For the first time since Atlantic City opened for gambling 28 years ago, casinos were forced to close their doors yesterday. Until a new state budget is agreed there will be no money for state employees and the casino inspectors required by legislation will be unable to fulfil their functions, meaning that no legal gambling can take place. The shutdown could cost New Jersey as much as US$1.3 million per day in lost gambling taxes. The 12 casinos affected are losing a lot more, and neighbouring businesses that trade on the gambling public, including casino restaurants, will also feel the pinch.

The battle over an increase in sales tax has left around 40,000 state employees without work and nearly as many working in vital services doing the job with no pay. As of yet no compromise suggested has obtained approval from both sides of the dispute and, as a result, an estimated 36,000 casino workers are now idle. Today a budget plan from Assembly Democrats will be under discussion and it remains to be seen whether a deal can be cut with Governor Corzine and the casinos able to re-open.

Should the New Jersey state budget not be approved quickly then Atlantic City casinos may see a longer term effect on their gambling profits. With surrounding states offering racinos and tribal gaming, Atlantic City’s casinos may lose some customers on a more permanent basis. At present New Jersey has more commercial casino jobs with higher consumer spending than any other state apart from Nevada. The Atlantic City casino market brought in revenue of US$5.018 billion last year – a figure that should encourage legislators to concentrate their minds on finding a rapid solution to the present impasse. (E-07.06.06)

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