Gamblers in Atlantic City may be out of luck as a budget dispute between New Jersey's governor and its legislature has led to the closure of the state government.

Atlantic City's 12 casinos require state monitors, who are among 45,000 government employees who have been ordered to stay home until the dispute is resolved.  

Sal Trentacoste shows a New Jersey lottery ticket that he was not able to cash due to the shutdown in state services.
(Tim Larsen/Associated Press)

State parks, beaches, road construction and the $2.2 billion US New Jersey lottery are the other prominent victims of the shutdown of the administration, ordered by Gov. Jon Corzine. 

Corzine made the move after the legislature failed to approve his proposal to increase the sales tax by one percentage point. He said the increase was necessary to cover a $5 billion US budget deficit for the latest fiscal year.

"It gives me no joy, no satisfaction, no sense of empowerment to do what I am forced to do," Corzine — a Democrat — said of the closure order.

Democrats also control the state legislature, but party leaders fear a voter backlash from a sales tax increase and have instead passed bills calling for cuts in government services to address the deficit.

State Senate leader Leonard Lance, a Republican, said the situation was appalling. "It's unfortunate that the Democratic governor and the Democratic majorities in the legislature could not achieve a budget," he said, "Now all the people of New Jersey are suffering."

Emergency meetings between legislators and the governor's office have been taking place all weekend, and a court case has been filed by casino owners who are asking for special permission to remain open.