As New Jersey Tightens Its Belt, the Racing Industry Holds Its Breath
By BILL FINLEY
Published: January 30, 2010
EAST RUTHERFORD, N.J. — Meadowlands Racetrack has had some of the highest-quality harness racing in the country and dozens of the sport’s most important races. But in recent years, the track has become a money-losing drain on the state of New Jersey, which now threatens its survival.
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Bill Denver/Equi-Photo, via Associated Press
Thoroughbreds in 2007 at Meadowlands Racetrack, which may have to drastically cut back on racing to save money.
A report issued this month by a committee put together by Gov. Christopher J. Christie before his inauguration to come up with solutions to the financial problems of the New Jersey Sports and Exposition Authority made several suggestions that, if put in place, could all but gut the state’s racing industry. The suggestions included possibly closing Meadowlands Racetrack and drastically reducing the number of racing days at Monmouth Park.
The Sports and Exposition Authority is a state-run agency that owns the Meadowlands, Monmouth Park and portions of the state’s off-track betting system. The committee projected that the Meadowlands and Monmouth would lose a combined $22 million in 2010, a loss some lawmakers find difficult to justify given the state’s fiscal crisis.
In the report, the committee insisted that “the status quo is not sustainable” when it came to New Jersey racing.
“We know that the frankness of that report will have raised fears with certain interested groups and constituencies,” said Michael Drewniak, a spokesman for Christie. “In a sense, we’re glad that happened because if it wasn’t clear to everyone that these are the realities, it should be clear.”
The report calls for live thoroughbred racing in the state to be reduced to 50 days, 91 fewer than were run in 2009 at Meadowlands and Monmouth. Monmouth is scheduled to conduct a 93-day meet in 2010.
The report also calls for the state to consider closing the Meadowlands track and selling the property for commercial development or turning it into a Nascar facility.
It goes on to warn that “without outside financial resources, the authority will be forced to discontinue racing operations in 2010.”
John Campbell, the leading driver in career wins and earnings at Meadowlands, said that “anybody who takes this report lightly is sadly mistaken.”
Campbell said, “The governor put the committee together for a reason, and if this is what they are recommending, this is a scary situation.”
With racing dates set for 2010 and with contracts with thoroughbred horsemen’s groups guaranteeing 141 racing days, it may be difficult to make any major changes this year. Horsemen expressed worries about the future, however.
“If they follow through with some of these recommendations, is it the end of racing in New Jersey? Yes, it will be the end of racing in New Jersey,” said Tom Luchento, the president of the Standardbred Breeders and Owners Association of New Jersey. “They’ll be leaving New Jersey in caravans for tracks for other states.”
Horse racing has been struggling throughout the country, but some states, including New York, Pennsylvania and Delaware, have improved the quality of racing with subsidies from slot machines. That has helped funnel gambling dollars away from the New Jersey tracks.
New Jersey tracks have not been allowed to have slot machines, largely because of the political clout of the Atlantic City casino operators, who do not want in-state competition.
Neither Christie nor his predecessor, Jon S. Corzine, has been a proponent of racetrack slots. The report implored the industry to come up with additional means of financing to save itself, but it made no mention of adding slots at Monmouth or Meadowlands.
Mike Gulotta, a harness horse breeder, was the only member of the 13-member committee with ties to the racing industry, which, some critics maintain, is why the final report held out so little promise for the industry.
“The report favored what has traditionally been the casino’s position, which is nothing for horse racing,” said Barbara DeMarco, a lobbyist who represents thoroughbred owners, trainers and breeders in the state.
With slot machines nowhere on the horizon and with Christie likely to demand that the tracks find a way to stem their tide of red ink, Meadowlands and Monmouth officials may have to consider large reductions in racing schedules and drastic cuts in purses, industry officials say.
But that could lead to poorer-quality racing and only accelerate declines in betting handles at both tracks, industry officials say.
“Everybody understands the situation and how serious it is,” said Bob Kulina, the general manager for thoroughbred racing at Monmouth and Meadowlands. “What we have to do now is come up with some sort of solution.”