Bravissimo! Senator Raymond Lesniak! Friday, Mar 20 2009

(Photo credit – nj.com blogs)

Derek Harper of The Press of Atlantic City reports,

TRENTON – A northern New Jersey lawmaker said he plans a court challenge against the current federal ban on legal sports wagering.

State Sen. Raymond Lesniak, D-Union, said the suit to be filed Monday will challenge the 1992 law on grounds of constitutional fairness and commerce issues.

“There is a whole kitchen sink of constitutional violations in this federal ban,” he said.

The goal is to allow sports betting in states that want it.

[...]

The move comes as Delaware Gov. Jack Markell proposed a sports betting lottery system during his budget address Thursday. The state has said the program could raise $55 million.

Regional casino gaming competition has contributed to Atlantic City’s declining revenues.   Atlantic City long enjoyed both a close proximity to large population bases and the distinction of being the lone casino destination in the region.   Now, the competition of slot parlors eliminates Atlantic City’s competitive advantage.  

Sports betting can give Atlantic City a competitive advantage again, depending on whether we beat Delaware to the punch.  

Derek Harper continues his story:

New Jersey lawmakers had sought to challenge the sports betting ban by passing legislation, setting up games and defending itself from the inevitable court challenge.

The Assembly approved a bill – locally sponsored by Assemblymen Nelson Albano and Matthew Milam, D-Cape May, Cumberland, Atlantic, and John Burzichelli, D-Cumberland, Salem, Gloucester – allowing casino sports wagering in February with voter approval.

But in the Senate, the bill, sponsored by Lesniak and Sen. Jeff Van Drew, D-Cape May, Cumberland, Atlantic, has been stalled in the Senate Wagering, Tourism and Historic Preservation Committee since January 2008, where Chairman Sen. Jim Whelan, D-Atlantic, has not scheduled a vote.

It is sad that Senator Jim Whelan, the Senator representing Atlantic City, is holding-up the legislation that would legalize sports betting.

I wrote a column on the background of legalizing sports betting in Atlantic City.

Sports wagering will take Atlantic City to another echelon and continue its economic growth.
    It is difficult to push back the tentacles of the federal government. History will offer a few laughs for those observing nanny-state New Jersey accusing the federal government of growing too large and intrusive. Some of us here in South Jersey will laugh, too, as we cheer on Trenton to legalize sports wagering in Atlantic City.

I am cheering on Senator Lesniak, while Senator Whelan gets boos and hisses from me on obstructing the legalization of sports betting.

(Photo credit – PolitickerNJ)

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Casino Investment Alternative Tax Is . . . Thursday, Mar 19 2009

Dave202, this post is dedicated to you and your comment on the “Atlantic City Assemblymen’s Plan:”

Sorry to be so dense, but I don’t know what the “alternative investment tax” is. Is this the CRDA 1.25% tax on gross gaming revenues? If so, there’s not a lot of wiggle room here. The CRDA funding is earmarked for specific projects and areas for the next 20 years. Don’t think pols will give that up easily….

If not, WTF is alternative investment tax?

I want to give big kudos to the District Two Assemblymen (Amodeo and Polistina) staff for pointing me in the right direction to answer your question.

The Casino Reinvestment Development Authority explains the Investment Alternative Tax:

CRDA Project Funding
In addition to other gaming-related taxes, State law gives each casino a choice: pay 2.5% of its gaming revenue to the State, or reinvest 1.25% of its gaming revenues through the CRDA in community and economic development projects in Atlantic City and around the State. Without exception, the casinos have chosen reinvestment.

Under the terms of the reinvestment agreement, each casino is required to pay to the CRDA 1.25% of its annual gaming revenues for 50 years, and the CRDA invests this money in eligible projects in Atlantic City, South Jersey or North Jersey, according to the following chart set by law. By law, the casinos are entitled to a return on their investments through the CRDA.

Each casino’s required investments by years	Atlantic City	South Jersey	North Jersey
1-3	100%	-	-
4-5	90%	8%	2%
6-10	80%	12%	8%
11-15	50%	28%	22%
16-20	30%	43%	27%
21-25	20%	45%	35%
26-30	65%	-	35%
31-35	25%	25%	50%
36-50	-	50%	50%

I encourage you to read the rest of CRDA’s self-explanation.  It is apparent how North Jersey Democrats have used their representative superiority in the Legislature to take Casino funds from Atlantic City and bring them further and further away from Atlantic City.

Atlantic City’s Republican Assemblymen have composed a plan to implement a five-year abatement of the Investment Alternative Tax for new casino development.

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Atlantic City Assemblymen’s Plan Thursday, Mar 5 2009

FOR IMMEDIATE RELEASE            Contact:  John Amodeo or Vince Polistina at 609-677-8266
March 4, 2009

 
AMODEO AND POLISTINA PLAN TO RECHARGE CASINO INDUSTRY AND REGION
 
NORTHFIELD – In the absence of federal and state stimulus for the casino industry, Assemblymen John Amodeo and Vince Polistina are proposing their own plan to support existing hotel and casinos, expedite the completion of planned hotel and casinos, and promote job creation for the Atlantic City region. 
            “The casino industry is the number one industry in the state, and Trenton has failed to live up to its responsibility to make sure that Atlantic City generates jobs and the revenue to support programs for our senior citizens and the disabled,”  said Polistina.  “Our plan can lead the industry out of the economic downturn and cement Atlantic City’s position as world class destination resort.”
            “We are going to help the industry by investing more money into bricks and mortar infrastructure projects that will directly support the industry and increase economic activity for the whole state.  We are going to put more money into advertising so we can promote Atlantic City the way a world class destination ought to be promoted.  We are going to reassure investors that Atlantic City is a solid bet.  And finally, we are going to extend a lifeline to the senior citizens and disabled who depend on the services funded through the Casino Revenue Fund,”  said Amodeo.

The assemblymen’s four-point legislative package proposes to:
 
·        Provide for a five year abatement on the alternative investment tax (AIT) for all properties not yet licensed;

·        Change the formulas used to fund projects in order to ensure that more money is spent in the areas affected by the growth of the casino industry.  The revised formula would provide for 30 percent of the AIT to be spent in Atlantic City, 30 percent in Atlantic County, 30 percent in South Jersey and 10 percent in North Jersey

·        Allow for up to half of the money dedicated to Atlantic City to spent for marketing purposes in conjunction with the Atlantic City Convention and Visitors Authority; and

·        Dedicate 0.25% of AIT to the Casino Revenue Fund in order to replace $10 – $15 million in funding for senior and disabled programs lost to declining casino revenues.
 
“It is not enough for Trenton to say Atlantic City is important to the entire state.  We need action to back up those words,”  said Polistina.  “Our plan meets the competition from other states head on by providing the advertising to steer visitors our way.  Our plan also provides the funding to create the amenities visitors expect when the come to a resort destination.  Our plan gives hope to existing casinos and can keep projects, like Revel, alive.  Our plan will produce results.” 

Before the economic downturn, the casino industry employed 41,000 people directly and 21,000 indirectly.  Atlantic City casinos purchased $2.2 billion worth of goods and services from New Jersey businesses throughout the state and paid over $400 million a year to support medical assistance for seniors and the disabled.   

“Research shows that for every two jobs created in Atlantic City, one is created elsewhere in the state,”  said Amodeo.  “When Atlantic City does well, the entire state does well.  There is no other industry in New Jersey that can pull the entire the state out of the recession.  Only the casino industry can do that.” 

In conjunction with this legislative package, Amodeo and Polistina renewed their insistence that the Governor issue an executive order declaring that Casino Control Commission employees be deemed ‘essential’ so that there are no doubts about whether the casinos will be able to remain open in the event of a budget stalemate.
 
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