Bills that would legalize exchange wagering in New Jersey and ease the expansion of the state’s offtrack betting network passed the state Assembly on Monday and have been sent to Gov. Chris Christie.

The bills are supported by the state’s racing industries, and they form part of a spate of racing and gambling legislation that has been passed over the past two weeks by the state’s legislature to address declines in the racing industry and at Atlantic City casinos. Representatives of Christie’s office did not return phone calls by Tuesday afternoon.

The exchange-wagering bill, pushed by Television Games Network’s parent company, Betfair, would require the New Jersey Sports and Exposition Authority, which owns and operates Monmouth Park and the Meadowlands, to solicit requests for proposals from possible operators. Horsemen would retain veto rights over any business arrangement the state reaches with the exchange-wagering operator under the Interstate Horseracing Act, according to racing officials.

Exchange wagering has become highly popular in the United Kingdom and Australia, but racetracks and horsemen in those jurisdictions have criticized the share of revenues they retain from the bets. Many U.S. racing officials share those concerns, and others have said that the federal Justice Department – which continues to maintain that interstate simulcasting is illegal – may rule that exchange wagering violates prohibitions on bookmaking.

Exchange wagering allows bettors to offer prices on horses and then accept bets on those prices. Betfair has argued that the practice is a form of parimutuel betting, but parimutuel betting is already legal in the United States, and the company has not entered any U.S. markets as it continues to push for specific legislation authorizing the practice. A bill legalizing exchange wagering as of 2012 passed in California earlier this year.

The offtrack betting legislation seeks to provide incentives and remove barriers to opening new facilities in the state. So far, only two OTBs are in operation, and supporters of the legislation have said that zoning and licensing restrictions need to be eased in order to expand the network.

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December 8, 2010
GOV. CHRISTIE VETOES MONMOUTH PARK, MEADOWLANDS RACING SCHEDULES
By Ginger Gibson, NJ.com/Statehouse Bureau

TRENTON — Gov. Chris Christie today vetoed the racing schedules for Monmouth Park and the Meadowlands, citing the need for more time to review a report that recommended scrapping racing at one park and reducing days at another.

The New Jersey Racing Commission met last month and established a full racing schedule that would have included 141 races at each park. As governor, Christie has the power to veto the commission’s minutes and void all decisions made at the meeting.

A week after the schedule was approved, a special state panel later called for the end to live racing at the Meadowlands Racetrack, consolidating those operations with the Monmouth Park track in Oceanport and selling both tracks to private interests.

In vetoing the schedule, Christie said in a statement that it wasn’t a criticism of either the racing commission or the New Jersey Sports and Exposition Authority, which had requested the full schedule.

"While the recommendation is being reviewed, it would be inappropriate to approve the NJSEA’s request to race 141 Thoroughbred races dates at Monmouth Park and 141 Standardbred races dates at the Meadowlands Racetrack particularly in light of the taxpayer subsidies required to sustain such a lengthy race calendar," Christie wrote in his veto letter.

The state subsidizes racing at both parks, a funding Christie has recommended be eliminated.
"An appropriate solution for the state-owned racetracks, which does not unduly burden the taxpayers of this State, must be reached before a schedule for the 2011 racing season can be approved," he wrote.

Under the newest proposal, harness racing in New Jersey would be reduced to just 36 dates in 2011 — including a 30-day fall meet at Monmouth Park in Oceanport and a half-dozen dates at the Meadowlands around the Hambletonian in August. The state is contractually committed to running that event through 2012.

The recommendation has received bi-partisan opposition from lawmakers.

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November 23, 2010

New Jersey Senate approves exchange wagering, Internet gambling
ORR.com

Frank Angst, of The Thoroughbred Times is reporting that The New Jersey Senate kept the state on target to be the first to offer exchange wagering on horse racing when it approved sweeping racing and gaming changes on Monday, including a bill that would allow Internet gambling.

Senator Jim Whelan (D-Northfield), co-chairman of the state’s Legislative Gaming Summit, said the new legislation would benefit state casinos and racing.

“Unless we take the necessary steps to bring our casinos and horse tracks into profitability and self-sufficiency, we’re going to lose these economic engines and all the benefits they bring to our State,” Whelan said. “This would be a devastating blow to New Jersey’s economic future, and it’s something we cannot allow to happen. Through the measures approved [Monday], and additional bills which I expect to move shortly, we will be able to give our gaming and wagering industries a fighting chance.”

The Senate approved the exchange wagering bill by a 34-to-1 vote. Exchange wagering, typically conducted through use of the Internet, allows players to oppose one another, with one player offering odds on a horse and another player accepting those odds. The bill would limit wagering to New Jersey residents and residents of states that allow exchange wagering.

The bill, which has been received by the General Assembly, calls for the New Jersey Racing Commission to consider applications from the New Jersey Sports Exposition Authority to establish an exchange. The bill said the commission must require 50% of betting exchange revenues be retained to support New Jersey purses.

“Exchange wagering has proven popular among bettors in Europe, and could help reinvigorate the horse racing industry here in New Jersey,” said the bill’s sponsor, Senator Richard Codey (D-West Orange). “At the end of the day, exchange wagering is just part of the solution to making horse racing in New Jersey self sufficient. We have to provide the industry the tools and support needed to maintain the thousands of jobs, nearly $1-billion in revenue, and thousands of acres of open space associated with horse racing in New Jersey.”

Also Monday, the state Senate voted 29-5 to approve a bill that would allow Atlantic City casinos to offer Internet gambling to in-state residents, as well as internationally to regulated countries. Poker and other casino games would be offered.

Gross revenues from Internet wagering will be taxed at a rate of 15%. The Casino Reinvestment Development Authority may allocate a percentage of the amount of tax generated by Internet wagering to the New Jersey Racing Commission. The money would benefit purses and possibly other areas of racing.

Currently the bill’s language reads as follows: “The Casino Reinvestment Development Authority may allocate a percentage of the amount of that tax generated by Internet wagering to the New Jersey Racing Commission to be used for the benefit of the horse racing industry, including but not limited to the augmentation of purses.”

The bill’s sponsor, Senator Raymond Lesniak (D-Union), said it would commit money to New Jersey racing.
“This bill would generate a minimum of $35-million in tax revenue to help build a bridge to self-sufficiency for our State’s ailing horse tracks,” said Lesniak. “It would generate millions of dollars in private revenue and would give casinos a new product to capture gaming dollars from tech-savvy gamblers. Right now, Internet wagering is taking place, and the funds are going to off-shore operators. It’s time that we give casinos the authority and the tools to keep these funds in the Garden State.”

The state’s General Assembly sent the bill to its Regulatory Oversight and Gaming Committee for consideration.
Also Monday, a Senate committee approved a bill that would legalize sports wagering in New Jersey at casinos, racetracks, and former tracks.

Frank Angst is a Thoroughbred Times senior staff writer

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November 22, 2010
FALL MEET HANDLE RISES SHARPLY AT MONMOUTH
By Matt Hegarty, Daily Racing Form

Average daily handle during Monmouth Park’s recently concluded fall meet soared when compared to the fall meet held at its sister track, the Meadowlands, during comparable dates last year.

Though a complete restructuring of the New Jersey racing calendar this year makes comparisons between 2009 and 2010 difficult, the decision by the owner of Monmouth and the Meadowlands to limit racing to Monmouth this year and dramatically pare the state’s racing dates had positive impacts on the track’s handle and attendance figures, even when comparing total handle during the 72 days of racing this year to the 140 days of racing held last year.

“It’s clear that concentrating Thoroughbred racing at Monmouth Park proved a very wise investment,” said Dennis R. Robinson, the chief executive officer of the New Jersey Sports and Exposition Authority, the state-owned agency that operates the tracks.

For the 22-day fall meet, which closed on Sunday, average daily handle was $3,841,848, a 213 percent increase over average daily handle of $1,342,884 during a 47-day Thoroughbred meet at the Meadowlands last fall. Average ontrack handle was up 79 percent, from $139,378 to $299,778, and average attendance was up 25 percent, from 3,325 to 4,277.

The handle figures were boosted by a sizeable increase in average field size, from 7.29 horses per race last year to 8.81 horses this year. Field size is highly correlated with handle.

The NJSEA and the state’s horsemen agreed to reduce racing dates this year in the hopes of reversing a long slide in handle and attendance figures. The plan had a political component as well, because legislators and government officials are exploring ways to restructure the state’s racing and casino industries, and the racing industry was keen to put its best foot forward in the hopes of getting state relief.

Even with the reduction in racing dates, total handle rose, from $354.9 million last year to $477.4 this year, a gain of 25.7 percent. Total ontrack handle was even with last year’s figure, at $44,153,896, compared to $44,623,515 last year.

The first 50 days of the Monmouth meet were billed as the Elite Meet. Using $19 million in subsidies from Atlantic City casinos – a subsidy that expired this year – the track distributed an average of $800,000 a day in purses, tops in the country. Live race cards were limited to Fridays, Saturdays, Sundays, and holidays.

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November 19, 2010
NEW JERSEY HORSEMEN IN FAVOR OF TWO PROPOSALS BY DEMOCRATS
By Matt Hegarty, Daily Racing Form

A set of recommendations released by Democrats in the New Jersey Senate that would legalize exchange wagering and streamline the approval process for local offtrack betting outlets was met with limited approval from state racing officials on Tuesday.

The recommendations were released on Monday by the Senate Democrats in order to provide a framework for negotiations on a bill that is expected to be crafted later this year to address the deteriorating condition of the state’s racing and casino industries. Earlier this year, a panel commissioned by Gov. Chris Christie, a Republican who was elected last year on a platform emphasizing fiscal restraint , called for an end to state support for the racing industry and a restructuring of the regulatory framework for Atlantic City casinos.

Representatives of the state’s horsemen and officials at the New Jersey Sports and Exposition Authority, which owns and operates Monmouth Park and the Meadowlands, said on Tuesday that they welcomed any legislative changes that would ease the approval process for offtrack betting parlors. Current legislation allows for 15 offtrack betting parlors, but only three have opened so far, in part because of the lengthy process to get local zoning approvals, officials said.

The current laws “have made it very difficult to site any other offtrack betting locations, so that would be a tremendous step forward,” said John Samerjan, a spokesman for the authority, which is a state agency.

The recommendation to legalize exchange wagering furthers an effort begun earlier this year to sanction the practice, which remains controversial throughout the racing industry. In the summer, the state’s General Assembly passed a bill legalizing exchange wagering, but the bill has not been addressed by the state Senate.

Exchange wagering allows bettors to post prices on horses and accept bets from other gamblers. Although legislation was passed in California several months ago legalizing exchange wagering in the state beginning in 2012, many racing officials believe that the practice will run into difficulties if the Justice Department scrutinizes the legality of the practice under existing federal prohibitions.

Racing officials in the state said that negotiations are ongoing between representatives of the racing and casino industries, the legislature, and Gov. Christie on the form of an omnibus bill. The legislation could be introduced late this year, though it is possible that negotiations will continue through early next year, the officials said.

This year, the authority slashed its live horse racing dates in half and used a $17 million subsidy from Atlantic City casinos to boost purses during a 50-day meet at Monmouth to approximately $800,000 a day. The subsidy expired this year.

Although the recommendations by the Senate Democrats did not include any support for additional subsidies, racing officials said that legislators remain privately open to state financial support for racing in the final legislation. The state is facing a $10.7 billion budget deficit.

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November 17, 2010
NJ Officials Slam Report, Threaten Litigation
ORR.com

Tom LaMarra of The Bloodhorse online is reporting that organizations representing owners and breeders in New Jersey blasted the latest recommendations from a commission created by Republican Gov. Chris Christie, saying the plans would destroy racing and breeding in the state. The groups indicated litigation is a possibility.

The Christie commission drew fire earlier this year when it issued a report suggesting ways to improve the racing and gaming businesses in New Jersey. On Nov. 15, a follow-up memorandum from committee chairman Jon Hanson called for closure of Meadowlands, consolidation of Thoroughbred—only 59 days of racing—and harness racing at Monmouth Park, and the state’s sale of Monmouth and related businesses to private operators.

The horse industry has looked at all the recommendations with a skeptical eye, noting Hanson is a developer who called Meadowlands—a sports complex with its own exit off the busy New Jersey Turnpike not far from New York City—the state’s most attractive developable property.

“The most recent recommendations from chairman Hanson would destroy Thoroughbred racing and breeding in New Jersey,” New Jersey Thoroughbred Horsemen’s Association president John Forbes said. “A solid live-racing calendar with ample racing opportunities is the foundation this industry is built on. Live racing is the lifeblood of our industry.

“To reduce our calendar from the statutory requirement of 141 days to 59 would take away too many jobs from New Jersey citizens working in the horse racing industry. For this reason, these workers would have no choice but to leave New Jersey and live, work, and race in surrounding states that schedule year-round Thoroughbred racing with solid purses supported by numerous revenue streams, including casino wagering and slot machine wagering at racetracks.”

The Hanson report said it continued to study the issue after its initial recommendations were released during the summer. In the end, the report said: “After considering numerous financial models, we have reached the conclusion that there is no viable self-sustaining industry model based upon two government-operated racetracks.”

The initial report called for an end to purse supplements from the state’s casino industry, which made the payments to keep racing interests from lobbying for gaming. The Nov. 15 memorandum, however, suggests short-term funding would be made available—if the industry agrees to the drastic cutbacks.

The Thoroughbred Breeders Association of New Jersey called the recommendations unacceptable, noting incentives to breed racehorses are tied to racing dates and purses.

“Why would a New Jersey-based breeder keep their horses or farms in New Jersey if there aren’t enough opportunities to receive a return on their investment?” TBANJ president Tom Swales said. “The answer is they won’t. New Jersey is surrounded by racing states including New York, Pennsylvania, and Delaware where there is a proven commitment to their horse racing and breeding industry by state government.

“These are states that enable live racing to succeed, which in turn allows breeding to thrive, and breeders to earn a return on their investment. Without adequate live racing opportunities, existing, productive farmland will lose value, and New Jersey will be left with nothing but land ripe for commercial development by individuals such as Jon Hanson, who have made their living for decades off the build-out of open space and farmland.”

The plan to race only 30 harness dates at Monmouth after 2011 drew a sharp response from the Standardbred Owners and Breeders Association of New Jersey, which supports a Meadowlands expansion with gaming and a stronger racing program, not closure of the facility.

“Suggesting that we can race 30 days at Monmouth Park is unacceptable,” SBOANJ president Tom Luchento said. “We raced 141 days this year—you cannot expect our drivers, trainers, and breeding industry to survive on 30 days of racing. You cannot ask us to give up the Meadowlands, the premier harness track in North America.

“We feel we are being blindsided. Jon Hanson is a real estate developer, which seems to be his only concern, developing the property on which the Meadowlands sits. The plan he issued in July did not pass muster with the legislators and the public. The people of New Jersey support racing and gaming. Instead of finding ways to cut us out, the state should be making it more attractive for us to stay. Some of our major breeding farms are already making plans to move their stallions to states that have purse money fueled by slots.”

The timing of the memorandum was questioned as well. Lawmakers and the racing industry are working to pass legislation that would assist horse racing and breeding through various means. In addition, Thoroughbred and Standardbred interests have acknowledged a need for change and support a schedule with fewer racing dates and higher purses.

There are complications under New Jersey statute, which requires 141 Thoroughbred dates per year through 2016, and no less than 120 days thereafter. The parameters were adopted in 2004 via a court settlement; if Monmouth and Meadowlands are sold, a new owner must adhere to the agreement.

Thoroughbred interests agreed to race only 71 days this year under a deal with the New Jersey Sports and Exposition Authority, which operates the two tracks. The legislature approved the cutback, but only for 2010 pending further action.

The 50-day summer meet at Monmouth was considered a success, though the Hanson committee claims Monmouth this year will lose $6 million. The latest memorandum offers no financial breakdown explaining the alleged loss as well as claims Meadowlands will loses $11 million this year.

The New Jersey THA and TBANJ claim the NJSEA has “consistently violated” the terms of the 2004 agreement.
The groups said they have considered a consolidation of both breeds at Monmouth as a way to save the state money, but such a scenario isn’t ideal.

“We were willing to embrace the idea if it was done correctly, and providing that it did not negatively impact either breed,” Forbes said. “In no way did it mean we would accept a reduction of the statutory 141 days of live Thoroughbred racing. We are willing to work with Gov. Christie and Mr. Hanson to further study this concept as long as the overall result is in no way detrimental to New Jersey’s racing and breeding industry.”

Under the statute, operation of New Jersey’s off-track betting and advance deposit wagering system are tied to live racing dates. Forbes said litigation is an option as is horsemen exercising their rights under the Interstate Horse Racing Act of 1978 to halt export of the New Jersey racing signal; if that were to occur, horsemen in other states could block signals from entering New Jersey, he said.

“No one in the Thoroughbred industry wants any of this to happen,” Forbes said. “In fact, we are saddened by the lack of commitment to our long-term viability shown by the appointees of the executive branch (of New Jersey government).”

Luchento said horse racing in New Jersey doesn’t lose money. “It is not our fault that the New Jersey Sports and Exposition Authority is losing money,” he said. “They have had to take on projects at the request of a succession of governors. These were money-losers. We have been working with our legislators to put together a package of bills that will make it possible for racing to be self-supporting by 2013.

“The Hanson report ignores these plans and disregards the efforts of the senators and Assembly members. We hope that Gov. Chris Christie will take the time to listen to our ideas and reject the Hanson report. Failing to do so will open up a can of worms, including legal action.”

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November 16, 2010
New Jersey horse business facing bitter end
By Stan Bergstein, DRF (Commentary)

TUCSON – The death sentence arrived in a terse, four-paragraph release with an appropriate dateline of Atlantic City, and carried all the lethal impact that thousands of people who make their living in harness racing in New Jersey had feared.

Thoroughbred horsemen fared little better, as they will soon discover.
The word was that Chris Christie, who campaigned last year for money and votes for governor of the state with promises that he understood the problems of horse racing, had his chief executioner for racing, Jon Hanson, pull the switch.

The commission named for Hanson announced that there was no way the state could support two state-run tracks, and it proposed for the second and presumably final time to eliminate live racing at the Meadowlands, converting the world’s greatest trotting track into a giant OTB.

It would consolidate its live harness racing into a shortened meet at Monmouth Park, an hour south of the crowded bedroom suburbs of New York, where the Meadowlands has raced for 34 years, eight miles from Manhattan. It has yet to be decided whether Monmouth will again run its a celebrated million-dollar-a-day shortened meeting, which brightened the Thoroughbred racing scene last summer and drew rave reviews from around the country and produced top-flight racing to the seaside track.

Hanson and Christie propose selling both tracks “to the private sector.”
This is not some bush-league operation that the politically ambitious governor and his lieutenant are dismantling. It is the World Capital of Harness Racing, having taken that title from Roosevelt Raceway on Long Island when the Big M opened in 1976. It has presented the world’s greatest harness race – the Hambletonian, the sport’s Kentucky Derby – each August since 1981. It introduced million-dollar purses on a grand scale – 73 in all – since it raced the first in the sport on July 18, 1980.

The Hambletonian carried a $1 million purse for 25 years, then rose to $1.5 million for the last six. Along with it, the Meadowlands raced a companion mile for fillies, the Hambletonian Oaks, which carried a $500,000 purse from 1997 until 2004, then raced the last six editions for $750,000. It also raced 29 editions of the Meadowlands Pace, the counterpart of the Hambltetonian, for 3-year-old pacers.

These were the sport’s big time, the world’s most celebrated harness races here and in Europe and Australasia, and they brought prestige, pride and profit to New Jersey.

Now, with a pen stroke, Christie is removing the sport from the scene of its greatest triumphs. But he and Jon Hanson are doing far more than that.

They are sacrificing irreplaceable treasures – some of the lushest green space in the East, land that until now has provided homes for the best harness horses in the world and jobs for thousands who have made their livings breeding, raising, feeding and caring for them – along with scores of industries supplying them.

Replacing this green glory with suburban homes may appeal to Hanson, a real estate magnate, but it is despicable and inexcusable action for two governmental leaders in the nation’s most densely populated state, based on people per square mile.

It is unconscionable kowtowing to casino interests who are regarded by many as the surrogate rulers of New Jersey. Their influence in Trenton, the state capital, is beyond question, and what makes this agricultural disaster so disgraceful is that there is a clear way out, without harm to any of the parties – horsemen, casinos or the state – and has been from the start.

The solution would be a governor with guts, who would not bow to the boardwalk barons. He would stand up and tell them what he planned to do, just as he did when he announced weeks ago that he was installing an administrative state junta to run Atlantic City.

He would insist on a casino – perhaps owned by a consortium of the 11 in Atlantic City – at the Meadowlands, and in doing so he would enable racing to continue at the track and prosper and flourish, while the casinos and state and racing industry solved their economic dilemmas as well.

That’s what a political tough guy – an image Christie loves to portray – would do.
Instead, Christie, Hanson and his yes-men bowed to interests other than the citizens of the state they were charged to serve.

It is a disastrous course of action, and if not rectified will destroy a major industry on an unprecedented scale.
Even sadder, the runners and Monmouth Park will go next.

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November 16, 2010
New Jersey adviser recommends sale of Monmouth Park
By Matt Hegarty, Daily Racing Form

An adviser to New Jersey Gov. Chris Christie has advised that the state sell Monmouth Park and convert the Meadowlands into an offtrack betting facility.

Jon Hanson, chairman of the Governor’s Advisory Commission on Gaming, Sports, and Entertainment, reiterated the recommendation in a note sent to Christie on Monday, several months after his commission came to a similar conclusion. The note said that the state should “immediately prepare a request for proposals” to sell Monmouth Park and its offtrack betting parlors and licenses. The note also said that the Meadowlands, which is located about eight miles from the center of Manhattan, is “too valuable” to operate as a harness track.

The recommendation is one of many that have been advanced by political and financial interests in New Jersey this year following promises by Christie to explore alternatives for the state’s horse racing assets. Legislators are currently working on bills that would address many of the recommendations, and last week, a state Senate committee advanced legislation that would legalize exchange wagering and cut the minimum number of race dates required to be run at the Meadowlands. Those bills are expected to be met in the next several months with competing bills that may have different goals.

Under the Hanson plan, Monmouth Park would run a 59-day Thoroughbred meet in 2011 and beyond. On the harness side, the Meadowlands would host a six-day meet centered on the Hambletonian in August 2011, plus an additional a 30-day meet at the track in the fall. Beginning in 2012, the harness meet would be expanded to 70 days at Monmouth, according to the plan.

Also on Monday, the state Senate passed a bill that would send $30 million from a tax on Internet gambling to the racing industry. The tax, however, could not be enacted unless federal law is changed to allow Internet gambling.

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November 15, 2010
NJ COMMISSION: CLOSE MEADOWLANDS AFTER 2011
By The Associated Press

Live racing at the nation’s premier harness track would end under a recommendation from New Jersey Gov. Chris Christie’s panel on the future of casinos and racetracks in the state.

A commission chaired by developer Jon Hanson released a supplemental report Nov. 15 saying there is no way New Jersey can support two state-run tracks. For that reason, it proposes ending live racing at Meadowlands and consolidating it at Monmouth Park.

The plan also calls for the two tracks to be sold to the private sector. Meadowlands would be used as an off-track betting facility under the plan.

“We have reached the conclusion that there is no viable self-sustaining industry model based upon two government-operated racetracks,” the commission wrote. “Consequently, we present a direct and difficult solution to a problem that has been in the making for decades.”

Christie spokesman Michael Drewniak said the Republican governor is studying the recommendation, and he declined further comment.

The task force said Monmouth is set to lose $6.6 million this year, and Meadowlands an additional $11 million.
The proposal would allow a six-day Standardbred meet at Meadowlands next August. Standardbreds would race 30 days at Monmouth in the fall of 2011, and have a 70-day meet there in subsequent years.

Thoroughbreds would race 59 days a year at Monmouth from May to September. It would take about $4.6 million worth of investment and upgrades to get Monmouth ready for the consolidation.

The commission’s recommendation was released about an hour after a state Senate panel introduced bills that would make the biggest changes in how Atlantic City’s 11 casinos are overseen and protected since gambling was legalized in the city 32 years ago, including relaxing some of New Jersey’s strict regulations.

The legislature responded to a call by Christie to assert more state control over the nation’s second-largest gambling market, even as it does away with some rules the industry finds oppressive.

“The fundamental method of how we have been doing things over the last 30-plus years has got to change,” said State Sen. James Whelan, the Democratic former mayor of Atlantic City. “We have to deal with the reality of the day: The revenues are going down, going down, going down. Doing nothing or tinkering around the edges is not going to get us where we need to be.”

Lawmakers are proposing a tax on Internet gambling revenues to help the state’s racetracks. Should federal law be changed to allow Internet gambling, New Jersey would impose a state tax on it and send $30 million a year from the new tax to the horse racing industry, which has battled the casinos for state support for years.

The new tax money would replace the $30 million a year casinos reluctantly handed over to the tracks in return for the state banning slot machines from the tracks. The racing industry has long wanted slots, saying the gambling machines are the only way it can survive against racetrack casinos in neighboring Pennsylvania, New York, and Delaware.

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November 11, 2010

Jersey Dates Approved But Expected to Change
ORR.com

Tom LaMarra of The Bloodhorse.com reports that racing dates for 2011 in the Garden State were awarded by the New Jersey Racing Commission Nov. 10 even though they are expected to change under legislation that could be approved by the end of this year.

Under current law, the two New Jersey Sports and Exposition Authority tracks—Monmouth Park and Meadowlands--must offer 141 Thoroughbred dates. Under emergency legislation approved earlier this year and only for 2010, the NJSEA was permitted to offer 71 days, all of them at Monmouth.

A 50-day spring/summer meet with much higher purses was considered a success, so the NJSEA and horsemen would like to do so again in 2011 pending changes in legislative requirements.

The NJSEA requested 104 days at Monmouth from May 7-Sept. 30, and another 37 dates for Meadowlands that would be held at Monmouth from Oct. 1-Nov. 20.

Atlantic City Race Course, owned by Greenwood Racing, again applied for six days of turf racing from April 28-30 and May 1-3. This year’s six days produced strong growth in pari-mutuel handle and attendance, and track officials indicated a desire to add dates—if more purse money is made available.

Horsemen are interested in having 10 days in the spring and 10 days in the fall at Atlantic City to complement the Monmouth meet, but the track won't offer such a schedule without a purse supplement.

On the harness side, the NJSEA applied for 141 days of racing at Meadowlands (Jan. 7-Aug. 20 and Oct. 1-Dec. 31). Freehold Raceway, owned by Pennwood Racing—a partnership of Penn National Gaming Inc. and Greenwood—applied for its statutory minimum of 168 days (Jan. 1-June 11 and Aug. 18-Dec. 31).

The harness racing industry has expressed interest in shorter meets with higher purses, and is discussing having 100 programs at Meadowlands and 100 at Freehold. Chris McErlean, vice president of racing for PNGI who oversees Freehold, said discussions are continuing but no agreement has been reached.

Legislation introduced in the New Jersey Senate Nov. 8 would allow for fewer harness dates.

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November 10, 2010

Exchange wagering legislation advances in New Jersey
ORR.com

Frank Angst, senior writer for Thoroughbred Times, reports that New Jersey continues to be the front-runner to become the first U.S. state to allow exchange wagering on Thoroughbred racing after legislation advanced through a state Senate committee on Monday.

The New Jersey Senate’s State Government, Wagering, Tourism, and Historic Preservation Committee unanimously passed bill S-829, which would allow exchange wagering, a head-to-head wager in which one person lays odds. The same committee also unanimously approved legislation that would facilitate more off-track wagering facilities in the state.

State Senator Jennifer Beck (R-Monmouth) sponsored both bills and was pleased to see them advance.
“Horse racing is a vibrant, vital component of New Jersey life and culture,” Beck said. “The horse racing industry provides thousands of jobs, contributes over $1-billion a year to our state’s economy and keeps about one-fifth of the state’s total acreage in agriculture. The two bills passed [Monday] address the long-term future of the horse racing industry by encouraging it to expand and move forward.”

California also is considering legislation that would allow exchange wagering. As for off-track wagering in New Jersey, the state has 15 licenses available but only 12 are being used.

“Being a leader in different gaming options and offering additional off-track wagering facilities are two viable solutions that would increase revenue to support New Jersey’s racing industry,” Beck continued. “I am confident horseracing can thrive in New Jersey and continue to be a staple of our tourism industry.”

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November 9, 2010
New Jersey Senate committee advances racing bills
By Matt Hegarty, DRF

The ball has started rolling in New Jersey on a legislative package designed to help the racing industry.
The New Jersey Senate Government, Wagering, Tourism and Historic Preservation Committee passed four racing-related bills Monday, sending them to the full Senate. The bills, which are supported by the state’s racing industry, would streamline the approval process for new offtrack betting facilities, legalize exchange wagering and a concept called “single-pool wagering,” and reduce the minimum number of racing dates at the Meadowlands to 100.

Legislators began working on the package of bills this fall after a panel appointed by Gov. Chris Christie released recommendations about how to help the state’s racing industry and its casinos, which have both struggled in recent years.

If the bills are passed in both houses of the legislature, New Jersey would become the second state to legalize exchange wagering, a type of betting pioneered by the British company Betfair, the owner of Television Games Network. Earlier this year, California’s legislature passed a bill allowing for exchange wagering as of 2012.

The legality of exchange wagering under existing federal law is murky. Under exchange wagering, customers of an Internet gambling site offer odds on horses and accept bets from other customers. Critics contend that the practice is no different from bookmaking, which is illegal under federal law. So far, the Justice Department has declined to comment on the practice.

The bill legalizing “single-pool wagering” is being supported by a New York venture capital firm that employs a former longtime official with the New Jersey Sports and Exposition Authority, Dennis Dowd. The NJSEA owns and operates Monmouth Park and the Meadowlands.

In previous interviews, Dowd said the company has developed software that allows all parimutuel bets to be merged into one commingled pool. He said that the system would have advantages for bettors by more accurately reflecting the odds of horses based on an analysis of how the horse is supported across the straight and exotic pools, but he also said that payouts would be calculated under the single-pool system in the same manner as under the existing system.

Dowd also said that the system might allow racing to introduce new bet types, such as betting a horse to finish second, and second only, rather than the existing place bet, in which the bet pays off if the horse finishes second or first.

The software was initially developed as a tool for trading securities. Over the past several months, Dowd has demonstrated the system to several racing organizations, including the Jockey Club.

The bill streamlining the approval process for OTBs also would allow outside parties to open offtrack betting parlors. The current law limits OTBs to existing racetrack licensees in the state. New Jersey racing officials have said the current restrictions have made it difficult to open offtrack betting parlors. The state currently has only two free-standing OTBs, including a site at Woodbridge that is one of the highest-handling locations in the country.

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May 11, 2010 Updated: May 12, 2010
JERSEY DATES BILL PASSES ASSEMBLY COMMITTEE
ORR.com

Tom LaMarra of The Bloodhorse Online is reporting that The New Jersey Assembly Regulatory, Oversight, and Gaming Committee passed legislation May 6 authorizing a reduction in Thoroughbred racing dates in 2010.

The bill allows the New Jersey Sports and Exposition Authority to follow through with its plan to offer 71 days of Thoroughbred racing at Monmouth Park and none at Meadowlands. A 50-day summer meet with purses of about $1 million a day is slated for Monmouth, followed by another 21 days in the fall with purses of about $250,000 a day.

Monmouth is scheduled to open May 22. For most of the spring and summer the Oceanport track will race Fridays, Saturdays, and Sundays each week.

The new provisions were added to existing legislation that came about as a result of a deal between the NJSEA and the New Jersey Thoroughbred Horsemen’s Association. That agreement called for 141 Thoroughbred dates from 2008 to 2016.

A statement accompanying the bill states the reduction in dates, and permission for Meadowlands to only offer harness racing, is authorized only for 2010.

Under the state off-track and account wagering law, the NJSEA is required to offer 141 Thoroughbred dates per year. The bill passed by the committee May 6 allows the number to drop to 71 in 2010.

A state law authorizing full-card simulcasts at Atlantic City casinos requires 72 live Thoroughbred dates, five of them at Meadowlands. Again, the recent legislation waives that requirement for one year.

Atlantic City Race Course and Freehold Raceway aren’t affected by the legislation authorizing the reduction in dates.

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May 6, 2010
ASSEMBLY PANEL: REDUCE HORSERACING SCHEDULE AT MONMOUTH PARK, MEADOWLANDS
By John Barna, NJ.com

 
TRENTON — NJ.com is reporting that The Monmouth Park and Meadowlands racetracks will be permitted to trim the number of racing days under legislation that cleared the Assembly Regulatory Oversight and Gaming Committee.

Under the bill sponsored by Assemblyman John Burzichelli, D-Paulsboro, Monmouth Park would be permitted to schedule a minimum of 71 live racing days in 2010 and the Meadowlands would be permitted to schedule no thoroughbred races. State law requires Monmouth and the Meadowlands to schedule no less than 141 dates in the aggregate each year through 2016.

“Gov. Christie’s transition team projected that the Meadowlands and Monmouth would lose $22 million combined in 2010, a loss that would be difficult to justify for taxpayers and the industry alike given our state’s fiscal crisis,” said Burzichelli . “Reduced dates for this year combined with larger purses will mean a stronger industry and hopefully help attract stronger crowds as we continue working on ways to strengthen the industry’s future.”

Burzichelli — the committee chairman — anticipates a vote by the full Assembly on May 20.

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March 11, 2010 Updated: March 11, 2010
NJ BREEDERS SIMPLY HOPING MONMOUTH PLAN WORKS
By Tom LaMarra, Esther Marr, and Kelsey Riley, Bloodhorse

The Bloodhorse Online is reporting that theThoroughbred breeders and owners in New Jersey hope a new summer format at Monmouth Park is successful, but they also are concerned about whether it will have a long-term positive effect.

New Jersey racing officials formally announced March 9 they will reduce Thoroughbred racing dates by about 50% this year and offer a 50-day Monmouth meet with projected purses of $1 million a day. A 21-day Monmouth meet with perhaps 75% less purse money would be held in the fall; Meadowlands won’t offer Thoroughbred racing this year.

The minimum purse during the “boutique” meet would be $30,000 for $5,000 claimers. That’s $7,000 higher than the top purse for $5,000 claimers at Philadelphia Park Casino & Racetrack, where purses are fueled by revenue from slot machines.

“I think that many of us are very excited for the upcoming meet,” said Tom Swales, president of the Thoroughbred Breeders’ Association of New Jersey and owner of Tee N Jay Farm. “I think that it’s a scary situation because we don’t know how this is going to work out. I think everybody is tentative going in, but we’re also very excited and looking forward to seeing how this all plays out.

“We hope we all get our opportunities, and we all hope that we do well. Hopefully, if it works out to be a good thing, and we’re able to do something similar long-term, it will be a boom to the breeding industry.”

New Jersey hasn’t had a year-round Thoroughbred racing program for about 10 years because of the closure of Garden State Park and cutbacks in dates at Atlantic City Race Course. Over that period, the breeding industry has suffered numbers-wise.

According to The Jockey Club, the New Jersey Thoroughbred foal crop went from 400 in 1998 to 286 in 2008, a decline of 28.5%. In 2000, there were 56 stallions in New Jersey; in 2009, there were 22. The number of mares bred fell from 390 in 2007 to 192 in 2009, according to the statistics.

The TBANJ program pays New Jersey-bred horses that finish first through third in any New Jersey races. If a horse is sired by a New Jersey-registered stallion and conceived in the state, the award is 35% of purse earnings. If the horse is sired by a stallion that stands in another state, the award is 25% of purse earnings.

Surplus money is used to pay awards to Jersey-bred runners that place first, second, or third out of state for a period when there is no live racing in New Jersey. Officials with the New Jersey Sports and Exposition Authority, operator of Monmouth and Meadowlands, said money has been set aside for that program.

“We have made the breeders’ awards program whole, and the breeder’s awards payments for 2008 and 2009 are going to be paid,” said Sam Fieramosca of Colonial Farms. “We have secured the out-of-state breeders’ awards program again starting next year, where breeders that race horses outside of the state will receive breeders’ awards with the percentages that we have in New Jersey, so we’re all happy about that.

“Maybe this will bring some interest back for the breeders, but I think if the plan works, the breeders’ awards program should go back to somewhere where it used to be.”

Pros and cons of schedule
Dianne Boyken of Four Winds Farm isn’t so sure. She is concerned about reduced racing dates and the impact that will have on the breeding program.

“I don’t think it’s going to help the breeders,” Boyken said. “Unfortunately, right now a lot of the breeders have already left the state, the breeding season has already started, and the mares are foaling, so without some input they had to make a decision. At least the (mares) at my farm, they’ve already left.

“I don’t see where 50 days of racing is going to support the breeders. We’ve got an investment here, and by the time we breed the mare, it’s three years down the road by the time (the foal is) racing. This is a plan that they’re putting up for this year only, I think as an experiment. That doesn’t solve anyone’s fear of when the horse you’re breeding is ready to race.

“I don’t see where it’s going to help (breeding). How can a breeder make enough in 50 days to support their livelihood? That horse is not going to have many opportunities to even run, and with ($1 million a day in purses), we’re going to have all the heavy-hitters coming in and the little breeder is going to be squeezed right out. They’re not going to be able to compete.”

NJSEA officials said they intend to card 2.5 state-bred races per day. Monmouth generally will race three days a week (Friday through Sunday) with up to 12 races a day.

Joe Jennings, who owns Walnford Stud, also is concerned about the potential impact on New Jersey-bred horses. He acknowledged the time has come for a radical change, but he’d be more comfortable if there were assurances it would continue beyond 2010.

Monmouth officials are counting on total pari-mutuel handle doubling from about $3 million a day last year to $6 million a day this year. Given current trends in racing, that could be a serious stretch.

“The biggest problem with it is it’s only for one year, and these out-of-state horses are going to be coming here to compete with New Jersey-bred horses,” Jennings said. “We have our Jersey-bred restricted races; you can run through your conditions then you have to run open. If they bring in all these good horses, how are we going to compete?

“If it was a more permanent thing, five or 10 years, you could buy better breeding stock and move forward with that. You can’t buy a $100,000 broodmare and breed to a $200,000 stallion and race for the purses we had last year. But if these purses were going to be a permanent thing, then you could improve your stock and be competitive. But a one-year deal, no one knows how it’s going to run.

“That’s the downside. The other side is I hope people do show up for this and it’s a success. But who knows? Everything’s so up in the air right now. It’s not just horse racing. The whole country’s upside down.”

Comprehensive plan needed
Jennings also said New Jersey racing officials must capitalize on the opportunity to ensure it works. He said the plan must be comprehensive and include expansion of off-track betting, for example.

“If we don’t do something, if we sit there and look at this short- term just for one year and don’t do anything to supplement our income as far as (off-track betting) in the state, then we’re going to be in bad trouble next year if this thing falls on its head,” Jennings said. “We have, I think, six OTB licenses that (groups other than the NJSEA own), and they won’t build because they don’t want the competition.”

Longtime New Jersey horseman John Forbes said the New Jersey Thoroughbred Horsemen’s Association, of which he is a board member, is concerned about small horsemen in the state, but said they have an opportunity to “step up to the plate.” He said all players must respond to what the industry wants in the form of quality racing and big fields that help handle grow.

Forbes noted there is an opportunity for more dates if Atlantic City, which this year will offer only six days of all-turf racing, commits to racing long-term. The New Jersey Racing Commission last year backed away from forcing the South Jersey track to offer 20 days of racing.

“(Atlantic City) is an example of the fact New Jersey racing isn’t dying—somehow it still exists,” Forbes said. “If they’re willing to step up to the plate and attach some decent purses to their turf racing, we’re hopeful they have a place in New Jersey. But they’re going to have to offer a product the public wants to bet on, and if they’re not a positive part of our solution to our problems, then they will have to go by the wayside.”

There has been no word on what ACRC plans to do outside of running six days from April 18-24 this year. Track officials weren’t involved in the Monmouth discussions.

Longtime New Jersey horseman J. Willard Thompson would prefer more racing dates in the state, but he believes the Monmouth experiment is worth a shot.

“I think (the changes at Monmouth) are positive,” Thompson said. “I don’t like losing the days, but if it works, then it will be fine. I like the purse structure; I think that’s great. I think Gov. (Chris) Christie is surrounding himself with some very brilliant people. Hopefully, they’re doing the right thing.

“I have six mares of my own, and I have about 35 horses in training at Monmouth. I have some nice clients who are very supportive of New Jersey racing, so I think I’m in pretty good shape.”

Racing gets a bad rap
Thompson also noted the contributions horse racing has made to the state. NJSEA horse racing is said to be losing money, but for the better part of 30 years, revenue from racing funded other projects to the detriment of racetrack capital improvements.

“A lot of people forget what racing has done,” Thompson said. “We had Giants Stadium built, and the Izod Center, and we had an aquarium built in Camden, and we also had a convention center built in Atlantic City. This was all done through the support of horse racing, and I think a lot of people have forgotten about that.”

New Jersey racing officials, including those with the NJSEA, have pushed for racetrack video lottery terminals. Opposition from the Atlantic City casino industry and its legislative supporters stymied those plans.

Some believe no matter the results of the Monmouth summer meet, horse racing will still need some sort of alternative revenue to build upon.

“We really need the slots,” Boyken said. “We have 32 casinos on our borders between Delaware, Pennsylvania, and New York. Atlantic City swears people are still traveling from North Jersey down to Atlantic City. Their biggest problem was the slots at Meadowlands—they’re fighting it. (The casinos) have the political ear, so without the slots, I don’t think racing is going to survive.”

Purses for state-bred races will increase at Monmouth in 2010, so there is some incentive. A New Jersey-bred maiden special weight event, for example, will go for $75,000. Monmouth regularly cards Jersey-bred stakes.

“A lot of our Jersey-bred people have left in the past couple of years and have gone to Pennsylvania,” said Carolyn Sleeter of Sleeter Farm in South Jersey. “I just hope we have enough horses now to make Jersey-bred racing go, because if we have an open (race), that means they might (overfill) and they might not bring that race up for another week or two, or we’ll have to wait until it’s back in the book.

“You only have a short time (to race Jersey-bred horses); we stop our horses for the winter. All our horses just run for the (live New Jersey) meet. We’re dependent on the racing as well, not just breeding, because we’re also owners and trainers.”

“You have to look at the big picture,” said Swales, the TBANJ president. “While we all would love to keep as many days as possible—days especially to breeders are very important—you also have to consider where we’re at and where we’re heading. Sometimes you have to try some different things to see if it works.

“I can’t sit here and tell you it’s going to be the best thing in the world for breeders, nor can I say this is going to be the worst thing. We are excited; we’re running for some very large purses, probably the largest restricted purses in the country. There won’t be another state that can match what we’ll be running for, and that’s an exciting thing.”

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March 10, 2010
BALANCING ACT AT MONMOUTH
By Matt Hegarty , Daily Racing Form

Monmouth Park's plan this year to cut its race dates in half and offer $1 million a day in purses seems simple enough: Offer the highest purses in the country, limit the opportunities to earn them, and then watch the horses and money pour in.

In reality, though, the New Jersey track, which is owned by the state, will face a number of complications both before and during its 50-day summer meet, from allocating limited stall space to satisfying the diverse needs of in-state and out-of-state horsemen, many of whom will face long lines to get into rich races. At the same time, Monmouth officials have to balance the interests of horsemen with the demands of the betting public, a task that often leaves both sides dissatisfied.

Monmouth Park officials acknowledged this week that the meet will present novel difficulties that may require sensitive handling, especially when dealing with local horsemen who have stocked their stables to fit into the competitive parameters of Monmouth's earlier meets, when purses were approximately $330,000 a day. However, the officials also contended that they have already devised some policies and practices to mitigate the potential impact from the problems.

Monmouth's first task will be to assign its 1,600 stalls to trainers. Officials believe that requests will vastly outnumber available stalls, and the trick will be to fill the backside with horses that fit into the track's rich racing program - i.e., divisions of Todd Pletcher's and Steve Asmussen's national operations - while also saving room for the horsemen that have been loyal to Monmouth Park in the past, according to John Forbes, the president of the New Jersey Thoroughbred Horsemen's Association.

"We'll be looking to have competitive horses on the grounds, but we will certainly also take care of our Jersey people," Forbes said.

Robert Kulina, Monmouth's general manager, said that claiming races for the 50-day meet would bottom out at a price of $5,000, but that those races would offer purses of $30,000. To protect local horsemen, Kulina said, many of the bottom-level races will have conditions attached that restrict entries, for example, to horses that have not started for a claiming price of $12,500 or higher in the past year.

Not only will those restrictions allow local horsemen to compete, but the purse in the race will also reward successful trainers who will be facing far fewer opportunities to race this year while still maintaining the same amount of expenses. In addition, Monmouth plans to pay a portion of purse money back to last place, though the exact amount has yet to be determined, Kulina said.

"We have to give our local guys meaningful money back to at least offset some of their expenses," Kulina said.
Purses for the track's stakes have not yet been determined, but Kulina said that Monmouth has no plans to double or triple its stakes purses at the expense of the overnight program. Although several stakes that were previously held at the Meadowlands, such as the Meadowlands Cup and the Pegasus, will be moved to Monmouth this year, purses for the races will likely remain at the same levels as last year, Kulina said, and Monmouth's most high-profile race, the Haskell Invitational for 3-year-olds, will continue to be worth $1 million.

In one way, Monmouth has already negotiated one of its biggest hurdles, and that was getting the support of the state's breeding industry. In fact, Monmouth's promises to the breeding industry were an undeniable acknowledgement that farm owners often have outsized political influence, considering the entire registered foal crop in New Jersey in 2008 was 286.

To get the breeding industry's support, Monmouth officials committed to carding an average of 2 1/2 races restricted to New Jersey-bred horses every day - or approximately 175 races over the two Monmouth meets, compared with 229 races restricted to Jersey-breds last year. Although the raw numbers of races are down, the purses in the restricted races will be roughly equal to the purses offered in open races, meaning New Jersey-bred maidens will be running for $75,000, the highest purses in the country in any statebred program.

In addition, Monmouth - and by extension, the state of New Jersey - paid off loans that the state breeding program had taken out through the New Jersey Thoroughbred Horsemen's Association in order to cover shortfalls in its breeding program in 2008 and 2009. The state also guaranteed that the breeders' program will be able to fund up to $500,000 in bonuses for New Jersey-bred horses running in open company at out-of-state racetracks, a program that has been suspended since 2006 because of a lack of funds.

Supporters of the new Monmouth program, including Kulina and Forbes, have focused on the track's potential to thrill racing fans and bettors by providing full fields of top-class horses, but the commitment to the restricted races appears to contradict that philosophy. Kulina acknowledged that the restricted races would find little wagering support in the out-of-state market, but he said that Monmouth's plan to offer 12 races each day would give horseplayers ample opportunities to play open races.

"The fact of the matter is that every state has a statebred program, and you have to do things like that," Kulina said. "As a player, if you're not interested in those races, well, that's not all we're going to give you, and it's not all that you are going to get. We'll see to that."

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March 9, 2010
HORSEMEN ENDORSE PLAN TO CUT N.J. DATES
By Matt Hegarty , DRF

The New Jersey Thoroughbred Horsemen's Association on Monday voted to endorse a plan to cut race dates in the state in half and use a subsidy from casinos to fund purses at Monmouth that will average $1 million a day for 50 days, according to the top elected official of the association.

John Forbes, the president of the NJTHA, said that the board voted 7-2 to support the plan, which was being pushed by the administration of Gov. Chris Christie. The horsemen's endorsement was the final procedural hurdle to putting the plan in place, though the proposal will also need to be passed in both houses of the state legislature.

Under the plan, Monmouth will run on Fridays, Saturdays, Sundays, and holidays from late May until Sept. 11, for a total of 50 days, and distribute $50 million over the meet. The average daily amount will be the highest in the country, eclipsing purses at Del Mar, Belmont, and Saratoga.

Following the summer meet, racing will resume at Monmouth Park for a 21-day meet with racing on only Fridays and Saturdays. During that meet, average purses will be $250,000 to $300,000, though the track will distribute $1 million in purses on Sept. 18 through a series restricted to New Jersey-bred horses, Forbes said.

Monmouth is owned and operated by the New Jersey Sports and Exposition Authority, a state agency. Last year, Monmouth and its sister track, the Meadowlands, held approximately 140 days of live racing. Under the 2010 plan, no Thoroughbred race dates would be held at the Meadowlands this year, though the track will operate harness racing dates.

The plan has the potential to reshape racing in the region by drawing top-class horses to Monmouth throughout the summer. Most critically, the proposal will likely have a significant impact on field sizes at Saratoga Race Course in upstate New York, which last year led the country in average daily purse distribution at $723,000 a day, according to figures provided by Equibase.

"We felt we had to do something dramatic," Forbes said. "We thought someone should step up to the plate and give the customer what he wants, which is bigger and better-quality fields."

Maiden special weight races during the first Monmouth meet will offer $80,000 purses, according to officials who have worked on the plan. First-level allowance races will start at $80,000 and rise in $5,000 increments. Purses for overnight stakes will be $120,000, according to the officials.

The plan will be implemented as a one-year experiment. A large portion of the funding for the purses will be provided by a payment the racing industry receives from New Jersey casinos to refrain from lobbying for slot machines at racetracks. The contract providing for the payment - typically around $20 million a year - expires at the end of 2010, and it is doubtful the contract will be renewed in the same form for 2011 or beyond because of the current financial troubles of the state's casino industry, according to officials.

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March 9, 2010 Updated: March 10, 2010
NJ RACING OFFICIALS DEFEND MONMOUTH SCHEDULE
By Esther Marr, Bloodhorse Online

The Bloodhorse Online is reporting when Monmouth Park officials announced they would be slashing the New Jersey track’s race schedule nearly in half in order to provide larger purses and create better quality racing for bettors, they were bombarded by negative editorial opinions and commentaries suggesting the change had signaled the death of the local industry.

But Bob Kulina, vice president and general manager of Monmouth, and John Forbes, president of the New Jersey Thoroughbred Horsemen’s Association, beg to differ.

“The last time I checked, it wasn’t dying,” said Forbes during a March 9 National Thoroughbred Racing Association teleconference, noting how Monmouth conducted a 141-day meet last year with purses of more than $300,000 a day, had large summer crowds, and hosted the Breeders’ Cup in 2007.

While it came as a shock when Monmouth officials announced March 9 that the track would this year run a reduced 50-day meet from May to September with purses boosted to $1 million per day, Forbes and Kulina claim the move may actually save the local industry, which in its current state cannot begin to compete with neighboring states that benefit from the revenues of casino gaming.

“What we have to face is competition from neighboring states whose purses are augmented by casino gaming, and we have a casino industry that wants us to disappear,” said Forbes. “One of the things we recognize is that with or without slot revenue, racing has to change. We’ve heard from the customer, and we’ve gone recently from a local sport to a national sport with full card simulcasting.

“The customer has spoken—he wants quality racing, larger fields, and we think it’s time that someone stepped up and gave the customer in racing what he’s looking for. This isn’t a survival issue; it’s an issue of responding of what we all know is most important—quality racing—and that’s what we hope to provide. We don’t use tax dollars to support our game; the casinos don’t give us a handout. We have to sign an agreement with the casinos not to go after slots; they buy us off. So it’s a struggle, but we felt we needed to get to the heart of the matter.”

Kulina said the new purse schedule at Monmouth would include bottom level claiming races ranging from $5,000-$30,000; maiden special weight races at $75,000-$90,000; and overnight stakes at $100,000. The major stakes races—such as the $1 million Haskell Invitational (gr. I)—would stay at the same level they were last year.

With the fall meeting at the Meadowlands being eliminated, the Meadowlands Cup (gr. II) would be moved to Monmouth, and the date of the Pegasus Stakes (gr. III) would be moved to serve as a prep race for the Haskell. Meadowland’s Violet and Cliffhanger Stakes (both gr. III) will be put on hold for 2010.

Eliminating Meadowlands' fall meet is a one-year experiment, and Kulina said he plans to assess the decision over the summer in order to decide what will happen in the future.

An agreement has been made with New Jersey breeders to run two and a half New Jersey-bred programs a day, with the state-bred maiden special worth $75,000.

“They’ll have the corresponding purses, and the New Jersey-breds will get a 20% bonus if they finish 1-2-3 in open races,” said Kulina. “This is a wonderful thing for the New Jersey breeders, and I think this is a win-win proposition for everybody. We’re making their rewards program whole and they are very happy. They’re going to have funding for an out-of-state New Jersey-bred program for the rest of the year. So we think we have most the issues resolved.”

Kulina said the goal for Monmouth’s 2010 season is to consistently have 8- to 10-horse fields.
“We’re working on a meaningful payback to horses that finish outside the money,” he explained. “We think it’s important that owners are rewarded for participation in fields. We’re trying to spread some of the money around, not only to the small owners, but to everybody, because it’s a very costly game. So we’re doing some different things, and we’re cautiously optimistic that this is a model that will work. No matter what level the race is, if it’s competitive, it’s a good race.”

Kulina said he realized that by cutting 50% of its race dates, Monmouth will have to increase the handle on its existing races by 50% just to break even on revenue.

“That is the gamble, but we are adding two to three races every day that we race. Our signal will be stronger so people in other parts of the country will look at it. We made very soft projections, and we reduced the days that are extremely weak, so we’re hoping that if we offer one of the best products in the market, the consumer will respond to it.”

One of the many concerns with the new schedule is how it will affect the smaller horsemen in the state. While Forbes said he is apprehensive of how those players will deal with the situation, he’s more concentrated on looking at the future of the sport.

“We’re surrounded by five states that have casino gambling and slot revenue and we sit in the middle of that,” he said. “Our sense was that over the next five years we would be dying a slow death with the reduction of days to try and keep our purse levels competitive.

“If this is the death for the small horsemen, it’s because he doesn’t have the kind of horse that America wants to bet on,” Forbes continued. “But I don’t think it’s the death…I think it’s an opportunity for our horsemen to recognize that not to upgrade, not to improve the product for the consumer is a prescription to eventually be eliminated from the mix here in the Midlantic. We’re very concerned about our small horsemen, but we also want them to step up to the plate. If they can’t recognize that poor racing with horses that aren’t competitive is itself a death then none of us are responding to what the industry wants.”

Forbes made a reference to the boutique track Atlantic City, which offers a handful of turf racing dates each year, and has somehow remained a popular local venue in spite of not even having a functioning tote board.

“(Atlantic City) is an example of the fact New Jersey racing isn’t dying—somehow it still exists,” he said. “If they’re willing to step up to the plate and attach some decent purses to their turf racing, we’re hopeful they have a place in New Jersey. But they’re going to have to offer a product the public wants to bet on, and if they’re not a positive part of our solution to our problems, then they will have to go by the wayside. They have to recognize that what New Jersey has done is dramatic, with intent, and its back to the old adage if you’re not part of the solution, you’re part of the problem.”

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March 09, 2010
MONMOUTH TO OFFER ELITE 50-DAY, $50-MILLION MEET
By Tom De Martini, Thoroughbred Times

Thoroughbred Times is reporting Monmouth Park will host an elite 50-day summer meeting featuring an average of $1-million per day in purses under an agreement announced on Tuesday between the New Jersey Sports & Exposition Authority and the New Jersey Thoroughbred Horsemen’s Association.

The pact lifts the Oceanport, New Jersey, racetrack into the country’s top echelon in purses, eclipsing the planned $723,000 per day in prize money slated by the New York Racing Association for the recently expanded 40-day Saratoga Race Course meeting in Saratoga Springs, New York.

The bold one-year deal, contingent upon the approval of state lawmakers and the New Jersey Racing Commission, cuts live racing from 141 dates and does not include a fall Thoroughbred meeting at the Meadowlands in East Rutherford, New Jersey.

The revised 2010 Monmouth season will run from May 22 through September 6 with racing on Fridays, Saturdays, and Sundays as well as the Monday holidays of Memorial Day, July 5, and Labor Day. Twelve races are scheduled each day.

A second 21-day meeting will be held from September 12 through November 21 with Saturday and Sunday racing. Average daily purse levels for that meet are pegged at between $250,000 and $300,000.

Monmouth Park General Manager Robert Kulina said planning for the dramatic change in the summer racing season began following the rain-plagued 2007 Breeders’ Cup World Championships with the assistance of Dennis Drazin, former president of the New Jersey Sports and Exposition Authority.

“We saw what works; the player wants a better product with full fields,” Kulina said. “Looking into the future, we feel this is what racing in the country will look like. We’re cautiously optimistic that the model will work out. The goal is to sell more bets.”

Track officials will utilize $2.27-million in unpaid purses from the 2009 Monmouth meeting and approximately $20-million from the final year of a subsidy from the Casino Association of New Jersey to feed the unprecedented $1-million purse structure.

Last year, Monmouth offered a daily average of $330,000 in purses over 93 live dates. The new daily purse structures are gaudy with bottom-level $5,000 claiming races carrying $30,000 purses. Maiden special weight races, including New Jersey-bred maiden races, will offer $75,000 purses.

Restricted allowance races will begin at $80,000 and increase by $5,000 increments to $90,000. Overnight stakes purses weigh in at $100,000 in addition to $5-million in graded stakes funding.

Kulina said the purse of the Haskell Invitational Stakes (G1) for three-year-olds on August 1—the track’s signature event—will remain at $1-million.

The Meadowlands Cup (G2) and Pegasus Stakes (G3) will be moved from the Meadowlands to Monmouth. The Violet Stakes (G3) and the Cliff Hanger Stakes (G3), both Meadowlands events, will not be run this year.

Monmouth’s backstretch houses 1,600 horses. Kulina is hopeful that many out-of-town outfits will ship to New Jersey to take advantage of the new purse structure.

“Horsemen are free agents and go where the money is,” Kulina said. “I expect shippers from Churchill Downs when that meet closes and response in the [Mid-Atlantic] region should be solid.”

Kulina said he expects solid wagering numbers on average fields of eight to ten horses per race.
New Jersey-breds are guaranteed 2.5 races per day under the deal with state-breds receiving bonus funds for in-the-money finishes in open company in addition to an out-of-state bonus program when Monmouth is closed.

“We’re concerned about our local horsemen and our smaller horsemen,” NJTHA acting president John Forbes said. “But we would die a slow death and there’s no other way to save ourselves from some sort of extinction.”

Kulina admitted that handle on Monmouth racing will need to double in order to sustain a $1-million purse level in 2011, when the casino subsidy runs out.

“That’s the gamble we’re taking. The [simulcast] signal will be stronger, more people will be paying attention to it, and we’ve made some soft projections,” he said.

The track averaged more than $409,000 in average on-track daily handle last year and $3.1-million in all-sources handle.

The revised racing schedule marks the fewest number of dates at Monmouth Park since 2001, when the track hosted 72 live programs. The New Jersey Sports & Exposition Authority reportedly has a $13-million deficit on its racing operations this year alone.

Lawmakers must amend current statutes mandating 141 live Thoroughbred dates through 2016 in order for the state’s off-track and Internet wagering platforms to continue operations.

Tom De Martini is a New Jersey-based Thoroughbred Times correspondent

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February 25, 2010 Updated: February 26, 2010
NJ PLAN SAID TO BOLSTER MONMOUTH
Bloodhorse Online

The Bloodhorse Online is reporting Monmouth Park’s Thoroughbred racing schedule would be cut almost in half and its purse structure tripled to an industry-leading $1 million a day under a plan to save the state’s ailing racing industry that is expected to be announced next week, according to the Newark Star-Ledger.

The plan, the details of which were revealed by two people who spoke on the condition of anonymity, but whom the newspaper said were directly involved in the discussions, is aimed at drawing bigger fields and higher-quality horses to Monmouth Park during its spring-summer meeting to generate revenue to help offset what has been projected as a $22-million loss this year for horse racing in New Jersey.
As part of the plan, Thoroughbred racing would cease at Meadowlands.
Monmouth would conduct a 50-day meet by racing Fridays, Saturdays, and Sundays (plus three Monday holidays) from May 22 through Labor Day.

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February 24, 2010 Updated: Thursday, February 25, 2010
NEW JERSEY BREEDERS QUESTION BUDGET 'VETO'
By Tom LaMarra, Bloodhorse Online

The Bloohorse Online is reporting The Thoroughbred Breeders’ Association of New Jersey is reworking its 2010 budget, but in a Feb. 19 letter to Republican Gov. Chris Christie, the organization took issue with the governor’s veto of the budget because it’s not part of state government.

Christie earlier in February “vetoed” the budgets for the TBANJ and Standardbred Breeders and Owners Association of New Jersey, calling them examples of “excessive, profligate spending” in a state with a multibillion-dollar budget deficit. The TBANJ, however, said it’s a private, non-profit association charged with fostering and promoting Thoroughbred breeding and ownership in New Jersey.

The letter was copied to three legislators.
“I understand that your administration is trying to curtail wasteful spending in state government, and I applaud your efforts in doing so, but the TBANJ is not part of the state government in New Jersey,” TBANJ executive director Mike Campbell said in the letter to Christie. “I would have appreciated if your office would have contacted me to discuss some of the line items in our 2010 budget before issuing a statement that made me and the board of trustees look like we are part of the wasteful spending that is going on in state government.”

Christie took issue with planned expenditures for lobbying and promotion of breeding and racing. Campbell in his letter said the line item for lobbying, public relations, public affairs, and media relations “did not show an increase in our 2010 budget.” Campbell said the TBANJ has employed a lobbyist for the past 10 years and believes “very strongly that we need a legislative representative in Trenton to make sure the needs of our association are heard by the legislature.” 

Campbell also said a $25,000 contribution to a racing industry study wouldn’t be made because the commission formed to undertake the study is being disbanded.

The TBANJ and SBOANJ budgets were approved by the New Jersey Racing Commission Jan. 20. Campbell said the TBANJ budget would be resubmitted in time for the March 17 NJRC meeting.

In conjunction with the letter to Christie, TBANJ president Tom Swales issued a statement clarifying the organization’s operating status. The TBANJ, he said, is classified as a non-profit 501 (c) 5.

“It is not a government entity or a quasi-government entity,” Swales said. “None of the funds used to support the TBANJ’s mission of fostering and promoting the breeding and ownership of Thoroughbred horses in New Jersey come from the state budget.

“Funding for the promotion, public relations, and advocacy of the breeding program, as well as the administration and funding of breeders’ awards, comes from a small portion of the money bet by patrons on horse races at racetracks, off-track wagering facilities, casino race book rooms, and through account wagering. Since the funds flow through the racetracks to the association, they are regulated but not public.”

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February 25, 2010
STATE'S CURE FOR HORSE RACING CALLS FOR TRIPLED PURSES, FEWER RACING DAYS AT MONMOUTH PARK
By Tom Luicci/The Star-Ledger

The Star Ledger is reporting that Monmouth Park’s thoroughbred schedule would be cut nearly in half, but its purse structure would be tripled to an industry-leading $1 million a day under a plan to save the state’s ailing horse racing industry, according to two people directly involved in the discussions.

The plan, expected to be formally announced as early as next week, is aimed at drawing bigger fields and higher-quality horses to Monmouth Park during its spring/summer meet. That, in turn, would generate enough revenue to help offset a projected $22 million loss this year for the state’s horse racing industry.

The focus on Monmouth Park would mean the end of fall thoroughbred racing at the Meadowlands Racetrack in East Rutherford, said the two people, who asked not to be identified because they are not allowed to publicly discuss the plan. Harness racing would still be held at the Meadowlands.

Under the plan, Monmouth Park would conduct a 50-day meet with racing on Friday, Saturday and Sunday (plus the three Monday holidays) from May 22 through Labor Day, the two people said.

Monmouth would also offer daily purses of $1 million, tops in North America. Last year, the track’s daily purses averaged $330,000 for 93 dates.

Saratoga Race Course in upstate New York, which races in late July and August and is the primary competition for Monmouth, offered $729,100 in average daily purses last year, tops in the sport.

Monmouth would also hold a second, 21-date meet from mid-September until Nov. 23, during which it will offer daily purses of between $250,000 and $300,000, the two people said.

Monmouth now conducts a Wednesday through Sunday schedule from June through August.
Amending the thoroughbred racing schedule will require legislative approval since under law, the New Jersey Sports & Exposition Authority, which runs the Meadowlands and Monmouth Park, must race 141 days a year.

Proponents expect the Legislature to approve the plan, which has the backing of Gov. Chris Christie, the state’s Thoroughbred Horsemen’s Association and the sports authority, the two people said. Christie appointed a seven-member commission earlier this month to study gaming, sports and entertainment in the state. This plan is an outgrowth of that commission, they said.

Sports Authority President and CEO Dennis Robinson, commission member Bob Mulcahy and Monmouth vice president and general manager Bob Kulina all declined to comment on the proposal last night, as did Christie’s office.

New Jersey’s horse racing industry is expected to lose $22 million, according to the governor’s projections. However, that figure does not include $9 million in wagering generated from the state-owned off-track wagering sites and phone betting.

The horsemen’s association and sports authority are expected to meet soon to sign off on the plan.
By offering the highest purses in the country, Monmouth hopes to attract larger fields and better horses for the 12 races it will contest each day. That, in turn, is expected to lead to a significant increase in handle, or total amount of money wagered each day.

The plan is modeled after similar approaches in Japan and Australia, where most horse racing is held on weekends only with huge purses offered.

In addition to eliminating two days of operating costs, the sports authority would also see a major savings by not having to convert the Meadowlands Racetrack from a surface for thoroughbreds to one for harness racing, as it does every year.

The harness racing industry would benefit by being able to choose better late fall dates at the Meadowlands because of the absence of thoroughbred racing.

Last year, Monmouth Park averaged $409,380 in handle per day and $3.1 million overall when simulcasting was factored in. Early projections are that Monmouth could triple its handle on live racing while seeing the overall handle grow to more than $5 million per day the first year.

Tom Luicci may be reached at tluicci@starledger.com.
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February 19, 2010 Updated: Saturday, February 20, 2010
NJ GOVERNOR VETOES BUDGETS OF RACING GROUPS
By Tom LaMarra, Bloodhorse Online

The Bloodhorse Online is reporting that Republican New Jersey Gov. Chris Christie, facing a multibillion-dollar budget deficit, used his veto power to scrap 2010 budgets for the Thoroughbred Breeders’ Association of New Jersey and Standardbred Breeders and Owners Association of New Jersey.

Christie’s office, in a Feb. 18 release, said it’s the fourth time the new governor has exercised veto power to end “the practice of excessive, profligate spending in every part of state government.” Other impacted groups are the Delaware River and Bay Authority, Urban Enterprise Zone, and Schools Development Authority.

Budgets for the racing groups were approved by the New Jersey Racing Commission Jan. 20.
According to the governor’s office, the TBANJ budget was up 19.8% from 2009. Targeted by Christie were $42,500 for the New Jersey Thoroughbred Festival at Monmouth Park; $40,000 for lobbyists; and $10,000 for an awards banquet.

The SBOANJ budget represented a 5.6% hike from last year.
“As when I have previously exercised veto authority, my administration will continue to scrutinize the actions of the many boards and authorities in our state and root out waste,” Christie said in a statement. “As we face serious fiscal challenges, savings are being identified and realized in every part of state government, including spending reductions. Boards and authorities are no exception to this.”

The future of New Jersey’s horse racing and breeding industry is being studied by various groups. A purse subsidy from the Atlantic City casinos expires at the end of 2010, and there is no plan to renew it.

Thus far, the dialogue has centered on the viability of racing at Meadowlands and Monmouth, both of which are operated by the state.

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February 3, 2010
Governor Christie Creates Commission to Prepare Comprehensive Policy to Fix New Jersey’s Gaming, Sports and Entertainment Industries

For Immediate Release:  Contact: Mike Drewniak
Date: Wednesday, February 3, 2010       609-777-2600

Trenton, NJ – Governor Chris Christie today announced the creation of the New Jersey Gaming, Sports and Entertainment Advisory Commission to devise a comprehensive policy to repair the unprecedented financial and structural challenges confronting New Jersey’s gaming, professional sports and entertainment industries. Some of the recommended policy changes will be implemented on an ongoing, real-time basis as the need arises.

Governor Christie signed Executive Order No. 11 creating the seven-member Advisory Commission, to be headed by Jon F. Hanson, a former chairman of the New Jersey Sports and Exposition Authority (NJSEA) and real estate executive.

The recently released Transition Subcommittee reports on gaming, entertainment and authorities found Atlantic City casinos burdened by grossly uncompetitive regulatory expenses, a municipal government failing in its supporting role of the industry; a Meadowlands anchored by the behemoth, financially strapped Xanadu project; the Meadowlands and Monmouth racetracks losing $22 million in 2010; and a Sports Authority struggling to manage those problems, its arenas and sports franchise contracts.

“We can no longer let Atlantic City wither in the face of competition, have our arenas and stadiums go underutilized, or have a Sports Authority that is unable to maximize our entertainment investment and resources,” said Governor Christie. “Previous efforts have been piecemeal, weak and failed to look at all the problems in a whole and comprehensive way. This will be a blueprint to guide our policy in fixing our sports and entertainment infrastructure in New Jersey, to make all its parts self-sustaining, attractive to wider audiences and revenue positive for the long term. But the Advisory Commission will also be working with my administration in real-time, to move quickly to solve critical contractual and other issues we confront in the short term.”

The Advisory Commission will serve without compensation and will be dissolved no later than June 30, the deadline for submitting its final report and policy recommendations to the Governor, as well as the Legislature and public.

Also serving on the Advisory Commission will be Robert E. Mulcahy III, a former president of the NJSEA and Athletic Director at Rutgers University; Finn Wentworth, principal of Normandy Partners and Founder of the YES Network; Al Leiter, the former Major League Baseball pitcher and YES Network commentator; Wes Lang, managing director of WML Partners, LLC, a New Jersey private equity investment and development company; Debra P. DiLorenzo, president and CEO of the Chamber of Commerce of Southern New Jersey; and Robert Holmes, a law professor at Rutgers School of Law in Newark, where he serves as Deputy Director of Clinical Programs and Director of the Community Law Clinic.

The Advisory Committee is charged with developing recommendations for the Governor for a comprehensive, statewide approach to the issues and financial needs of New Jersey’s gaming, professional sports and entertainment industries. Chief considerations would be long-term stability of those industries, New Jersey’s economic interests and a commitment to the responsible use of state resources to the benefit of its citizens.

Among the critical issues on which the Advisory Commission must focus:

• the ongoing financial viability of the NJSEA
• •advancing or resolving the stalled Xanadu project
• •improving competitiveness of the Atlantic City gaming industry and promoting the city as a destination resort
• •ensuring that horse racing becomes financially self-sustaining
• •proper scheduling of entertainment events at the IZOD and Prudential centers to ensure their mutual success

Today’s Executive Order also amends an Executive Order of the prior administration, which created a horse racing commission to recommend funding solutions for that industry by July 1, 2010. Governor Christie’s amendment requires that those recommendations, if they are forthcoming, be made available for to the Advisory Commission by April 1, when the Corzine commission would be dissolved and its work superseded.

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January 30, 2010
AS NEW JERSEY TIGHTENS ITS BELT, THE RACING INDUSTRY HOLDS ITS BREATH
By BILL FINLEY, New York Times

EAST RUTHERFORD, N.J. — Meadowlands Racetrack has had some of the highest-quality harness racing in the country and dozens of the sport’s most important races. But in recent years, the track has become a money-losing drain on the state of New Jersey, which now threatens its survival.

A report issued this month by a committee put together by Gov. Christopher J. Christie before his inauguration to come up with solutions to the financial problems of the New Jersey Sports and Exposition Authority made several suggestions that, if put in place, could all but gut the state’s racing industry. The suggestions included possibly closing Meadowlands Racetrack and drastically reducing the number of racing days at Monmouth Park.

The Sports and Exposition Authority is a state-run agency that owns the Meadowlands, Monmouth Park and portions of the state’s off-track betting system. The committee projected that the Meadowlands and Monmouth would lose a combined $22 million in 2010, a loss some lawmakers find difficult to justify given the state’s fiscal crisis.

In the report, the committee insisted that “the status quo is not sustainable” when it came to New Jersey racing.

“We know that the frankness of that report will have raised fears with certain interested groups and constituencies,” said Michael Drewniak, a spokesman for Christie. “In a sense, we’re glad that happened because if it wasn’t clear to everyone that these are the realities, it should be clear.”

The report calls for live thoroughbred racing in the state to be reduced to 50 days, 91 fewer than were run in 2009 at Meadowlands and Monmouth. Monmouth is scheduled to conduct a 93-day meet in 2010.

The report also calls for the state to consider closing the Meadowlands track and selling the property for commercial development or turning it into a Nascar facility.

It goes on to warn that “without outside financial resources, the authority will be forced to discontinue racing operations in 2010.”

John Campbell, the leading driver in career wins and earnings at Meadowlands, said that “anybody who takes this report lightly is sadly mistaken.” Campbell said, “The governor put the committee together for a reason, and if this is what they are recommending, this is a scary situation.”

With racing dates set for 2010 and with contracts with thoroughbred horsemen’s groups guaranteeing 141 racing days, it may be difficult to make any major changes this year. Horsemen expressed worries about the future, however.

“If they follow through with some of these recommendations, is it the end of racing in New Jersey? Yes, it will be the end of racing in New Jersey,” said Tom Luchento, the president of the Standardbred Breeders and Owners Association of New Jersey. “They’ll be leaving New Jersey in caravans for tracks for other states.”

Horse racing has been struggling throughout the country, but some states, including New York, Pennsylvania and Delaware, have improved the quality of racing with subsidies from slot machines. That has helped funnel gambling dollars away from the New Jersey tracks.

New Jersey tracks have not been allowed to have slot machines, largely because of the political clout of the Atlantic City casino operators, who do not want in-state competition.

Neither Christie nor his predecessor, Jon S. Corzine, has been a proponent of racetrack slots. The report implored the industry to come up with additional means of financing to save itself, but it made no mention of adding slots at Monmouth or Meadowlands.

Mike Gulotta, a harness horse breeder, was the only member of the 13-member committee with ties to the racing industry, which, some critics maintain, is why the final report held out so little promise for the industry.

“The report favored what has traditionally been the casino’s position, which is nothing for horse racing,” said Barbara DeMarco, a lobbyist who represents thoroughbred owners, trainers and breeders in the state.

With slot machines nowhere on the horizon and with Christie likely to demand that the tracks find a way to stem their tide of red ink, Meadowlands and Monmouth officials may have to consider large reductions in racing schedules and drastic cuts in purses, industry officials say.

But that could lead to poorer-quality racing and only accelerate declines in betting handles at both tracks, industry officials say.

“Everybody understands the situation and how serious it is,” said Bob Kulina, the general manager for thoroughbred racing at Monmouth and Meadowlands. “What we have to do now is come up with some sort of solution.”

A version of this article appeared in print on January 31, 2010.
 

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January, 25 2010
PANEL OUT TO CUT NEW JERSEY RACES
By Matt Hegarty, DRF.com

Contending that the "status quo is not sustainable," a draft report from a committee examining the finances and future of the New Jersey Sports and Exposition Authority has recommended that Monmouth Park hold a 50-day Thoroughbred meet and that the Meadowlands cease hosting Thoroughbred races altogether.

The recommendations, if implemented, would pare the live racing schedule in New Jersey by 91 dates. The report indicates that the 2010 budget for the sports authority's racing operations estimates losses of $13 million under the current racing schedule, which, under an agreement with horsemen in the state, calls for 141 live racing dates a year through 2016.

"We encourage consideration of all the options to make horse racing self-sustaining, including consolidation of racing statewide," the report's authors wrote. "The ultimate goal is to continue to have live racing at a venue where the Sports Authority and its [offtrack betting] system can operate without a subsidy."

Separately, the report states that "without outside financial resources, the authority will be forced to discontinue racing operations in 2010."

Dennis Drazin, the former president of the New Jersey Thoroughbred Horsemen's Association, said the report's recommendations had "no chance" of implementation this year because of the existing contract guaranteeing racing dates. Drazin negotiated the existing contract, but he has been prohibited from carrying on any other negotiations because of his recent appointment to the New Jersey Racing Commission.

"They have a contract, they have an obligation to race those days," Drazin said. "I don't think there's any serious backing to the threat" to shut down racing at the two tracks.

Drazin said that horsemen and management of the racetracks had considered a 50-day meet at Monmouth over the past two years, but only if the track could guarantee $1 million a day in purse distribution. The authority has balked at providing a guarantee for the total purse outlay of $50 million, Drazin said.

The report was generated by a 13-member committee appointed by Gov. Chris Christie shortly after he was elected late last year to aid in the transition from Gov. Jon Corzine's previous administration. In addition to Monmouth and the Meadowlands, the authority owns and operates a football stadium and indoor sports and concert facility, along with additional space at the sprawling complex just miles from New York City.

The report says the state should consider the "commercial redevelopment" of the Meadowlands, which also hosts a high-profile harness meet that includes the Hambletonian, one of harness racing's most famous races. Other "potential uses" for the site, according to the report, would be the construction of an auto-racing track.

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