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Three members of Congress from South Jersey appealed to Gov. Corzine this week to keep video lottery terminals out of the state - and "to continue to promote Atlantic City as the state's single gaming destination."
Democratic U.S. Rep. Robert Andrews and Republican Reps. Jim Saxton and Frank LoBiondo are the latest lawmakers from South Jersey to lobby the governor against the so-called VLTs, which are like video slot machines. The terminals have been proposed for the Meadowlands and other racetracks in the state but have met with stiff opposition from the Atlantic City casino industry, which views them as a major threat.
During the gubernatorial campaign, Corzine said he was opposed to bringing VLTs to New Jersey. But last month, he said the idea should be considered as a way to ward off competition from neighboring states, including Pennsylvania, which are moving forward with plans to install gaming machines.
Corzine's apparent reversal prompted an immediate outcry from casino advocates in the state Legislature, who worry the machines would lure gamblers - and business - away from Atlantic City's gaming floors, which pull in $5 billion a year. Assemblyman Jim Whelan (D., Atlantic), a former mayor of Atlantic City, and Sen. Stephen Sweeney (D., Gloucester) sent a letter urging Corzine to stand strong in his opposition to VLTs, which they warned "could be devastating" to the casino industry and "have a seismic effect" on the state economy as a whole.
In a letter to Corzine dated Wednesday, LoBiondo, Andrews and Saxton echoed those concerns.
"Bringing VLTs to the Meadowlands will not make New Jersey more competitive with emerging markets in New York and Pennsylvania, rather it will undermine the tremendous economic expansion and ongoing revitalization in Atlantic City, reduce revenues for the state, and put the livelihoods of over 45,000 gaming industry employees in jeopardy," the congressmen wrote.
They noted that under state rules, Atlantic City's casinos must have 500 hotel rooms in order to run a gambling operation, and argued that to permit VLTs to come to New Jersey "without similar requirements is unfair to those businesses that have already made billions of dollars in capital improvements."
Yesterday, a Corzine spokesman attempted to clarify the administration's position, saying the governor remained opposed to VLTs but would allow them if "it's best for Atlantic City and best for New Jersey."
Anthony Coley, the spokesman, said that soon, "VLTs are going to be surrounding the state."
"If they are going to compete with Atlantic City, shouldn't we work with the casino industry to put together a strategy that will allow New Jersey and Atlantic City to benefit?" he said. "If it means we consider VLTs to protect Atlantic City and New Jersey, then that's something we ought to do."
Corzine isn't the first governor to take heat on the VLT issue. His predecessor, Senate President Richard J. Codey, last year proposed allowing 1,500 to 2,000 machines at the Meadowlands. Codey hoped the move would raise hundreds of millions of dollars to help fix the state's rickety finances. But the casino industry and South Jersey legislators pounced, and the proposal quickly died.
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