Jim Allen has an exclusive contract with Meadowlands Racetrack, if ever a casino was placed in Jeff Gural’s East Rutherford venue.
Hard Rock International CEO Jim Allen said his company remains interested in a North Jersey casino, despite spending $500 million on renovations for the recently opened Hard Rock Atlantic City. The company’s Atlantic City casino, located on the site of the Trump Taj Mahal, had its grand opening on June 28.
Jim Allen made those remarks during the run-up to the Hard Rock Atlantic City, but it sounds like New Jersey state lawmakers have little interest in another North Jersey ballot initiative. A referendum which would have approved 2 North Jersey casinos was on the November 2016 statewide ballot, but it lost by a 78% to 22% margin.
Hard Rock International teamed with Jeff Gural of the Meadowlands Racetrack in East Rutherford to back the 2016 North Jersey referendum. The two poured millions into a political action committee (PAC), but closed down the operation a full month before the vote, because the polls showed North Jersey casinos had no chance of winning.
At a recent press conference, the Hard Rock International CEO was asked whether he would back the idea of land-based casinos in East Rutherford, Newark, or Jersey City again. Jim Allen said, “We would certainly be interested. We have an ownership in the Meadowlands, and we have an exclusive right to operate the gaming operation there.”
Stephen Sweeney on North Jersey Casinos
When asked about a second North Jersey casino referendum for 2018 or 2020, New Jersey State Senate President Stephen Sweeney said, “I don’t see any way where it comes back. It was crushed.”
Stephen Sweeney was a major supporter of the 2016 referendum. Not only did he back the ballot initiative in the New Jersey Senate, but he wrote op-ed pieces calling for New Jersey voters to vote “Yes” on the referendum.
Failed North Jersey Casino Referendum
Ultimately, voters in the northern half of the state were wary of placing casinos in North Jersey. Because the referendum failed to specify where the casinos would be, many voters expressed concern their community would have a casino — leading to concerns about traffic congestion and social problems.
Jeff Gural and Jim Allen thought a more specific proposal might have better luck, but that does not appear to be in the cards. Jeff Gural, who owns Tioga Downs racetrack in New York, still considers himself lucky in the grand scheme of things. The Meadowlands Racetrack now is the only operating sportsbook in the New York City Greater Metropolitan Area.
Jeff Gural: “A Tremendous Gift”
Recently, Gural boasted about the unique position he finds himself, while taking a shot at the New York state lawmakers who made it so. When asked about New York’s state legislature’s failure to pass a sports betting bill, Gural said, “New York did me such a favor. That leaves me the entirety of New York City, Long Island, and Westchester County.”
The Meadowlands Racetrack owner called the U.S. Supreme Court decision that struck down the PASPA federal ban on sports betting in 46 states “a tremendous gift”. Now, a cityscape of nearly 20 million people have one single sportsbook within a short distance. Had the New York state legislature legalized sports gambling, Resorts World New York City would have been a viable competitor. Genting Group, the owner of the Resorts World New York, is a multinational conglomerate which would have had tremendous resources to install a world-class sportsbook operation.
Meadowlands Slots Parlor?
Tony Marino, a gaming analyst familiar with the New York/New Jersey area, said the Meadowlands, Jeff Gural, and Jim Allen are in a good position when it comes to New Jersey legislation. While Stephen Sweeney balks at approving a multi-billion dollar integrated-casino in North Jersey, Marino says a racino law might still be feasible.
States like Pennsylvania passed laws which allowed slot machine-style gaming machines to be placed in the state’s racetracks, creating racetrack-casinos (racinos). Referring to New Jersey’s latest governor, Phil Murphy, Tony Marino said, “Unintended consequence…is to give the tracks new ammunition to reopen the argument that they should now be allowed to have video slot machines.”
If the Meadowlands Racetrack’s owner cannot convince New Jersey lawmakers to give him an integrated resort, then he might convince legislators to give him a slots parlor. To do so would require the ending of Atlantic City’s 40+ year monopoly on casino games. Soon, Hard Rock International and Meadowlands Racetrack will be generating revenues on both ends of the state that could be used to lobby lawmakers for new advantages.
