Shut down
Shut down
New Jersey budget woes force temporary Atlantic City casino closure
Atlantic City's casinos shut down for the first time in their 28-year history July 1 because of a New Jersey state budget impasse among state legislators.
Gov. Jon Corzine ordered the closures in the second-largest U.S. gambling market after he deemed the 190 inspectors required by law to monitor casino operations were "nonessential" state employees.
Also affected was the New Jersey Lottery, which suspended all ticket sales and redemptions the evening of July 1. The state's racetracks were forced to close July 5, after a court order kept them open through the July 4 holiday, traditionally a big weekend for racing.
The Legislature fought over the governor's proposal to raise the state sales tax from 6 percent to 7 percent while levying new taxes on cigarettes and luxury cars.
On July 8, all 12 Atlantic City casinos, as well as the state's racetrack and lottery, were allowed to resume operations.
Casino Control Commission Chair Linda M. Kassekert said her office was able to get the casinos back into operation within an hour after Gov. Jon Corzine lifted the state of emergency that had sidelined all nonessential state workers, including casino inspectors required by law to monitor casino operations.
"Our inspectors were notified right after I lifted our suspension order, and they responded quickly and professionally," she said in a news release from the Casino Control Commission.
"The reopening went very smoothly, in large part because of the dedication of our inspectors. We had inspectors volunteering to come in and help get casinos back in operation," Kassekert said.
After the initial 12 inspectors returned, principal inspectors for each casino contacted additional staff to report to work overseeing gaming operations. "The number of inspectors needed varied from casino to casino, but we were able to get enough of our staff into the casinos to resume normal operations," she said.
Corzine signed a $30.9 billion compromise state budget into law, formally ending the impasse.
The governor's move came after the state senate passed the budget compromise by a 23-17 vote early Saturday, and the General Assembly followed with a 44-35 vote.
The agreement will raise the state sales tax from 6 percent to 7 percent and use half of the $1.1 billion that it will raise to help lower property taxes, according to press reports.
Analysts and gaming industry officials had estimated the closure of Atlantic City's 12 casinos' would cost $16 million a day in lost revenue from gaming operations. But Bill Lerner, a gaming analyst with Deutsche Bank, indicated that the overall impacts for gaming companies operating in Atlantic City will not be too damaging. Based on a three-day shutdown, he said in a note to investors, the maximum third-quarter earnings-per-share impacts are likely to be less than a penny for Boyd Gaming and MGM Mirage, about a penny for Harrah's Entertainment and upward of three cents for Trump Entertainment Resorts.
-Staff reports
New Jersey budget woes force temporary Atlantic City casino closure
Atlantic City's casinos shut down for the first time in their 28-year history July 1 because of a New Jersey state budget impasse among state legislators.
Gov. Jon Corzine ordered the closures in the second-largest U.S. gambling market after he deemed the 190 inspectors required by law to monitor casino operations were "nonessential" state employees.
Also affected was the New Jersey Lottery, which suspended all ticket sales and redemptions the evening of July 1. The state's racetracks were forced to close July 5, after a court order kept them open through the July 4 holiday, traditionally a big weekend for racing.
The Legislature fought over the governor's proposal to raise the state sales tax from 6 percent to 7 percent while levying new taxes on cigarettes and luxury cars.
On July 8, all 12 Atlantic City casinos, as well as the state's racetrack and lottery, were allowed to resume operations.
Casino Control Commission Chair Linda M. Kassekert said her office was able to get the casinos back into operation within an hour after Gov. Jon Corzine lifted the state of emergency that had sidelined all nonessential state workers, including casino inspectors required by law to monitor casino operations.
"Our inspectors were notified right after I lifted our suspension order, and they responded quickly and professionally," she said in a news release from the Casino Control Commission.
"The reopening went very smoothly, in large part because of the dedication of our inspectors. We had inspectors volunteering to come in and help get casinos back in operation," Kassekert said.
After the initial 12 inspectors returned, principal inspectors for each casino contacted additional staff to report to work overseeing gaming operations. "The number of inspectors needed varied from casino to casino, but we were able to get enough of our staff into the casinos to resume normal operations," she said.
Corzine signed a $30.9 billion compromise state budget into law, formally ending the impasse.
The governor's move came after the state senate passed the budget compromise by a 23-17 vote early Saturday, and the General Assembly followed with a 44-35 vote.
The agreement will raise the state sales tax from 6 percent to 7 percent and use half of the $1.1 billion that it will raise to help lower property taxes, according to press reports.
Analysts and gaming industry officials had estimated the closure of Atlantic City's 12 casinos' would cost $16 million a day in lost revenue from gaming operations. But Bill Lerner, a gaming analyst with Deutsche Bank, indicated that the overall impacts for gaming companies operating in Atlantic City will not be too damaging. Based on a three-day shutdown, he said in a note to investors, the maximum third-quarter earnings-per-share impacts are likely to be less than a penny for Boyd Gaming and MGM Mirage, about a penny for Harrah's Entertainment and upward of three cents for Trump Entertainment Resorts.
-Staff reports
