newjerseynewsroom.com

BY BOB HOLT

NEWJERSEYNEWSROOM.COM

Gov. Chris Christie will announce plans for an unprecedented overhaul of New Jersey's gaming industry Wednesday – including a complete takeover of the Atlantic City casino and entertainment district, and the sell-off or shutdown of the struggling Meadowlands Racetrack, according to NJ.com.

Christie is set to make the official announcement during a press conference in Atlantic City Wednesday at 2 p.m., officials tell NBC Philadelphia, after appearing at 10:30 a.m. at the 50-yard-line of Meadowlands Stadium in East Rutherford.

The Atlantic City takeover removes virtually all local control from the gaming district, from police protection to garbage pickup, NorthJersey.com reports. At the same time the state is finally throwing in the towel on state-backed harness racing, which lost nearly $10 million last year.

Juliano also said the casinos want the governor to end the $30 million annual subsidy paid by the casinos to help keep New Jersey's struggling racetracks alive. Casinos have agreed to instead use that money to market and promote Atlantic City if the subsidy is taken away from the tracks, he added.

Atlantic City's casinos subsidize the horseracing industry as part of an agreement that places a moratorium on racetrack VLTs as long as the pact is in effect. The deal expires in 2011.

In addition to blocking VLTs, the casinos also want Christie to overhaul costly state regulations on the gaming industry and to leave the casino tax rate at 8 percent, according to the Press of Atlantic City.

The recommendations have been compiled by the advisory commission led by Jon F. Hanson, a former head of the state's Sports and Exposition Authority, which began its work in February.

The recommendations, as outlined in the commission report, call for the most significant changes in New Jersey's once lucrative entertainment, sports and gaming venues since casino gambling was approved and the opening of the Meadowlands in 1976.

Under the plan:

Atlantic City's entertainment and gaming districts would become an independent city within a city overseen by state government. That includes the casinos, the marina, beachfront and Boardwalk areas, while the Atlantic City Convention and Visitors Authority would be shuttered. Money from the Casino Reinvestment Development Authority, now shared throughout the state, would stay in Atlantic City.

New Jersey Sports and Exposition Authority would be all but disbanded, becoming simply a landlord for the facilities it now operates.

The Meadowlands Racetrack could be sold for a token $1, or turned into an off-track wagering facility without live horse racing. The plan also recommends that the Izod Center arena be privatized or sold.

In addition, the state would help refinance the long-stalled Xanadu project in the Meadowlands, enabling a new developer to take control of the garish, high-visibility retail and entertainment complex alongside the New Jersey Turnpike considered by many an embarrassment.

The report calls for the revival of Atlantic City's convention business, which has gotten little promotional assistance. Criticizing a generation of underinvestment in non-gaming activities, it also suggests adding family-type amusement rides on the boardwalk, and possibly the addition of a NASCAR track.

The report was highly critical of Atlantic City's municipal government. It says developers, businesses and casino companies are now wary of investing there while visitors are reluctant to come because of a perception that it is not safe.

The authority would take control of security, planning and traffic in the district. Boardwalk Hall and the convention center would be taken over by the district.

Officials have been working hard to reinvent Atlantic City as much more than just a one-day gambling paradise. New resorts like The Borgata and updated food and nightlife offerings were meant to put the town more inline with Las Vegas, but those efforts still haven't been able to stop revenue losses.