Atlantic City has lost more than half its casino revenue over the past nine years.

Gambling
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That depressing news came only hours after New Jersey lawmakers introduced a bill that has long been the worst nightmare of the Atlantic City casino industry -- a referendum to expand casino gambling to the northern part of the state.

Figures released Wednesday by the state Division of Gaming Enforcement show that the city's eight casinos took in $2.56 billion in 2015. That's a decline of 6.5 percent from 2014.

It's also less than half of what Atlantic City's casinos took in during their best year, 2006, when annual revenue was $5.2 billion.

But when only the eight currently operating casinos are included in the comparison, 2015 revenue was actually up by 3.1 percent compared with 2014. Twelve casinos were in operation at the start of that year, but four -- The Atlantic Club, Showboat, Revel and Trump Plaza -- all shut down in 2014.

Mayor Don Guardian, whose city has struggled mightily since the downturn began nine years ago, was hopeful the surviving gambling halls have stabilized. But he said the long-term harm has been unmistakable in lost money and jobs.

"We had a monopoly and 12 casinos," he said. "Now there are 30-something casinos in the northeast, and we're about to have gambling in the northern part of the state. There are more gambling places than thee are gamblers willing to gamble."

The year-end figures for 2015 show five of the eight casinos won more than year than they did the year before. The largest percentage increase was logged by the Golden Nugget, which was up 24.6 percent for the year to $231.2 million. The biggest decline was at the struggling Trump Taj Mahal, which was down 16.5 percent to $180.2 million.

Internet gambling showed a healthy 21.2 percent increase in New Jersey in 2015, rising in its second full year to nearly $149 million.

The monthly figures for December show the casinos' collective revenue up less than 1 percent compared to December 2014.

State Senate President Steve Sweeney introduced a bill late Tuesday night that would authorize a referendum on two new casinos in the northern part of the state. Although it does not specify locations, the leading candidates are the Meadowlands sports complex in East Rutherford, and in Jersey City.

The bill would send half of the gambling tax revenue to help redevelop Atlantic City. Two percent would be set aside for subsidies for the horse racing industry and local and county governments that house the casinos. The remainder would be divided among tax relief and programs for senior citizens and the disabled statewide. Over time, the percentage sent to Atlantic City would decline as the amount for seniors and the disabled would grow.

The bill is to be considered Thursday by a state Senate committee.

If it bill is eventually adopted by the full Legislature and signed into law by Gov. Chris Christie, the following question would be placed on the November ballot: "Do you approve amending the Constitution to permit casino gambling in two additional counties in this State? At present, casino gambling is allowed only in Atlantic City in Atlantic County. Only one casino in each of the two counties would be permitted. Each casino is to be located in a town that is at least 72 miles from Atlantic City. The amendment would allow certain persons to apply first for a casino license."

Expanding casinos to northern New Jersey is sure to further hurt an already damaged Atlantic City market. In 2006, when the first casino opened in neighboring Pennsylvania, Atlantic City's casinos won $5.2 billion. Ever-increasing competition in neighboring states is the largest single reason for the decline.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

 

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