Senator James Whelan, formerly a Mayor of Atlantic City, is to introduce a bill that seeks to allow the construction of four small casinos in New Jersey. Even before it is filed the proposed law is raising the hackles of established casino operators, who object to the moving of the goalposts for casino investment in Atlantic City. James Whelan believes the move would help New Jersey to compete with the expanding gaming markets in neighbouring states.

Under present gaming law casinos must have a minimum of 500 rooms but the bill provides for the four new casinos to have only 200, a much smaller investment for developers. However a 14% tax would be levied on the new casinos compared to the 9% paid by the eleven existing casinos. With the 200 rooms casino investors would be able to put in a gaming floor of 20,000 sq ft, which would rise to 30,000 sq ft and the return of the extra 5% gaming tax if 300 additional rooms were added within five years. Operators would be able to offer only gaming machines if they did not want table games, which bring additional staff expenditure.

The local union that represents 15,000 casino employees is not in favour of the Whelan proposal, saying it lowers the standards and image of Atlantic City. At least one present operator believes more should be done to create demand for the state’s existing hotel casinos instead of adding to the supply. However, the prospect of more jobs and the ability to adapt to changes in the gaming industry has attractions for some in New Jersey and small local businesses not involved in gambling could benefit from an increase in visitor numbers. (E-03.22.10)

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