Odds On Racing - Harness Racing

NJ Tracks Struggling

January 16, 2008

New Jersey's three major racetracks are largely struggling to make ends meet, according to preliminary year-end business figures provided by the tracks Tuesday. Freehold Raceway cut the amount of purse money it pays out by 7 percent last month and also laid off four workers from its administrative and maintenance departments, said Donald R. Codey, the track's general manager.

Monmouth Park saw drop-offs in several business categories in 2007 and the races held at the Meadowlands Racetrack � like Monmouth Park, a state-operated facility--drew a relatively lackluster $440 million in bets, a $65 million drop from the previous year.

At Freehold Raceway, the only track operating on Tuesday, former Colts Neck resident Eric Abbatiello said he switched to a career in the harness horse racing business after working eight years as a stockbroker. Abbatiello said he believes the switch he made will prove out to be a winning bet.

"The purses we're racing for are going down, but the costs of staying in business are going up," said Abbatiello, 39, who now lives in East Windsor. "It's getting a little bit tight, but I think things are going to eventually improve."

Few share that outlook, however, and racing officials have pushed to have video lottery terminals installed at the Meadowlands to help prop up the industry with a new source of revenue. That proposal lacks Gov. Corzine's backing, however.

Corzine instead wants to provide subsidies to the state's horse racing and breeding industries, with the government and the Atlantic City casinos splitting the costs.

In 2004, the racing industry cut a similar deal with casinos, getting $86 million for purses over four years in exchange for not seeking state approval to install gaming machines at racetracks, but that agreement is expiring.

According to Corzine spokeswoman Lilo Stainton: "Things are still in the works. The governor understands the importance of horse racing to the state . . . and the administration continues to work with horse racing advocates, the casino industry and other stakeholders to find a way to stabilize the future of this sport."

West Long Branch resident James G. Aaron, a member of the state Racing Commission, which regulates horse racing, said action by the state is overdue.

"What I see for the racing industry is a very difficult year. The competition from the racetracks in neighboring states that already have additional revenue from slot machines is getting stiffer," Aaron said. "Stallions who have been here are being moved out of state, going where there are greater purses and greater breeding opportunities. The racetracks here can't offer competitive purses without the same kind of help racetracks elsewhere are getting."

Aaron added, "Somebody has to wake up before our breeding industry is gone and all these gorgeous farms are sold off and become housing subdivisions. Right now, it's bleak."

Codey, whose brother, Richard, is state Senate president, said additional purse cuts may soon have to be introduced at Freehold Raceway, where horse racing dates back to the mid-1800s.

"We're flying by the seat of our pants," Codey said. "We're hearing that Trenton is going to make a decision sometime this month about a racing industry subsidy. If it comes through we might be able to hold off on cutting purses, and perhaps think about restoring what was cut in December."

Business considerations also played a role in the Meadowlands cutting back on its racing schedule in 2007, said track spokeswoman Amy Silver.

"We decided to eliminate eight Wednesday programs last spring because we were seeing a decrease in the number of entries per racing day," said Silver, adding that an association representing horsemen and women consented to the cutback.

"The decision was made in an effort to maintain the quality of our racing product by bolstering field sizes per race and the number of races per card, which in turn create better wagering opportunities for Meadowlands bettors," Silver said. "Overlapping racing dates and purse structures subsidized by other sources of gaming revenue have created unprecedented financial opportunities for horsemen racing in the mid-Atlantic region. New Jersey's racetracks have obviously begun to feel the effects of this competition in the marketplace."

Monmouth Park for its traditional May through September meet had losses compared to 2006 in its total attendance and in the amount bet on the track's races, but posted higher averages per day. The track had 75 days of racing in 2007, compared with 89 the previous year.

Monmouth Park's 2007 average attendance of 8,971 is the third-lowest figure the track has recorded since 1970. The other low years were 2006 and 2003.

A highlight for the Oceanport track occurred when a crowd of 41,781 attended the featured Oct. 27 card of the Breeders' Cup championship races. The Breeders' Cup statistics are not counted in the track's 2007 business summary.

Aaron said the Breeders' Cup, held in New Jersey for the first time, provided a boost for Monmouth Park.

"We're not going to have that boost in 2008," Aaron said. "If we don't get competitive with our purses, at best we're going to be treading water."