Gaming Industry Awaits Outcome of New Jersey Governor’s Election on Three Critical Fronts

New Jersey voters next week will elect a new governor who will help set the state’s agenda for at least the next four years. The election of Republican candidate Jack Ciattarelli or Democrat Mikie Sherrill will impact significant gambling-related issues in the East Coast’s most prominent gaming jurisdiction.

Here are three major topics to watch.

Atlantic City smoking ban

Banning smoking in the largest gaming market east of the Mississippi has been a hotly debated issue for years. The next governor could change decades of policy permitting casino smoking or maintain the status quo.

While running for re-election to the U.S. House last fall, Sherrill questioned casino smoking policies, arguing the resistance against the ban is “a weird fight to have.” She was praised for her position by the Casino Employees Against Smoking Effects as well as the Americans for Nonsmokers’ Rights (ANR), two anti-smoking advocacy groups.

Sherrill’s comments came when she was running last year for her suburban New York City-area Congressional district more than 100 miles from Atlantic City. She has not come out as forcefully for or against a ban while running for a job that would encompass the entire state.

Ciattarelli, a former state assemblyman representing central New Jersey, did not take as proactive a stance on a casino smoking ban. His gubernatorial campaign has centered on lowering regulations on businesses, and he has given no indication he would push for such a restriction on one of the state’s highest-grossing industries.

Outgoing Democratic Gov. Phil Murphy said he would sign a ban if passed by the legislature. The issue continues to divide industry stakeholders and lawmakers and remains a major talking point heading into the 2026 legislative session.

A 2021 Spectrum Gaming Group report indicated Atlantic City casinos could lose more than 10% of their business from a smoking ban. The report’s authors have since backtracked on some of their findings, per the ANR.

The ANR has also cited an interview where American Gaming Association president Bill Miller said bans have been “without detrimental effects.”

Casinos outside Atlantic City

The next governor could also influence authorization of the state’s first legal casinos outside Atlantic City.

Garden State politicians have for decades considered allowing casinos outside Jersey’s historic gambling capital, including at existing horse tracks in the Meadowlands and Monmouth Park. Murphy earlier this year said he was open to the idea, though no action was taken.

New Jersey gambling is facing unprecedented competition from up to three pending New York City casinos. Murphy and other advocates have said a casino in the Meadowlands could help keep dollars from crossing state lines, but the political and logistical price of such a move will be difficult.

Both candidates would need to weigh the benefits of new casinos against the potential detriment to Atlantic City, which has already seen year-over-year in-person gaming revenue declines as new casinos open across the region and online gaming becomes more prominent.

Ciattarelli’s vehemently pro-business campaign means he would have to balance new casinos against potential revenue declines for existing casinos. Sherrill, who has been supported by multiple major unions, would likely prioritize protections for workers, including those that could lose jobs in Atlantic City.

Neither candidate has campaigned publicly on new casinos. But their core political constituents could direct what factors most influence the decision to allow new casinos or maintain the current restrictions.

Gaming taxes

Taxation, gaming or otherwise, has been a key issue for both candidates.

Ciatterelli has made sweeping tax cuts and spending reductions a core focus of his campaign. Sherrill has said she would target specific programs and area policies to help affordability while maintaining similar overall tax rates.

These policy positions likely mean no further increase on gambling taxes that Murphy supported this year. Still Ciatterelli’s stance would appear more favorable to major gambling companies, especially after raises passed by a Democratic governor.

Murphy signed a bill that raised the state’s online casino gaming and sports betting tax to 19.75% of gross gaming revenue, an increase from 15% and 13%, respectively. Murphy compromised with lawmakers after initially pushing for a 25% rate.

The increase followed similar raises in other states as governments look to grow revenues without cutting services, leaving “vice” industries such as gambling among the most easy targets. Resistance from the Democratic-controlled legislature against Murphy’s preferred rate shows the power the gaming industry maintains in the state and assures any such increase will be difficult going forward.

Still, Ciatterelli has given no indication he would increase a tax paid by a major business, even if that meant cutting services. Sherrill has likewise not hinted at a gaming tax increase, but her proposals to increase affordability while maintaining similar service levels may keep certain tax increases on the table.

This article originally appeared on Covers.com, read the full article here