Bill would let N.J. casinos police themselves during shutdown

ATLANTIC CITY - The city's 11 casinos would be able to temporarily police themselves if state government ever shut down again, under a bill being pushed by a state senator who is a former Atlantic City mayor.

As tempting as that might sound for casinos to cut corners, or worse, while state inspectors are not on the job, the law would enable the governor to shut down a casino for serious wrongdoing.

The governor could also unilaterally suspend the license of a casino, or any casino employee, that he determines has committed "a serious violation" of state gambling laws.

The suspension would remain in effect until the governor canceled it, or until the government shutdown ended, and the state Casino Control Commission could convene to deal with it.

The 2006 state government shutdown, when the governor and state legislators could not agree on a budget, caused the casinos to shut down for three days because state casino inspectors were not able to be paid, and thus not able to work.

Since then, the industry has tried several ways to prevent a recurrence. One way was by designating casino inspectors as "essential personnel" on the same level as state police, who would still be able to work during a shutdown. But Gov. Corzine's administration got legal opinions questioning whether that would be legal.

The new bill is sponsored by State Sen. James Whelan, a Democrat and former Atlantic City mayor.

It also would increase the fines - by tenfold - for casinos or casino workers found to have committed lesser wrongdoing during a shutdown.

In an interview last week with the Associated Press, Corzine said he would sign any anti-shutdown bill that would pass constitutional muster. But he also said the key to keeping casinos open was to pass a budget well before the July 1 deadline, as was done last year.

However, this year's spending plan is far more contentious, with its call for drastic spending and aid cuts to municipalities.

Joe Corbo, president of the Casino Association of New Jersey, said the casinos supported any legislation that would prevent another shutdown.

"Certainly no one wants a state government shutdown, especially one that forces casinos to close," she said.

The casinos estimate they lost about $55 million during the 2006 shutdown. The state lost out on $3 million in tax revenues, and casino workers lost $10 million in salaries and tips.

Whelan's bill cleared a Senate committee on Monday, and will now be considered by the Senate Budget and Appropriations Committee.