New Jersey racetrack seeks slot machines, bill heads to referendum
New Jersey racetracks that currently offer sports betting want the privilege of housing slot machines. A state senator took note of the request, introducing legislation that would ask state voters to expand gambling at horse racing venues.
New Jersey Sen. Joseph Pennacchio (R-Morris) introduced Senate Concurrent Resolution 14 this week. The bill proposes a constitutional amendment that would give the state legislature the power to introduce slot machines at racetracks.
Proceeds from the expansion will be distributed to the state’s retirement plans and will support state riders and public investments in Atlantic City.
New Jersey's constitution currently limits Las Vegas-style casino gambling to Atlantic City.
Efforts to allow casinos in the upstate and slot machines at racetracks have failed in previous legislative sessions. Pennacchio has been working on laws on racism since 2014, to no avail.
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If SCR14 turns things around in Trenton this year and gains enough support in each chamber, the bill would require the introduction of slot machines at state-licensed racetracks. Voters will have a say in the 2024 presidential election.
There are currently three such qualifying locations, including The Meadowlands in East Rutherford, Monmouth Park in Oceanport, and Freehold Raceway. Currently, every racetrack offers both in-person and mobile sports betting.
If a referendum on racetrack slot machines passes a simple majority, the New Jersey Legislature would have the power to pass a law allowing such gambling at racetracks. Speedway slot machines will be subject to the same 8 percent tax on gross gaming revenue as land-based slot machines in Atlantic City.
Pennacchio proposed allocating 60 percent of tax dollars to the state public employee pension plan. Thirty percent will go directly to Atlantic City's nine casinos, 7% will go to Atlantic City's economic improvement projects, and the remaining 3% will benefit riders.
The state's nine casinos are likely to oppose Pennacchio's legislation, as they have in the past.
Atlantic City’s gaming industry continues to emphasize that it remains in recovery mode from the COVID-19 pandemic. While land-based gaming revenue through November was up 1.8% compared with 11 months into 2022, casinos said higher administrative costs were dampening more than just gaming returns.
From January to November 2023, casino slot machine winnings totaled nearly $1.94 billion. This is a 2.5% increase from 2022. Table profit fell 0.1% to $679 million in the same period. The December report has not yet been released.
Game Advertising Bill Submitted
In addition to Pennacchio's racetrack measure, New Jersey has introduced a gambling bill at the start of the 2024 session that would limit advertising by casinos and sportsbooks. Senate Bill 2156 , introduced by Sen. Joseph Klain (D-Union), would restrict “advertising of casino games and sports pools under certain circumstances.”
These include situations where gambling prospects must ensure their marketing materials do not reach people on the state's self-exclusion list or those who are under the legal gambling age. The bill would require the New Jersey Division of Gaming Enforcement to “adopt rules that would restrict casino licensees and sports betting licensees and their contracted operators from advertising related to casino gaming or sports betting only if such advertising is deceptive or misleading” Sexually." targets people on a lawfully established self-exclusion list, or directly targets people who have not reached the legal minimum age for gambling or betting. "
Klein said it was critical that the state do a better job of protecting consumers and those trying to limit the risks of gambling.
Playing casino games or sporting events is a potentially addictive behavior that can cause psychological, social and financial distress to individuals, families and communities. While gambling in all forms and through all media is legal in the state, steps must be taken to protect vulnerable populations... from the negative consequences associated with gambling," said Klein.
Both SCR14 and SB2156 have been referred to the Senate Government, Gaming, Tourism and Historic Prevention Committee for preliminary consideration.
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Source: www.casino.org
