News
Racetracks Second To Atlantic City In Governor's Report
By Ryan Fennell
OCEANPORT - The state of the gaming industry in New Jersey isn't what it once was.
According to the "Report of the Governor's Advisory Commission On New Jersey Gaming, Sports and Entertainment," released last week by Governor Chris Christie, casino gaming in Atlantic City is at a critical crossroads, having lost more than 25 percent of its gross revenue base.
The report includes a number of recommendations for improving the cityi's infrastructure and attracting more tourists.
The advisory commission created by Christie also took a look at New Jersey's horseracing industry and made several recommendations.
The first, which has already been implemented, was the immediate implementation of an experimental 50-day meet at Monmouth Park with $1 million a day purses.
Twenty-seven days into the 50-day meet, Monmouth Park has received $270 million in bets placed. That figure reflects a 121 percent increase over 2009.
The report also recommended that the New Jersey Sports and Exposition Authority be divested of all responsibility for the operation of Monmouth Park Racetrack, Meadowlands Racetrack, and the IZOD Center.
Such a move would mean that the state would no longer subsidize the racing industry, opening the door for private investment and operation.
"I do think that it's important to seek private investment for the track," said State Senator Jennifer Beck (R-12). "That is not an immediate process. It's a public process, a public bid."
Beck said that she expects that over the course of the next two years private investment would be sought to buy and operate the racetrack.
"That isn't necessarily a bad thing," she added. "It's something the horseracing industry has talked about for a long time and been very open to."
"We've got to be very cautious about how this transition occurs," Beck continued. "When we do get a private investor [we need to be sure that] they have the right motivations and do not simply come in to buy up competition."
The Borough Council in Oceanport, where Monmouth Park is located, issued comments on the commissions recommendations that very little that was recommended came as a surprise to the council.
"Many conclusions reached in the report are well known," the release states. "The recommendations on how to move forward however, have been hard to come by; although many have quietly feared them for years."
"The prospect of private ownership or privatization through lease or license agreements is not immediately cause for alarm although the borough will require any number of protections prior to such an arrangement taking place," the statement continued. "In the end, the preservation of horse racing and jobs locally, the equine industry and open space across the state, as well as the preservation of this historic racetrack is the shared interest of many."
While it seems that some of the recommendations have been obvious and even sought after previously, there is a critical element of the report currently missing according to Beck.
"There is a glaring omission in the fact that there was no discussion or analysis done on exploring the possibility of other gaming venues," Beck said. "There should have been a hard look at the revenue and jobs that could be generated and the impact on Atlantic City should have been examined thoroughly because it is folly to think that all this competition on our borders will not have any future effect on horseracing and the Atlantic City casinos."
According to the commissions report horseracing in New Jersey was a profitable industry until 2007.
"With the advent of casinos in Pennsylvania we lost our competitive edge because they were providing much higher purses," at the racetracks Beck said.
"You could win a lot more money as a horse owner and as a bettor in Pennsylvania than you could in New Jersey."
Beck has introduced legislation that would allow for slot machines and other gaming to be implemented at the Meadowlands Racetrack.
According to the bill, during the first three years of operation, 15 percent of the revenues generated would be dedicated to infrastructure improvements in Atlantic City. Twelve percent would be used to enhance purses for winning horses the Meadowlands Racetrack and Monmouth Park Racetrack. Three percent would fund programs for breeding horses and the remainder would be used for state institutions and state aid for education.
"We should have a conscious decision based on data as to whether or not we should expand gaming beyond Atlantic City," Beck said. "That research was not done and that is an enormous failure of the report."
Legislative leaders have called for a Gaming Summit to be held and Beck said that she expects to be a part of the committee.
"It is my understanding that I will be a member of that committee examining gaming issues in the State. My bill will be one of the bills that is looked at," Beck said.
