Mark Giannantonio of Resorts Casino suggested up to 5 of Atlantic City’s 8 casinos would close, if North Jersey casinos were approved.
Recently, a group of top Democrats, union leaders, and county officials spoke about the North Jersey casino referendum at a press conference in the Meadowlands. Speaking outside the Meadowlands Regional Chamber of Commerce, the officials criticized top political figures for their indecision on the North Jersey casino question.
One of those criticized was Jersey City Mayor Steve Fulop, considered to be a rising figure in the New Jersey Democratic Party. Steve Fulop is thought to be considering a run for governor of New Jersey in 2017, perhaps running against NJ Senate President Steve Sweeney. Steve Fulop seemed to be in support of the North Jersey casino plan, which likely would put a casino in Jersey City, but later seems to have pivoted on the issue.
Bill Mullen Criticizing Jersey City’s Mayor
Bill Mullen, the New Jersey Building and Construction Trades Council’s president, suggested Mayor Fulop without naming him in particular.
At the press conference, Mullen said, “There some politicians from across the river — I won’t mention their name — with delusions of grandeur who were in favor of casinos in north Jersey, and then flip-flopped on it.”
Jersey City Spokesperson Defends Fulops Decisions
Jennifer Morill, a spokesperson for the Jersey City Mayor’s Office, defended her office’s decision to withhold endorsing the North Jersey casino referendum. Morill said, “Once the state Senate passes the enabling legislation which outlines the details of casinos in North Jersey, then we can make an informed decision.”
The spokesperson for Jersey City noted that the state government is required by statute to provide details when it is calling for a vote on a proposal. When it comes to enabling legislation, location parameters, tax rates, and other provisions which directly impact citizens, the state is required to give details, for the sake of transparency.
Morill said the state has not fulfilled its obligations on the matter, saying, “For some reason, Trenton has not done this,” then added, “Why are the details secret, and how can anyone make an informed decision without this crucial information being passed in Trenton?”
Another Version of Events
Mark Magyar, the New Jersey Senate Democrats’ director of Policy & Communications, disagreed with Jennifer Morilla. Mr. Magyar said that the state-level politicians are following standard procedures.
Magyar said, “Standard practice [is] that you pass a constitutional amendment and then the legislature develops the enabling legislation, implementing what the people have approved through the constitutional amendment.”
Steve Sweeney Claims Both Sides Get What They Want
Senate President Steve Sweeney, who attended the press conference in front of the Chamber of Commerce, said he was trying to help people on both ends of the state. Sweeney said, “This gives us an opportunity to create thousands and thousands of construction jobs in the northern part of the state of New Jersey.”
“But guess what; it gives us the ability to create thousands and thousands of jobs in the southern part of the state and helps us to rebuild Atlantic City, and gives Atlantic City the opportunity to be the destination we want it to be.”
That has been the tactic of Steve Sweeney from the beginning. Under his plan, the North Jersey casinos would have roughly $100 million in tax revenues funneled to Atlantic City over the next 10 years, for a total $1 billion in infrastructure fees sent to the Boardwalk city.
The End of Atlantic City’s Casino Industry?
Atlantic City casino owners, business people, and civic leaders say $100 million would not offset the losses to the casino economy, if North Jersey casinos were instituted. Mark Giannantonio, President of Resorts Casino, has predicted that as many of 5 of Atlantic City’s 8 casinos would have to close, if North Jersey casinos opened. Giannantonio also claimed that most of those closings would happen in short order, after the North Jersey casinos were built.
Under Sweeney’s plan, Atlantic City would be paid $100 million a year to transition its economy. After that decade, the payments would stop and Atlantic City would have nothing to show for its lost business — unless that money was funneled into infrastructure and development. But Atlantic City already faces a $70 million shortfall, so most of the North Jersey casino tax revenues would go to cover the lost taxes. Unless AC politicians cut down the size of the government and directed most of the cash to growth, it would be in a far worse situation in 10 short years.
Whatever the case, the Sweeney Plan is a tacit admission that the Atlantic City casino industry is finished, if North Jersey casinos are approved. The implied rationale for the payments are to invest in non-gaming attractions, which is an admission that the gaming attractions will not be enough.
