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New Jersey Tracks, Casinos Weigh Options

NEW JERSEY – As reported by the Press of Atlantic City: "In the days before Pick 6 and jackpot slots, horses were the only legal bet in town.

"Today, the sport of kings runs a distant third on New Jersey's gaming circuit. When the Garden State welcomed casinos and the lottery, horse racing lost not only its throne but most of its profits and attendance, and almost all of its live racing in the southern half of the state.

"…Ironically, it is the loss of an East Coast monopoly for the casino industry that could either sound the final horn for racing or provide its chance to finally get off the dole.

"…Those who have pushed for racetrack slots for years see an opening. There is a standing offer to casino executives to lease the Meadowlands and Monmouth Park - both of which are owned by the state Sports and Exposition Authority - and operate the slot machines there. For it to happen, though, racing interests must convince the gaming industry that such a move would not harm, but actually protect and even benefit, their investment in Atlantic City.

"…The argument goes like this: By operating slot machines at the Meadowlands and Monmouth, casinos could protect against losing customers to slot parlors at Yonkers Raceway, which are slated to open next year. A portion of the slot machine money could then go to a fund for hotel rooms in Atlantic City.

"The Casino Association considered such a proposition this year and took a pass. Instead, they opted to pay $86 million over four years to help increase horseracing purses, in exchange for not pursuing racetrack slots. For now, it is a sweetheart deal for Atlantic City. Two-thirds of the money comes from dollars the industry is required to pay to the Casino Reinvestment Development Authority fund. But the agreement could become less enticing if Yonkers cuts significantly into Atlantic City's bottom line.

"Notably, the purse agreement includes an escape clause. Although casino executives are not talking publicly about it, the four-year timeline appears more a suggestion than an ironclad rule. The Casino Association discussed the racetrack slot issue as recently as Tuesday. Several Statehouse sources insist the association agreed to remain united against operating slots at New Jersey racetracks for one year. In Atlantic City, no one would confirm or deny such an agreement…"

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