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New Jersey Track Bailout Gets Preliminary Approval

ATLANTIC CITY, New Jersey – As reported by the Press of Atlantic City: "A state agency gave preliminary approval Tuesday to an $86 million deal that will bail out New Jersey's financially strapped horse racing tracks and prevent them from having video slot machines in competition with Atlantic City casinos.

"Most of the money given to the racetracks will come from the Casino Reinvestment Development Authority, or CRDA, a public agency that uses gaming revenue for new housing and economic development projects across the state.

"The casinos will use $52 million in CRDA funds and $34 million in direct out-of-pocket payments to subsidize three racetracks. In a side deal that was part of the negotiations, an extra $10 million in CRDA funding will go for development projects in northern New Jersey that have nothing to do with the horse racing industry.

"Under the proposal, the casino industry will give the Meadowlands, Monmouth Park and Freehold Raceway the money over the next four years to subsidize their purses and help them attract stronger horse racing fields.

"In exchange, the racetracks will abandon efforts to have video lottery terminals, or VLTs, for at least the next four years.

"…Casino executives and the horse racing industry have been negotiating for months with the Governor's Office on the agreement. The CRDA's board of directors gave the plan preliminary approval Tuesday and is expected to take a final vote next month after holding a public hearing…"

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