A new bill would allow New Jersey's racetracks to partner with Atlantic City casinos to open "internet gaming cafes." But critics are worried.
TRENTON -- Supporters are pitching it as the latest idea to help two of New Jersey's struggling industries: horse-racing and casino gambling.
But opponents are labeling it as a sneak move just a month after voters overwhelmingly rejected a plan to open two casinos in the northern part of the state.
Under a bill recently introduced by two members of the state Assembly, New Jersey's two major racetracks -- Monmouth Park in Oceanport and the Meadowlands Racetrack in East Rutherford -- would be allowed to partner with Atlantic City casinos to open floorspace where visitors could spend their downtime between races playing online gambling games.
The state constitution stipulates that casinos are allowed only in Atlantic City, and changing that would require voters to approve a referendum.
N.J. voters overwhelmingly reject north Jersey casino proposal
Online gambling, though, is already legal in New Jersey, under a law Gov. Chris Christie signed in 2013. The licenses must be held by Atlantic City casinos, and gamblers can access the games only inside state lines.
Proponents of the new measure (A4255) say nothing prohibits visitors at New Jersey's racetracks from playing the games on their smartphones, tablets, or laptops. And the new bill would simply create legal "internet gaming cafes" at the tracks where those visitors could play the games in a designated space leased by casinos.
That, they note, would not require voter approval.
Assemblyman Ralph Caputo (D-Essex), a co-sponsor of the measure, denies the measure is "circumventing the public."
"Internet gaming exists," said Caputo, one of the most vocal supporters of the failed north Jersey casino plan. "We're now finding a location for it."
Dennis Drazin, an attorney who advises Monmouth Park, called the bill a "win-win" for both Atlantic City, where five casinos have closed in recent years, and the racetracks, which have been struggling to stay afloat since the state cut its subsidies.
"The racetracks would be leasing the casinos floor space in a designated area for a dollar," Drazin said. "The casinos would have another venue to operate online gaming. You already have people there betting on horse racing. We'd be giving casinos a chance to get a regular customer that is used to gaming."
Drazin also argued that the state's online gaming revenue has not been as lucrative than originally expected. It has risen steadily, though, bringing in $16.6 million in October -- up nearly 30 percent from a year ago.
Critics, however, say the measure is written so broadly that tracks could install computers that resemble slot machines and essentially create "racinos" -- tracks with casino-like games that are common in New York state.
And that, they say, goes against the will of the nearly 80 percent of voters who shot down referendum to expand casino gambling to north Jersey -- the largest defeat of a ballot question in state history.
The plan did not finalize where the two casinos would have been located in the north, but there was a proposal was for one to be built at the Meadowlands Racetrack.
Lawmakers are prohibited from putting the question on the ballot again for two years.
"We just had an election on this issue," said state Sen. Jim Whelan (D-Atlantic), a former Atlantic City mayor. "I think the people of New Jersey spoke loud and clear."
Assembly Speaker Vincent Prieto (D-Hudson) would not say whether the legislation would be put before his entire chamber -- but he also didn't rule it out.
"Online gaming is a reality, and with that in mind, this is a discussion worth having as we consider the future of gaming in New Jersey," Prieto said in a statement. "I'll continue listen to all sides as we move forward before making any decision."
State Senate President Stephen Sweeney (D-Gloucester) said he hasn't read the bill yet and isn't sure whether he'd put it before his house, either.
"I would have to look at it," Sweeney said. "But I really don't know."
Sweeney, arguably south Jersey's most powerful lawmaker, said he was against a similar Caputo idea: installing video terminal lottery machines at tracks that look like slots but could be legal.
That, he said, would essentially make Monmouth Park -- an 80-minute drive from Atlantic City -- a racino.
Sweeney was in favor of north Jersey gaming because, he said, it placed the new casinos far away from Atlantic City.
"We don't want to take anymore market share for a reason," he said. "North Jersey gaming was designed to capture people from other states."
Brent Johnson may be reached at bjohnson@njadvancemedia.com. Follow him on Twitter @johnsb01. Find NJ.com Politics on Facebook.