New Jersey Casino Reinvestment Development Authority Allocates Funds for Increased Security
Posted on: September 27, 2023, 09:52h
Last updated on: September 27, 2023, 09:52h
The Casino Reinvestment Development Authority (CRDA) in New Jersey has approved a budget of approximately $137,000 to hire armed security guards who will be responsible for safeguarding its headquarters located on S. Pennsylvania Avenue in Atlantic City.
Recognized as “the only agency of its kind in the nation,” the CRDA utilizes Atlantic City gaming taxes to support the city’s overall growth and development through reinvestment initiatives.
The CRDA focuses on stimulating economic and community progress, with funding primarily derived from a state requirement that mandates the nine casinos in Atlantic City contribute 1.25% of their brick-and-mortar gross gaming revenue (GGR) to the governing body. Additionally, the CRDA collects a “luxury tax” from casinos, which amounts to 9% of their hotel revenue, 3% of alcohol sales, and 9% of entertainment receipts.
Criticism has arisen due to the CRDA’s allocation of funds to controversial programs, such as providing millions of dollars in payments and incentives to the Miss America Organization, as well as the establishment of a “Green Zone” permitting recreational cannabis dispensaries and lounges along Pacific Ave.
A previous audit conducted by then-New Jersey State Auditor Stephen Eells in 2018 highlighted the CRDA’s inadequate utilization of funds, stating that certain transactions were unreaso
Enhanced Security Measures Implemented
State gaming regulators from the New Jersey Casino Control Commission continue to prioritize the economic welfare of Atlantic City, as gaming revenues in the state continue to rise steadily.
However, casino executives emphasize that the overall representation of the casinos’ performance is not accurately reflected in the gross gaming revenue (GGR) figures. This discrepancy is due to a significant portion of online gaming revenue and sports betting income being shared with third-party operators.
Following a slight decline during the pandemic, crime rates in Atlantic City are now surging. In an attempt to combat unlawful activities, the city has ordered businesses located in high-crime areas to close overnight, aiming to restore law and order on its streets.
In April, the Atlantic City Council, together with Mayor Marty Small Sr., passed a resolution requiring businesses along Atlantic Avenue to close nightly at 10 p.m. The CRDA’s office is situated just south of Atlantic Ave. on Pennsylvania Ave.
Conducted by the New Jersey State Police, a recent security review of the CRDA’s headquarters concluded that the deployment of armed security guards was necessary. As a result, the CRDA has approved a budget of $136,906 to hire armed guards who will patrol the premises for the next 12 months.
The winning bid was submitted by Expert Investigation Group, a security firm based in Somers Point. The assigned officers will receive an hourly rate of $54.85, with overtime compensation set at $82.28 per hour.
Retired Atlantic City Police Department Detective Patrick Hurley oversees Expert Investigation Group.
Preserving Public Safety
Casino.org has recently received emails from concerned Atlantic City residents expressing dissatisfaction with the CRDA’s allocation of resources. To ensure a thriving casino industry in Atlantic City, gaming executives assert that local government bodies and law enforcement agencies must prioritize public safety measures.
Jim Allen, Chairman and CEO of Hard Rock International, which owns and operates Hard Rock Atlantic City, has been one of the town’s most outspoken critics. Speaking in 2020, Allen stated that Atlantic City is in worse condition now than when his company purchased the building in 2017.
Allen voiced his frustration regarding the city government’s slow response in repairing broken light poles. Mike Sampson, General Manager of Hard Rock Atlantic City, also expressed his disappointment with the city’s state.
“I’ve been driving to Hard Rock each and every day for 32 years, and it’s not always pleasant. When I look at it like a guest or newcomer coming in to the city, it pains me,” Sampson said in November of last year.
Mark Giannantonio, President and CEO of Resorts and head of the Casino Association of New Jersey, echoed these sentiments, emphasizing the need for increased tourism in Atlantic City.
“If you go to Las Vegas, people are everywhere. Look at Atlantic City. What’s missing? The absence of tourists on the streets,” Giannantonio remarked.