Odds On Racing - Harness Racing

NJ Continues Push for VLTs

February 20, 2008

A new push by horsemen for installing video lottery terminals at New Jersey racetracks has attracted backing from sympathetic state legislators as discussions over renewed purse subsidies from Atlantic City casinos are stalled.

For the past four years, the casino industry added supplements to horse racing purses — the supplements totaled more than $80 million — in exchange for the racetracks not pursuing the slot-machine-like VLTs. But the money has run out, and one track, Freehold Raceway, has cut its purses twice since the start of the year. The Freehold purses have dropped from an average of $53,000 a day to $34,600.

Gov. Corzine's administration has presided over negotiations with the casino industry. Administration officials said those talks are continuing.

But Thomas Luchento, head of the association representing harness racing horsemen, said, "Time after time we have received assurances that we will get the purse supplement. We share the frustrations of our membership that this is not a done deal as yet. Gov. Corzine assured us in October that he would protect the future of racing in New Jersey."

State Sen. Jennifer Beck, R-Monmouth, said momentum is growing among legislators to consider allowing VLTs at the racetracks. Beck said she and Sen. Paul Sarlo, D-Bergen, had a conference call with a casino industry representative last week, but it did not leave them encouraged that the stalemate would soon end, she said.

"VLTs at the racetracks were not implemented because of the subsidy agreement, and the casinos in turn were to support the racing industry," Beck said. "That support has stopped. Every state around us has VLTs or similar forms of added gambling at the racetracks. "

"All-out push" vowed Luchento, president of the New Jersey Standardbred Breeders and Owners Association, said he and other racing officials are ready to make an "all-out push" for VLTs "if they don't come up with the purse supplement."

"We don't want to go through this process again," Luchento added. "We are asking our horsemen at Freehold to be patient and give this process a chance to play out. It is not easy to ask them to do this as they've already seen their purses slashed . . . a total of 27 percent."

The lack of purse subsidies has had no impact yet at the two state-operated tracks — Monmouth Park and the Meadowlands Racetrack. Monmouth Park's live racing season does not begin until May. Officials at the Meadowlands have retained the track's purse structure at previous levels in anticipation of a subsidy agreement.