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New Jersey Casino, Racetrack Deal Approved

16 June 2004

TRENTON, New Jersey – As reported by Press of Atlantic City: "A state agency gave final approval Tuesday to an $86 million deal in which Atlantic City casinos will bail out New Jersey's financially troubled horse-racing industry to prevent the tracks from installing video slot machines.

"Under the plan, the casinos will subsidize the purses at Monmouth Park, Freehold Raceway and the Meadowlands over the next four years. In return, the racetracks will delay their efforts to install video slot machines at least until 2009.

"The state Casino Reinvestment Development Authority wrapped up the deal Tuesday in what proved to be an anticlimactic vote following months of contentious negotiations between the gaming industry, the racetracks and the state's political leaders.

"…Casinos will hold on to their monopoly of the state's slot-machine business, while the tracks will now have larger purses to attract higher-quality races.

"…The way the deal is structured, the CRDA will supply $52 million of the $86 million in racetrack subsidies. The remaining $34 million will come directly from the casinos. The CRDA funnels casino revenue into development projects in Atlantic City and other parts of the state…"

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