The first time the voters of NJ were asked to approve casino gambling in NJ was in 1974 .... and the proposal was defeated by the voters. Nobody wanted the associated crime in their neighborhoods.
Not to be deterred, the proposal was put before the NJ voters again, two years later in 1976, with the provision that legalized gambling in NJ be restricted to Atlantic City ONLY. That measure was approved by the NJ voters, which is why casinos in North Jersey has to be approved by the voters.
South Jersey is dependent to a large degree on casinos in A.C. Many jobs were lost when several of the A.C. casinos were closed. The closed casinos paid property taxes and gambling taxes and room occupancy taxes, which was a source of revenue for lots of communities. That money is no longer there. Lots of casino employees purchased homes in many of the surrounding communities. If casinos are approved for North Jersey by the voters, it will further weaken south Jersey's economy and force more casinos to close, more houses that have been walked away from, more local businesses to close as North Jersey residents will not make the 2+ hour south trip on toll roads to A.C. casinos and Boardwalk, especially during the summer months on already congested roads, heading to the seashore attractions.
On the other hand, NJ is losing tax revenue to nearby out of state casinos in New York, Pennsylvania, Connecticut. The state's argument is by allowing casinos in North Jersey, it would stem the outgoing revenue tide significantly to other states by keeping the gaming action close to home.
As Barry H. commented, many north Jersey residents do not want casinos (and perceived crime problems) in their back yard .... but south Jersey welcomes them in A.C.
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