Tag Archives: atlantic city

Future of North Jersey Casinos Now In Voters’ Hands

On Monday, three-fifths of each house of the New Jersey legislature passed resolutions that will put a question on the ballot in November asking voters if they want to expand casino gaming outside of Atlantic City.  As we previously posted here and here, the North Jersey casino proposal will allow for two casinos to be located at least 72 miles from Atlantic City, in separate counties.  The minimum investment required for a North Jersey casino will be $1 billion.  Current Atlantic City casino owners will be given an exclusive period of 60 days to submit bids for the two North Jersey casino licenses before bidding is opened up broadly.  Current owners of Atlantic City casinos may partner with other investors/developers to submit a bid for a North Jersey casino license.

If New Jersey voters pass the referendum in November, the legislature will then need to adopt enabling legislation.  This legislation will provide the details for the bidding process and the tax rate for North Jersey casinos.  Atlantic City casinos currently pay an effective tax rate of 9.25% on gross gaming revenue.  North Jersey casinos likely will be required to pay a significantly higher rate, perhaps in excess of 50%.

We will provide updates as developments occur.

The Likely Battle Between the State Lottery and Atlantic City’s Casinos

The New Jersey State Lottery, in existence for more than 42 years, has been a source of significant profit for state institutions and state aid for education. Even so, New Jersey has commenced efforts to privatize certain functions of the lottery, with the ultimate goal of increasing revenue and improviing the lottery’s operation. As the process has moved forward, the coexistence between lottery and casinos has become a topic of possible concern, particularly with the legalization of Internet wagering. Partner Frank DiGiacomo takes a closer look at the relationship between lottery and casinos in New Jersey, and what the partial privatization of the lottery may mean for the casino industry going forward in this article published in New Jersey Lawyer.