State senators will consider about a dozen bills today to reform New Jersey's casino and horse-racing industries and establish a state-run tourism district within Atlantic City.
The legislation, if passed by lawmakers, would reshape the resort's largest industry - with effects potentially rippling across the state and overseas.
Two of the bills would bring major changes in the way casinos are regulated and marketed. One would create a state-run tourism district overseen by the Casino Reinvestment Development Authority. The other bill would transfer most casino regulation functions to the state Division of Gaming Enforcement and loosen licensing procedures.
Other measures include Senate bill 490, which authorizes Internet wagering through Atlantic City's casinos, allowing New Jersey residents and people in other countries to participate in casino gambling without leaving their homes.
If S-490 passes, New Jersey would become the first state in the country to license and oversee online casino gaming.
People in other states would not be able to participate in such gambling - federal interstate laws make it illegal. But with the revenue potential of online gambling, other states could soon follow New Jersey's lead, said Sen. Jim Whelan, D-Atlantic.
"We're hoping to be the first state for this, but we won't be the last," Whelan said. "The Internet is not a new phenomena, but it wasn't around in 1978. The Internet is the reality now, and this is a chance for us to adjust to that reality."
The bill includes stipulations that would send a percentage of the state's online gambling profits to horse racing. Sen. Jeff Van Drew, D-Cape May, Cumberland, Atlantic, said he has some ethical concerns with online gaming, but he supports the bill because it would provide oversight and new revenue streams.
"Internet gaming is a growing industry, and some of it is suspicious. But it's much better to let the sunlight stream in, and make sure the industry is properly regulated," Van Drew said.
Senate Bill S11, released from committee Nov. 15, extends the powers of the Casino Reinvestment Development Authority - with the CRDA undertaking redevelopment and infrastructure improvements within a resort tourism zone. That tourism zone would include the Boardwalk, Marina District other visitor attractions. Three southern New Jersey senators - Whelan, Van Drew, and Stephen Sweeney, D-Salem, Gloucester, Cumberland - sponsored the bill.
Senate Bill S12, also released from committee last Monday, shifts Casino Control Commission regulation to the Attorney General's Office Division of Gaming Enforcement. The CCC, an independent state agency funded by casino revenue, has regulated the resort's casinos since the 1970s.
S-1866 establishes licensing for two smaller casinos with 200 hotel rooms - 300 fewer rooms than current laws require. Whelan helped develop the "boutique" casino plan as a way to lessen the financial strain for casino developers.
Van Drew said the goal is to beautify Atlantic City, and fulfill the city's potential as a destination resort.
"Creating that tourism district is a matter of great importance," Van Drew said. "The goal is an Atlantic City that is cleaner, safer, free of blight and filled with better landscapes for tourists and residents."
Lawmakers will consider off-track betting - another potential revenue source for the state - with Senate Bill 1980. S-1980 expands the types of facilities that can host off-track betting, and forces license-holders of off-track parlors to open their parlors more frequently.
Other bills up for a vote involve horse racing reform, a hot topic in the northern part of the state, and necessary component for the passage of the southern New Jersey-focused casino bills. Those bills include:
• S-829, which authorizes exchange wagering on in-state and out-of-state horse racing results. Exchange wagering involves parties placing directly opposing wagers on the outcome of horse races.
• S-2229, which allows racetracks to provide a parimutuel or pool betting system for each running or harness race - with winning bettors sharing the payoff pool.
• S-2390, co-sponsored by Whelan, permits Meadowlands Racetrack and Freehold Raceway to decrease the annually required minimum number of scheduled standardbred race dates, with lawmakers hoping to make scheduled races more prestigious - and draw larger purses.
• S-2394, which provides tax incentives for breeding and racehorse development.
The bills need to be approved by the Assembly as well. Van Drew expects the measures to pass without much hesitation - putting into practice the tourism district plans that Gov. Chris Christie outlined in July.
Whelan expects some of the bills to be amended from their current form, especially the CRDA bill. But he's glad to see the process moving forward.
"When the governor introduced his plan, he talked about getting the legislation passed in the fall, and here we are in the middle of the fall, and everybody's focused on getting these bills passed," Whelan said. "I think it sends the right message about Atlantic City - to investors, potential clients and current casinos - that we're serious about doing the things we need to do in order to make Atlantic City the resort it needs to be."
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