New Jersey Statewide Rule
New Jersey Casino Control Act Confines Casinos to Atlantic City
Key Facts
- Governing statute
- N.J.S.A. 5:12-1 et seq., Casino Control Act (1977)
- Eligible location
- Atlantic City boundaries as defined November 2, 1976
- Licensing agencies
- Casino Control Commission and Division of Gaming Enforcement
- Unlicensed operation penalty
- Fourth-degree crime; fine up to $200,000 (entity)
- Minimum hotel room size
- At least 325 square feet with private bath
- Internet gaming tie
- Wagers must route through an Atlantic City casino
Summary
New Jersey's Casino Control Act, N.J.S.A. 5:12-1 et seq., confines legal casino gambling to a single city. State law defines an "approved hotel" eligible for a casino license as a building located within Atlantic City's boundaries as they stood on November 2, 1976, nowhere else in New Jersey qualifies. The Casino Control Commission and Division of Gaming Enforcement license and police every casino under this framework.
"Hotel" or "approved hotel" - A single building, or two or more buildings which are physically connected in a manner deemed appropriate by the commission and which are operated as one casino-hotel facility under the provisions of the "Casino Control Act," P.L.1977, c. 110 (C. 5:12-1 et seq.), located within the limits of the city of Atlantic City as said limits were defined as of November 2, 1976, and containing not fewer than the number of sleeping units required by section 83 of P.L.1977, c. 110 (C. 5:12-83), each of which sleeping units shall: a. be at least 325 square feet measured to the center of perimeter walls, including bathroom and closet space and excluding hallways, balconies and lounges; b. contain private bathroom facilities; and c. be held available and used regularly for the lodging of tourists and convention guests.
Full Breakdown
New Jersey's constitution first opened the door: voters approved a 1976 amendment permitting the Legislature to authorize casino gambling only within the boundaries of the city of Atlantic City. The Casino Control Act, P.L.1977, c.110 (N.J.S.A. 5:12-1 et seq.), then built the state's entire licensing structure on that single-city footprint. Section 5:12-1's legislative findings frame casino gaming as a unique tool of urban redevelopment for Atlantic City, meant to fund the rehabilitation and redevelopment of existing tourist and convention facilities there rather than to spread gaming statewide.
The zoning mechanism sits in the Act's definitions. N.J.S.A. 5:12-27 defines "hotel" or "approved hotel", the only kind of building the Casino Control Commission may license for a casino, as one located within the limits of the city of Atlantic City as said limits were defined as of November 2, 1976, and containing enough sleeping units, each at least 325 square feet with private bathroom facilities, to meet the room-count floor set in section 83. A building outside that 1976 boundary line cannot become a casino hotel no matter its size or investment. The same city lock applies to online play: N.J.S.A. 5:12-28.1 defines "Internet gaming" as wagers placed with a casino licensee at a casino located in Atlantic City, so an online casino account is still legally anchored to an Atlantic City property even when the player is elsewhere in the state.
The Division of Gaming Enforcement investigates and licenses operators; the Casino Control Commission issues and can revoke the license itself. Running gambling games, slot machines, or a casino outside this licensed Atlantic City structure is a fourth-degree crime under N.J.S.A. 5:12-112, carrying fines up to $50,000 for an individual and up to $200,000 for a corporation, on top of any general state gambling-law exposure.
Violations & Penalties
Offering casino games, slot machines, or Internet wagering tied to a casino outside a properly licensed Atlantic City casino hotel is a fourth-degree crime under N.J.S.A. 5:12-112, punishable by a fine up to $50,000 for an individual or $200,000 for a business entity. Operating with an expired license before its renewal carries the same penalty. The Division of Gaming Enforcement investigates; the Casino Control Commission can additionally suspend or revoke a license and impose civil penalties up to $100,000 per casino licensee.
Frequently Asked Questions
Can a city outside Atlantic City legalize a casino?
Does the Atlantic City boundary include land annexed after 1976?
Does online betting from home get around the Atlantic City requirement?
What happens if someone runs unlicensed casino games in New Jersey?
Sources
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