p12 Stateside:p12 Stateside 02/03/2010 09:41 Page 12
STATESIDE
Stateside
Sharon Harris brings word from the west…
A
politician’s philosophy often influences Casino Control Commission (CCC) and Division of
the outcome. For example, Mississippi Gaming Enforcement (DGE), New Jersey could save
Republican Governor Haley Barbour $20 million to $30 million annually. It currently costs
helped ensure the state’s recovery after the state $1,596 to regulate each slot machine;
Katrina. He and the legislature Nevada spends $170.
immediately enacted a new law that allowed casinos For fewer than 40,000 residents, the audit also
in three Gulf Coast counties to relocate their gaming condemned Atlantic City’s high taxes, mediocre
floors on land within 800 feet of the property’s hotel, services and government inefficiencies, citing $23
lobby or convention space. Political cooperation million in wasteful spending.
promoted successful reconstruction. It stated, “Unfortunately the city government in
In Pennsylvania, my home state, longtime gaming Atlantic City suffers from a combination of fiscal
proponent, Democratic Governor Ed Rendell imprudence and very inefficient-at best-governmental
immediately supported legalized gaming to offset taxes guidance. There is no revenue problem in Atlantic
upon taking office in 2003. After much “wheeling and City; there is a significant and unparalleled expense
dealing” slot legislation passed in July 2004. and utilization problem.”
Last year, Rendell threatened massive layoffs if a new Promising activism, Atlantic City Mayor Lorenzo
Better
budget rejected table games. Again, he triumphed; Langford recently convened a long overdue summit of
table games will soon appear across the state. casino, government and community leaders to jointly
management
Atlantic City is both a positive and negative confront critical city issues.
could create a
political story. Since 1978, profitable Atlantic City In a historic first, Christie is practicing “tough love”
casinos have generated tens of billions, despite towards Atlantic City. His February 3 executive order
new operating
stifling bureaucracies. Unfortunately, corrupt mayors created an unsalaried seven-person advisory
environment for
and council members have also gone to prison. commission. Their mission is to examine the state’s
The island casino city has blended glamorous gambling, sports and entertainment concerns in
Atlantic City’s
properties, great retail, dining and entertainment unison, offering recommendations by June 30.
casinos that
against a backdrop of some blighted neighborhoods. Christie hopes to guarantee the survival of both
ultimately
Now, a midlife crisis has hit Atlantic City as it casinos and horseracing, sometimes in adversarial
confronts newer, attractive competitors. positions. Although he campaigned on a pledge to
translates into a
Within 300 miles, more states look to gaming as a keep video-lottery terminals (VLTs) from the tracks,
healthier gaming
budget savior. In addition to Pennsylvania, neighboring Christie is now noncommittal about the future
Delaware’s three racetracks will hire 750 employees possibility of VLTs at the two state-run racetracks.
industry.
before their table games debut this spring, coinciding “What everybody who has a stake in this needs to
with the Jersey Shore’s busy summer season. understand is, it’s time to get out of your entrenched
Former federal prosecutor Chris Christie, New position,” Christie said.
Jersey’s new Republican governor, has vowed to Horse racing advocates have long wanted VLTs at
address years of neglect and delay to correct the the tracks. Atlantic City casino representatives have
state’s battered economy. He has already begun argued racetrack VLTs would destroy Atlantic City’s
slashing wasteful spending and reviewing local unique appeal. In a compromise that boosts the
governmental operations. Christie has warned those purses, Atlantic City’s casinos pay $30 million a year
stuck in the “old ways” of “protecting their turf” of his in horseracing subsidies, in return for no VLTs or slots
intention for moderate, impartial governing to prevail. at the tracks. That deal expires at the end of 2011.
Atlantic City will face scrutiny. Christie’s subtle Casino Association of New Jersey (CANJ) President
statements promise to reevaluate Atlantic City as a Joseph A. Corbo Jr. promises his group’s cooperation.
top tourist venue requiring government assistance. However, local officials warn against leveraging
On January 27, Christie’s transition team released a Atlantic City as a way to force collaboration.
gaming/entertainment audit. It cited multiple causes No one can predict the outcome. Will the initial
for Atlantic City’s collapsed day-trip casino business pain of the cut lead to healing and good health? I
model, a success for decades. These included out-of- hope so, and I am willing to see how this plays out.
state competition, in-state mismanagement, the Better management could create a new operating
recession, smoking bans and a negative perception of environment for Atlantic City’s casinos that ultimately
Atlantic City neighborhoods. translates into a healthier gaming industry.
The report determined that streamlining the Elections DO have consequences.
12 MARCH 2010
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