NJ lawmakers consider future of horse racing, entertainment at the Meadowlands

NJ lawmakers consider horse racing’s future

EAST RUTHERFORD, N.J. — The long-running battle between northern and southern New Jersey over whether horse racing tracks should be allowed to install casino games was rekindled Friday during a legislative hearing at the Meadowlands that ended with no apparent consensus.

Opponents believe allowing gaming in the north would hasten Atlantic City’s demise. Proponents believe so-called “racinos” would help keep gambling dollars from leaving the state.

“Our alternate gaming proposals have never been about hurting Atlantic City,” said Tom Luchento, president of the Standardbred Breeders and Owners Association, who testified at the hearing. “We have suggested that the casino owners have the chance to benefit from slots at the Meadowlands as operators and with the cross-promotional opportunities that will help their revival as a destination resort.”

Luchento said 176,000 acres of equine-related acreage in New Jersey and 13,000 racing-related jobs are threatened. New Jersey’s tracks have been losing money for decades as casinos, the state Lottery and declining attendance all erode profits.

Nick Amato, a former horse breeder and one-time president of the New Jersey Casino Association, said the problems facing casinos and the state’s $1 billion racing industry must be solved separately.

Democrats in the Legislature convened the three-part hearing on the future of gaming after Republican Gov. Chris Christie recommended allowing casinos to keep the $30 million subsidy they pay to racing in exchange for keeping slot machines out of the tracks. Casino operators vehemently oppose diluting gambling revenue by allowing the tracks to install slot or video poker machines even though racinos and casinos have opened in neighboring New York and Pennsylvania.

Christie backed the recommendations of a special panel he appointed, calling for closing or selling the state-owned and financially struggling Meadowlands Racetrack, selling the underutilized Izod Center — which has lost its main tenants — the NBA’s Nets and NHL’s Devils, and giving state financial aid to finish the stalled Xanadu shopping-entertainment complex in the Meadowlands.

The governor also proposed a state takeover of services in Atlantic City’s casino district, citing the city government’s long history of corruption, its decades-long failure to deal with blight and a steady decline in casino revenues and jobs amid growing competition.

Amato said allowing gaming in the Meadowlands would be hurtful to casinos, a conclusion Christie’s recommendations seemed to support. He also endorsed Christie’s proposal to create a casino zone with state oversight, saying “dysfunction in Atlantic City” has dissuaded investors despite tax breaks not seen in rival Pennsylvania.

Revenue reports out Friday show Atlantic City casinos’ revenue was down 11.3 percent in August, the first full month of competition against table games in Pennsylvania. Slot parlors there have been siphoning off Atlantic City’s revenue for nearly four years.

A prior legislative hearing in Atlantic City focused on the casino industry’s future. The final session later this month will be held at Monmouth Park, a thoroughbred track. Christie’s proposals require legislative approval.

“Collectively, we will figure this whole thing out,” said Assembly Speaker Sheila Oliver.

“It’s not us against you or South against North,” Senate President Steve Sweeney told the horsemen at Friday’s hearing. “It’s about how we help the whole state.”

State Sports and Exposition Authority CEO Dennis Robinson said despite stepped-up efforts to increase the number of off-track betting sites in the state over the past two years, no new betting parlors have opened.

Robinson said four sites were identified as ripe for such parlors, but three were shot down by local officials and a fourth has hit construction snags. An off-track wagering in Woodbridge generates $90 million a year, he said.

Sen. Ray Lesniak urged the sports authority to also consider expanding online wagering, which would include online poker and other casino-type games.

Robinson said he’s working with the horsemen’s group to develop a long-term model for the sustainability of the racing industry and should have draft proposals soon.

After Friday’s hearing, Sen. Paul Sarlo, who chairs the Senate Budget panel, promised to try to find a source of funding to help the racing industry but didn’t specify where the money would come from.