June 21, 2011

NJ SENATE COMMITTEE OKS RACING LEGISLATION

By Tom LaMarra, Bloodhorse.com

 
A Senate committee in New Jersey moved legislation June 20 that would allow the New Jersey Sports and Exposition Authority to jointly operate Monmouth Park and Meadowlands pending licensing of lessees by the New Jersey Racing Commission.

The bill also allows Monmouth to offer 71 days of live racing per year with consent of the representative horsemen’s group; current law calls for 141 days. It goes to the full Senate for consideration.

The State Government, Wagering, Tourism and Historic Preservation Committee also approved a bill that would allow Atlantic City casinos and out-of-state racetracks to negotiate fees for full-card simulcasts. Currently New Jersey casino race books pay no more than 3.5% per dollar wagered for simulcasts (no more than 6% for the Breeders’ Cup World Championships).

Also, the casinos would be permitted to keep a larger cut of simulcast revenue. The bill now goes to the Senate Budget and Appropriations Committee.

Both NJSEA-operated tracks are being turned over to private operators under a plan by Republican Gov. Chris Christie to get the state out of the horse racing business.

Senate and Assembly versions of the bills were introduced earlier this year. The Senate version allows the NJSEA to “enter into an agreement with a private entity to lease a racetrack facility it owns to that entity, (and) it may further agree with that entity to jointly operate the facility during a transition period.”

The transition period would last until the lessee is licensed by the racing commission and “has received all necessary permits” to conduct racing. The transition period can be extended beyond one year but no more than two years, the legislation states.

A statement in the legislation says the measure “provides the (NJSEA) with the flexibility necessary to craft and effectuate a viable lease agreement for one of its racetrack facilities without disrupting previously scheduled events.” Monmouth and Meadowlands are in the midst of live race meets.

Developer Jeff Gural, a partner in two harness racetrack casinos in New York, is in the process of working out a lease agreement for Meadowlands. Resorts Atlantic City Casino owner Morris Bailey is doing the same for Monmouth and still must get approval from the New Jersey Thoroughbred Horsemen’s Association.

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April 12, 2011
NJSEA CONFIRMS MONMOUTH LEASE NEGOTIATIONS
By Tom LaMarra, Bloodhorse.com

The New Jersey Sports and Exposition Authority confirmed April 11 it is negotiating with developer and casino owner Morris Bailey for the lease of Monmouth Park.

The five-year lease would take effect June 1, roughly three weeks after Monmouth opens for its 2011 racing season under the auspices of the NJSEA, whose board is scheduled to meet April 14 to discuss the lease and other matters.

Bailey is a Thoroughbred owner and breeder. Last year he purchased Resorts Atlantic City casino with a partner.
“The NJSEA is looking forward to vigorous and productive negotiations with Mr. Bailey, whose resources, track record, and vision provide the most reasonable prospect for the private leasing of Monmouth Park by June 1,” NJSEA chairman Mike Ferguson said in a statement.

Monmouth has been awarded 141 racing days by law, but changes are expected. Bailey has not yet publicly discussed his plans for the track.

Bailey was among eight entities that paid a deposit to view details of the NJSEA request for proposals. Republican Gov. Chris Christie has ordered the lease of Monmouth and Meadowlands to private interests to get the state out of the horse racing business.

Lease of Meadowlands for harness racing by developer and track owner Jeff Gural hinges on a deal with union employees.
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April 11, 2011
RESORTS CASINO CO-OWNER MORRIS BAILEY IN PRELIMINARY TALKS TO TAKE OVER MONMOUTH PARK
By Tom Luicci, The Star-Ledger

Resorts Casino co-owner Morris Bailey has started negotiations with the state for the takeover of Monmouth Park racetrack, but even if those talks go smoothly his next round at the bargaining table with the horsemen over racing dates could be a contentious one.

Bailey’s bid was chosen by the New Jersey Sports & Exposition Authority from among three finalists for the five-year lease of Monmouth, a deal that includes the Woodbridge Off-Track Wagering facility, licenses for four additional OTWs and half the state’s take from internet and phone wagering.

But even if Bailey wins approval as expected in the coming weeks to operate Monmouth, he faces a potential obstacle in the New Jersey Thoroughbred Horsemen’s Association. State law requires 141 thoroughbred racing dates.

Bailey’s proposal to the state calls for 71 days — the same as last year — and a minimum overnight purse average of $400,000, according to his attorney, Ron Riccio.

The horsemen agreed to the reduced schedule last year when Monmouth featured an Elite Meet in which purses averaged $1 million for 50 days of summer racing.

Ironically, the horsemen’s group endorsed Bailey’s bid to take over Monmouth, which lost $6.1 million last year.
“We believe Morris Bailey is the right guy to operate Monmouth Park and we support the state’s decision, but it doesn’t mean that we won’t maintain the position that we’ve had all along — and that’s a 141-day scenario,” said John Forbes, president of the horsemen’s group. “We would be willing to repeat what we did last year with reduced days if the purse structure is the same or at least close to the same. But it doesn’t sound as if it will be.”

The state’s negotiations with Bailey, a licensed horse owner and breeder with homes in Brooklyn, N.Y., and Deal, are expected to take several weeks. Though the Sports Authority has a regularly scheduled meeting on Thursday, that’s too soon for Bailey’s bid to be approved, Riccio said.

Once he is awarded the lease, Bailey has to begin negotiations with the track’s vendors and unions, since their contracts have expired.

“As the old adage goes, the devil is in the details,” Riccio said. “There are a number of details that need to be ironed out, but we feel they will be handled in an expeditious manner.

“We have a lot of work that needs to be done in a short period of time, but we’re optimistic that it can be worked out.”

The request for proposals originally issued out by the state called for a new operator to be in place by June 1, though that date is flexible. Bailey isn’t expected to be able to meet that target date because of the extensive negotiations that still need to take place.

That means that state will continue to operate Monmouth, which opens on May 14, until Bailey is ready to take over.
Meanwhile, Gov. Chris Christie signed a pair of bills yesterday aimed at aiding the state’s struggling horse racing industry.

One permits wagers to be placed at racetracks or casino simulcasting facilities in advance for races not simulcast at the facility if the race is simulcast at other facilities in the state.

Another allows standardbred permit holders at the Meadowlands Racetrack and Freehold Raceway to shorten the season to a minimum of 75 dates. That’s down from 141 at the Meadowlands and 168 at Freehold.

The laws are the latest in a series enacted by New Jersey lawmakers responding to Christie’s directive that horse racing be forced to become a self-sustaining entity that does not receive any government subsidies.

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March 15, 2011
MONMOUTH PLANS $4.95 MILLION STAKES SCHEDULE
By Matt Hegarty, Daily Racing Form

Though plans for Monmouth Park’s 2011 Thoroughbred meet remain unsettled, the New Jersey track will distribute $4.95 million in purses for non-overnight stakes races this year, according to the track.

The richest purse will be offered in the $1 million Haskell Invitational, a Grade 1 race for 3-year-olds that has long been the centerpiece of the track’s summer meet. The Haskell is scheduled as part of an eight-stakes card on July 31 that will also feature two other graded stakes, the Grade 3 Oceanport and the Grade 3 Matchmaker, both on the turf.

Monmouth Park, which is currently owned and operated by the New Jersey Sports and Exposition Authority, has been granted 141 live racing dates for 2011, but that schedule is expected to be changed as early as Friday, when the state’s racing commission will consider an amended dates request that may go as low as 80 live racing dates, according to New Jersey officials.

But the Friday meeting also may not be the last say on the matter. At the direction of Gov. Chris Christie, the NJSEA is currently entertaining bids to lease the track for 2011 and beyond, with the winning bidder expected to be named by June 1. Bidders may attach different conditions for dates in their offers to operate the tracks, and those offers could further influence the track’s live racing schedule.

According to Robert Kulina, Monmouth’s general manager, the track will open in May, as is traditional. But the in-week racing schedule remains in flux as horsemen, the state, and the NJSEA consider their options.

The stakes schedule, which does not include the track’s overnight stakes, runs from May 30 to Sept. 5. All of the stakes are held on weekend dates, with the exception of the May 30 Violet Stakes, a Grade 3 race scheduled for a Monday. May 30 is Memorial Day, a national holiday.

The meet’s other Grade 1 stakes, the $750,000 United Nations, is scheduled for July 2, along with the Grade 3 Salvator Mile. The next day, the track’s local prep for the Haskell, the Grade 3, $150,000 Jersey Shore Stakes, will be contested.

The Grade 3, $250,000 Philip H. Iselin Stakes – once a major race for older horses – is scheduled for Aug. 20. The Grade 2, $250,000 Molly Pitcher Stakes is scheduled for Aug. 28.

Last year, during 71 total days of racing in which average daily purse distribution was just shy of $800,000, Monmouth distributed $12.1 million in stakes purses. The outlays were made possible by a $19 million subsidy from Atlantic City casinos, but that subsidy will not be available this year, and Christie has vowed to block any additional subsidies to the racing industry as the state seeks to close an enormous budget deficit.

John Heims, a spokesperson for Monmouth, said that total purses in overnight stakes will likely total approximately $7 million, bringing total stakes purse distribution to nearly $12 million, comparable to stakes purse distribution last year. The overnight stakes scheduled will be released at a later date, Heims said.

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March 11, 2011
BIDDERS ENTER RACE FOR MONMOUTH PARK LEASE
Winner to lease Monmouth Park
By Bob Jordan, APP.com

OCEANPORT — Eight potential bidders for a lease of Monmouth Park have submitted $25,000 deposit checks and have until the end of the month to make offers to manage the state-owned track for the next five years.

The bidders include Little Silver resident John Brunetti, an 18 percent shareholder when the track was privately owned 25 years ago. The New Jersey Sports and Exposition Authority purchased the track from the old Monmouth Park Jockey Club for $40 million in 1986.

Brunetti heads a real estate development empire and owns the Hialeah Park racetrack in Florida. He attended the bid conference held at the track here Thursday.

Brunetti said he was reluctant to sell his original shares. In 2004, he wanted back in. He was among the 17 bidders involved seven years ago when there was an initial effort to return the track to private management.

But state officials ultimately had second thoughts about unloading the track in 2004 and canceled that round of bidding.

"My offer was in the envelope when they called it off," Brunetti said.
Now there's no turning back. Gov. Chris Christie has ordered a privatization plan for Monmouth Park and the Meadowlands Racetrack, the Sports and Exposition Authority's two racetracks.

Brunetti said he likes his chances. "I didn't come here to lose."
Authority officials told the potential bidders that the seasonal thoroughbred racing meet at Monmouth Park track would begin May 14, likely before new management is in place. The winning bidder must take over by June 1.

The track is being packaged in a five-year lease with the Woodbridge off-track wagering site, four proposed off-track wagering sites and a 50 percent share of the authority's profits from telephone and Internet account wagering.

Also plunking down deposit checks were Resorts Atlantic City casino owner Morris Bailey, the Angelo Gordon Co. investment group, a New Jersey horsemen's group, British gaming giant Betfair, a company controlled by Canadian auto parts magnate Frank Stronach, Oceanport resident Bernard Dowd and Greenwood Racing.

Greenwood is a half-owner of Freehold Raceway and owns both Atlantic City Race Course and Parx Racing, a "racino" — which provides horse racing and casino games — just outside the northeast border of Philadelphia.

Others who attended the conference but didn't submit the $25,000 may still do so before the bid deadline of March 31.
Dowd, a veterinarian, is from a family with an extensive background in horse racing. His cousin, Dennis Dowd, once was the Sports and Exposition Authority's top executive for racing.

Bernard Dowd said he will contemplate making a bid with the backing of businessman John Koenig, who owns race horses, with possibly several other investors joining them.

"Any time I mention this project, people are interested," Dowd said. "We're going to take a hard look at it."
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March 10, 2011
MONMOUTH PARK ATTRACTS INTEREST FROM EIGHT POTENTIAL LESEES
By Marty McGee, Daily Racing Form

The representatives of eight prospective lessees of Monmouth Park were on hand Thursday to submit $25,000 deposit checks in the hopes of becoming the new operator of the Oceanport, N.J., track.

The New Jersey Sports and Exposition Authority is taking applications on a five-year lease for Monmouth in response to Gov. Chris Christie’s directive for the state to get out of the horse racing business and eliminate state subsidies for the industry. The lease includes an off-track wagering facility in Woodbridge, licenses to build four more off-track facilities, and a 50-percent share in the Sports Authority’s share from on-line and telephone wagering.

“This shows there are a lot of high-end people interested in operating Monmouth Park as a racetrack, not a slots track,” said Bob Kulina, longtime general manager at Monmouth. “I think it’s fair to say that whoever negotiates the winning deal has Thoroughbred racing interests.”

Monmouth announced that the following paid the refundable $25,000 at the mandatory meeting: BetFair, the owner of Television Games Network; Ocala Meadows, headed by Frank Stronach of MI Developments; Greenwood Racing, owners of Parx Racing, Atlantic City Race Course and a half-owner of the Freehold harness track; John Brunetti, owner of Hialeah Park and a former Monmouth Park shareholder before the track was purchased by the state in 1986; Mike Musto, representing the New Jersey Thoroughbred Horsemen’s Association; The Angelo Gordon Co. investment group; Morris Bailey, the owner of Resorts casino in Atlantci City and a horse breeder and owner; and Bernard Dowd, a local businessman, horse breeder, and owner.

Monmouth Park ran a 50-day Elite Meet last year, with purses averaging about $1 million per day, thanks to a subsidy from the state’s casino interests which has now expired. The Elite Meet was followed by a 21-day meet which offered a lower purse structure. Monmouth has been approved to hold a 141-day meet this year, even though that figure could be reduced. Kulina said Thursday he expects purses will average less than $200,000 per card this year if the track were to race all 141 days.

Other parties that attended the conference but didn’t submit the $25,000 fee can still do so before a March 31 deadline. The new lessee is expected to be revealed shortly thereafter with the lease scheduled to go into effect June 1.

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March 4, 2011
NEW JERSEY SETS DEADLINE FOR MONMOUTH LEASE PROPOSALS
By Matt Hegarty, Daily Racing Form

The New Sports and Exposition Authority has a set a March 31 deadline for parties to submit proposals to lease Monmouth Park and take a 50 percent share in the authority’s account-wagering operation, according to a notice posted on the authority’s website late Thursday.

The notice stated that potential bidders will be allowed to submit proposals for the lease of the racetrack, “the assignment of five offtrack wagering licenses,” and the 50 percent stake in the modest account-wagering operation, 4NJbets.com, after submitting a $25,000 application fee. Bidders also will be required to attend a “pre-proposal meeting” on March 10 at Monmouth, the notice said.

The authority, which also operates the Meadowlands harness track and stadium complex, has been tasked by Gov. Chris Christie to turn a profit. Christie has contended that the racing operations of the authority have lost tens of millions of dollars over the past several years, despite $30 million in subsidies from the state’s casinos from 2008 to 2010.

State law provides for the operation of 15 offtrack betting parlors, with the NJSEA having the authorization to run nine OTBs. However, the authority has only opened one parlor, a highly successful facility in Woodbridge.

The state is currently negotiating a lease for the Meadowlands harness track, and that lease is expected to receive the assignment of the other four OTBs. The six other licenses are available to the private operators of Atlantic City Race Course and Freehold Raceway, a harness track.

Although the state’s racing commission has awarded 141 Thoroughbred racing dates for 2011, the racing schedule for this year remains in limbo due to the lease proposal. Racing officials have said that they do not expect Thoroughbred dates to be held at Monmouth before June 1.

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March 1, 2011
NEW JERSEY BEGINS SEARCH FOR MONMOUTH OPERATOR
By Frank Angst, Thoroughbred Times

The New Jersey Sports and Exposition Authority (NJSEA) will issue a request for proposals this week as it searches for a new operator of Monmouth Park.

New Jersey Gov. Chris Christie continues an overhaul of New Jersey gaming and racing. On February 25, he said the state would look for a private operator for Monmouth in a deal similar to the Meadowlands, which recently was leased to the Standardbred Breeders and Owners Association.

“We were successful in the Meadowlands, and we can do the same for Monmouth Park to the benefit of New Jersey taxpayers,” Christie said. “I want to see a vibrant but self-sustaining horse racing industry in New Jersey, but that can be accomplished without tens of millions of dollars in taxpayer subsidies every year.”

The betting exchange Betfair is interested in operating Monmouth. Gaming Today reported that casino owner Morris Bradley and Jeff Seder of Blow Horn Equity also are interested in bidding.

NJSEA Spokesman John Samerjan said Tuesday that the request for proposals had not been issued, but he expected the authority to move forward this week. The NJSEA has owned and operated Monmouth since 1986. Samerjan said the RFP had not been drawn up yet so he did not know if the new operator would own Monmouth or lease the track from the state.

Also Friday, Christie signed legislation that will allow non-racetrack operators to run off-track wagering facilities. The legislation also allows off-track wagering in all municipal land use zones and makes it easier to gain a liquor license for the establishments.

Currently, New Jersey allows 15 off-track wagering outlets but only three have been established.
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February 26, 2011
NEW JERSEY GOVERNOR WANTS TO LEASE OUT MONMOUTH PARK FOR 2011 MEET
By Matt Hegarty, Daily Racing Form

Gov. Chris Christie of New Jersey plans to ask private companies to submit bids to lease the state’s Monmouth Park for the 2011 racing season, the governor announced late on Friday.

The state will issue a request for proposals from interested companies next week, Christie’s office said in a release. Monmouth Park is currently owned and operated by the New Jersey Sports and Exposition Authority, which also owns the Meadowlands racetrack and the stadium used by the NFL’s New York Giants and New York Jets.

Christie has been critical of the authority’s operating losses over the past several years, and he has said that taxpayers will no longer subsidize the authority’s racing operations. The state is currently attempting to negotiate a lease of the Meadowlands with harness owners.

“I want to see a vibrant but self-sustaining horse racing industry in New Jersey, but that can be accomplished without tens of millions of dollars in taxpayer subsidies every year,” Christie said in the release.

Although the state’s racing commission has awarded 141 Thoroughbred racing dates for 2011 to comply with New Jersey racing law, the racing schedule this year remains in limbo because of uncertainty over the situation at both Monmouth and the Meadowlands.

In 2010, Monmouth raced 72 days. For the first 49 days of the meet, Monmouth used a $19 million subsidy from Atlantic City casinos to boost purses to $800,000 a day, and racing was limited to Fridays, Saturdays, Sunday, and holidays. Handle and attendance at the track soared, but the subsidy – which was provided by an agreement between the authority and the casinos – expired this year.

According to the state, the authority’s racing operations lost $19 million in 2009. Horsemen have disputed that number, and said that the figure was closer to $12 million. In 2010, the racing operations lost $4 million, despite the increased handle and attendance numbers and the $19 million subsidy.

Racing officials said earlier this week that they were uncertain if Christie planned to offer Monmouth for sale or lease in 2011.

Several news reports have quoted Stephen Burn, the president of Betfair USA, as saying that Betfair would be interested in submitting a bid for Monmouth Park. The British-based company, which purchased Television Games Network in 2009 in order to get a foothold into the U.S., lobbied successfully last year for legislation that legalizes exchange wagering in New Jersey.

On Friday, a spokesperson for Betfair said that the company “has no comment on any potential interest in Monmouth Park.” Betfair operates the largest betting exchange in the world.

The legislation legalizing exchange wagering would require the racetrack operator and horsemen to reach agreement with any betting exchange operator. Betfair has been eager to expand its operations to the U.S., though horsemen and racetracks have expressed concerns about the company’s business model.

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February 25, 2011
MONMOUTH PARK WILL BE PUT UP FOR LEASE BY STATE, NOT SOLD AS ORIGINALLY PROPOSED
By Tom Luicci/The Star-Ledger

Monmouth Park will be put up for lease — not for sale, as originally planned — under a directive issued today by Gov. Chris Christie, who is looking for the same solution for the money-draining thoroughbred track as he found for the Meadowlands Racetrack.

The New Jersey Sports & Exposition Authority will issue a request for proposals for the lease of Monmouth Park next week. The plan calls for a private operator to take control of the track in time for its summer thoroughbred meeting, possibly starting in late May or early June.

The deal will also include control of the NJSEA’s highly successful off-track wagering facility in Woodbridge, the transfer of up to four of its OTW licenses and 50 percent of the state’s take from phone-account and online wagering, according to two people familiar with the terms of the lease.

Both people requested anonymity because they are not authorized to publicly discuss the deal. A spokesman for Christie would not disclose what the lease would include.

“We simply want to ensure the continuance and success of live racing at Monmouth Park,” said Michael Drewniak, Christie’s spokesman.

Christie removed the final obstacles for the private takeover of OTWs today by signing legislation that permits non-racetrack operators to run OTWs. The bill also makes OTWs a permitted use in all municipal land use zones and increases accessibility to liquor licenses for OTW operators.

The decision to lease Monmouth Park instead of selling it follows a similar move that was enacted with the Meadowlands Racetrack, which is now being leased by the state to the Standardbred Breeders and Owners Association.

“We were successful in the Meadowlands, and we can do the same for Monmouth Park to the benefit of New Jersey taxpayers,” Christie said in a statement. “I want to see a vibrant but self-sustaining horse racing industry in New Jersey, but that can be accomplished without tens of millions of dollars in taxpayer subsidies every year.”

Despite a rousing Elite meet last summer, in which Monmouth Park raced 50 days for $50 million in purses, the Oceanport track lost approximately $4 million, according to the two people familiar with the lease proposal. The Woodbridge OTW offset those losses by netting $7 million, they said.

BetFair, a wagering exchange that claims to take in more than $80 million in weekly bets and also owns TVG, a horse racing network, is expected to be among those submitting lease bids for Monmouth Park.

Plans call for the new operator to be in place by June 1 and to oversee Monmouth Park during its summer thoroughbred meeting from June through September; Christie’s spokesman would not discuss a timetable. Racing dates have not been announced yet for the summer because of the track’s uncertain ownership future.

The track has been owned by the NJSEA since 1986. The state has owned and operated the Meadowlands Racetrack since its inception in 1976.

“Right now we’re cautiously optimistic that a lease will be in the best interests of the borough, at least in the short term,” Oceanport Mayor Michael Mahon said. “We’re interested in keeping horse racing viable at Monmouth Park and competitive with neighboring markets, most of which have slots.”

The decision to lease the track instead of selling — as Christie had sought to do last month — is in part due to a downturn in the real estate market, according to Christie’s spokesman. Additionally, the closure of nearby Fort Monmouth, which will be shuttered later this year, will provide more than 1,100 acres to be developed.

Staff writer Chris Megerian contributed to this story.
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February 10, 2011
RFP BEING DEVELOPED FOR MONMOUTH PARK SUITORS
By Tom LaMarra, Bloodhorse.com

New Jersey Sports and Exposition Authority officials are preparing a request for proposals for parties interested in purchasing Monmouth Park.

The move follows action by Republican New Jersey Gov. Chris Christie to enter into negotiations with a private entity to operate Meadowlands harness track, which also falls under the auspices of the NJSEA. New York racetrack owner Jeff Gural hopes to take over operations at Meadowlands.

Christie made the Monmouth announcement after signing into law legislation designed to, in his words, provide “new tools to help the industry implement new strategies, generate additional revenue, and capitalize on interest in horse racing around the state.” One of the bills authorizes exchange wagering in the state.

The Monmouth RFP will include provisions for four off-track wagering parlors assigned to the NJSEA. Christie recently conditionally vetoed OTW legislation and suggested changes in light of ongoing negotiations; the bill currently requires license-holders to show “progress” in developing OTW parlors by January 2012.

Thus far the NJSEA has opened only one of nine possible betting facilities. Two private track operators in New Jersey have each opened one, but they only each get three.

“In furtherance of our efforts to develop a self-sustaining horse racing industry, my administration is also pursuing the sale or lease of Monmouth Park,” Christie said in his OTW veto letter. “In connection with these proposed transactions, the assignment of additional off-track wagering locations by the (NJSEA) may be necessary. Thus, it is essential that the administration and the authority retain the flexibility to assign off-track wagering licenses in connection with the sale or lease of Monmouth Park.”

Under the Meadowlands plan, Gural would also get four of the OTW parlors assigned to the NJSEA.
The New Jersey Racing Commission has awarded 141 racing days for Monmouth in 2011, though racing representatives have expressed interest in repeating last year’s experiment whereby 71 dates were raced with substantially higher purses. There was, however, a $20 million casino purse supplement in 2010; that money is gone.

It remains to be seen what the Monmouth calendar will look like this year. Legislation signed by Christie to enhance the Atlantic City casino industry included $30 million for purses over three years, but sources indicated the governor is expected to veto any action taken by the NJRC concerning payment of the $30 million ($15 million this year, $10 million in 2011, and $5 million in 2012).

Privately owned Atlantic City Race Course and Freehold Raceway have made known they would like a cut of any purse supplement and have submitted a proposed formula for how the funds could be divvied up.

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February 10, 2011
BIDDERS JOCKEYING TO CLAIM MONMOUTH PARK
Written by BOB JORDAN, NJ PRESS MEDIA
STATEHOUSE BUREAU

TRENTON — A British-based company that runs the world's most popular betting exchange is a potential bidder for Monmouth Park, the state-owned thoroughbred track that Gov. Chris Christie wants to unload.

Betfair, which claims to have 3 million customers who bet more than $80 million per week, is not the only high-profile entry in the race to take the showcase Oceanport track private.

Other front-runners include Morris Bailey, who led a purchase of the Resorts Atlantic City casino for $31.5 million last year; and Jeff Seder, founder and CEO of Blow Horn Equity, which bid in a planned sale last year — later canceled — of two Maryland Jockey Club racetracks.

Christie three weeks ago said state officials would issue a request for proposals for the sale of Monmouth Park, along with rights to operate off-track wagering sites. Christie hasn't ruled out leasing the track.

Seder said he's been waiting to see the RFP, a document that specifies terms for a transaction.
"They say they'll decide soon (on issuing an RFP)," Seder said. "I've been trying since last October to get financial info so I can bid intelligently."

Assemblyman John Burzichelli, a Democrat from Gloucester County, said he "wouldn't be surprised if the RFP was circulated in the next couple of days." Burzichelli has sponsored numerous horse racing industry bills.

State officials took steps to lease both Monmouth Park and the Meadowlands Racetrack as a package in 2004 but backed off, despite standing to collect as much as $300 million annually from the winning bidder. The potential price was inflated because the Meadowlands was considered a logical site at the time for installation of slot machines. Christie says he is against expanding casino gambling outside Atlantic City.

Churchill Downs Inc., which hosts the Kentucky Derby and owns four racetracks as well as other slot and gaming operations, was involved in the 2004 bidding. Spokeswoman Julie Koenig declined to say whether the company still has an interest in coming here.

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Betfair wants to raise its stake in the New Jersey racing industry, said Stephen Burn, the chief executive officer for the TVG horse racing television network, a Betfair subsidiary.

The company broadened its U.S. presence in 2009 when it bought TVG for $50 million.
Betfair has successfully lobbied to bring exchange wagering to New Jersey. The new eBay form of gambling, where bettors with opposing opinions are paired at fixed odds, was signed into law by Christie on Jan. 31, though the program is on hold until the betting rules are reviewed by the state Attorney General's Office.

Burn said Betfair is anxious for a formal sale or lease process to begin.
"We're keen to understanding any opportunities that will increase our presence in New Jersey," Burn said. "We've been in the state for a number of years with New Jersey tracks being featured on TVG since the late 1990s."

Betfair is bullish on the New Jersey racing industry, Burn said — despite Christie repeatedly stating that racing is a losing bet when tracks are owned by taxpayers.

"New Jersey has a fantastic horse racing heritage. Betfair and TVG are absolutely committed to having a role. The racing product at Monmouth Park was vastly superior last summer. Similarly, the Meadowlands presents the most eminent harness racing destination in North America," he said.

Betfair wants to raise its stake in the New Jersey racing industry, said Stephen Burn, the chief executive officer for the TVG horse racing television network, a Betfair subsidiary.

The company broadened its U.S. presence in 2009 when it bought TVG for $50 million.
Betfair has successfully lobbied to bring exchange wagering to New Jersey. The new eBay form of gambling, where bettors with opposing opinions are paired at fixed odds, was signed into law by Christie on Jan. 31, though the program is on hold until the betting rules are reviewed by the state Attorney General's Office.

Burn said Betfair is anxious for a formal sale or lease process to begin.
"We're keen to understanding any opportunities that will increase our presence in New Jersey," Burn said. "We've been in the state for a number of years with New Jersey tracks being featured on TVG since the late 1990s."

Betfair is bullish on the New Jersey racing industry, Burn said — despite Christie repeatedly stating that racing is a losing bet when tracks are owned by taxpayers.

"New Jersey has a fantastic horse racing heritage. Betfair and TVG are absolutely committed to having a role. The racing product at Monmouth Park was vastly superior last summer. Similarly, the Meadowlands presents the most eminent harness racing destination in North America," he said.

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February 2, 2011
CHRISTIE SIGNS HORSERACING SUBSIDY LEGISLATION BUT STILL HOLDS VETO POWER
By Matt Hegarty, Daily Racing Form

New Jersey Gov. Chris Christie signed legislation on Tuesday that could direct $30 million from Atlantic City casinos to horse racing purses over the next three years, but it remains unclear if the money will ultimately find its way to the state's racetracks.

Christie has consistently said that he will not support subsidies to the racing industry as the state seeks solutions to closing a budget deficit. On Wednesday, a spokesman for the governor, Michael Drewniak, did not back away from that statement, but he also did not make it clear whether the governor would use his veto power over the New Jersey Racing Commission to block the distribution of the subsidies to Thoroughbred and harness tracks.

"The governor's goal remains the same, to have Thoroughbred racing become a self-sustaining business model in New Jersey, operating free of taxpayer subsidies," Drewniak said. "His administration continues to work with the respective parties to that end."

Uncertainty over the subsidies and the fate of Monmouth Park and the Meadowlands, which are both owned by the state, has left the racing industry in limbo. Although the commission has approved a total of 141 Thoroughbred dates for 2011, many in the industry had hoped to receive subsidies for purses in order to pare racing dates from the schedule and put on a boutique-type meet at Monmouth Park for the second year in a row. The state is also trying to negotiate a lease of the Meadowlands and is exploring a sale of Monmouth, muddying the waters even further.

Under the bill, a commission funded by the casinos would be required to send $15 million to the New Jersey Racing Commission this year to be distributed to racetracks for purse subsidies, along with $10 million in 2012 and $5 million in 2013. Governors in New Jersey, however, have an unusual power to veto actions taken by state agencies, so Christie could use that veto to block the distribution of the subsidies.

Under a three-year agreement that expired last year, the casinos provided $30 million a year to the state's Thoroughbred and harness industries, in exchange for the industry's vow not to seek slot machines.

State Sen. Jennifer Beck, who represents the district where Monmouth Park is located, said that she believed the subsidies were necessary to give racing time to experiment with strategies designed to reverse the sport's long slide.

"If the governor deems it necessary to help in this transition, there is funding from the Casino Reinvestment Development Authority that may be made available to the horse racing industry, thus ensuring New Jersey retains a diversified entertainment industry that includes both casino gaming and horse racing," Beck said, in a prepared statement.
Last year, Monmouth Park used $19 million of the casino subsidy to support purses for a 48-day meet at Monmouth in which average purse distribution hit nearly $800,000 a day, highest in the country. Handle and attendance during the meet skyrocketed, but it remains unclear if the meet was profitable.

Dennis Drazin, the chairman of the state racing commission and the former president of the New Jersey Thoroughbred Horsemen's Association, said on Wednesday morning that Christie had not stated his intentions to the commission.

"It would be premature for me to put out any comment until we have heard from him," Drazin said.
 

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