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Atlantic City Casinos Are Shuttered by N.J. Budget Impasse
Industry Cites Immediate and Long-Term Losses

By Robert Strauss
Special to The Washington Post
Thursday, July 6, 2006; A03

ATLANTIC CITY, July 5 -- The $5 slot machine at the Borgata Hotel Casino and Spa, itself an advertisement for Tabasco hot sauces, read "Garlic," "Garlic" and "Habanero," not a winner in anyone's book. Worse than that, though, from the Borgata's perspective, was the notice above that, which read, "This machine is temporarily out of service. Sorry for the inconvenience."

The Tabasco machine was not on the fritz, but was part of the first-ever shutdown of all gaming since New Jersey authorized casinos in 1978. Because of a state government budget impasse, the Borgata and 11 other casinos here had to suspend gaming activities just before 8 a.m. Wednesday.

"I guess I really didn't think it was going to happen," said Marvin Redman, 54, who was visiting Atlantic City for the week from Frederick, Md. Redman played the slot machines early in the morning, though, just in case. "Normally, I'm not on the floor at 7 a.m., but I wanted to get a few games in before they shut it down. For the rest of the week, who knows?"

Even the experts seem befuddled. New Jersey has been without a budget since July 1, when by law the state is to have one in place for the following year. Gov. Jon S. Corzine has been sparring with his fellow Democrats in the state Assembly over his proposal to raise the state sales tax from 6 to 7 percent to help close a $4.5 billion gap in the state's $31 billion budget. The government has closed most state agencies, beaches and other services.

Although Corzine said he was under legal obligation to furlough the state inspectors who oversee casino operations, as only "essential" employees are exempt from such furloughs without a budget in place, he allowed them to stay on the job through the busy Fourth of July weekend before pulling them off the job.

"This is a private industry that helps bolster the state's economy," said Joe Weinert of the Spectrum Gaming Group LLC, an industry advisory service and trade-magazine publisher. "Theoretically, you have to add to the state deficit the money it isn't giving to the coffers in taxes. Today dollars are just going out into the salt air."

Out into the salt air, too, were folks who would otherwise be in the casinos. It was not all that inviting because the weather was cloudy and muggy, with intermittent showers. Thus, the city's two other major attractions -- the Boardwalk and the beach -- were unpleasant at best.

"It's a lose, lose, lose," said Mario Gomez, 44, of New York, who was here with his wife and two young sons. "Nothing for any of us. We'll wait it out a day and then see what to do."

Particularly livid was C. Robert McDevitt, president of Unite Here! Local 54, a union that represents 16,000 casino workers. There are approximately 45,000 full-time and part-time workers at the city's 12 casinos, and, says McDevitt, an additional 100,000 or more in businesses that supply casinos with various wares.

"Next year, on Fourth of July weekend, who is going to want to book a room in Atlantic City if this might happen again?" McDevitt asked. "You've got to think they are going to go to Connecticut or Delaware or, if it is ready, Pennsylvania, to gamble. Only New Year's Eve and a big fight are better than the Fourth of July."

Atlantic City has been experiencing a bit of a rebound in classiness of late. A street of rundown tenements has made way for the Walk, a warren of upscale outlets such as those of Coach and Mikasa. The Tropicana Hotel and Casino built a three-story structure with about a dozen restaurants and clubs. And last week, Caesars Atlantic City resort hotel and casino opened the Pier at Caesars, the latest renovation of the old Steeplechase amusement pier, which will eventually have 90 stores such as Gucci, Louis Vuitton and Burberry, as well as 10 more restaurants. Miss America and her datedness have left, but Jay-Z and his first hip nightclub outside of New York have come.

"I am just hoping Atlantic City will have no tarnished image after this," said Linda M. Kassekert, chairman of the New Jersey Casino Control Commission, whose 190 inspectors were furloughed after they had counted the casinos' winnings and made sure the chips, keys and cash were secure. The casinos average $16.3 million in winnings each day, of which 8 percent, or approximately $1.3 million, goes to a state fund earmarked to help the elderly and the disabled. Kassekert said that after the budget is passed, or if the governor relents on the furloughs, her inspectors can get the casinos rolling again in "two or three hours."

"We just feel caught in the middle," said Joseph A. Corpo Jr., vice president and general counsel of the Borgata, and also president of the Casino Association of New Jersey, the industry's trade group. "It is senior citizens who benefit from this. We understand the impasse, but we are certain that keeping us open would generate more money than the state is saving."

Despite its attempt to go upscale, though, Atlantic City still has its grimness. Much of the Boardwalk is seedy, and streets farther back from the casinos are poor and crime-infested. The city of 40,000, for instance, has no movie theater or even a supermarket. Madonna, Mariah Carey and Barbra Streisand grace billboards announcing that they are coming to Atlantic City soon, but on-the-Boardwalk "entertainment" includes an off-key trumpeter with a tattered case open for tips, and an awkward tap-dancing woman spouting lines from the Bible just a few feet away.

Atlantic City, though, does thrive on its flimflam, whether from casino gambling or Boardwalk sharpies. So it was not too far out of the ordinary to see, at the New York Avenue entrance of the Boardwalk, an empty metal folding chair announcing, "The Invisable Man Show," with a coin bucket nearby asking for "Invisable Tips."

"I'm game. I'll throw in a quarter," said Mary Vincent, 36, of Philadelphia. "Maybe it will get the governor to wrap this up and get me back at my slots."

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