Breaking news: Don Guardian, the mayor of Atlantic City, has spotted the enemy and they are us. The good mayor is warning anyone who will listen of an impending disaster. Guardian says if additional casinos are permitted in New Jersey crime will follow and besides that, the traffic will be terrible.
If you don’t think prostitution and drugs and other minor crimes won’t come along with it, you’re being very foolish,” Guardian said. John Brennan, Record, 3-22-16
“You may want the money, but you don’t want the extra commuting time,” said Guardian. John Brennan, Record, 3-22-16
The mayor’s comments were startling to say the least; he is the mayor of the second city of gambling and yet he sees casinos as magnets for crime. Was he saying that prostitution, drugs and other minor crimes were destroying Atlantic City? Is he speaking from experience? Atlantic City does not have traffic jams caused by the hordes of gamblers coming to town. And that is the basis of the poor mayor’s irrational statements. Atlantic City is suffering from a lack of gamblers on the Boardwalk. Since 2008, casino revenues have fallen by 50 percent and four casinos have closed. In Atlantic City the city and the casinos are is in the same boat in that regard. The tax revenue going to the city dropped as quickly and as far as the casino revenue.
The situation has become dire and the mayor is under a great deal of stress. Monday, Guardian said the city government would close down for three weeks. All but essential services are to cease beginning in April. The beleaguered mayor has looked everywhere for relief, but has found none. The city is even selling its airport in an attempt to stave off bankruptcy. The state flatly refuses to provide the city with more money. In response to Guardian’s statement, Governor Chris Christie said he won’t be coming to Atlantic City’s rescue. Instead, he encouraged the mayor to quit stalling and cooperate with the state in taking over management of the city and putting it into bankruptcy.
In the midst of this crisis, the city and the casino industry have very few friends in Trenton. As Atlantic City slides farther into economic disaster, Governor Christie and a goodly number of lawmakers are supporting the referendum to allow two licenses outside the city. There are many arguments in support of the expansion, but it is difficult for me to see how the situation for Atlantic City and its casinos will not be worse with more casinos in the state. There has been talk of revenue sharing between the new casinos and the existing ones, and the current operators might be given a priority status for one of the new licenses. But that certainly would rub the other major casino operators in the region the wrong way. Penn National, Genting, Wynn and Sands might well think it is only fair and indeed legal to have an open bidding and selection process. In Connecticut, MGM is suing the state over just that issue. When the Connecticut legislature voted to allow another casino, it granted permission to Mohegan Sun and Foxwoods to operate it.
Without going any further down that road, let me just say that whatever happens will not be good for Atlantic City. It is easy to see why Mayor Guardian is upset, he has every reason. But, to drag up the old argument that anti-gambling interests have used every time gaming expansion is debated is a little off base – or as Geoff Freeman of the AGA said of Guardian’s remark, “asinine.” Between now and November, there are many meetings on the agenda. There are some very important issues to resolve: no site has been designated, no tax structure and licensing fee determined and the regulatory process is in doubt. Part of that will be sorted out in the dozens of meetings scheduled. Everyone is getting into the act; the mayor, the current casino owners, the governor, state legislators and undoubtedly many special interest groups will all want a say. And well they should; the situation in Atlantic City is desperate.
There are no easy answers and no simple solutions for Atlantic City and Don Guardian. In fact, with or without any more casinos in New Jersey, the casinos in Atlantic City face a very difficult future. New York, Massachusetts, Maryland and Connecticut are sure to contribute to the city’s woes by adding even more casinos. But as Geoff Freeman said in his press release, everyone, including Mayor Guardian will be best served by fact, truth and solid financial modeling. As challenging as it may be for the politicians, this is a time to leave politics out of the equation and use some good thinking instead of inflammatory rhetoric. Casino gaming is not a perfect solution to any economic difficulties. But, neither is it a pariah that brings only crime and societal collapse in its wake.
