Paul Fireman (left) and Jeff Gural (right) issued a joint statement on their decision.
“Our Turn NJ”, a key nonprofit group who want North Jersey casino expansion, has stopped funding its media campaign. The group decided to pull the plug on its media operations after seeing poor polling data.
Spokesmen for the group said there were other factors in the decision, but the fact that New Jersey voters do not appear interested in North Jersey expansion is the key factor. Paul Fireman and Jeff Gural, two key members of the group, issued a joint statement giving their reasons for ending the campaign.
Press Releaase by Fireman and Gural
In their joint press release, Fireman and Gural said, “The current political climate in New Jersey and voters’ concerns about the lack of details relating to the effort have proved overwhelming.”
During the November general election, New Jersey voters will vote on a statewide referendum about casino expansion into North Jersey. The ballot initiative states that the new casinos must be in separate counties and must be at least 72 miles from Atlantic City, which has held a 40-year monopoly on casino gambling in New Jersey.
New Jersey Casino Economy
The initiative is meant as an attempt to revive New Jersey’s casino industry. North Jersey proponents believe, despite having fourty years of unchallenged primacy in the casino industry, Atlantic City has been a dismal failure.
Four of the city’s twelve casinos closed in 2014. The Trump Taj Mahal is set to close in October, while the new Ten Casino (Revel) cannot seem to get licensing — it had wanted to open by the fall of 2016, but has pushed the opening back to early 2017.
Meanwhile, Atlantic City faces an October deadline for turning around their finances. If the city does not have a plan for a general turnaround by then, the state is likely to seize control of city government and finances for the next 5 years.
Deutsche Bank Estimates
Deutsche Bank said in 2015 that two North Jersey casinos would be worth $500 million in revenues to the state of New Jersey. The German financial institution reckoned proximity to New York City would be a big advantage for casinos placed in the Meadowlands and Jersey City, the areas often rumored to be the sites for the operations.
Proponents of the Atlantic City monopoly claim North Jersey casinos would be the death blow to the AC economy. They also point out the traffic and environmental considerations of placing casinos in the New York City greater metropolitan area.
DiLorenzo Comments on the News
It is the jobs which are cited, most. That was the rhetoric when Debra P. DiLorenzo, chairwoman of the No North Jersey Casinos Coalition, gave a statement on the news this week.
DiLorenzo said, “Although ‘Our Turn NJ’ signaled they will suspend their media campaign, we will continue to fight any and all efforts to siphon dollars and jobs out of South Jersey.”
Sweeney’s Failed Proposal
Proponents of the North Jersey casino plan, which includes State Senate President Steve Sweeney and Ray Lesniak, both possible Democratic nominee for governor in 2017, say Atlantic City missed the bus long ago. In their mind, nothing can be done to save Atlantic City’s casino industry, except put it on government subsidy.
That is Steve Sweeney’s plan to help Atlantic City. He wants to take $1 billion of the taxes from the two new casinos over the first 10 years and funnel them to Atlantic City, to help it invest in a non-gaming tourist economy.
Whelan and Brown Are Pleased
Both sides in the debate say North Jersey supporters did not give enough details. Jim Whelan, a state senator who served as mayor of Atlantic City for over a decade, said, “This is good news for Atlantic City. I think that a lack of specifics related to the plan became an issue to some.”
Assemblyman Chris Brown, who represents Atlantic City, gave his hearty endorsement of the news. Brown chimed in, “I am glad after two years of fighting we’ve proven it was pure folly for anyone to claim North Jersey casinos were inevitable and that building them in an oversaturated market while cannibalizing Atlantic City would somehow help the state of New Jersey let alone the families of Atlantic County, and shows the question should have never gotten on the ballot in the first place.”
Paul Fireman’s Motivation
Paul Fireman might have more reasons than just the polling data to pull his support. One part of the plan would give gaming license holders the first crack at the new casinos. Jeff Gural is associated with Monmouth Park, so he might qualify. Paul Fireman would have to wait for 6 months and hope two worthy casino operators did not propose a $1 billion-minimum casino. That is unlikely, given the lucrative nature of a potential New York City casino.
Under the circumstances, a more concrete plan sounds like it was the only way to go. No one in New Jersey seems interested in supporting a proposal which might end up benefiting rivals, but not themselves.
