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() By JULIET FLETCHER Statehouse Bureau | Posted: Tuesday, March 23, 2010
Sen. James Whelan, D-Atlantic.
A bill introduced Monday by state Sen. Jim Whelan to allow smaller, boutique Atlantic City casinos drew cool reactions from other area legislators, with Republican Assemblyman Vincent Polistina suggesting Whelan should have waited to give Gov. Chris Christie time to develop gaming policy.
Whelan, who also introduced a Senate bill that could reduce state gaming inspectors’ 24-hour presence in casinos, said he has been working on ways to reduce casino regulation for more than a year and wanted to get the process started.
The proposal by Whelan, D-Atlantic, would lower the mandatory number of casino hotel rooms from 500 to 200. The bill would allow the construction of only four small casinos, each with as little as 20,000 square feet of gaming space, instead of the current 60,000-square-foot minimum. Whelan said he hopes the idea will revitalize Atlantic City gaming.
State Sen. Jeff Van Drew, D-Cape May, Cumberland, Atlantic, said he was on the fence regarding the bill.
“I’m thinking about the smaller casinos,” he said. “But what would those look like? I won’t move forward until we’re certain we wouldn’t damage existing casino properties.”
Polistina, who like Whelan represents most of Atlantic County, said that when he heard about Whelan’s plan to allow four new small-scale casinos in Atlantic City, he called and offered to meet with Whelan and staff from Gov. Chris Christie’s office. But Polistina said the proposed discussion never took place.
Polistina said he is skeptical about the bill’s timing and asked whether Whelan was seeking to pass the bills before the executive branch could make a decision on its strategy for gaming operations.
In February, Christie picked a seven-member advisory commission to conduct a three-month review of the state’s casino, horse-racing and sports operations. At the time, Christie instructed the commission head, Jon Hanson, to consider any option to boost flagging gaming revenues.
“When there’s so much momentum from the Governor’s Office to review this industry the right way and come up with a plan, I don’t see the need for Sen. Whelan to do this now,” Polistina said.
“If he’s trying to get out ahead of the governor and the executive branch recommendations, he would do better to work with them,” he said.
Whelan confirmed he had discussed the proposal with Polistina, but said he put forward the bills with the knowledge of the governor’s staff.
“I don’t recall that coming up,” he said of Polistina’s question about the timing. “And anyway, I had already reached out to the Governor’s Office, and in turn to Jon Hanson and (fellow advisory commission member) Bob Mulcahy,” said Whelan, a former Atlantic City mayor. “They know about the bills, and they don’t hand in their recommendations until June 30.
“That’s why I introduced these suggestions the day before budget break,” he added. “I know they won’t be voted on for a while. I’ve been working on ways to streamline casino regulation for a year. So I’m hoping the commission sees these ideas, and maybe comes in with other recommendations as a package.”
Whelan’s proposal calls for the new casinos to pay 5 percent of gross receipts into a fund that would help finance projects if they expand up to 500 rooms, or would fund public improvements in the resort. They would also pay the current 8 percent state gaming tax. Whelan said Polistina had questioned the amount of revenue the proposed casinos will contribute to a new fund.
The Governor’s Office declined comment on the proposal Monday.
Assemblyman Nelson Albano, D-Cape May, Cumberland, Atlantic, said while the two bills Whelan proposed Monday both have to do with deregulation, “On the one, proposing new casino properties down in Atlantic City, I think we have to wait.”
Celeste Riley, D-Gloucester, Salem, Cumberland, said she did not feel strongly about Whelan’s small-scale casino bill, but thought there are other reforms the state should pursue to help Atlantic City first.
Some current Atlantic City casino operators have said they oppose Whelan’s proposal.
Whelan also introduced the Senate version of a bill Monday to reduce the required 24-hour presence of gaming enforcement officials on casino floors. The bill would leave it up to the Casino Control Commission to decide when inspectors had to be present.
The proposal could reduce staffing costs as the commission faces an 8 percent budget cut in fiscal 2010.
Contact Juliet Fletcher:
609-292-4935
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