New York casino plans revive New Jersey Racino Debate

New Jersey lawmakers are reconsidering proposals to permit casinos at the Meadowlands and Monmouth Park racecourses amid concerns that New York’s progress could disrupt the regional gaming balance. On 1 December, the New York State Gaming Facility Location Board recommended three downstate casino projects located in Queens and the Bronx for licensing. If approved, these properties could open by mid-2026, creating a high-density gaming hub capable of drawing players who previously travelled to Atlantic City.

For decades, Atlantic City has dominated gambling on the East Coast, but the new competition threatens to shift player behaviour and revenue streams. Officials worry that northern New Jersey residents may choose shorter trips to New York casinos, further challenging Atlantic City’s post-pandemic recovery. State Senator Joe Pennacchio has renewed his call to authorise racinos, arguing that New Jersey risks losing hundreds of millions in potential revenue by delaying action. His position is reflected in SCR130, a proposed constitutional amendment allowing up to two casinos outside Atlantic City.

Unlike the broader 2016 referendum, which voters rejected, SCR130 is narrowly tailored to Meadowlands and Monmouth Park and includes detailed revenue allocations for property tax relief, pensions, and tourism support. Governor Phil Murphy has also shown willingness to revisit expansion discussions, acknowledging the changing competitive environment.

However, Atlantic City stakeholders remain cautious. They fear that new northern casinos could cannibalise existing revenue and slow the city’s recent momentum. The proposal must secure a three-fifths majority in both legislative houses by August 2026 to appear on the ballot. If approved, New Jersey voters will face one of the most consequential gaming decisions in the state’s recent history.