The debate over expanding casinos beyond Atlantic City is back on the table in New Jersey. State lawmakers are pushing for a referendum that would allow casino development in northern counties, nearly a decade after voters rejected a similar proposal by a four-to-one margin.

The renewed push comes as New York prepares to open three major casino resorts, including one planned near Citi Field in Queens, just 20 miles from The Meadowlands. State Senator Vin Gopal and Paul Sarlo are leading the charge, arguing that New Jersey needs to protect its gambling market from operators across the river.

Racetracks Eye Full Casino Licenses

Operators of Meadowlands Racetrack and Monmouth Park Racetrack are backing the expansion plans. Both venues already offer sports betting and horse racing, and their owners reckon the existing infrastructure makes them natural candidates for full casino licenses.

The logic is straightforward.

Gambling already happens at these locations. Adding table games and slots would simply expand what’s already there, while keeping New Jersey gamblers in-state rather than letting them drift to new New York venues.

Atlantic City Pushes Back

Atlantic County leaders are having none of it. Mayor Marty Small Sr. and regional officials warn that new competition would undermine years of post-pandemic recovery. Atlantic City’s casino industry remains fragile, and diverting gamblers to northern venues could destabilise the entire southern market.

The proposed legislation attempts to soften the blow. At least 10% of tax revenue from any northern casinos would flow to Atlantic City for tourism and economic development. Whether that’s enough to win over southern stakeholders, we’ll see.

Broader Questions About Revenue Distribution

Atlantic County executive Dennis Levinson has raised another issue entirely. He argues that the financial burden of casino-related programs shouldn’t fall solely on Atlantic County taxpayers. If the gambling industry benefits the entire state, all 21 counties should contribute to supporting it.

Fair point, actually. The current arrangement concentrates both the benefits and the costs in one region, which creates political tensions when expansion gets discussed.

What Happens Next

The political situation remains uncertain. Voters rejected casino expansion decisively in 2016, and there’s no guarantee they’ll feel differently now. But with New York rolling out major new venues, New Jersey lawmakers clearly feel the competitive pressure.

The question isn’t whether competition from New York will impact New Jersey’s gambling market. It will.

The question is whether expanding northward represents the right response, or whether it risks cannibalising Atlantic City without actually solving the underlying problem. If this goes to referendum, expect a fierce campaign on both sides.