First Gaming Summit Scheduled

Kevin McArdle Reporting

A special legislative summit will convene August 6 to examine the future of New Jersey's gaming, sports and horse racing industries. The panel's first meeting will be dedicated to reviewing the report issued by the Governor's special gaming commission last week. John Hanson, head of the commission, has been invited to attend.

Assemblyman John Burzichelli co-chairs the committee. He says after hearing from Hanson, "I would think that we'd move very quickly into understanding what's going on around us, not just the obvious, but what are the trends?" He adds, "Our goal is to come back this fall in the early legislative fall season and have in place legislation necessary to affect some of the things that can be helpful to the gaming industry."

Next Friday's hearing will be the first in a series says Burzichelli, "Right now the discussion is to start in Atlantic City (and then) do something out at the Meadowlands. I happen to favor being in the State House more than not."

Burzichelli calls the Hanson report a good first step, but says he isn't on board with everything in it. He explains, "I don't agree with some of the public discourse that Atlantic City is dying. I think Atlantic City has plateaued." Still, the Assemblyman says he's not going into the hearings with any preconceived notions, "I think anyone who participates in this and goes in with conclusions doesn't belong there."

State Senator Jim Whelan is the committee's other co-sponsor. He says, "The Hanson Commission has given us a foundation upon which we can build a strong future for New Jersey's sports, gaming and entertainment industries. More importantly, we need to ensure a truly statewide plan. No matter what part of the state people visit, those tourism dollars help everyone. We need to get beyond the 'us versus them' rhetoric and seize this momentum and create that rising tide that will lift all boats."

Both lawmakers say that the initial meeting will serve as an overview of the Task Force's work. Subsequent hearings will go into greater detail about specific proposals, and their impact on the casino, horse-racing and tourism industries in New Jersey.

Last week, Governor Chris Christie proposed a state takeover of services in Atlantic City's casino district citing the city government's history of corruption and failure to deal with increasing blight. He's also calling for closing or selling the state-owned and financially struggling Meadowlands Racetrack, selling the underutilized Izod Center, which has lost its main tenants, the NBA's Nets and NHL's Devils, and giving state financial aid to finish the stalled Xanadu shopping-entertainment complex in the Meadowlands.

Christie appointed a task force in February to chart a future for the state's casino and horse racing industries. That panel recommended the creation of a new state authority that would report directly to the Governor, and be responsible for safety and cleanliness in and around the casinos, among other things.

Many leading Democrats in the State legislature are not exactly embracing the report or the plans, many of which will need legislative approval.

Senate leaders say welcome the delayed release of the so-called Hanson Commission report, but also say the final product is "underwhelming and incomplete" and claim its closed-door analysis fails to deal with the fundamental issues of competition that are hampering New Jersey's gaming industry.

"Anyone who walks the Atlantic City Boardwalk for five minutes would come to the same conclusions that it took this commission six months of closed-door meetings to reach," says State Senate President Steve Sweeney. "Improving New Jersey's gaming and entertainment industry means more than just cleaning the streets and slapping on some paint. It means bringing new products into the market that will attract visitors and beat back the steady stream of new competitors. It means creating jobs and welcoming businesses. This report only goes half way."

Sweeney believes the commission failed to offer proposals that could actually grow the industry, attract new investment and restore the state's reputation as the East Coast's preeminent gaming destination. He says next month's planned gaming summit would use the Hanson report as a baseline for discussions, but would also deal with the more detailed economic and market-based issues he feels the gaming industry needs to confront in creating a vision for long-term viability. Sweeney is not saying which measures he would support.

Assembly Speaker Sheila Oliver says Christie faces an uphill battle getting the proposals through the Legislature. She asks, "Do I as speaker of the General Assembly post legislation that is not going to be equitable and fair to other regions of the state?" She answers, "I would not."

"Sports and gaming are key to our state's economy and job creation, so proposals to enhance those industries will always receive due consideration. I fully expect these ideas will especially be a focus of the upcoming gaming summit called by Democratic legislators," says Oliver. "It's also important to remember that many legislators have their own valid ideas for ensuring New Jersey remains a leader in the sports, entertainment and gaming industries. Those ideas will receive equal attention in the months ahead, whether they be for Atlantic City, the Meadowlands or both."

Senate Democratic Leader Barbara Buono thinks the most telling difference between the Hanson Commission and next month's gaming summit will be the legislative endeavor's focus on transparency. In the five months since the commission was created by executive order, it has only met privately. Buono says that makes it possible that certain elements were working out of a desire for self-preservation instead of revitalizing the entire industry.

"The future of our entertainment and gaming complex deserves better than just a few closed-door sessions and a press conference," says Buono. "These issues deserve a public hearing. We need to know who is pushing for what so we can ensure that we act out of the need to promote the industry as a whole, and not just one sector or one company."

"This half-hearted, half-finished report makes the need for the gaming summit more clear than ever," says State Senate Budget Committee chairman Paul Sarlo. "The commission really fell short of looking at anything other than regulations and real estate. We need to consider the proposals offered by the commission but must inject the real revolutionary ideas that it is missing and which will allow New Jersey to compete for years to come."

In a joint statement, Republican Assemblymen John Amodeo and Vince Polistina whose legislative district includes Atlantic City said, "The commission's report reasserts and properly designates casino gaming in Atlantic City as the preeminent entertainment venue for the State and chief revenue producer for programs benefitting seniors and the disabled. The commissioner has put forward bold recommendations, some of which we have long advocated, and are in our 10 Point Plan to Revitalize the Atlantic City Region. The gaming market is much different now than it was 30 years ago. Yet, Atlantic City is still well-positioned as a major destination resort that offers many entertainment options for conventioneers and visitors. Yes, convenience gambling in neighboring states has eaten into Atlantic City's market share and the world economic downturn has impacted revenues. But the commission recognizes that new challenges require new approaches."

Not all Republicans are embracing the plans. GOP State Senator Jennifer Beck says, "Although there exists the glaring omission in today's report of an investigation and thoughtful discussion of convenience gaming, that is not to say that the report has no value in terms of discussing what ails New Jersey's racing and gaming industries. It simply does not go far enough in determining real solutions. Racinos are sprouting up all along our borders, while New Jersey continues to bury its head in the sand and refuse to keep up with the competition. Just today, Harrah's opened its blackjack gaming at Chester Downs in Pennsylvania, while opposing convenience gaming here in the Garden State. The business models for both casinos and horseracing need to be revisited, but in order to do that, the discussion must be complete, and I am disappointed that the report did not delve into what I believe is a vital discussion. I hope that when the Governor looks at which of these measures to implement, he will take into account the need for a real examination of racinos in the State."

Two South Jersey Democratic lawmakers, Senator Jim Whelan and Assemblyman John Burzichelli will lead the public talks beginning next month to review the recommendations. The goal is to pass legislation that helps ensure the long-term viability of the state's struggling gambling and entertainment industries by the end of the year.

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