Casino gambling as urban redevelopment: A case study of the political economy of Atlantic City, New Jersey

After repeated attempts to revive the city through every available federal and state aid program, the citizens of New Jersey mobilized the resources of the private sector and invited casino gambling to Atlantic City to rebuild this aging seaside resort. Approval of the initiative signified broad public expectations about the benefits of casino gambling. Among these expectations was the belief that legalized gambling would contribute to the revitalization of Atlantic City. The infusion of private capital from casino gambling was expected to end Atlantic City's decline, and, in fact, to usher in a new era of community prosperity. Capital investment by the casino industry would trigger a multiplier effect that would translate additional rateables, jobs and visitors into a bonanza for local merchants and residents, a huge revenue source for municipal government, and an unparalleled urban development opportunity.;Four types of expectations contributed to confidence in casino gambling as an urban redevelopment strategy. First, it was expected that the public-private partnership between the state of New Jersey and the casino industry could be constructed and operated to ensure that private investment would serve public redevelopment purposes. Second, investment by the casino industry would generate substantial economic growth, and the benefits of this growth would be shared by the residents of Atlantic City as well as the surrounding region and the state. Third, casino investment would greatly expand public revenues which would be targeted to aid the elderly and the disadvantaged statewide, and to redevelop blighted areas of Atlantic City. Fourth, resources made available through casino gambling would contribute to development improvements in the city's distressed neighborhoods and, thereby, generally strengthen Atlantic City as a community.;This study examines Atlantic City's experience with casino gambling as a redevelopment strategy. The implicit and explicit expectations about the role of legalized gambling in Atlantic City's redevelopment are identified, and the assumptions underlying these expectations are analyzed. The study concentrates on an evaluation of these expectations in light of the city's first decade of experience with this unusual redevelopment partnership.