Sports betting is thriving at Meadowlands Racetrack and that’s good news for New Jersey’s ailing horse racing industry. However, Meadowlands and NJ horse racing cannot depend on sports betting alone because of underfunding. Thus, a bill introduced to the state legislature would bring back much-needed subsidies.
Last Friday, Meadowlands agreed a ten-year sports betting revenue-share deal with the Standardbred Breeders and owners of New Jersey (SBOANJ) that will add an extra $1 million per year to horse racing purses.
Meadowlands launched sports betting in July. They have quickly become the biggest retail betting outlet in New Jersey. According to Paddy Power Betfair, which operates the sports book via its FanDuel brand, Meadowlands is one of the biggest in the world.
The Anglo-Irish betting giant said recently the outlet was handling $1.5 million in bets per day in October. Thanks to its proximity to the MetLife stadium and location within the New York metropolitan area, which is the most populous area in the country.
What the Bill Promises
This new bill would bring about $20 Million in Subsidies for NJ horse racing. But Jeff Gural, Meadowlands owner, is concerned. He thinks while sports betting will help the racing industry. The revenues it will generate won’t be enough to save it.
As a result, he is putting his faith in the bill, which was introduced to the state legislature in August. This bill is what will subsidize New Jersey racing to the tune of at least $20 million per year.
“Without the subsidy, we may be forced to radically reduce dates and stakes next year,” Gural added.
How NJ Racing Industry Compares To Neighboring States
New York gives its racing industry $200 million for purses and Pennsylvania gives $250 million, while we get nothing,” he continued.
Pennsylvania and New York are able to divert this much into racing because they tax their casino highly. About fifty-four percent and thirty seven-percent on slots, respectively.
By contrast, NJ horse racing purses are half of their competitors. New Jersey casinos close to nine percent in taxes.
But the new Governor Phil Murphy administration seems to understand the importance of horse racing to the economy.
There was a time when the tracks received $30 million a year in subsidies from Atlantic City casino revenue. But that’s back in pre-recession days when Atlantic City was thriving — before it had to contend with competing casino markets in neighboring states.
Further Explained
The bill will provide the horse racing industry with a $100 million over a five year period. $6 million a year going to Meadowlands. $1.6 million for Freehold Raceway. $10 million will go to Monmouth Park. And $2.4 million to breeder awards and stakes bonuses.
“Hopefully everything just snowballs, and we get the Meadowlands Racetrack back to where it used to be,” said SBOANJ president Mark Ford.