N.J. shutdown closes Atlantic City casinos
State budget crisis grinds on for 5th day
ATLANTIC CITY -- The dice stopped rolling, dealers quit shuffling, and slot machines fell silent yesterday as New Jersey's casinos closed for the first time, the latest victims of a five-day state government shutdown that showed no signs of ending soon.
In the first mass closure in the 28-year history of Atlantic City's legalized gambling trade, all 12 casinos went dark. With no state budget, New Jersey cannot pay its state employees, including casino inspectors who keep tabs on the money.
The shutdown could cost the 12 casinos more than $16 million that they would normally collect from gamblers each day, not to mention the $1.3 million in taxes taken in by the state.
The closures forced an estimated 20,000 people off their jobs as dealers, pit bosses, and cocktail servers.
The problem started when the Legislature became locked in a battle with Governor Jon S. Corzine, a Democrat, over his proposed sales tax increase. Lawmakers missed a July 1 deadline to pass a budget.
Without a spending plan, Corzine ordered state offices shut down Saturday and all nonessential state government operations closed. Only about 36,000 people in vital roles such as child welfare, state police, and mental hospitals remained on the job and were working without pay.
Corzine wants to raise the state sales tax from 6 percent to 7 percent to close a $4.5 billion state budget gap. Democrats who control the state Assembly oppose the tax increase, estimated to cost the average New Jersey family $275 per year.
