFORD, N.J.—Faced with the steep decline of the state's once pre-eminent casino industry, New Jersey lawmakers for the first time Thursday formally considered breaking Atlantic City's 36-year-old monopoly on gambling and allowing live betting games at the Meadowlands.Already a destination with a horse racetrack and MetLife Stadium, the Meadowlands has been talked about as a northern complement to Atlantic City for years.
The plan's advocates said at a legislative hearing Thursday that now is time for the state to diversify its gambling industry. New Jersey—whose state constitution limits casinos to Atlantic City—now finds itself behind New York in gambling revenue in 2010 and fourth among states nationwide, according to figures released last month by the Casino City Press's North American Gaming Almanac.
"I'm talking about a full-blown casino," said Assemblyman Ralph Caputo, an Essex County Democrat and sponsor of a bill that would issue a voter referendum on the issue. "The people would absolutely support it."
The divisive proposal has little chance of happening soon. Gov. Chris Christie said Thursday that he was "committed" to Atlantic City, and the Meadowlands plan is "simply not going to happen."
![[image]](http://si.wsj.net/public/resources/images/NY-BU006_NYGAMB_NS_20120719200307.jpg)
But the proposals to allow video slots or a full-fledged casino at the Bergen County sports facility are among several measures New Jersey is considering to boost its flagging gambling industry.
The Legislature passed a bill this year to make the state the fifth to allow betting on professional and college sports, though the federal government could challenge the law. Nevada is currently the only state offering full-scale sports betting.
And an effort is under way to make New Jersey the first state in the nation to allow online betting.
"The last time we've had this much activity around gaming in New Jersey was…during the Whitman administration," said William Pascrell III, a lobbyist with Princeton Public Affairs Group who represents the industry.
Once the only place to legally gamble on the East Coast, Atlantic City's prized corner on the region's gambling market has been slipping as new casinos in Pennsylvania and Delaware and video lottery terminals at New York racetracks have sprung up in the past decade.
"It's been a bad decade for New Jersey," said Sebastian Sinclair, president at Christiansen Capital Advisors, a consulting firm specializing in gambling.
There is a lot at stake.
Atlantic City casinos employ 31,700 people, according to state figures. Analysts have estimated that the industry employs more than 100,000 people when indirect jobs are also considered.
The state budget adopted in June relies on $287 million in casino revenues, a 16% increase over the previous year.
Mr. Christie has pledged to help revive Atlantic City. A $30 million subsidy was invested in a new Atlantic City marketing campaign and the state awarded $261 million in tax incentives to help the stalled Revel casino open this year.
Atlantic City gambling revenue hit a peak in 2006, taking in $5.2 billion in revenue. That has fallen steadily since, down to $3.3 billion last year.
The state supported the $2.4 billion Revel casino as a key way to stimulate Atlantic City, but its performance three months since its opening has been "less than expected," Mr. Sinclair said.
Mr. Christie has been supportive of sports betting, which could begin as soon as November at Monmouth Park, said that racetrack's owner, Dennis Drazin,.
"It's up to us to step up and make it a reality," Mr. Drazin said.
Mr. Christie has yet to take a firm position on a bill with legislative support to legalize online gambling following a Justice Department ruling opening the door to betting online. The practice had been illegal in the U.S., though still popularized through offshore providers.
Under New Jersey's bill, bets for people located in the state could be placed online through sites run by Atlantic City casinos. An outside operator would build the infrastructure.
The industry could generate up to $7 billion in gross revenue and $472 million in potential tax revenue if New Jersey became a national leader in online gambling, according to a report by the Philadelphia-based Econsult firm commissioned by backers.
As for building a casino in the Meadowlands, the plan faces significant opposition, not only from Mr. Christie but from Democratic Senate President Steve Sweeney.
But the idea picked up support from the Meadowlands Racetrack's new owner, Jeffrey Gural, who said he "cannot survive" without a casino on the site.
"We're in trouble," Mr. Gural, who also owns so-called racinos at two New York racetracks, said at Thursday's hearing. "It is what it is."
Write to Heather Haddon at heather.haddon@wsj.com
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Home > LI Confidential > Stop scratching on holidays
Stop scratching on holidays
Published: June 1, 2012
Off Track Betting in New York State has been racing into a crisis called shrinking revenue. Some people have spitballed a solution: Don’t close on holidays.
New York State Racing Law bars racing on Christmas, Easter and Palm Sunday, and the state has ruled OTBs can’t handle action on those days, even though they could easily broadcast races from out of state.
“You should be able to bet whenever you want,” said Jackson Leeds, a Nassau OTB employee who makes an occasional bet. He added some irrefutable logic: “How is the business going to make money if you’re not open to take people’s bets?”
Elias Tsekerides, president of the Federation of Hellenic Societies of Greater New York, said OTB is open on Greek Orthodox Easter and Palm Sunday.
“I don’t want discrimination,” Tsekerides said. “They close for the Catholics, but open for the Greek Orthodox? It’s either open for all or not open.”
OTB officials have said they lose millions by closing on Palm Sunday alone, with tracks such as Gulfstream, Santa Anita, Turf Paradise and Hawthorne running.
One option: OTBs could just stay open and face the consequences. New York City OTB did just that back in 2003. The handle was about $1.5 million – and OTB was fined $5,000.
Easy money.
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