Recently, New York State announced eight finalists for three New York City-area casino licenses it will award at the end of this year. The prospect of downstate New York casinos has prompted two New Jersey legislators to introduce another constitutional amendment to expand casino gaming beyond Atlantic City, with one casino at the Meadowlands and another at Monmouth Park.
The legislators’ argument is that New York casinos will siphon off customers from Atlantic City, and the only way to keep revenue in the Garden State is to build casinos closer to the New York border. While I don’t doubt the sincerity of their beliefs, their rationale is misguided.
It is important that proponents of North Jersey casinos look at the eight proposals and identify which ones are the most likely to be approved by regulators. One factor to consider is the location of the existing slot parlors and racetracks in New York. Resorts World New York City in Queens, the largest slot parlor in the state, plans to redevelop Aqueduct Racetrack for its casino proposal. MGM’s Empire City Casino in Yonkers, meanwhile, has similar plans to add table games, hotel rooms, and entertainment to its existing slot and racetrack offerings. Given that these two proposals are sponsored by established racinos in New York, many observers believe these proposals will earn two of the three licenses.
When it comes to the third license, the New York City Planning Commission has already given the green light to The Coney, a casino project proposed for Coney Island in Brooklyn. This advanced regulatory approval already sets this proposal apart from the three proposals for casinos in Manhattan, making it more attractive to New York gaming regulators.
Assuming New York awards its licenses to casinos in Queens, Yonkers and Brooklyn, respectively, these properties would be 30 to 60 minutes (on a good day) from the Meadowlands. The argument that North Jersey casinos are needed to recapture gambling revenue from New York totally falls apart as these prospective casinos are far enough away from New Jersey. Hence, casinos at the Meadowlands and Monmouth Park would do significantly more damage to Atlantic City than they would to any downstate New York casino.
Nevertheless, advocates will still argue that one Manhattan proposal would still be attractive to New York gaming regulators. While any number of Manhattan casinos would undoubtedly hurt Atlantic City, their likelihood of being selected for a license is doubtful. Wynn Resorts, one of the top casino operators in the world, recently abandoned its proposal for a casino in Manhattan’s Hudson Yards neighborhood due to significant local opposition. One of the three remaining Manhattan proposals, The Avenir, is also proposed for Hudson Yards, so it’s likely that this proposal also will face the same public backlash.
Another Manhattan proposal comes from Caesars Entertainment. Compare this to a proposal in Queens from Mets owner and billionaire Steve Cohen, who has proposed to establish a casino next to Citi Field. If regulators are looking at the financial viability of casino operators, Caesars falls short. The last remaining Manhattan proposal is the Freedom Plaza project, planned on a site vacant for 14 years beside the United Nations. This location has puzzled and angered many, as the optics of allowing gambling next to the world’s international deliberative body is laughable. Even if this proposal were selected, it would face significant backlash locally and around the world.
North Jersey casinos would fail to recapture much gaming revenue from New York, especially if there are none in Manhattan. Their construction would do nothing but devastate Atlantic City, leading to thousands of New Jerseyans losing their jobs and Atlantic County becoming number one in the nation for foreclosures again. Funding for prescription drug and utility assistance programs for seniors would also be in jeopardy, as these programs are funded by casino revenue through the Casino Revenue Fund.
Once again, we need to put any political differences aside and unite to fight any efforts to hurt Atlantic City. We defeated North Jersey casinos in a bipartisan fashion nine years ago, and we can do so again.
Michael Suleiman is the founder of South Jersey Forward, a nonprofit think tank and advocacy organization. South Jersey Forward’s research has included creating more owner-occupied housing in Atlantic City, filling the local media void in South Jersey, and combatting food insecurity in urban areas.
