Americans for Prosperity: Revel Casino Hits $260M Jackpot at Taxpayers’ Expense

February 02, 2011 JLabor, Education & Pensions

Free Market Groups Blasts Governor’s Planned Bailout of Failing Casino Project

BOGOTA, NJ –Americans for Prosperity is blasting Governor Christie’s decision to subsidize the failing Revel Casino project in Atlantic City to the tune of $260 million in tax breaks.

Reports of the latest effort to bail out the stalled Revel project surfaced late last week with the governor announcing the plans today after signing two other bills purportedly aimed at revitalizing Atlantic City’s deteriorating casino industry.

“The governor was right when he appeared on national TV and said the ‘day of reckoning’ is here and we can no longer afford to spend recklessly,” said AFP-NJ state director Steve Lonegan. “That’s why it is confusing that he would orchestrate this multi-million dollar taxpayer subsidy in order to bail out Revel.”

“The governor cut $820 million in property tax relief last year and now he’s using $260 million to bail out Revel.” said Lonegan. “It’s truly outrageous.”

“This is nothing less than corporate welfare run amok,” added Lonegan. “And the taxpayers of New Jersey ought to know just who these investors are who are benefitting from this largesse.”

Lonegan also said the Revel bailout was destined to fail, pointing to previous efforts to revitalize Atlantic City.

“We’ve seen this act before and it always ends in failure,” said Lonegan. “$18 million was invested in a minor league baseball stadium that’s empty. $100 million went into the Convention Center which is used once every two months. Boardwalk Hall was intended to host the Miss America pageant and a hockey team – neither are there.”

“The litany of failures is endless.”

“This bailout will do nothing to revitalize Atlantic City,” continued Lonegan. “Revel will only serve to cannibalize from other A.C. casinos and put them out of business. “

“Insanity is defined as trying the same thing over and over and expecting a different result,” said Lonegan. “It’s time for New Jersey to stop interfering in the free market and allow the Atlantic City casino industry to thrive on its own.”

“The governor should understand that picking winners and losers in a free market economy at taxpayers’ expense will only lead to failure once again.”

Last year, Americans for Prosperity led the fight against the $350M Revel bailout, a project previously financed by Wall Street behemoth Morgan Stanley. AFP ran a Taxpayer Minute ad exposing the $350M bailout and also joined in protesting the multi-million dollar taxpayer giveaway. Morgan Stanley has since divested itself of its interests in the controversial project.

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