NJ Casino Revenue for Tracks
 

Didn't see this mentioned anywhere. I don't have a link for it, so I posted the content.


By TOM HESTER Jr.
Associated Press Writer
TRENTON, N.J. (AP) -- Atlantic City casinos have agreed to boost
financial help for New Jersey's struggling horse racing tracks, but
video lottery terminals would still be banned in the state under a
deal announced Monday by Gov. Jon S. Corzine.
The deal is meant to boost horse racing tracks while protecting
casinos from new in-state gambling competition.
Under the agreement, casinos would provide $90 million over
three years to the horse racing industry, largely to supplement
racing purses but also to support equine breeding.
The casinos provided $86 million to the horse racing industry
over the last four years.
In return, video lottery terminals would be banned in New Jersey
for at least three more years. Video lottery terminals are
electronic gambling games that can simulate casino games such as
poker and slot machines.
Horse racing tracks have lobbied for years for approval to put
the lottery terminals at tracks so they could compete against race
tracks in nearby states that now offer them or slot machines, but
the casinos have opposed that move.
"Both the equine industry and the casino industry play
important roles in New Jersey, from preserving open space to
attracting visitors, and it was essential to strike a balance that
will allow both industries to thrive," Corzine said.
He said the agreement involves no taxpayer dollars and will not
cut casino tax revenues for the state.
New Jersey's horse racing industry has sought increased state
assistance as wagering decreased in recent years.
Wagering on New Jersey horse races declined 25 percent to $924
million in 2006 from 1999, according to a state-paid study released
last year.
That study estimated New Jersey would earn as much as $433.5
million annually by putting video lottery terminals at horse racing
tracks, but that the new gambling would hurt Atlantic City casinos
struggling with increased competition from other states.
North Jersey legislators have long advocated putting video
lottery terminals at the Meadowlands, but South Jersey legislators
have fought them, worried the terminals could lure customers away
from Atlantic City.

Good news for Monmouth and Meadowlands for 3 years

Yes, but eventually there will be a show down. As the AC casinos continue to lose money to neighboring states, there will come a time when they balk at paying the "non-competition" premium to the tracks.

Very true, perhaps in 3 years though 30 million is a small price to pay for no instate competition. It is troubling that the NJ tracks cant get a longer term deal with a very pro-racing governor in office. I know this has been brought up in another thread but in 7 or 8 years we could be looking at a no Monmouth, Gulfstream, Santa Anita, racing in Ohio and perhaps Northern California. It may not be likely but it is more of a possibility each passing year.

Monmouth isn't going anywhere........If it takes subsides to support a business then unfortunately the business is pretty crappy.

Thanks Adam Smith

In 1760 horse racing was a gentlemen's sport

You mean it isnt gentlemanly anymore?

It's the sport of Kings, and Budwiser is the King of beers.

Your Funny Chuck...Obviously a few bad apples spoiled the barrel.

Casino subsidies/Slots = Welfare for bad horses.

These gaming companies look 10-20 years ahead and racetracks and horsemen cannot and take whatever they're offered.

If a track can't make it, it should shut down. If some people lose jobs, they'll find others. Why should racing be different than other industries?

Dude you are worse then me

I doubt he thinks everyone should be armed with firepower though.

The horsemen's groups are notorious for taking bad deals. These gaming corps may spend $50 mil to put in slots but they are paying it off in 30-50 years. And they set up deals with the horsemen for 3-4 years.

Mountaineer cut purses sharply. The same will happen everywhere else as the casino people hold all the cards and can look long term.

Sometimes it doesn't even take a year.

Pompano Harness put in slots a year ago. Purses went up and, surprisingly, so did handle. Last month they announced a 30% purse cut as well as a 20% reduction in racing days.

Slots are doing better than expected, netting $5,000,000 a month.

So why reduce annual purses from $12 Million to $6 Million? The Casino's answer was "because that is all we are required to do by law."

I Know there are some assemblymen from SJ that want to get Sports Betting into AC casinos. This is probably in response to the Race slots in the neighboring states.. If they get on this like the OTB's... that should happen in about 50 years...

Well, as an owner who absolutely looks forward and loves racing at Monmouth -- this is, short term, good news. I will see the details and specifics of the deal as soon as it gets memorialized, however, if it's similar to the structure of the last deal, this is good news -- again short term.

However, for the long-term health and well being of the industry -- state wide -- there needs to be a long term solution and strategic plan; or else the industry will atrophy over time. Sports gambling adds an interesting aspect to this. This has long been on the agenda, and the casinos are getting more support now than ever before. Corzine is the right guy in the office to make it happen.

Anyway, $90m over 3 years -- I can't wait to see the condition book, LOL.

Eric