Both houses of the state Legislature on Monday passed a resolution that will put a question on the Nov. 8 ballot.
TRENTON -- New Jersey voters will get to decide in November whether to end Atlantic City's 40-year-old monopoly on casino gambling and expand the practice to the northern part of the state.
Both houses of the state Legislature on Monday passed a resolution that will put a question on the Nov. 8 ballot asking voters whether to approve two casinos in north Jersey.
The state Senate voted 34-6 and the state Assembly voted 54-15, with three abstentions, in favor of the resolution (SCR1/ACR1) -- despite fears from some lawmakers that the new casinos will cause even more damage to financially struggling Atlantic City.
After casinos were legalized there in 1976, the city was the East Coast's premier gambling destination for decades But the city has seen four casinos close in recent years amid ever-increasing competition from gambling halls in neighboring states.
Proponents say north Jersey casinos would New Jersey competitive in the northeast gaming market, and bringing in millions of dollars in new revenue and thousands of new jobs.
"This is historic," Assemblyman Ralph Caputo (D-Essex), one of the plan's main sponsors, said after the plan passed Monday.
N.J. Senate approves Atlantic City takeover plan
If approved by voters, the plan would also give up to $200 million annually in taxes from the new casinos to Atlantic City to help offset the losses it is likely to incur from north Jersey gambling and help the Jersey Shore resort town as an entertainment destination. The money to the city would decrease over time.
The rest of the revenue would be split between programs and tax relief for senior citizens and the disabled. Two percent would go to New Jersey's struggling horse racing industry and to municipalities and counties where the new casinos are located.
But opponents say the plan would likely lead to more casinos closing in Atlantic City. They add that the benefits to the state may be moot because eight new casinos will soon open in the northeast market, and New York City may open one if north Jersey opens gambling halls.
"It's only going to increase and speed up competition we don't have now," Assemblyman Chris A. Brown (R-Atlantic) said.
"If we build in an over-saturated market, they will not come," Brown added, quoting the famous line from the film "Field of Dreams."
The plan comes as lawmakers consider whether to allow the state to take over large swaths of Atlantic City's local government amid the financial crisis. Though the Senate passed the takeover legislation Monday, it's unclear if the Assembly will follow suit.
Caputo, argued that north Jersey casinos give a boost to both the state and Atlantic City.
"We're saving the gaming industry and helping them," he said.
But the plan drew a few other objections. Assemblywoman Holly Schepesi (R-Bergen) said instead of money going to Atlantic City, tax revenue should go to other pressing matters, like pension shortfalls or to help replenish the state's nearly broke Transportation Trust Fund.
"None of this money goes to the most significant, pressing issues in the state right now," said Schepesi, who abstained from the vote.
Monday's passage comes after more than a year of fighting over the plan, with lawmakers disagreeing on where the casinos should be built, who should be allowed to own them, and more.
The plan was nearly scuttled earlier this year before Gov. Chris Christie worked out a deal with the state's top two lawmakers, Senate President Stephen Sweeney (d-Gloucester) and Assembly Speaker Vincent Prieto (D-Hudson).
Both houses needed to pass the plan Monday by a three-fifths majority of their members.
It's still unclear where the casinos will be built or what tax rate they will pay the state. The ballot question doesn't specify either, but lawmakers say both issues will be decided in later legislation -- possibly before voters head to the polls in eight months.
There are currently proposals for casinos at the Meadowlands Racetrack and the American Dream complex, both in East Rutherford, as well in Jersey City.
Atlantic City casino operators would have the first chance to own at least part of the new casinos. But if they don't apply within 60 days, the new licenses would be open to any company. Whoever nabs the licenses has to make a $1 billion investment in the news properties.
It's not guaranteed that voters will approve the question in November. Recent polls show New Jerseyans are still split on north Jersey casinos, though sentiment is warming.
Plus, it's expected that casino operators in nearby states will launch a campaign to stop the plan. Assemblyman Vincent Mazzeo (D-Atlantic) also said he would fight the plan.
"We will take this fight to the voters of this state," Mazzeo said. "It will not be quiet; it will not be cheap."
Brent Johnson may be reached at bjohnson@njadvancemedia.com. Follow him on Twitter @johnsb01. Find NJ.com Politics on Facebook.