(I am in the Philadelphia are for vacation.)
The local area has a number of casinos. Nearby New Jersey does too. Each side is trying to take gambling money from the other. (Taxes and fees paid by out-of-state gamblers is viewed as free money.)
But each state really just ends up overbuilding and ruining the marketplace. So here is my plan.
Philadelphia goes to each of the local casinos in both New Jersey and Pennsylvania and says, “We need $xx,xxx dollars from you each year. If you do not pay up we will license a casino in Philly that will compete with you.”
Would such a plan be legal?