Most of the play at North Jersey casinos will be Jersey residents, bringing their play back from Eastern Pennsylvania casinos and slots at Yonkers and Aqueduct; that are much more convenient, than AC, to 75% of New Jersey’s population.
There is little question in my mind, that NJ voters will say no to the November 8th referendum, just like the did in 1974; but because the Legislature hadn’t answered the 3 questions about the casino tax rates, who gets the new tax revenue, and what share; and most importantly that casinos can only be allowed in two communities, East Rutherford and Jersey City; the only communities with a concrete development plan.
We need to remember that the previous casino tax went entirely to Senior and disabled programs (which have lost $1.8 billion since PA slots opened in the Fall of 2006). And if Atlantic City gets a reasonable share, as promised, would allow the Shore resort to concentrate on the convention/trade show markets, that would solve much of the mid-week problem, now facing AC resorts.
My analysis indicates that just a completed Meadowlands facility, with tables and slots, and a tax rate like PA, would provide over $450 million a year to seniors/disabled programs, Atlantic City efforts and in support of the NJ Racing Industry.
But the only legislation now on the table, is to punish Carl Icahn for closing the Taj; after he brought that property and the Tropicana out of bankruptcy and invested hundreds of $ millions in improvements to the Trop and probably as much in covering losses at the Taj Mahal.
Hopefully Ralph Caputo and other Legislators will understand that answering these three questions, would offer proof that casinos will not be in their backyard, what the new tax rates are, and what percent is going to the groups previously mentioned.
One or more North Jersey casinos would even would help New Jersey Seniors, and provide funds for Atlantic City to seriously revitalize their efforts to attract mid-week conventions and trade shows, during 200 nights in the off season; where over 50% of room, food and beverage revenue is comped, and doesn’t include the 80% to 90% mid-week room rate discounts or the free plan given to potential customers.
AC is no longer the most convenient casino to 95% of the 28 million residents of Eastern Pennsylvania, New Jersey and areas supporting Aqueduct and Yonkers; and must change its marketing strategy; to depend on profits from non-casino revenues; just like the Las Vegas Strip did 25 years ago.
Steve Norton