Citing the lack of a balanced budget, the Governor closed down the government of NJ. Needless to say, this is a huge hit for Atlantic City. The casinos cannot run if the government is closed, as the regulators are government employees; and the casinos are not allowed to run unless a regulator is present. With millions of slot machines standing empty, this angered many of the casino owners, especially since although they are considered state employees – the casinos pay the regulators’ salaries. The government closed its doors for three days during the busiest time of year for the casinos losing them an estimate $2.9 million per day from unused tables and slot machines.

Not only did the casinos lose revenue, as did the state – as the state receives a percentage of all slot machine and table income – but the employees lost out as well. The casinos had 36,000 employees out of work for three days, and who pays that bill? The government closed down as the Governor wanted to increase taxes and the State Legislature was fighting him on it. Residents of NJ were less than pleased with their governor and claim that he could have taken it from an alleged $8 million slush fund that seems to be the subject of much debate as well.

The slot machines are back up and running, and the governor got his tax hike, but the damage to NJ and Atlantic City’s reputation are irreparable. Other companies that were considering the move to AC will now think twice before placing their bets on a city that can just as easily shut down. Donald Trump was quoted as saying he felt that if this happens again, the value of the city will drop, as investors won’t put their money somewhere that it isn’t considered safe.

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