Atlantic City can finally move forward with some certainty—at least for several months—after Gov. Chris Christie signed a bailout package for the beleaguered New Jersey city.

Despite the aid package, however, the future of the land-based casino industry—and the NJ online casino industry that accompanies it—is still very much in flux.

The basics of the NJ aid package

The deal approved by the state legislature and approved by Christie ends months of contentious negotiations in the state regarding Atlantic City, which had been on the brink of insolvency.

During that time, Christie and a Senate plan had called for an immediate state takeover of the city. Assembly Speaker Vincent Prieto had called for a long-term plan that would have allowed AC to hit benchmarks to keep control of the government.

In the end, despite some talk of not budging by both sides, a compromise was reached. In the package signed into law, Atlantic City was given five months to come up with a spending plan that would balance the city’s budget for five years. If that doesn’t happen, New Jersey would step in.

Other points of the law:

  • AC gets $75 million in temporary loans.
  • The city can receive up to $120 million from casinos in an arrangement that would be in lieu of taxes.
  • The state can take over the city if its fiscal plan doesn’t pass muster. (The city can appeal such a decision to the courts, however.)

North Jersey casinos vs. AC

With that backdrop, the state could also authorize casinos in North Jersey, with a voter referendum slated for this November.

That referendum will determine if the state will end AC’s monopoly on casinos in the state, with two new casino licenses being offered if the measure is approved.

The plan would be a double-edged sword for Atlantic City. It would provide $200 million annually for the city, while also creating competition for the entrenched casino industry on the shore.

And there are wildly varying opinions on how that plan would affect AC.

Good or bad for AC?

The rhetoric from both sides of the North Jersey casino debate was on full display at the East Coast Gaming Congress held in AC last week.

The CEO of Resorts Casino and Hotel, Mark Giannantonio, said that three to five casinos were likely to close if the North Jersey casinos are authorized.

Meanwhile, proponents of the new casinos — including from the state legislature — argued that the new plan was the best path forward for the future of Atlantic City. Without the influx of cash from the plan, they say, Atlantic City and its casino industry simply aren’t viable in the long term.

The truth likely lies somewhere in the middle. But this much is clear: Atlantic City’s situation continues to be dire, and the status quo is not a tenable solution.

If voters don’t approve the referendum, no new money—outside of the loans from the state—will be coming into Atlantic City. And that appears to be a poor outcome for the city, as well.