In 1976, the citizens of New Jersey were again asked to allow casino gambling not state-wide but in Atlantic City only, as “a unique tool of urban redevelopment.” With the added specificity, the measure was narrowly approved by 56% of voters. The referendum was defeated by 60% of voters.
At that time in the U.S., legalized gambling was authorized only in Nevada, where infiltration by organized crime figures was common knowledge. In 1974, New Jersey voters were asked to amend the State Constitution to allow casino gambling in municipalities approved through local and county referendum.