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Bill > A2612


NJ A2612

NJ A2612
Establishes alternative methods of casino licensure.


summary

Introduced
In Committee
Crossed Over
Passed
Dead

Introduced Session

2010-2011 Regular Session

Bill Summary

This bill establishes two alternative methods of casino licensure. It provides that the Casino Control Commission will issue a small-scale casino facility license and a staged casino facility license for a facility to be located within or adjacent to the Boardwalk casino zone. A small-scale casino facility would consist of not more than 20,000 square feet of casino space and not less than 200 qualified sleeping units. A staged casino facility would initially consist of not more than 30,000 square feet of casino space and not less than 200 qualified sleeping units. Within two years, a staged casino facility licensee would have to begin expanding the facility which must include not less than a total of 500 qualified sleeping units within five years of initial licensure. If the holder of a staged casino facility license fails to complete the expansion of the facility within the time period specified by the bill, the commission will convert that license to a small-scale casino facility license. A total of not more than four small-scale casino facility licenses and staged casino facility licenses could be issued by the commission at the same time. The bill also provides that the holder of either type of license would deposit an amount equal to 5% of gross revenues into a fund administered by the State Treasurer. Funds deposited by the holder of a staged casino facility license would be made available to the licensee for the purpose of expanding the facility. Funds deposited by the holder of a small-scale casino facility license would be made available to the licensee for the purpose of expanding the number of qualified sleeping units at the facility. Funds that are not used for these purposes, after a period of time to be determined by the commission, would be expended for the purpose of funding infrastructure improvements in Atlantic City or made available for low interest loans to expand existing casinos.

AI Summary

This bill establishes two new types of casino licenses, a "small-scale casino facility license" and a "staged casino facility license," for facilities located within or near Atlantic City's Boardwalk casino zone, allowing the Casino Control Commission to issue these licenses in addition to existing ones. A small-scale casino must have no more than 20,000 square feet of casino space and at least 200 "qualified sleeping units" (hotel rooms). A staged casino initially has up to 30,000 square feet of casino space and at least 200 sleeping units, but the licensee must begin expanding within two years to reach a total of 500 sleeping units within five years; failure to do so will result in the license being converted to a small-scale license. The bill limits the total number of these new licenses to four at any given time and requires licensees to deposit 5% of their gross revenue into a special fund administered by the State Treasurer, with staged licensees using these funds for expansion and small-scale licensees for expanding sleeping units, while any unused funds will go towards Atlantic City infrastructure improvements or loans for existing casino expansions.

Committee Categories

Business and Industry

Sponsors (7)

Last Action

Substituted by S1866 (3R) (on 11/22/2010)

bill text


bill summary

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bill summary

Document Type Source Location Created
Assembly Committee Substitute https://www.njleg.state.nj.us/2010/Bills/A3000/2612_U1.HTM 05/29/2012
Bill https://www.njleg.state.nj.us/2010/Bills/A3000/2612_I1.HTM 05/28/2012
Statement ARG 11/8/10 https://www.njleg.state.nj.us/2010/Bills/A3000/2612_S1.HTM 04/23/2012
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