The impetus is the potential loss of gambling and tax revenue that might drift from New Jersey to New York, where three new casinos are being built across the river in New York City.

Casino lobbyists in New York City have already begun strategizing about ways to counter the burgeoning North Jersey effort.

Democratic state senators Vin Gopal and Paul Sarlo have put forward a proposal that could trigger a voter referendum as early as November. Since the State Constitution prohibits casino gambling outside Atlantic City, any expansion would need public approval.

The push comes amid worries that New York’s upcoming casinos could siphon off both gambling activity and tax revenue. In response, the owners of the Meadowlands and Monmouth Park racetracks are urging state leaders to back a renewed legalization effort in northern New Jersey—even though voters soundly rejected a similar measure in 2016.

Advocates contend that the Meadowlands and Monmouth Park racetracks are natural choices since both already feature sports betting and horse racing. Senator Gopal has emphasized that New Jersey should not sit idle while New York attracts its gamblers, noting that wagering is already occurring at those sites. As he told The New York Times: “We’re already doing sports betting on site, we’re already betting on horse racing on site. Gambling is already happening. How is this any different?”

To ease concerns in South Jersey, the bill stipulates that at least 10% of tax revenue from any new casinos would be earmarked for promoting Atlantic City tourism. Still, political leaders in the region—long protective of Atlantic City’s casino industry—have voiced opposition.

Michael Suleiman, chairman of the Atlantic County Democratic Committee, described the New York casino expansion as an “impending meteor,” but said leaders in the region would still fight any move to authorize casinos in Monmouth and Bergen Counties. “We will have to defeat it,” Suleiman said.

Several casinos there shut down about a decade ago, and the nine that remain have had to compete with newer gambling venues in neighboring states. Governor Mikie Sherrill has also identified the revival of Atlantic City as a priority for her administration.

Former governor Chris Christie, whose administration backed the failed 2016 expansion bid, said that the vote delivered a clear message from the public. Even so, developers are trying to build support. Jeff Gural, managing partner of the group that owns the Meadowlands, said the aim would be to work with Atlantic City casino operators if the effort advances. “Our plan is to sit with the Atlantic City casino industry and come up with a plan to protect their interests,” said Gural.

Jeff Gural has suggested that New Jersey could adopt a licensing model similar to New York’s, where successful bidders are required to pay at least $500 million upfront. He argued that the greatest competitive pressure from new casinos in North Jersey would likely affect the upcoming New York properties rather than Atlantic City, which he described as a distinct destination market.

Assembly Majority Leader Louis Greenwald, a Democrat, said the proposal merits discussion but emphasized that lawmakers need more details before taking a position, including revenue projections and the overall framework of the plan.