Atlantic City Casinos Face Wednesday Shutdown

For the first time it looks like the odds are stacked against the house in Atlantic City. As New Jersey State continues to cut back on services after being unable to agree on a new annual budget, it looks like the city will forced to shutter the casino floors at its 12 resorts since workers from the Casino Control Commission will be idled as of 8:00 am Wednesday morning.

There is no word on when, or if, the courts would react in time to stop the dice from rolling.

Chair of the Casino Control Commission Linda M. Kassekert issued the order to close the gaming floors Wednesday morning, giving the casinos advance notice in order to give casino managers and customers an opportunity to make appropriate plans should casino operations cease.

"I direct that, absent the enactment of an Appropriations Act for Fiscal Year 2007, the operation certificate of each casino licensee shall be temporarily suspended, and no gaming wager shall occur after 8:00 AM, on July 5, 2006," Kassekert said.

Currently, the casinos add between $1.4 and $2 million in taxes to the state’s coffers on a daily basis. The state’s lottery has already been suspended and pari-mutuel betting on horseracing would cease end of racing day on the 4th.

Though the city’s 12 casinos will still be able to operate non-gaming services and amenities such as its hotels, spas and restaurants, the resorts will most likely lose the vast majority of its customer base.
Republican Assemblyman and Whip, Francis Blee, is worried about the closure because many people will be temporarily laid off should the casinos close. “We will have tens of thousands of individuals, real people that are going to be hurt by this. There will be bread-winners who are not bringing home a paycheck,” he said.

The problem started as state legislators came to an impasse over budget negotiations which are separating the parties by about $1 billion. With the state drowning in about $4.5 billion of debt, Governor Corzine is looking to up the state sales tax one percentage point to seven percent.

Opponents of the plan site a backlash from citizens angry over the rise of sales taxes in a state that is already highly taxed. For example, auto insurance here is highest in the nation.
Senate President Richard J. Codey warned the senate to be prepared for a long session today, which he would not conclude until an agreement is reached in order to stave off the casino closure.

"I'm appalled that this reached this stage," Senate Minority Leader Leonard Lance, R-Hunterdon, told the Associated Press. "It is very unfortunate that the Democratic governor and Democratic majorities in the Legislature could not achieve a budget in place by June 30, and now all the people of New Jersey suffer as a result."
The state has been operating without a budget since July 1. With the exception of severe weather events, the casinos have never stopped operating since their inception in 1978.

Last year the casinos brought in $5 billion in revenue, giving the state hundreds of millions of dollars in tax money. The city has 40,520 slot machines, which brought in $3.67 billion in 2005, averaging about $248 per machine per day.  About 45,000 count on the city’s 12 casinos for employment.