N.J. governor pledges help for Atlantic City

John Curran

Friday, May 24, 2002 | 9:59 a.m.

ATLANTIC CITY -- He was venturing into unfriendly territory, so Gov. James E. McGreevey came bearing gifts.

McGreevey, who has won few friends here with his plan to tax the complimentaries given to gamblers by casinos, this week outlined plans to clean up the Boardwalk, improve traffic flow in the city and study the feasibility of a light rail rapid transit system.

The idea is to make Atlantic City easier to get to and more family friendly for those who make the trip.

"We will make Atlantic City the premier family destination site in the nation," he told about 400 casino executives, civic leaders and Wall Street analysts at the sixth annual Mid-Atlantic Gaming Congress.

He said that within six months, the state would develop a comprehensive plan for Atlantic City that would:

The 15-minute speech elicited a standing ovation -- and effusive praise from casino officials.

"I've been through five governors in my tenure here, and he is the first that has ever presented such a clear vision of Atlantic City," said Paul Rubeli, chairman of Aztar Corp., which owns the Tropicana Casino and Resort.

The complimentaries tax, which imposes a 6 percent levy on the hotel rooms, meals and show tickets given to gamblers as incentives, would raise $33 million.

It was proposed by McGreevey to help erase a $5 billion budget deficit the state is currently struggling with.

But the proposal has been criticized by casino executives as a desperate grab for money that would be counterproductive for an industry that already pays more than $430 million in state taxes annually.

It was on everyone's mind Wednesday, but not on their lips.

McGreevey never mentioned it in his speech, and when asked about it on the Boardwalk afterward, he would say only: "Those are ongoing negotiations."

Casino executives noticed the omission, but weren't talking, either. "No comment, no comment," said Kenneth Condon, president of Bally's Atlantic City, as he walked out after McGreevey's address.

"I'm not getting into that one," said Nicholas Ribis, vice chairman of Resorts Atlantic City.

J. Terrence Lanni, executive chairman of MGM MIRAGE, said he was confident the tax plan would be shelved. He said he talked to McGreevey personally Wednesday, but that they didn't talk about the tax.

"I would be absolutely amazed if the tax goes forward," Lanni said.

Earlier Wednesday, Sen. Robert Torricelli promised he would beat back any attempts by the federal government to tax casinos.

"As long as I serve in the U.S. Senate, there will not be a federal tax on gaming revenue. It will not happen," said Torricelli, D-N.J.