This was based upon the suspicion of willful association of the company with underworld figures, allegations that were public at the time the temporary license was granted. This decision was, of course, appealed, and the outcome awaits the completion of hearings by the Casino Control Commission begun on 8 January 1979.
Intervening events illustrate the conflict cited earlier between the revenue and law enforcement aspects of gambling legalization. While Governor Byrne asserts that he will have clean gambling or none at all in Atlantic City, the city officials have publicly supported the Resorts appeal, citing the economic benefits afforded to the slowly reviving resort town. The ultimate ruling will be an important milestone in the trend to legalization, for it will shed light on the question of whether indeed "it is foolish for a state government to believe that it can rigorously control gambling enterprises to protect the public welfare if doing so will result in a clear and negative impact on the public purse" (11, p. 42).
Regardless of the particular determination on Resorts, casino gambling should continue to have an important impact on the economy of Atlantic City, although less so on the overall state economy. As economists, some formerly with the Commission on the Review of the National Policy toward Gambling, agree, casino gambling can not provide an adequate tax base for the state. Even in the unlikely event that Atlantic City becomes another Las Vegas, the greater population density in New Jersey would mean that gambling revenues would be only about 3 percent of the state budget (2, p. 120). In spite of the tremendous success of the Resorts casino, the 1979-80 budget projects $29 million dollars from casino revenues, less than 1 percent of the $4.7 billion state budget. Also to be considered is the increased competition with which Atlantic City and New Jersey will most certainly have to contend as the trend to legalization continues. In order to counter the price elasticity of gambling demand while promoting its own revenue source, New Jersey may need to act collectively with other states in the