OK nearer for smaller A.C. casinos

A bill allowing smaller casinos with as few as 200 hotel rooms has taken another step forward in the New Jersey Legislature.

The bill authorizes two new casinos in Atlantic City. It was approved yesterday by an Assembly panel.

It could be voted on by the entire Assembly in about two weeks. The Senate has already passed it.

The bill is seen as a way to help jump-start the nation's second-largest gambling market, which is struggling with the poor economy and competition from casinos in neighboring states.

Current law requires at least 500 rooms. The most successful casinos have 2,000.

Many existing casinos invested hundreds of millions of dollars and oppose lowering the bar.

The Seminole Indian tribe has indicated its interest in building a small Hard Rock casino on the Boardwalk if the bill passes.

Assemblyman John Burzichelli, a Democrat, said that the gaming industry is changing and that Jersey must do the same if it's to remain competitive.

"If we're to ensure a strong Atlantic City, we need to provide new gaming products like boutique casinos to entice builders to invest, attract visitors and grow our economy," he said.

Many existing casinos, which were required to invest hundreds of millions of dollars into opening larger gambling halls and hotels, oppose lowering the bar.

To get around their objections, the bill calls for the smaller casinos to invest 5 percent of their gross receipts into a state-managed fund to help them finance expansion projects.

That's on top of the normal casino taxes and redevelopment obligations of about 9 percent.