Odds On Racing - Harness Racing

Christie's Position on Racing Awaited

January 3, 2010

Horse racing officials and lobbyists say the odds are against the industry surviving in New Jersey without new funding sources. They also say there is no clear sign of how Gov.-elect Chris Christie will referee squabbles between racing and casino interests — even as Christie's administration is moving to take the reins of state government in less than three weeks.

Monmouth County is home to two of the state's four racetracks. The sport is reeling from unprecedented downturns in gambling on horse races. The state authority that operates Monmouth Park incurred about $10 million in losses at the Oceanport track this year.

The inauguration of Christie, a Republican, is Jan. 19. His spokeswoman, Maria Comella, could not be reached for comment.

Sen. Jennifer Beck, R-Monmouth, said gaming issues have "been given a high priority" for study by the Christie transition team.

"Chris is committed to not kick the can down the road. That's not acceptable anymore. There will be a resolution to it. My expectation is that once he gets to Trenton, hard decisions will be made," Beck said.

Racing officials have argued that the benefits of racing — through jobs and through maintaining open space for viable farm operations — justify adding slots gambling to racetracks to bolster revenues, but that proposal is opposed by Atlantic City casino officials, who claim it would create unfair competition.

Both sides could benefit with a shared casino operation at the Meadowlands Sports Complex in East Rutherford, said Thomas Luchento, head of the Standardbred Breeders and Owners Association of New Jersey, which represents harness horsemen at Freehold Raceway and the Meadowlands.

That operation also could produce significant tax receipts to help the state solve its budget woes, Luchento said.

"Nothing is going to produce the kind of money for the state that a gaming mall at the Meadowlands would produce," Luchento said. "To make the Meadowlands a first-class entertainment site with a casino, you're not creating a new gambling location because there is already betting at the racetrack there. We think that Meadowlands as a gaming mall can yield billions of dollars to revitalize racing and the state.

Efforts to resolve horse-racing funding issues under Gov. Jon S. Corzine stalled prior to the gubernatorial election when Corzine announced his opposition to installing slot machines at racetracks and then canceled meetings of a panel studying the proposal.

Carl Goldberg, chairman of the New Jersey Sports and Exposition Authority, which operates Monmouth Park and the Meadowlands, said Christie hasn't given any signals on his gaming stance.

"I don't have any sense if the new administration has formulated any opinion on what support they'll continue to offer the horse racing industry," Goldberg said. "We haven't had the opportunity to make a presentation on what's facing the industry and whether the administration should be supporting it."

"It's not a secret that the Sports Authority loses a significant amount of money fulfilling state mandates on the number of racing days we present. Clearly the new administration and the Legislature are going to have make decisions on if the benefits of racing outweigh subsidy plans," Goldberg added.

Oceanport Mayor Michael Mahon, a Democrat, said, "Christie is aware of the problems facing the industry and knows that the issue can no longer remain on the back burner. That's good news for Monmouth Park because a committed approach to the funding dilemma is a welcome change."

Mahon said the borough has a stake in Monmouth Park's future.

"Oceanport is a partner with Monmouth Park on environmental and business enhancement issues. Together with the governor-elect, there will be new opportunities to improve the outlook for horse racing in New Jersey with a fresh approach from Trenton," Mahon said.