Legislators in New Jersey have given the go-ahead for a referendum on whether or not to end Atlantic City’s gambling monopoly. The aim: to save Atlantic City. The question will be put to the state’s citizens later in the year. If they vote yes, the state’s constitution will be amended to allow casinos to open in the state’s north, less than an hour away from the metropolis of New York. If they vote no, the town that was once billed as the Las Vegas of the east, might instead be looking at the desolation of Detroit.
Atlantic City’s fortunes have been in free-fall since other northeastern states also legalized casino gambling, starting with Pennsylvania in 2006. Investors who once thought the seaside town had enough allure to draw in gamblers from across the nation watched in horror as players opted to bet closer to home, and abandoned AC in droves. Four of Atlantic City’s 12 casinos went bust last year. Another three are now under Chapter 11 protection. The city’s finances have followed the casinos. Some analysts warn of impending bankruptcy.
If New Jersey’s citizens vote yes the new casinos, which will likely be in East Rutherford and Jersey City, should bring gambling revenue back to the state. 35% of their take will be allocated to Atlantic City. This may lead to the ultimate irony of Atlantic City being saved by authorities allowing gambling outside Atlantic City.
In addition to the referendum, state legislators also approved a financial aid package for Atlantic City. State governor Chris Christie vetoed the original version of this bill after legislators passed it last month. The new version has been amended to demand greater structural change in the city, and greater accountability from its beneficiaries.
