September 26, 2007
Assemblyman Sean T. Kean/732-974-0400
11th District - Monmouth County

Senator Joe Kyrillos, Assemblywoman Jennifer Beck, Assemblymen Sean T. Kean, Sam Thompson and Joe Malone today held a press conference to welcome the Breeders’ Cup to Monmouth County and to highlight the challenges New Jersey’s horse racing industry is facing. The legislators were joined by horsemen who are concerned by the purse subsidy expiration for thoroughbred and standardbred races.

“A month from now Monmouth Park will host the Breeders’ Cup, one of the most prestigious horse racing events in the country,” said Kyrillos, R-Monmouth and Middlesex. “While we are happy to have been chosen to host this celebrated race it really brings to light the tremendous hurdles the horse racing industry in New Jersey is facing. This includes the strain that has been put on both the thoroughbred and standardbred racing industries by the looming purse subsidy expiration.”

The lawmakers also noted that Freehold Raceway, the oldest day time harness track in country, recently held the Cane Pace on Labor Day weekend. As the first leg of the Pacing Triple Crown, it is also another major racing event that highlights the need to address the issues impacting the horse racing industry.

Kyrillos went on to say that New Jersey’s horseracing industry hangs in the balance as the four year agreement concerning the supplementation of purses by casinos is set to expire on December 31st of this year.

“On October 15th, New Jersey’s ailing horse racing industry is set to receive their final subsidy payment,” added Beck, R-Monmouth and Mercer. “Currently, there is no agreement in place to supplement this vital industry beyond this date. The State's racetracks, as well as dependent industries, are looking to us to provide an immediate solution that guarantees their long-term viability.”

The Republican legislators noted that regional competition necessitates that New Jersey provide supplemental funding through the casino industry and the installation of video lottery terminals and slot machines at racetracks.

“As we speak, there are slots machines being installed at Pennsylvania racetracks and there are video lottery terminals raking in hundreds of millions of dollars at Yonkers Raceway in New York,” said Kean, R-Monmouth. “We need to take immediate action to ensure New Jersey’s horse racing industry remains competitive. The installation of video lottery terminals and slot machines at our racetracks is the only way we can guarantee that our purses will match these other states and continue to bring in top-tier competition.”

The legislators stated that both an additional subsidy from the casino industry and the installation of video lottery terminals are needed to secure New Jersey’s racing future.
“In Pennsylvania it took two and a half years to get the video lottery terminal facilities operational, while in New York it took four,” commented Thompson, R-Monmouth and Middlesex. “Furthermore, in New Jersey it has taken six years to get off-track betting parlors in service. These programs take time and that is exactly why we need a subsidy renewal to cover the period of time needed to get these facilities up and running at our racetracks. After that, the additional revenue brought in from these machines will help sustain New Jersey’s horse racing industry.”

The lawmakers said that a decline in New Jersey’s horse racing industry will have statewide implications. They noted that according to the New Jersey Equine Industry 2007 Economic Impact Report published by the Rutgers Equine Science Center, New Jersey’s horse racing industry is worth $780.5 million dollars annually, approximately $500 million of which is directly related to New Jersey racetracks. This is on top of the 3,820 jobs generated by New Jersey racetracks. Additionally, 176,000 acres of New Jersey agricultural land is dedicated to equine-related operations.

“If we do nothing what happens to all of the revenue and jobs generated by this crucial industry,” questioned Malone, R-Burlington and Monmouth, “What happens to the farmland being used by equine operations? This is a serous matter that will have severe and lasting consequences if no action is taken.”

Thomas F. Luchento, President of the Standardbred Breeders and Owners Association of New Jersey, went on to say, “The horse racing and breeding industry in New Jersey is facing a crisis of enormous proportion that threatens to destroy it completely. New Jersey racetracks cannot offer enough purse money to compete with neighboring states with slot machines or video lottery terminals at their racetracks. If the state does not do something very soon to provide enough funds to boost horse race purses and breeding funds to compete with New York, Pennsylvania and Delaware, there soon will not be a horse industry at all.”

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