Officials Worry About NJ Economy if NY Grants Another Casino License

NY is giving developers a second shot at a casino license in the Southern Tier, which officials say will hurt NJ.

NJ Spotlight News | January 14, 2015 | Politics

By Brenda Flanagan
Correspondent

“This is not modern day Little League where everyone goes home with a trophy,” said Gaming Facility Location Board Chairman Kevin Law.

But it is modern day politics where the Gaming Facility Location Board — at Gov. Andrew Cuomo’s request — just gave developers a second shot at a New York casino license. It’ll be granted somewhere within the so-called Southern Tier — five counties bordering Pennsylvania — and close enough to give New Jersey significant economic angina.

“Personally I do not see any harm in directing staff to reissue a request for applications for this region,” said Law.

“It’s very distressing,” said Assemblyman Ralph Caputo.

Caputo does see lots of potential harm to New Jersey and its struggling economy. He’s among lawmakers who envision new casinos in northern New Jersey, perhaps in Jersey City or the Meadowlands.

“The Southern Tier hurts us because we’re trying to draw from the same 14 million people radius in the North Jersey/New York area,” Caputo said.

“Any facility located in that geography has the potential of pulling dollars out of the New Jersey economy and placing it in the New York State economy,” said Jim Hughes.

Hughes heads Rutgers’ Bloustein School of Business. He agrees New Jersey needs to develop brand new casinos in North Jersey.

“The goal would be — first of all — to keep New Jersey dollars from flowing out of state. But New York City has over 8 million residents, so if we put a facility that’s accessible to that market, we’re gonna draw some of that to New Jersey,” he said.

Here’s the rub: to expand casino gaming beyond Atlantic City, lawmakers must get permission from New Jersey voters and some plan a referendum question or this upcoming November’s ballot. Caputo claims they should’ve moved faster. He’s dismayed because politicians in the Atlantic City area fought the idea of opening casinos elsewhere, even as gaming halls died along the boardwalk.

“Four casinos closing with 11,000 people out of work. We have to make a decision in Jersey: Are we gonna be in the gaming business or not?” said Caputo.

Back in December, New York’s board awarded just three casino licenses upstate and snubbed applications for the Southern Tier, including one for Tioga Downs from Jeff Gural who plans to resubmit Tioga. Gural also owns the Meadowlands Racetrack and wants to build a casino there, too.

“We’re gonna be fighting for every customer just like Atlantic City had to,” said Caputo.

Lawmakers still need to decide where to put more casinos in North Jersey, that’s assuming of course New Jersey voters approve expanding casino gaming in the state. It’s a long process and New York’s head start undoubtedly increases its odds of success.