As New York edges toward the potential approval of up to three large casinos in or around New York City, New Jersey Governor Phil Murphy has expressed willingness to consider casino projects outside Atlantic City to capture gambling revenue and sustain tourism within New Jersey.

In an interview with The Press of Atlantic City, Murphy highlighted that the state should assess how this expansion might impact Atlantic City, which is currently the only area in New Jersey where casinos are legally allowed.

“If it’s a zero-sum scenario between New York and New Jersey, I want to keep the gaming dollars and associated tourism on New Jersey’s side,” Murphy stated. “However, I’m also aware of the possible repercussions for Atlantic City.”

The governor noted the city’s seasonal dynamics: “As we gather in June, we’re in the midst of peak season. This place is bustling.” He reiterated that while he’s open to casino expansion, any decision must entail a thorough understanding of the impact on Atlantic City’s economy.

This dialogue arises as two Democratic state senators, Paul Sarlo from Bergen County and Vin Gopal from Monmouth County, introduced legislation in May proposing a constitutional amendment to allow casinos at Meadowlands Racetrack in East Rutherford and Monmouth Park Racetrack in Oceanport. Both locations currently facilitate sports betting and host horse racing.

The proposed ballot would ask voters if the state constitution should be modified to enable the legislature to authorize casino gaming at these racetracks.

Tax income from the new casinos would fund property tax relief, special education, state pension contributions, and assistance for the horse racing sector. Additionally, the bill includes a clause allocating 10% of the tax revenue from these casinos to support tourism in Atlantic City.

In 2016, New Jersey voters turned down a similar initiative, with 80% rejecting the proposal. Nevertheless, Sarlo remarked that the current intent is to counter potential competition from Manhattan.

This establishes a position to signal New York State that should they open a casino in Manhattan, New Jersey will be prepared to face that competition,” Sarlo asserted.

Murphy has yet to officially back the bill but indicated that any expansion plan must prioritize the interests of the state.

“I aim to optimize gaming revenue and tourism within New Jersey, including in Atlantic City,” Murphy stated. “We’ve invested significant efforts to elevate Atlantic City to its current status; I do not wish to sacrifice that.”

A number of casino operators interested in Atlantic City are among those vying for one of the available licenses in New York. Bally’s has pitched a project in the Bronx, Caesars Entertainment has unveiled plans for Times Square, and Hard Rock is chasing a site near CitiField in Queens.

Casino executives in New Jersey have expressed fears regarding the potential influence of a New York casino expansion on their in-person gaming revenues, which many claim have not yet returned to pre-pandemic figures. Although online gaming and sports betting provide supplementary income, those revenues are often shared with external providers.

Mark Giannantonio, president of the Casino Association of New Jersey, emphasized the necessity of adaptation. “We recognize that this is on the horizon,” he remarked. “Now is the ideal moment to revitalize Atlantic City to attract a more diverse range of customers.”

Jeff Gural, operator of Meadowlands Racetrack, supported Murphy’s stance, believing that a local casino could help keep revenue within New Jersey.

“The governor is correct: We must retain that money in New Jersey, not let it cross the bridge,” Gural asserted.

Gural also suggested he would be amenable to a higher tax rate for a Meadowlands casino compared to that in Atlantic City. He did not specify a figure but indicated it would align with whatever rate New York imposes on its local casinos.

Murphy reiterated his position, stating that while the prosperity of Atlantic City is vital, the state must also factor in potential revenue shifts due to regional competition.

“I want to prevent a significant loss of gaming dollars or tourism to New York when it could be maintained in New Jersey,” he explained.