Atlantic City Casinos Closed

[RWC130 594]

New Jersey Casinos Set to Close in Budget Stalemate

By JOHN CURRAN, AP

ATLANTIC CITY, N.J. (July 5) - They've endured hurricanes and blizzards, labor strikes and a parking garage collapse. If there's one sure thing in a city of uncertain ones, it was always this: Casinos find a way to keep the dice rolling.

Not this time, though. Barring a last-minute breakthrough, Atlantic City's 12 casinos will evacuate their gambling areas for the first time ever at 8 a.m., their hand forced by stalemated talks over a state budget in Trenton.

The casino-hotels, which attract millions of gamblers and vacationers every year, will remain open, but gambling will be shut down along with state parks, horse racing tracks, beaches, campgrounds and historic sites that are also being closed.

Slot machines will go silent. Dealers will be sent home. It would be the first time casinos have been forced to close since Resorts Atlantic City opened its doors in 1978 as New Jersey's first casino-hotel.

Gov. Jon S. Corzine has ordered all non-essential state government operations halted, including the New Jersey Lottery. State offices have been closed since Saturday, keeping 45,000 state workers at home and without pay.

Workers in the child welfare, state police, mental hospitals and other vital jobs - about 36,000 - remained on the job, but they were working without pay.

Corzine planned to address all 120 state lawmakers at 9 a.m. to discuss the ongoing impasse. It was sparked by the state's failure to adopt a new budget by Friday's midnight constitutional deadline, leaving it with no money to spend and prompting the shutdown.

The dispute between the governor and his fellow Democrats who control the Legislature centers on his plan to increase the state sales tax from 6 percent to 7 percent to help overcome a $4.5 billion budget deficit for his $31 billion spending plan. The proposal would cost the average New Jersey family $275 per year, according to experts.

Assembly Democrats opposed to Corzine's proposal said they could be ready to introduce an alternate budget plan, even though it could be filled with proposals Corzine opposes.

Up to 15,000 casino employees would be thrown out of work by the closings, and that number could double if the casinos remain closed through the weekend, according to Robert McDevitt, president of Local 54 of UNITE HERE, a labor union that represents rank-and-file casino hotel workers.

"They're going to lose a lot of money," said Jerome Harper, 42, of Philadelphia, who was playing a Triple Cash slot machine at Resorts Atlantic City on Tuesday. "It's bad. Why close it down when you could just do your job and put the budget together? That's what they're paid for."

Among the state employees furloughed are the casino inspectors who keep tabs on the collection, counting and certification of the money won by the gambling halls. Without them, the casinos can't operate because the state would have no way to ensure that it receives its 8 percent share of the casino revenue.

The casinos, which have a $1.1 billion payroll and spend billions more on goods and services, contribute about $1.3 million a day to state coffers.

"This is what brings the money in," said Bertha Arrington, 57, of Baldwin, N.Y., who was playing the slots.

Casino executives were busy Tuesday trying to make sure the shutdown is orderly.

Police Chief John Mooney said the sudden evacuation of the casinos could lead to problems with drunken driving, street crime and ultimately labor unrest. If the closings last, casino workers who aren't being paid could make trouble, he said.

"This is a state-created disaster," Mooney said.

AP-ES-07-05-06 0407EDT

[Guest WolfEMT]

Doesn't make a damn bit of sense. The casinos and the lottery are a significant source of revenue for the State of New Jersey.

[llm60 0]

:angry: What is wrong with this guy, this doesnt do anyone any good???

[IzzyEng4 427]

I agree with WolfEMT, it doesn't make anny sense at all.

[ltjay157 10]

Hmmm, let me get this straight. The Gov of New Jersey is shutting down the casino's because he can't pay the state inspectors to watch the casino's. The casino's pay the State of NJ about 1.3 mil a day in taxes, Now multiply that by 7 day and it comes out to be 9.1 mil the state has lost. Now multiply 1.3 mil by 365 and you get 4.7 BILLION. My question is, if you're getting 4.7 bil from the casino's a year, how in the hell do you get your state 4.5 bil in the hole??? Just gotta love those politicians.

Edited July 5, 2006 by ltjay157

[TRUCK6018 50]

Hmmm, let me get this straight. The Gov of New Jersey is shutting down the casino's because he can't pay the state inspectors to watch the casino's. The casino's pay the State of NJ about 1.3 mil a day in taxes, Now multiply that by 7 day and it comes out to be 9.1 mil the state has lost.  Now multiply 1.3 mil by 365 and you get 4.7 BILLION. My question is, if you're getting 4.7 bil from the casino's a year, how in the hell do you get your state 4.5 bil in the hole??? Just gotta love those politicians.   

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Let's take it one further.....

The state is laying of all "non-essential" workers because they can't pay them. Fine.

The state gaming inspectors (non-essential) are getting layed off because they can't pay them. As a result the casinos close. Fine

Because the casinos are closed, the state loses out on the taxes from the casinos, estimated to be $1.3 million a day. Fine.

Now my question:

Is it me or is the governor cutting his nose to spite his face by laying off workers that bring in that much revenue. I doubt it takes any where near $1.3 million a day to operate the gaming offices.

Since their going that route, maybe they should send home the toll collectors on the Garden State Parkway and the New Jersey Turnpike and not collect any tolls. This way they will lose even more money.

[RWC130 594]

Workers in the child welfare, state police, mental hospitals and other vital jobs - about 36,000 - remained on the job, but they were working without pay.

State Troopers working for free?

[Guest WolfEMT]

I don't know what the immediate effects are for NJSP, but I do know that all the other state workers who are out without pay will receive retro pay as soon as they go back.

[CAM502 6]

So did the Casino's reopen today? I thought they said they might