N.J. Governor Seeks to Boost Gaming, Entertainment Venues

New Jersey Gov. Chris Christie yesterday announced that an advisory commission will draft proposals to strengthen the state’s gaming industries and entertainment venues, as well as suggest ways to improve New Jersey Sports and Exposition Authority operations.

The announcement follows a Christie transition team report on gaming, sports, and entertainment in the state. The authority, which has a $38 million 2010 budget deficit, oversees Giants Stadium — home of the New York Giants and Jets — the Izod Center, which is where the New Jersey Nets currently play, two racetracks, and the Atlantic City Convention Center. The NJSEA also is overseeing the construction of Meadowlands Xanadu, a major retail, dining, and entertainment facility that has faced delays.

Former NJSEA chairman and real estate executive Jon Hanson, who served on Christie’s transition team, will head the seven-member advisory committee. Christie, a Republican, took office on Jan. 19 and created the panel through executive order. The commission will file its final report with policy recommendations by June 30.

“We can no longer let Atlantic City wither in the face of competition, have our arenas and stadiums go underutilized, or have a sports authority that is unable to maximize our entertainment investment and resources,” Christie said in a prepared statement.

“Previous efforts have been piecemeal, weak and failed to look at all the problems in a whole and comprehensive way. This will be a blueprint to guide our policy in fixing our sports and entertainment infrastructure in New Jersey, to make all its parts self-sustaining, attractive to wider audiences and revenue positive for the long term,” he said. “But the advisory commission will also be working with my administration in real time, to move quickly to solve critical contractual and other issues we confront in the short term.”

Casino revenue collections from July through December are $17.6 million below budgeted estimates, a 10.5% shortfall, according to Treasury Department records. Meanwhile, competition from neighboring states is expected to increase. Philadelphia has two casino developments in the works, with one opening later this year, and Pennsylvania lawmakers last month approved table games such as blackjack and roulette at the state’s casinos.

The NJSEA’s two horse racing facilities, Meadowlands Racetrack and Monmouth Park, are estimated to lose $22 million this year, according to the transition report on gaming.

Democrats also seek to review the state’s gaming industry and the NJSEA. On Tuesday, Senate Majority Leader Barbara Buono, D-Middlesex, who chairs the Legislative Oversight Committee, said that panel will review the future of the authority, with public hearings to begin Feb. 25. In addition, Sen. Jim Whelan, D-Atlantic, chairman of the State Government, Wagering, Tourism and Historic Preservation Committee, expressed his support for Christie’s seven-member advisory panel.

“As out-of-state competition continues to strengthen, we need to ensure all facets of our gaming and entertainment economy are working in synch,” Whelan said in a prepared statement in response to Christie’s announcement.

The NJSEA has $691 million of outstanding bonds, most of which is state-contract debt with New Jersey paying for debt service costs from its general fund. Moody’s Investors Service and Fitch Ratings rate the authority A2 and A-plus, respectively. Standard & Poor’s rates the credit AA-minus.

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