Casino Movement

In 2003, when an effort to bring VLTs to venues outside Atlantic City seemed to be gaining momentum, the competing interests commissioned legal opinions to determine if such a move could be made and under what circumstances.

One review conducted by lawyers retained by the casino industry concluded that it represented an expansion of legalized casino gaming and, as a result, would require additional authorization via a constitutional amendment.

The state responded by claiming that the terminals, because they were different from casino slot machines, were merely an extension of the state’s lottery system — already authorized by the constitution — and the state was therefore free to install the terminals just as it installed lottery terminals elsewhere.

This opinion also suggests it could be carried out without legislative approval — a view directly contrary to that of Sweeney.

Christie has not gone beyond his comment that he would await the report of the special study commission before deciding on a course of action.

Considerable speculation has swirled around the issue, including turning responsibility for the operation of the terminals over to the casino industry and providing it a cut of the proceeds, thereby softening its opposition.

While Sweeney is reflecting the feeling of his South Jersey political base, Christie is taking the broader view — including the potential for additional state revenue — and hoping the study commission will develop a comprehensive, long-term plan for the state’s role in the gaming, sports and entertainment industries.

As revealing as Sweeney’s “it ain’t happening” pledge was his comment that the casino industry should be relieved of its agreement to contribute millions of dollars a year to purses at the state’s tracks because racing is a “dying industry.”

Sweeney’s remark can only be construed to mean that he feels if horse racing cannot survive on its own without substantial outside assistance, it should fade quietly out of existence. His position is a major departure from that of previous legislatures and administrations that acted on a number of occasions to prop up the racing industry.

Sweeney’s assertion must have stunned supporters of horse racing. If his view precludes any legislative action to subsidize the sport, it may well turn out to be the death knell for the industry.

The entire issue could become academic, of course, if the Christie administration decides the gaming industry should remain largely unchanged and confined to Atlantic City.

Should the issue be joined, though, political, legal, social and economic arguments will fly faster than the field coming out of the fourth turn and heading down the stretch.

The only certainty at the moment seems to be that horse racing in New Jersey may be on its last four legs.