New Jersey agrees to support struggling Atlantic City

Lawmakers in New Jersey have agreed a deal to send financial support to the US state’s gambling resort of Atlantic City, following a sharp drop in casino revenue during recent years.

Total casino revenue in the resort for the 12 months to December 31, 2015, came in at $2.2 billion (€2 billion), down from $5.2 billion in 2006, partially due to the closure of four of its 12 casinos in 2014.

With some analysts predicting that revenue will fall again this year, the state has agreed to step in by approving a measure to extend bridge loans and grants to Atlantic City, which now has to develop a five-year plan or risk being put under state control.

The gambling resort has been given 150 days to present its budget proposals to the state.

The deal remains subject to approval from both state chambers and will need to be ratified by New Jersey Governor Chris Christie, who has previously voiced his support for the state to take over the running of Atlantic City.

Assembly Speaker Vincent Prieto, who said that he is confident Christie will back the package, said ahead of the assembly committee hearing: “Atlantic City will now have time to take care of their own house.”

The proposed deal comes despite New Jersey achieving record online gambling results in April, with revenue for the state coming in at $17 million, ahead of the previous record of $15.5 million set in March of this year.

Related article: New Jersey sets online gaming revenue record in April