Inquirer Editorial: Stop betting on casinos

New Jersey wants to double down on a losing bet. Sites are being considered for proposed North Jersey casinos that would soak up diminishing dollars from an industry that has already overplayed its hand.

Both Gov. Christie and Senate President Stephen Sweeney (D., Gloucester) say any casino up north must share proceeds with Atlantic City, just as gaming revenue from the south has traveled north over the years. But what can be the benefit to Atlantic City if new North Jersey casinos lure even more gamblers?

The momentum to build a casino closer to the New York market should make Atlantic City wonder if Christie and other politicians really meant it when they promised to secure its future.

Analysts have long warned that once Pennsylvania and New York got into the casino business, Atlantic City's action would dry up. But pleas to further diversify the town's economy have not been met with viable plans. Christie appointed an advisory board that called for better marketing, more use of the airport, and other changes, but gaming revenue still fell.

The Atlantic Club Casino closed earlier this year, the Showboat and Trump Plaza casinos are preparing to close by September, and the bankrupt Revel which took $261 million in tax subsidies, is up for sale. But rather than getting the message that the market is saturated, New Jersey wants to build northern casinos.

To soften the obvious blow to Atlantic City, Sweeney has suggested a nonprofit be created to ensure a portion of gambling revenue from any North Jersey casino is wisely spent down south. But creating a nongovernment entity that would not be subject to public disclosure rules would be a bad hand for taxpayers.

Besides, the state already has a Casino Reinvestment Development Authority, which was created to leverage casino tax money and fund development projects in the public's interest. Rather than create a new agency, if politicians think CRDA has failed, change it.

Sweeney told The Inquirer Editorial Board he didn't want to make the government any bigger. But authority to spend revenue should never be given to an agency that lacks clear accountability to the public. Beyond that, it's time for elected leaders not only in New Jersey, but across the nation, to stop stooping to gambling to avoid being frank with voters about the need for taxes to fund public services.