New Jersey May Take Over Atlantic City: ReportLegislation To Give Control Of City's Finances To State Forthcoming |
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Though no additional Atlantic City casinos closed in 2015, the state of New Jersey is considering a takeover of the city’s finances, according to a report from Bloomberg.
Facing a budget deficit of $90 million next year and owing tens of millions in tax refunds, Atlantic City is thinking about filing for bankruptcy, while the state itself might just end up taking control over what was once the second-largest commercial casino gambling market in the nation.
On Tuesday, a handful of lawmakers announced their intentions to introduce legislation to allow the New Jersey Local Finance Board to take control of Atlantic City.
Money from New Jersey helped keep the city afloat last year.
Four of the city’s casinos closed in 2014, dropping the total to eight.
Atlantic City Mayor Don Guardian isn’t happy about the plan to take over his city.
“If they are allowed to do this in Atlantic City, they will be allowed to do it anywhere,” Guardian said of the takeover at a Wednesday press conference. “It’s a terrible precedent. The people of New Jersey elect the state legislature to run the state, not take over its cities.”
Earlier this week, Gov. Chris Christie announced that a compromise has been reached in the plan to put two new casinos in North Jersey, which could result in even more trouble for Atlantic City.
Though online gaming has been a success, it hasn’t provided enough of a boost for the brick-and-mortar casinos in Atlantic City. PokerStars, the world’s largest online poker site, received a license from the state late last year, which will help the stagnating online poker market in the Garden State.
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