New Jersey Governor Supports Expanding Casinos Beyond Atlantic City

New Jersey Gov. Phil Murphy has expressed a willingness to consider expanding casino gaming beyond Atlantic City, particularly into the northern and central parts of the state. The governor's position comes in response to developments in neighboring New York, where officials are expected to authorize up to three casinos in or near New York City.

New Jersey Gov. Phil Murphy at his 2023 State of the State Address in Trenton, New Jersey. (Source: Bloomberg)
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During an interview with The Press of Atlantic City (TPAC), Gov. Murphy stated that he is open-minded about the possibility of authorizing casinos outside of Atlantic City. While acknowledging the potential consequences for the shore resort's economy, Murphy emphasized his responsibility to ensure that gaming and tourism revenue stays within New Jersey.

Related: Proposed Constitutional Amendment in New Jersey Seeks Casino Expansion

He highlighted that if New Jersey is in a direct competition with New York for tourism and gambling dollars, his preference is to retain that economic activity within New Jersey's borders. New gaming facilities proposed for New York City could attract a significant portion of New Jersey's existing customer base, presenting a competitive threat to Atlantic City's long-established casino industry

Gov. Murphy emphasized the importance of understanding the broader economic impact of such an expansion. He noted that while Atlantic City is currently experiencing its peak summer tourism season and performing well, he must weigh any expansion efforts carefully to avoid undermining the city's recovery and growth. The governor characterized his openness to the idea as conditional, based on a thorough analysis of how new casinos would affect the existing Atlantic City market.

In 2016, according to the TPAC, New Jersey voters overwhelmingly rejected a proposal to allow casino gambling outside Atlantic City, with approximately 80% voting against the measure. Despite that decisive vote, the concept has remained a topic of debate, especially as market conditions and regional competition have evolved.

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New Legislation Seeks Casino Gambling Expansion

The latest push for expansion comes in the form of legislation introduced in May by State Sens. Paul Sarlo and Vin Gopal. Their proposed bill would bring the issue back to the voters and authorize new casinos at two specific locations: the Meadowlands Racetrack in East Rutherford and Monmouth Park Racetrack in Oceanport.

The legislation includes specific provisions regarding the use of tax revenue generated by the new gaming operations. According to the bill, the funds would be earmarked for property tax relief, special education, contributions to state pension systems, and support for New Jersey's horse racing industry.

Additionally, 10% of the revenue collected from the proposed casinos would be directed toward promoting and sustaining Atlantic City tourism, a measure aimed at offsetting potential negative impacts on the city's casino sector.

Currently, Atlantic City is the only jurisdiction in New Jersey where casino gambling is permitted. The introduction of casinos in other regions would represent a significant shift in state policy.

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