Hanson Report: No Benefit for Monmouth Park, Horse Owners, Race Fans

By Joe Irace

The latest version of The Hanson Commission’s Report on gaming does nothing for the long term benefit of Oceanport and/or Monmouth Park and puts the Standardbred and Thoroughbred owners and trainers at odds with each other.  The report calls for bringing Harness Racing to Monmouth Park to run at night in the winter months.  The estimated costs to the State of New Jersey for the winterization of part of the grandstand, changing track surfaces and reconfiguring some of the barns for Standardbred Horses is $4.6 million.  Winter harness racing would necessitate the installation of lights at our “historic” track right in center of a residential neighborhood.  While we as a Council would love to do whatever it takes to protect Monmouth Park and help it not only survive, but thrive, this Commission’s proposed plan ignores the most obvious socially and fiscally responsible solution: allowing for the installation of video lottery terminals, slot machines or a gaming casino at the Meadowlands.

Both the Standardbred owners and the thoroughbred owners are united in their opposition to a dual meet at Monmouth.  The Standardbred owners have perhaps the best track in the country, at the Meadowlands, located in an industrial area off of Route 3, 7 miles from midtown Manhattan.  It is foolhardy to expect their loyal patrons to travel 1 hour South of East Rutherford to Oceanport to enjoy Harness Racing when Yonkers Raceway, 30 minutes away from East Rutherford, offers the same product AND a casino.  The thoroughbred owners have enjoyed Monmouth Park for years and would much rather race on the surface that currently exists. Let’s not forget that   the two most interested parties, the horsemen and the general public, are clamoring for a racino at the Meadowlands facility, the Commission dismisses the idea out of hand in favor of a proposal that provides neither party with what it wants.

Two reports by Christiansen Capital Advisors, commissioned by the New Jersey Department of Treasury, recommended the installation of slot machines at the Meadowlands. The reports stated that 5,000 machines at the Meadowlands would produce $750 million annually and that 10,000 machines would produce $1.5 billion annually. The same study suggested that 2,100 slots at the Meadowlands would reduce Atlantic City gross gaming revenue by a mere .01 percent.

Senator Sean Kean recently said on the New Jersey Senate floor “if it (a Racino at the Meadowlands) were put to a vote we’d probably get a majority, if not a super-majority (in support), to save horse racing in the state of New Jersey.”  Despite the overwhelming financial benefits flowing from such an arrangement, the Hanson Report summarily dismisses the installation of Video Lottery Terminals, slot machines or a gaming casino in the Meadowlands.

Chairman Hanson, through his Commission, which, interestingly, includes no horsemen, refuses to acknowledge the viability of the racino model and, instead, continues to dump on our horse racing industry and the 7,000 jobs, $110 million in federal, state and local taxes, and 57,000 acres of working agricultural landscape which come along with it. Racinos around the country employ nearly 30,000 people. Bringing racinos to New Jersey will create thousands of new jobs. Additionally, it will solidify many jobs that may be in danger of leaving our state in favour of states that have already authorized racino legislation. Racinos are a proven model that states around the country are turning to for gaming. Twelve states have already implemented racinos and many more are debating proposals to allow them in the near future. In 2009, racinos around the country generated $2.6 billion dollars in tax revenue for state and local governments. Additionally, they strengthen the state’s agricultural industry. Racinos allow existing racetracks to grow their purses, spurring new investments in breeding racehorse ownership throughout the state. Additional racehorses will create more jobs and improve the overall economic impact. As Delaware, Pennsylvania, New York and the nine other racino states can attest – racinos improve the rural economy.

Racinos that have reinvested their windfalls into racing, such as Sunland Park in New Mexico which hosts the Grade 3 Sunland Park Derby, which Mine That Bird used as a launching pad to his Kentucky Derby victory, and Prairie Meadows in Iowa, which hosts the Iowa Festival of Racing, with three graded stakes that attracted full fields of competitive, quality horses in 2010 are just two examples of the proven business model.

Let’s do everything we can to get this matter to a vote of the New Jersey legislature as soon as possible!

Joe Irace is the Council President of Oceanport, NJ

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Beck Applauds Passage of Off-Track and Exchange Wagering Bills

Two bills sponsored by Senator Jennifer Beck (R-Monmouth) that would help New Jersey’s horseracing industry were unanimously passed today by the Senate State Government, Wagering, Tourism and Historic Preservation Committee.

“Horseracing is a vibrant, vital component of New Jersey life and culture,” Beck stated. “The horse racing industry provides thousands of jobs, contributes over one billion dollars a year to our state’s economy and keeps about one-fifth of the state’s total acreage in agriculture. The two bills passed today address the long-term future of the horse racing industry by encouraging it to expand and move forward.”  

 The first bill (S-829) would allow New Jersey to be the first state in the country to offer “exchange wagering” on the results of horse races.  Exchange wagering is a form of wagering in which two or more persons place directly opposing wagers on the outcome of a horse race or races.

The second bill (S-1980) amends New Jersey’s “Off-Track and Account Wagering Act,” to facilitate the establishment of off-track wagering facilities in the State. Currently, only three of the State’s 15 off-track wagering licenses 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.”   

Beck has been a strong voice in the Legislature for the horseracing industry. The Senator has put forth a number of proposals to grow the sport and hosted a  bipartisan Equine Symposium in September. In July, a bill sponsored by Senator Beck was signed into law that decreased the number of annual race dates at both the Meadowlands Racetrack and Freehold Raceway, thus increasing the amount that can be offered in their purses.

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BIPARTISAN GROUP TO HOST EDUCATIONAL SYMPOSIUM

A bipartisan group of State Legislators will be hosting a Symposium on the Equine Industry in New Jersey on September 27^th at Perretti Farms, New Jersey’s largest horse farm, in Cream Ridge from 10 a.m. to 12 p.m. as an opportunity to educate fellow legislators and other New Jersey residents about the importance of horse and horse-related industries to the State’s economy.

The event is co-hosted by Senator Jennifer Beck, Assemblywoman Caroline Casagrande, Assemblyman Declan O’Scanlon, Assemblyman Ralph Caputo and Assemblywoman Connie Wagner.

“Recently,” said Assemblywoman Casagrande, “there has been a great deal of discussion about the future of the horse racing industry in New Jersey. It is our hope that this event will serve as an opportunity to learn about the present state of the equine industry, the challenges it currently faces, and possible solutions to make it once again a self-sustaining industry.”

“We are hosting this event at the largest standardbred horse farms in New Jersey,” said Senator Beck, “so that people can see firsthand the complexity and long term strategy needed to breed and raise racehorses. This fall, Perretti Farms has approximately 100 yearlings bred from some of the best standardbred horses in the State. Farms like this are an important economic engine for New Jersey.”

“Horseracing alone is a $4 billion industry in New Jersey,” said Assemblyman O’Scanlon, “and horse-related professions account for around 13,000 jobs in the State. This event will provide a venue for a discussion that all interested parties need to have about the survival and sustainability of this industry.”

Among the featured guest speakers are Karyn Malinowski, from the Rutgers University Equine Science Center; Anthony Perretti, a standardbred breeder; Tom Swales, president of the Thoroughbred Breeder’s Association of New Jersey; and Peter Furey, Executive Director of the New Jersey Farm Bureau.

This event is a bipartisan, educational opportunity to continue the discussion on the future of horse racing and gaming in New Jersey.

“Horse racing is an essential component of New Jersey’s gaming industry,” said Assemblyman Caputo, “and we must do all we can to support it by enticing customers back to the racetracks and the Atlantic City casinos alike.  The installation of video lottery terminals (VLTs) at the Meadowlands is something to seriously consider in order to stem the tide of gambling revenue flowing out of New Jersey to racinos and casinos in New York, Pennsylvania, Connecticut and Delaware.”

“Discussions such as the ones we will have at this Symposium are vital to continued economic growth in New Jersey,” said Senator Paul Sarlo. “I am eager to see in-depth discussions continue that include both the equine industry and casinos so that the best solution can be found for our State.”

Perretti Farms is located at 329 State Highway 526, Cream Ridge, New Jersey and can be contacted by calling 609-259-7555

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