New Jersey Mulls Expanding Casinos To Other Parts Of State

Since Atlantic City opened its first casino back in 1978, ‘The Garden State’ has gone from being one of the United States most popular gambling resorts with an annual revenue of $5.2 billion in 2006 to seeing its winnings reduced to just $3.05 billion by 2012.
Consequently, in an effort to reverse its waning fortunes New Jersey recently joined the ranks of Nevada and Deleware by legalizing online gambling, with varying estimates from analysis firms suggesting NJ could rake in anything between $40 million and $180 million in annual state taxes. However, New Jersey Gov. Chris Christie isn’t about to take any chances with the struggling health of the state’s gambling industry and if the seaside resort’s revenues fail to gain pace over the next year, said he may consider expanding casinos to other parts of New Jersey.
Up until now, state law has confined casino gambling to Atlantic City in the south, but soon other locations, such as Meadowlands sports complex in northern New Jersey, may soon become part of an expanded New Jersey gambling scene. As Gov. Christie explained recently: “It’s [2014] obviously a critical year because we need to begin to see progress in Atlantic City, or we’re going to start considering alternatives.”
The move may also help ease pressure on the contracting Northeast gambling market, which recently saw Atlantic City’s 12 casinos reduced to just 11 after the Atlantic Club Casino Hotel became the latest casualty of AC’s downward trajectory as a gambling hub. In fact, some analysts believe the casino’s closing could be the first of many as the bigger gambling venues cannibalize their weaker competitors, such as Trump Plaza, the Golden Nugget and the Showboat.
As former Atlantic City casino publicist Wayne Schaffel, explains: “It will undoubtedly shore up the balance sheets for the remaining eight to 11 properties, but it will also take out anywhere from 1,500 to 3,000 rooms. At the end of the day, the winners will be the few remaining casino companies. The losers will be the thousands of employees who lose their jobs; the state, which will suffer from ever lower revenue and taxes; and Atlantic City itself.”