I agree, and since AC controls all the politicos in NJ it ain't happening. I used to be a frequent visitor to AC, but no more. As much as I love gambling, I'll never spend another cent in AC if they end up running the tracks out of business by keeping away slots at the Meadowlands.
The $1 plan only applies to the Meadowlands. See option 3 from the report. I vote for option 1. 4 seems totally unrealistic.
2. Potential Options for the Future
a. OPTION 1: Thoroughbred racing at Monmouth and Atlantic City
This option would eliminate harness racing and thereby remove the largest
portion of NJSEA’s financial losses. Other elements of this option might include the following:
• Conduct a 50‐71‐day meet at Monmouth Park and potentially 10 days of
turf racing at Atlantic City.
• Allow Freehold to retain its OTW license and its right to build additional
OTW parlors. If Freehold declines its option to build additional OTW
parlors, the license would revert back to the NJSEA (time frames must be
established).
• Have the NJTHA agree to drop the contractual requirement for the NJSEA
to pay $4.7 million toward purses.
• Create a special fund for standardbred awards for owners and breeders
that win races out of state.
• Convert the front paddock area at the Meadowlands into a 50,000 square
foot OTW parlor and utilize the remaining paddock space for NJSEA office
space.
• Assume the Bayonne OTW parlor to be operational in 2012; assume one
additional OTW parlor to be operation in 2013 and one in 2014 with rents
above Woodbridge and below Bayonne, square footage the same as
Woodbridge and handle projected at $71 million.
• Treat all future OTW parlors as renovations.
• Develop a reuse for the Meadowlands racetrack consistent with sports,
entertainment or other public events or facilities.
• Grow account wagering by 3% ‐ 4% a year for the next five years.
• Remove Freehold from a share of account wagering profits based upon
an agreement that Freehold will retain and build out their OTW licenses.
There is currently a 70% ‐ 30% split between Freehold and NJSEA with
NJSEA being responsible for operating the entire business.
b. Option 2: Thoroughbred Racing at Monmouth and potentially 10 days at Atlantic City and 70 standardbred dates at Monmouth.
This option would relocate a shorter standardbred meet from the Meadowlands
to Monmouth Park:
• Legislation would be needed to change race dates as well as rules
governing OTW parlors and account wagering.
• Thoroughbred horsemen would have concerns about this option due to a
real or perceived change in the racing surface.
• Negotiations to rearrange live racing from Freehold would be challenging.
• There would be additional costs to add lights (track, building and parking
lots) to Monmouth Park to allow for night racing.
• A front paddock would have to be added at Monmouth to allow for
standardbred racing. The estimated cost of this addition is $8 million ‐
$12 million.
• Additional winterization of Monmouth may be necessary.
• Two harness tracks would be competing in the same market.
c. OPTION 3: Lease the Meadowlands Racetrack to the standardbred horsemen for $1 dollar a year for three years with early termination rights and an equity‐based share of the Bayonne OTW parlor.
This option provides the Standardbred Industry the opportunity to continue
racing at the Meadowlands:
• Standardbred horsemen would be responsible for all operating expenses.
• Standardbred horsemen would be responsible for the racetrack share of
the payments in lieu of taxes currently at a total level of $2.5 million per
year.
• Standardbred horsemen would be responsible for capital improvements
estimated to be in the range of $2 million.
• There would likely not be sufficient purse money in the State to support
quality racing.
• The NJSEA would lose the right to build a Meadowlands OTW parlor
resulting in an $8 million reduction in NJSEA income.
• The Commission proposes that the lease be for a three year term at
$1.00/year net (tenant pays all expenses).
• Standardbred horsemen could become equity investors in OTW facilities.
• Potential to convert the front paddock to an OTW parlor and run a 50‐day
championship meet at the Meadowlands Racetrack.
d. OPTION 4: Private entities could be encouraged to buy and convert to a
commercial use one of the standardbred farms in New Jersey that has a mile track, and build a 5,000 seat grandstand complete with all necessary amenities. Included in this option would be the construction of an OTW parlor at the Meadowlands so as not to lose the northern New Jersey standardbred market. The major difficulty with this option is the competition from Freehold and the challenge to work out agreeable racing dates. Freehold, unfortunately, has a ½ mile track with little room for expansion.
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