Gov. Christie Signs Bill Allowing 2 Smaller Casinos

Reeling from competition all around it, Atlantic City is counting on two new, smaller casinos to help it regain its winning edge.

New Jersey Gov. Chris Christie signed legislation Wednesday night to allow construction of two ``boutique'' casinos in Atlantic City with a minimum of 200 hotel rooms.

Previously, New Jersey law required at least 500 rooms. The most successful of the city's 11 casinos have 2,000 rooms or more.

The change is seen as a way to help jump-start the nation's second-largest gambling market, which has been losing market share for the past four years to casinos in neighboring states.

“This bill will provide a boost to the engines of Atlantic City and the regional economy, bringing badly needed jobs to the area and signaling the re-emergence of world-class entertainment,” Christie said.

When the proposal was first announced last March, Florida's Seminole Indian tribe, through its Hard Rock franchise, said it wanted to build such a smaller casino on the Atlantic City Boardwalk.

Jim Allen, president of Seminole Gaming, which owns Hard Rock, did not immediately return a call Wednesday night from The Associated Press seeking comment. But state Sen. Jim Whelan, a former Atlantic City mayor and a main sponsor of the bill, said he spoke with Allen earlier in the day.

“They're ready to roll,” Whelan said.

He said the company expects to apply shortly for a coastal building permit from the state Department of Environmental Protection, and will submit preliminary paperwork to the state Casino Control Commission to start the approval and licensing process for a new casino.

“We need new product in this town, and we have Hard Rock ready to go,” Whelan said. “The fact that Hard Rock is ready and willing to invest several hundred million dollars in Atlantic City should be a positive sign for others thinking of investing here.”

Many of the existing casinos bitterly oppose allowing new, smaller gambling halls to open. They say it is unfair to those companies that have invested billions to allow newcomers to enter the market more cheaply.

Yet that is precisely what the bill aimed to do. To compensate for the lower price newcomers like Hard Rock will have to pay, the new casinos will be taxed at a higher rate than the existing casinos.

One of the two new casinos can be built with as few as 200 rooms. The other could start out that small but would have to expand to at least 500 rooms within five years. Any new casino would have to be new construction, and not a renovation or conversion of an existing building into a casino-hotel.

“The gaming industry is changing and we must do the same if we're to remain competitive,” said Deputy Assembly Speaker John Burzichelli, a south Jersey Democrat. “If we're to ensure a strong Atlantic City, we need to provide new gaming products like boutique casinos to entice builders to invest, attract visitors and grow our economy.”

Lawmakers also are considering measures to create a state-run tourism district in Atlantic City encompassing the casinos and the boardwalk and to cut back on some state regulation of the casinos.

A bill to create the tourism district is expected to undergo further changes during Thursday's voting session. It could be approved and sent to Christie by Monday.

Copyright AP - Associated Press
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