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Post by Libyan Sibyl on Oct 16, 2007 7:37:39 GMT -5
No one has mentioned this, but it has gained a lot of press in the last few weeks. It affects us as we have a racetrack in our town.
from the APP: Don't handicap horse industry Posted by the Asbury Park Press on 10/15/07
The timing couldn't have been worse. A little more than two weeks before the eyes of the entire horse racing world will be trained on Monmouth Park for the Breeders' Cup, a study commissioned by Gov. Corzine questioning the viability of the state's horse racing industry was released. That's hardly a way to celebrate the sport's premier attraction.
Racing is the lifeblood of the state's $3.2 billion horse industry, which has fallen on hard times, largely because of competition from neighboring states where the tracks draw fans to "racinos" by offering slot machines and other video lottery games along with horse race betting. The study found that placing 2,000 video lottery terminals at the Meadowlands would not bring in enough extra revenue to sustain the industry. Of course not.
This is a broad problem requiring a comprehensive response that must include tapping revenue from slots, VLTs and off-track wagering and, for now, providing a continued subsidy from the state's casinos. As the health of the horse racing industry improves, it can be weaned from the subsidy.
The added revenue generated by the racinos in New York, Pennsylvania and Delaware enables their tracks to offer larger purses, attract higher quality horses and draw larger crowds who bet more money on the horse racing and gaming alternatives. Some of those horses once raced in New Jersey and some of those bettors used to play the horses here and visit the casinos, too. The smaller purses and crowds have adversely affected the horse farms that remain in New Jersey — and the open space they preserve — and the ancillary businesses that support horse breeding and racing.
Senate President Richard J. Codey, D-Essex, was right last week when he said, "If the competition wants slots, there's got to be a reason for that. You've got to be able to do what your competition is doing, otherwise you're not competitive."
Codey is in a position to exert his leadership in meeting this competitive challenge. He should enlist Gov. Corzine's commitment to a task force — with a quick turnaround — to devise ways to expand the horse racing and casino industries. Both need immediate attention.
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Post by Libyan Sibyl on Oct 16, 2007 7:39:23 GMT -5
Another Article from the APP:
VLTs at racetracks no panacea, study says Posted by the Asbury Park Press on 10/11/07 BY BILL HANDLEMAN STAFF WRITER
Post Comment With 15 days remaining until the Breeders' Cup is to be run at Monmouth Park, a study commissioned by the governor has concluded that the state's horse racing industry could not be sustained simply by installing video lottery terminals at the Meadowlands.
News of the study, which may be released today, was originally aired by Channel 4 News in New York late Tuesday night. The study was based on having 2,000 VLTs at the Meadowlands, according to sources with knowledge of the document.
The racing industry has insisted in the past that the Meadowlands could easily accommodate 5,500 VLTs, roughly the same number of machines as at Yonkers Raceway, on the other side of the George Washington Bridge.
According to sources who attended the regular monthly meeting of the New Jersey Racing Commission held at the Meadowlands Wednesday, the feasibility study will recommend that the casinos extend their racing supplement beyond 2007, spreading $80 million over the next three years.
"Any proposal that says the addition of VLTs at the Meadowlands, when done appropriately, would not benefit the state and horse racing, is flawed," said Dennis Dowd, the vice president in charge of racing for the New Jersey Sports and Exposition Authority.
"But to engage in this discussion this close to the Breeders' Cup is foolish. We should be concentrating on executing the premier racing event in the world, and doing it well."
"It's an outrage to me"
Dowd has not yet read the report. Nor has Jerry Zaro, an Ocean Township attorney who is co-chairman of the Breeders' Cup Host Committee along with former Gov. Brendan T. Byrne.
"As a commissioner of the Sports and Exposition Authority and chairman of the Racing and Wagering committee, I believe this study is ill-advised, ill-timed, and inappropriate," said Zaro. "It's an outrage to me.
"The racetracks in New York, Pennsylvania, Delaware, Maryland — look at the extraordinary help and assistance they've received from their states. We haven't had a sliver of assistance from Trenton . . . not a lick of support. Now, after choking the life blood out of us, they tell us (the industry) is unsustainable? It's as if we had a restaurant and invited all these international dignitaries and put up a sign in the window, "Beware of Salmonella.'
"The timing is so inexplicable it suggests the left hand and the right hand down there (in Trenton) are not working together. The whole thing is dispiriting. We're all knocking our brains out trying to put on the greatest Breeders' Cup ever, and to have something like this rain on our parade would be very disappointing."
Asked about the report Wednesday while in Newark to unveil the second part of his anti-crime initiative, Gov. Corzine said he had not had a chance to read it but he expressed concern about the effectiveness of installing video lottery terminals.
"I've heard some summaries of it (the report), but I've been working on crime plans and other issues," Corzine said in a transcript provided by his office. "I have seen a number of studies before this latest consultant showed that video lotteries don't produce the same kind of money that slot machines produce."
"It has always been understood that VLTs were a lesser economic driver than would be the placement of slot machines anyplace," Corzine said.
When asked whether he would have to be convinced video lottery machines are worth providing, the governor said: "I think that is too big a statement. I want to study the report, but if it's consistent with other information from other reports, well, I am not convinced that VLTs are the opening of the pathway to fiscal sobriety in the state."
Sen. Richard J. Codey, D-Essex, a longtime supporter of the racing industry, indicated Wednesday he was confused by the timing of the study and angered by its conclusions.
"If the competition wants slots, there's got to be a reason for that," said Codey. "You've got to be able to do what your competition is doing, otherwise you're not competitive. The industry has changed. Would you have a racetrack today and not offer simulcasting? Of course you wouldn't. It's the same thing."
Asked if he thought an $80 million purse supplement over three years would keep the racing industry afloat, Codey said, "You're still behind the 8-ball if you don't have slots. Why do you think there are fewer and fewer horses born in New Jersey every year? There's a reason for that. People have to make money, and if they can't make it here, they'll go someplace else to make it."
This year there were 384 foals born in the state, according to the Thoroughbred Breeders Association of New Jersey, down from 1,140 in 1987
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Post by Libyan Sibyl on Oct 16, 2007 7:49:14 GMT -5
Now for the back and forth between the casinos and racetracks:
Racetracks should account for casinos' subsidies By JOSEPH A. CORBO JR. September 25, 2007 Tuesday
The Sept. 16 op-ed piece "Do or die time for state's racetracks" contained incorrect information relative to the $86 million that Atlantic City's casinos are paying to subsidize horse racing in New Jersey.
The agreement that calls for those payments expires at the end of 2008, not in 2007, as the commentary stated. Under that agreement, the casino industry already has provided $63 million and soon will make a final payment of $23 million. The news that funds are not available to subsidize purses in 2008 is a surprise to us. If this is indeed the case, an audit is in order to determine where the funds have gone. Has the remaining $23 million payment already been spent?
Under the agreement, all of the subsidy funds were required to be placed in a segregated, interest-bearing account so they could be tracked and all parties to the agreement could be certain they were spent in accordance with the terms of the agreement. However, the funds were not placed in a segregated account; therefore, we cannot be certain how they were spent. Apparently, these funds weren't allocated to ensure purses would be subsidized through 2008, as we had expected.
The casino industry is being asked to provide subsidies to help the horse racing industry survive. As such, isn't it reasonable for us to ask the horse racing industry to do its part as well? In New York, for example, almost 80 percent of wagering on horse races has occurred at off-track wagering facilities. This is a significant source of additional revenue for horse racing that easily could exceed the subsidy being sought from casinos.
Why then has only one of the 15 off-track facilities authorized by the Legislature in 2001 been opened? Why did it take six years for that lone facility to open its doors? Why has there been a similar delay in the implementation of account wagering?
We understand the intent of the purse subsidy is to help the New Jersey horse racing industry. Yet our review of races in New Jersey indicates substantially more than half of the top three finishers in New Jersey horse races are owned by out-of-state interests. Because our subsidy funds were not segregated as required, we cannot know how much of the subsidy we provided was used to pay prizes to New York, Pennsylvania and Delaware horses.
The bigger question that should be asked is: Why must the casino industry subsidize horse racing at all? Casinos cannot be blamed for horse racing's economic problems. Tracks in states that have no legal casinos are suffering the same declines in attendance. The subsidy provided over the last four years has not helped improve attendance or generate on-track wagering at New Jersey's horse tracks. Yet we are being asked to continue to provide subsidies. What would future subsidy payments realistically accomplish?
We will continue to participate in all such discussions and would welcome a fair solution to solving problems we did not create. However, it is reasonable for us to insist the horse racing industry comply with the terms of any agreement and be held accountable for how the subsidy funds are spent. The horse racing industry should be held accountable for doing its part to generate revenues for purses. The casino industry should be given assurances that any and all subsidies we provide are used to support only New Jersey's horse racing industry and not the horse racing industries of New York, Pennsylvania, Delaware or any other state.
Casinos must abide by strict, transparent reporting rules for our operations. We support those rules as necessary. We believe those same rules should apply to the subsidies we provide.
Joseph A. Corbo Jr. is president of the Casino Association of New Jersey, Atlantic City.
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Post by Libyan Sibyl on Oct 16, 2007 7:49:47 GMT -5
now for the Meadowlands' response:
Racetracks upfront about spending casino subsidies Posted by the Asbury Park Press on 10/16/07 BY GEORGE R. ZOFFINGER
Post Comment From time to time, the New Jersey racetracks find themselves in the op-ed section of the paper. Some references are complimentary; others are not. Most times a response is unnecessary. However, the Sept. 25 commentary by Joseph A. Corbo Jr., president of the Casino Association of New Jersey, "Racetracks should account for casinos' subsidies," not only deserves a response but, more importantly, a clarification.
First and foremost, the agreement between the casinos and the racetracks expires at the end of 2007, not 2008 as Corbo says. The agreement between the racetracks and the horsemen, which was endorsed by the casino industry, accounted for purse and breeder incentives for 2004, 2005, 2006 and 2007 and controlled the level of purses that must be paid to horsemen for those years. Excess funds were to be used in 2008; however, there was no excess.
It is true that money received under the agreement was not placed in a segregated interest-bearing account. The reason is the money received from the casino industry was paid in October of 2004, 2005, 2006 and 2007, and could not be placed in an interest-bearing account as they reimbursed fronted money from the racetracks to the horsemen for purses during those racing seasons. Therefore, there was no interest to be had, because any interest was gone by the October date of payment.
Furthermore, to suggest the casino industry is unsure how the money was disbursed under the agreement is absurd. Not only did the Sports and Exposition Authority comply with its auditing obligations under the agreement by forwarding all requested and material information to the New Jersey Racing Commission, the Sports Authority went above and beyond what was required in providing the casino industry's independent accounting firm with all the information it requested.
Corbo states that almost 80 percent of wagering on horse races in New York occurs at off-track wagering facilities. This is true, but not at off-track facilities inside the boundaries of New York, but rather at facilities located across the United States and Canada. The same percentage holds true for racing in New Jersey and, in this age of simulcasting, for racetracks everywhere.
We were pleased to see the opening of the first in-state off-track wagering facility in Vineland earlier this year. We look forward to the opening of the Woodbridge facility later this month as well as other facilities in the near future. We are also proud that account wagering has been operational for nearly three years now and continues to provide additional sources of revenue for the racing industry.
The purpose of the agreement with New Jersey casinos was to provide racetracks with the funds to maintain competitive purse levels, which in turn attract the nation's best runners, creating more attractive betting races. There is absolutely no significance to where horse owners reside. New Jersey-breds are owned by out-of-state interests, just as Kentucky-breds are owned by New Jersey residents.
To say that money from the agreement "was used to pay prizes to New York, Pennsylvania and Delaware horses" misses the point of the agreement, which was to attract those horses to New Jersey to create a better racing product within the Garden State and attract more wagering dollars on those races.
Finally, Corbo says that the $86 million from the casinos was used to subsidize the horse racing industry in New Jersey, suggesting there was no quid pro quo. This is untrue. In exchange for the $86 million, the horse racing industry relinquished its right to pursue and conduct any gaming in the form of slot machines, video lottery terminals or traditional table games at racetracks in the Garden State until Jan. 1, 2009. In the meanwhile, video lottery terminals have been installed at racetracks in New York; slot machines have been installed at racetracks in Pennsylvania, and Delaware racetracks continue to successfully operate slot machine parlors. Many of these facilities are owned by the very companies that are members of Corbo's organization and operate in Atlantic City. This effective surrounding of New Jersey by racing facilities that now offer higher purses keeps horses from shipping to and racing in our state.
The agreement between the casino and horse industries over the past four years is irrelevant as to the future of these two industries in New Jersey and, more importantly, quality-of-life issues for all New Jerseyans. High-rise hotel/casinos do nothing to maintain or create green acres and open space in New Jersey.
As the most densely populated state, New Jersey must place the threat of urban sprawl in the forefront of important issues facing our state. A solid racing and breeding industry not only protects existing horse farms, and all the agricultural support services they require, it creates incentives for their expansion.
We continue to invite the casino industry to join with us in protecting the future of New Jersey's farms and open space and the quality of life for all New Jerseyans today and for generations to come.
George R. Zoffinger is president and chief executive officer of the New Jersey Sports and Exposition Authority, which owns and operates Monmouth Park and the Meadowlands racetracks.
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Post by Libyan Sibyl on Nov 5, 2007 8:35:24 GMT -5
MONDAY'S LETTERS TO THE EDITOR Posted by the Asbury Park Press on 11/5/07 Post Comment Let horse tracks have video lottery
The horse racing industry is in dire need of a long-term solution to recover from years of competition from Atlantic City and, in recent years, from out-of-state video lottery terminals.
I am frustrated with our elected officials, especially Gov. Corzine, who has said he opposes these lottery terminals at our racetracks. We need the slot machines and the video lottery terminals to survive. Not only will they create a more even playing field for the racetracks, but the added money will trickle down to the economy of the surrounding communities.
I have been in the horse business all my life. Unless the public gets behind us, there will be no more horse racing. The money from video lottery terminals would increase our race purses, give breeders an incentive to bring back the top stallions to better the sire stakes programs, improve health care coverage for the hundreds of track employees such as horse caretakers and trainers, and maybe inspire a pay raise for us grooms.
Our governors have allowed Atlantic City to control who gets to gamble and where for far too long. This must stop.
Atlantic City will survive, regardless of whether tracks get slots. The agreement by the casinos to give the racing business a few million dollars every three years is not the long-term solution the industry needs. It needs the help of the press, all of our elected officials and public pressure to keep this issue in the forefront.
Kim Jessome
MILLSTONE
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Post by fiberisgoodforyou on Nov 5, 2007 9:09:59 GMT -5
I must have missed this, thanks Syb MONDAY'S LETTERS TO THE EDITOR Posted by the Asbury Park Press on 11/5/07 Post Comment Let horse tracks have video lottery The horse racing industry is in dire need of a long-term solution to recover from years of competition from Atlantic City and, in recent years, from out-of-state video lottery terminals. I am frustrated with our elected officials, especially Gov. Corzine, who has said he opposes these lottery terminals at our racetracks. We need the slot machines and the video lottery terminals to survive. Not only will they create a more even playing field for the racetracks, but the added money will trickle down to the economy of the surrounding communities. I have been in the horse business all my life. Unless the public gets behind us, there will be no more horse racing. The money from video lottery terminals would increase our race purses, give breeders an incentive to bring back the top stallions to better the sire stakes programs, improve health care coverage for the hundreds of track employees such as horse caretakers and trainers, and maybe inspire a pay raise for us grooms. Our governors have allowed Atlantic City to control who gets to gamble and where for far too long. This must stop. Atlantic City will survive, regardless of whether tracks get slots. The agreement by the casinos to give the racing business a few million dollars every three years is not the long-term solution the industry needs. It needs the help of the press, all of our elected officials and public pressure to keep this issue in the forefront. Kim Jessome MILLSTONE
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Post by Libyan Sibyl on Nov 6, 2007 10:14:24 GMT -5
Does anyone else have an opinion on this? It seems that horse racing is a big industry in Freehold, as well as in surrounding Monmouth County towns. We obviously have the track, and the surrouding towns raise a lot of horses. Although purebreds may not be permitted to graze as much as pet horses, these farms are bona fide farms (as opposed to the "Karcher" farms) which are profitable. So they contribute to the beauty of the area, give us open space without having to pay for it, thereby limiting spraw. They help other farms in the state in business through production of hay.
Atlantic City has a nice tight grip on Trenton. They are always crying poverty and getting special deals. Yet they knocked down the Sands to put up a new casino. Have you been to A.C., has it been revitalized? Would you walk the boardwalk after 10:00 p.m. would you walk more than a block from the boardwalk at other hours? The revitalization hasn't worked. We need to support our local industry.
We need to let the legislature know how we feel about this issue.
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Post by novillero on Feb 6, 2008 8:48:34 GMT -5
This topic made it to the local paper this week. Good call, they essentially reiterated what you said.
Sad to see you go LS dud, good luck.
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Post by Libyan Sibyl on Feb 6, 2008 10:53:04 GMT -5
yeah, I just hope that the council issues a proclamation or some such thingie requesting that the legislature support the horse racing industry. As ronnie reagan might have put it:
Mr. Corzine, tear down that restriction!!!
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Post by Libyan Sibyl on Feb 6, 2008 14:59:37 GMT -5
This topic made it to the local paper this week. Good call, they essentially reiterated what you said. Sad to see you go LS dud, good luck. one of the reasons I still post is that people can steal my ideas and present them to the council as their own...
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Post by Libyan Sibyl on Feb 7, 2008 9:54:44 GMT -5
Sheeesss... Nobody cares. But you'll be interested in knowing that today a vote is going to take place that will allow A.C. casinos to have sports betting...
Geeeeee, I wonder how that vote will come out...
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Post by Libyan Sibyl on Feb 13, 2008 9:48:49 GMT -5
Fewer races at Freehold due to cuts Smaller purses, less horses: Still no deal from Corzine
FREEHOLD — Freehold Raceway is continuing with abbreviated daily race cards despite purse cuts that have prompted some horse owners to send their horses to other tracks.
About 20 percent fewer races have been taking place since lower purses went into effect two weeks ago, said officials at the track, which was established in 1853.
At issue is the lack of a deal between Gov. Corzine's administration and Atlantic City casino interests on renewing race purse subsidies, which exceeded $80 million over the last four years. That money was paid in exchange for a promise from the racing industry to not pursue having video lottery terminals installed at the tracks; a similar stipulation is expected to be tied to new funding.
Members of the Standardbred Breeders and Owners Association have considered boycotting the state's tracks because of the reduced purses, said Thomas Luchento, association president.
"It's shaky right now. Our members are calling me every day. Some of them want to jump off and stop racing right now," Luchento said.
Horsemen based at the Meadowlands Racetrack are also concerned, Luchento said, "but there's no urgency at the Meadowlands because the purses haven't been cut there. The Freehold guys are at the point of desperation. They weren't making any money with the old purse schedule and they're dying with the new schedule."
Freehold Raceway General Manager Donald Codey said 65 to 70 horse entries per day were received for this week's races, down from the close to 100 entries normally received.
"The horsemen are starting to react. We've had to list purses at levels nobody wants to see," Codey said.
Tuesday, which was Lincoln's Birthday, was a state holiday and no negotiations took place. But Corzine's spokeswoman, Lilo Stainton, has said that work to provide assistance to the racing industry is continuing.
"The administration is working very hard to craft a deal that does as much as possible to stabilize the future of horse racing," Stainton said.
The casino industry has remained opposed to putting slot machines at racetracks, because "it puts at significant risk the transformation of Atlantic City that is under way," said Joseph A. Corbo Jr., vice president of the Casino Association of New Jersey. "We appreciate that the governor shares our view and does not want to put at risk the realization of the economic development potential that exists in Atlantic City, which will translate into continued job creation, increased tax revenues and additional capital investment in New Jersey."
Bob Jordan: (732) 308-7755, bjordan@app.com
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