Saturday, April 07, 2007

Cash-starved New Jersey will study whether putting video-lottery terminals
at the Meadowlands Racetrack can raise hundreds of millions of dollars
without hurting Atlantic City casinos. Sen. Paul Sarlo, D-Bergen, said New
Jersey has little choice but to put the machines at the North Jersey sports
complex as nearby states expand and add gambling. "I don't want New Jersey
to remain at a disadvantage to our neighboring states because the money is
going somewhere fast," said Sarlo.
Sarlo and Sen. Joseph Coniglio, also D-Bergen, estimate that putting
video-lottery terminals - electronic gambling games that can simulate casino
games such as poker and slot machines - at the Meadowlands could generate
$300 million per year to help ease chronic budget woes. State Treasurer
Bradley Abelow said he didn't know if those numbers were realistic, but
Treasury spokesman Tom Vincz said the department will hire a consultant to
do a comprehensive study of how the terminals, if legalized, would impact
the state. South Jersey legislators, however, stand ready to fight the
so-called VLTs. They're worried the terminals could lure customers away from
Atlantic City. The 11 casinos there already face competition from new
casinos in Pennsylvania, and slots and VLTs in New York, including Yonkers
Raceway near the Garden State border. "I just don't see hurting an industry
that has to deal with out-of-state competition right now," said Sen. Stephen
Sweeney, D-Gloucester. Revenue from Atlantic City slots has declined since
Pennsylvania casinos opened in January. VLTs are legal in states such as
Delaware, Louisiana, Montana, New Mexico, New York, Oregon, Rhode Island,
South Dakota and West Virginia. South Dakota was the first state to use
video-lottery games, implementing them in 1989. Since then, they have
provided more than $1 billion in revenue to the state, which currently has
8,300 terminals in 1,400 establishments, according to the state's lottery.
South Dakota's terminals offer variations of poker, blackjack, keno and
bingo. New Jersey has collected about $540 million per year in various
casino taxes, but Sen. Shirley Turner, D-Mercer, said the loss of slot
revenue in Atlantic City could lead to less casino-tax money and hurt the
overall state budget.