On Friday, New Jersey lawmakers met for the second gambling summit, in order to debate the various issues affecting their gambling industry as well as consider possible solutions. The U.S. state of New Jersey is basically cut into two sections when it comes to gambling. The southern part of the state is the Atlantic City market, known for its large, luxurious casino resorts. The northern part of the state is the Meadowlands market, where racetracks pull in gambling revenue. Neither industry is doing well right now.
You don’t have to be an economic guru to understand why gambling businesses are struggling right now. In this recession, most businesses are struggling – except for road construction, of course – and with people cutting back on the money they spend, unnecessary expenses like trips to a casino are the first to get cut. President Obama even told people not to go to casinos, much to the chagrin of Las Vegas and Atlantic City!
New Jersey’s economy is worse than most of the country, thanks to Jon Corzine’s big-government policies driving them into the ground. New governor Chris Christie shows promise, but it will take time for him to turn things around.
In an attempt to boost business, the Meadowlands racetracks want to add other casino games to their businesses. Since Christie wants to end government subsidization of the racetracks, some see expanding their games to include more casino games is the only way to compete and stay in business.
In the gambling summit, lawmakers called for an increase in off-track betting parlors in the state. Currently, 15 such parlors are allowed by law, but only three exist. While the idea of opening more off-track betting parlors and allowing more casino games at the racetracks appeals to some, owners of Atlantic City casinos largely oppose the measure. They fear that if residents had access to closer casino games they would not make a trip to Atlantic City, which Christie is attempting to turn into a major tourist destination (and not just for gamblers). Atlantic City is also facing tough competition from neighboring states.
Another idea that was debated in the summit was creating an intrastate online gambling market. The area’s land-based casinos could create online casinos and only people within the borders of New Jersey could play. Since it’s confined to the state’s borders, no federal regulation or legalization would be necessary and UIGEA would be irrelevant.
While there was much debate, this little “fact-finding” meeting had little real results. Lawmakers never came to an agreement on any plans to revive the struggling gambling markets. The meeting was held in large part to come up with an alternative to Christie’s plans, but no better plan emerged (except maybe the intrastate online gambling plan, which wasn’t supported by every member in attendance). So I guess it’s politics as usual.