New Jersey Commission Recommends State Takeover of Atlantic City Tourism

The commission, the New Jersey Gaming, Sports and Entertainment Advisory Commission, was established by executive order in February, when the governor tasked it with providing recommendations to "comprehensively address the unprecedented financial and structural challenges confronting New Jersey's gaming, professional sports and entertainment industries." The result of several months of study, its recommendations were presented this month in a special report to the governor, who praised the commission's efforts.

"This report is a blueprint that will guide our efforts in managing and protecting our gaming, sports and entertainment resources more responsibly and reforming issues critical to New Jersey's economic future," Gov. Christie said in a statement. "I look forward to reviewing all of the commission's recommendations so that we can put these industries on a solid foundation and path to long-term economic growth and prosperity."

Citing high unemployment and declining gaming revenues, the commission focused its efforts on five key issues:

• The New Jersey Sports and Exposition Authority (NJSEA);
• The stalled Xanadu retail and entertainment complex in East Rutherford;
• The gaming industry in Atlantic City;
• New Jersey's horse racing industry; and
• The relationship among New Jersey's major entertainment venues.

Setting its sights on Atlantic City, the commission has recommended the formation of a new, state-run authority to take over the Atlantic City casino and entertainment district. Reporting directly to the governor, the authority would manage Boardwalk Hall and the Atlantic City Convention Center, and would likely absorb the Atlantic City Convention and Visitors Authority.

"If the governor's office wants to take a direct interest in Atlantic City, then it's good news," Bob McDevitt, president of Local 54 of Unite Here, Atlantic City's largest casino union, told the Philadelphia Inquirer. "We are in a free fall right now, and we do need the state and the industry and the community to get in line and try and figure out how to reconstruct this industry in Atlantic City and revitalize it."

The commission's other recommendations include modernizing New Jersey's gaming regulations to bring them in line with those in Nevada, selling or shuttering the Meadowlands Racetrack, refinancing the stalled Xanadu project and turning NJSEA from a venue operator into a landlord.

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