A New Jersey senator who wants slots gambling added to horse racetracks in the state said this week that New York City’s upcoming new casinos make the Garden State’s need greater than ever.
Sen. Joe Pennacchio has advocated in the past for slots at Meadowlands Racetrack in East Rutherford, which would expand casino-style gambling beyond Atlantic City to the Meadowlands complex across the Hudson River from NYC.
In a statement this week, Pennacchio said that greater expansion of New York casino gambling threatens New Jersey’s existing gambling revenues.
Empire State on the mind
On Monday, Dec. 1, the New York Gaming Facility Location Board voted to recommend that the state grant casino licenses to three proposals. Hard Rock International intends to build a new casino in Queens, Resorts World wants to expand its existing Queens video lottery terminal facility into a full-scale casino and Bally’s plans to build a casino resort in the Bronx.
The New York State Gaming Commission will formally approve or deny those licenses before the end of the year.
With New Jersey’s casinos concentrated in the southern region of the state at Atlantic City, Pennacchio is concerned that the bright lights of NYC’s expanding options could cannibalize New Jersey gaming.
“New York is charging ahead with three new casinos while New Jersey sits on its hands and watches our gaming revenue drift across the river,” he said. “It’s unacceptable. A Meadowlands racino would be an immediate economic engine for our state, yet leaders refuse to act. I’m renewing my call for racinos because New Jersey can’t afford to keep falling behind while our neighbors eat our lunch.”
Speaking to local media, the senator added that while there may be concerns that expanding New Jersey gambling could negatively impact Atlantic City casinos, other states are “doing all the cannibalization as we speak right now.”
A years-long effort
Pennacchio’s efforts to put forth a constitutional amendment that would give the legislature the authority to establish slot machine gambling at horse racetracks date back to at least 2015. He has carried forward that Senate Concurrent Resolution proposal in similar form five times since then, re-introducing it during each two-year session.
Most recently, he filed SCR 14 in January 2024, at the start of the 2024-25 session. Like previous sessions’ versions, it made little to no progress after being filed.
As a constitutional amendment would be needed to make the change, a resolution would need to pass the New Jersey legislature and then be put to state voters on the ballot at the next general election.
Bill argues Atlantic City would benefit too
As a measure to protect Atlantic City, in its most recent form, only existing holders of New Jersey casino licenses would be eligible for initial licensing to set up slot machine gambling at horse racetracks.
Pennacchio’s proposal would dedicate 60% of the revenues from racetrack-adjacent slots towards retirement pensions for state employees. Another 30% would be divided up between Atlantic City casino licensees, and smaller amounts would go towards Atlantic City community funding and thoroughbred and standardbred horsemen.
“The operation of slot machines at horse racetracks would be mutually beneficial to both the casino industry and the horse racing industry,” states the bill’s summary. “Racetrack slot machine gambling would provide an opportunity for casino industry operators to expand beyond the boundaries of Atlantic City and reach patrons who may not otherwise consider traveling to that city to engage in gambling activities.
“For the racetrack industry, the slot machines would increase attendance, drawing patrons who may not otherwise consider traveling to racetracks at which horse racing is the sole activity on which to wager. Additionally, the State would benefit from this mutually beneficial casino industry-racing industry relationship, through increased tax revenue generated directly and indirectly by new racetrack slot machine operations.”
Back in June, Gov. Phil Murphy suggested he is open to the idea of expanding casino gambling in New Jersey to protect state revenues, as long as it does not threaten Atlantic City’s business.
