Democrat Mikie Sherrill’s win in the New Jersey gubernatorial race could shape several key issues facing the state's gaming stakeholders. Here are three major ways her win over Republican Jack Ciattarelli will impact the industry.
Atlantic City smoking ban chances improve
A much-discussed smoking ban in Atlantic City casinos could be closer than ever to reality.
Sherrill, in her prior race for a U.S. House seat, questioned the rationale for smoking in casinos. That earned praise from several major anti-smoking organizations that have worked for years to ban casino smoking.
Those comments came while running for Congress in a district several hours away from Atlantic City, meaning her stance could change now that she will be the chief executive of the state. She didn’t make a firm comment either way on the campaign trail and there’s no sure bet she’ll push for a ban while in office.
Still, her earlier comments, plus support from organized labor groups that have backed the ban, could bolster the prospects a ban comes down. Outgoing Democratic Gov. Phil Murphy said he would support a ban bill if passed out of the legislature and it appears his successor could take a similar stance.
Ciattarelli, a former state Assemblymember, likewise didn’t take a firm public stance. But he centered his campaign on lower taxes and creating a business-friendly environment for the state, factors that would seem to make him oppose such a ban.
Online gaming taxes could see further increases
Though another increase in the state’s online gaming tax rate is far from certain, Sherrill’s election gives such a move a higher probability than under her opponent.
While Ciattarelli campaigned on cutting taxes, Sherrill’s plans centered on a more comprehensive push for greater affordability on energy, housing, and other issues. She hasn't mentioned a specific gaming tax increase on gaming operators, but it could be one way to generate new state revenues without increasing taxes on less politically palatable options.
Murphy pushed for a 25% tax rate on gross gaming revenue for both iCasinos and mobile sportsbooks before compromising for the legislature on an increase to 19.75%. Though Sherrill may very well maintain the status quo, the continuation of Democratic control of the governor’s mansion likely increases the chances of change more than they would have under a Republican.
Potential for casinos outside Atlantic City
Atlantic City hasn’t reached the potential as the “Las Vegas of the East Coast,” a trend that has been hurt by new casinos in most Northeastern states. Some policymakers, including Ciattarelli, has said AC needs to diversify beyond gaming.
Still, gaming remains the city’s most prominent industry – and a potential new opportunity for a growing number of Garden State jurisdictions.
New York City could see up to three casinos open in the coming years, a move that could further threaten Atlantic City’s financial bottom line. New Jersey casino expansion proponents have pushed for new gaming facilities in the central and northern portions of the state with little success.
Neither candidate gave a clear endorsement for or against casinos outside Atlantic City. Any such move would require a voter referendum and would likely spark significant support and backlash from the gaming industry and applicable communities.
New Jersey policymakers have considered expanded gaming outside Atlantic City seemingly since the first legal casinos opened in the 1970’s. Though little has materialized in the half of a century since, New Jersey’s incoming governor will no doubt have to reckon with that possibility.
