newjerseynewsroom.com

Says it's inconsistent with revitalizing Atlantic City

Gov. Chris Christie Thursday vetoed legislation that would have permitted intrastate Internet gambling in New Jersey, saying the proposal is inconsistent with his effort to revitalize gambling and tourism in Atlantic City and that he has legal concerns about it.

“Casino gaming is a vital component of the state’s economy and one of our most important industries, generating billions in revenues and providing tens of thousands of jobs,” the governor said. “Since the earliest days of my administration, I have stressed the urgent need to address the critical issues surrounding the casino industry in order to reinvigorate this sector of our economy and ensure its long-term sustainability.

“In partnership with the Legislature, we have achieved meaningful reforms that provide the impetus for new investment and increased tourism that will lead Atlantic City to recapturing its status as the premier resort destination in our region of the nation,” he added.

In his veto message, Christie recognized as laudable the intent of the bill to make New Jersey a more competitive gambling state, but he also cited numerous concerns with the legislation as it relates to the administration’s policy objectives and the state Constitution, including potential allowance of gambling outside of Atlantic City’s borders and the continuation of a public subsidy for horseracing, respectively.

“I wholeheartedly support the intentions of the Legislature to make New Jersey a more competitive gaming jurisdiction,” the governor said. “However, I do not believe that Internet gambling as contemplated in S-490 is a viable option for continuing the progress that we have made so far in reversing the fortunes of the casino industry in New Jersey.”

Sen. Raymond J. Lesniak (D-Union), the sponsor of the legislation, said Internet gambling is an inevitable growth of casino gaming and that he doesn’t want New Jersey to lose out to Las Vegas “like we did on sports betting, on what will inevitably be a national and international market.

“Every year, New Jersey-based casinos lose out on hundreds of millions of dollars and thousands of jobs because the federal ban on sports wagering gives casinos in Las Vegas and other states around the nation an unfair advantage,” Lesniak said. “We cannot afford to drag our feet on the next new development in wagering.

“While the governor expressed concern with some aspects of the bill today, he’s committed to the general idea that we have to expand gaming product in order to bring our gaming industry back from the brink of fiscal insolvency,” the senator said. “I’m encouraged that he’s expressed an interest to work together to maintain the core idea behind Internet wagering while making sure that such operations cannot be hijacked by unscrupulous operators. But we cannot delay.

Lesniak said financial studies produced by independent fiscal analysts note that Internet gaming would produce, at a minimum, $35 million in new tax revenues for the state, $210 million in gross revenues for Atlantic City’s casino industry, 1,500 jobs, and $70 million in direct personal income from the new jobs. However, he said, the numbers could be as high as $350 million in new tax revenues, 57,000 new jobs, and $470 million in direct personal income.

Assemblymen John Amodeo and Vince Polistina (both R-Atlantic), said the veto ensures gambling will remain only in Atlantic City.

“Internet wagering can create construction, and permanent high-paying technological, jobs that are needed in Atlantic City, but we must be certain that it does not hurt casino revenues,” Amodeo said. “The governor’s veto ensures that gambling will stay only in Atlantic City and that new gambling revenue is not used to subsidize horse racing at the expense of senior or disabled citizens.”

Polistina added, “I respect the governor's continued focus on revitalizing Atlantic City and look forward to continuing to work with him on developing sound gaming policy that maximizes the return on the state's 35-year investment in Atlantic City, enhances revenues for senior and disabled programs, and creates jobs both at existing casinos and at some point through legal Internet wagering.”

– TOM HESTER SR., NEWJERSEYNEWSROOM.COM