North New Jersey Casino Could Bankrupt New York Operations
In New Jersey, gambling is forbidden outside of Atlantic City. However, a year ago there was a referendum that sought to end the New Jersey gambling monopoly held by Atlantic City. The referendum wanted to allow a casino to be built in North New Jersey, but it was soundly defeated during the November 2016 elections. However, voters could get another opportunity soon, and this should be worrying news for the upstate New York casinos.
North New Jersey Could Still Get Casino
When the referendum was defeated in 2016, this was very good news for the New York casinos that were still under construction. However, there are rumors that the possibility of a North New Jersey casino could be put to the voters again next year. The outgoing Governor of New Jersey, Chris Christie, supported the idea of a casino in the North. His successor, Phil Murphy, is also a supporter of the idea.
Many believe that Murphy is more likely to be able to convince voters to pass the referendum. A gambling analyst from New Jersey, Alan Woinski, believes that if the referendum is passed, it will effectively kill the New York casinos. Since the three upstate casinos opened, they have failed to meet financial expectation and a North New jersey casino could be the final nail in their coffin.
North new jersey Casino Bad for New York
If Murphy does want to bring a casino to North New Jersey, he won’t just have to convince lawmakers. The state’s constitution forbids any gambling outside Atlantic City, and in order to change that, the majority of voters need to agree. The other issue is that some people are worried that the casino industry in America has reached its saturation point. Others argue that it has already been passed.
The three upstate New York casinos, for example, have missed their financial prediction by a big margin. Predictions said that Tioga Downs would bring in $262 million in its first year, however, after ten months of operation, it has only made $125 million.
We’re sure there are also those who are worried a North New Jersey casino could also fail to live up to financial expectations.