Officials react to gaming industry report

Officials react to gaming industry report
Report recommends four options for future of Monmouth Park
BY KENNY WALTER Staff Writer
Opinion was divided last week among Oceanport officials about the impact of a state commission report on the future of Monmouth Park racetrack.

The Hanson Report recommends adding harness racing at Monmouth Park racetrack in Oceanport. The Hanson Report recommends adding harness racing at Monmouth Park racetrack in Oceanport. The Hanson Report, released July 21 by Gov. Chris Christie at dual press conferences, included a series of options and recommendations for the future of the state’s gaming industry at Monmouth Park, the Meadowlands and Atlantic City casinos.

The 29-page report, prepared by a special advisory commission led by Jon Hanson, former chairman of the New Jersey Sports & Exposition Authority, which owns and operates Monmouth Park and the Meadowlands, listed four options for racing in New Jersey: eliminating harness racing at the Meadowlands; add harness racing to Monmouth Park; lease the Meadowlands to the standardbred horsemen; or privatize both Monmouth Park and the Meadowlands.

A new racing schedule has boosted attendance at Monmouth Park. A new racing schedule has boosted attendance at Monmouth Park. Oceanport Councilman Gerald Briscione said none of the four options are good options.

“I think they are all bad,” he said. “I think all of them create a situation that is going to make Monmouth [Park] a lesser facility, a lesser operation.

“This is a decision made by Trenton in which we have no [input] and no control over,” he added. “I think it’s a slap in the face to the local racing officials in Monmouth Park.”

However, Councilman Joseph Irace sees the report’s impact on Oceanport as positive, and singled out parts of the report that paint Monmouth Park as a historic landmark.

“The part I really like is that it specifically mentions the historic landmark status in the eyes of the public,” he said. “When I read the report, I was very optimistic with the way Monmouth Park comes out.”

The report notes that a 50-day summer meet with a $1 million-a-day purse was initiated this season at Monmouth Park.

“The commission believes that this new arrangement will result in higher-quality horses and major stables being attracted, with the result of higher attendance.”

The report calls the plan “one of the most significant experiments in thoroughbred racing” and one that “should lead to a better future for thoroughbred racing in this state.”

However, the commission notes that the changes at Monmouth “will not be enough to save New Jersey’s racing industry.”

Recommendations for the racing industry include: elimination of the current statutory required number of race days; that off-track wagering (OTW) legislation be amended to make locating facilities easier while still respecting the local planning process; and more flexibility for the racing commission to control the number of racing days.

Contrary to proponents of adding gaming at racetracks, creating “racinos,” the report states: “The idea has a number of drawbacks: 1. Such a move would likely require amending the state Constitution. 2. The move would take several years to accomplish, and time is already of essence for the racing industry. 3. The existence of casinos, racinos and slot machines in Delaware, Pennsylvania and New York further exacer- bates the problem.”

Among the report’s assumptions on which the findings are based is the claim that “the Meadowlands no longer resonates as a viable entertainment option … except on major race days.” But “Monmouth Park has established itself as a viable summertime family entertainment option that appeals to a broader segment of the public than just big bettors.”

State Sen. Jennifer Beck (R-12th District) concurred.

“No question about it, [Monmouth Park] is an enormous value for the citizens of Oceanport, and I think the citizens truly do appreciate having that park in their backyard, especially this year. If you’ve been there on a Friday, Saturday or Sunday, there’s really a lot of electricity.

“There’s a lot of energy at that place. You see exactly what it’s supposed to be: a beautiful Shore destination where you can watch the horses run and have a good family day out,” said Beck, who was a member of the Governor’s Commission on the Horse Racing Industry under former Gov. Jon Corzine.

Irace noted that Monmouth Park has taken steps to expand as a venue in recent years, including hosting the Jersey Shore Jazz and Blues Festival and Vans Warped Tour.

“I think the state and the people running the racetrack recognize that there need to be things other than horse racing to attract people,” he said.

“It [Vans Warped Tour] was something that shows that venue can be used yearround for things other than horse racing,” he added. “There is no reason why they can’t run more concerts there or maybe different restaurants or different sports bar attractions at some point to generate more people there.

“It is a building that remains dark eight months a year, so why can’t we bring in more things?”

Irace also said privatizing the track would not necessarily be a bad move.

“Monmouth Park pays us 25 percent of our tax base, so we have to make sure that’s protected in any type of deal,” he said.

Briscione said he has doubts about market would be economically viable.

He went on to criticize the state for not allowing slot machines at the Meadowlands, which he said would help fund purses at Monmouth Park.

“Everyone thought that source of funding could come from two places: it could come from continued casino subsidies, because they haven’t let New Jersey tracks operate racinos, because of the fear that would somehow hurt Atlantic City; or allowing a casino in the Meadowlands,” he said. “They categorically said no casino in the Meadowlands.

“A racino there would provide a permanent purse-funding solution,” he said. “It would keep North Jersey residents from going to Yonkers and Aqueduct and racinos in Pennsylvania.”

Irace also said that he was in favor of a racino at both Monmouth Park and the Meadowlands, but his biggest concern is ensuring that Monmouth Park would stay open.

Irace prefers the option of the state allowing Monmouth Park to operate as is, and he said he is concerned about adding harness racing, because there is already harness racing at Freehold Raceway.

Briscione also was concerned by the cost of adding harness racing; according to the report, a front paddock would have to be added at Monmouth Park for an estimated cost of $8 million to $12 million. Other costs would include additional winterization and lighting.

Briscione was critical of the report’s focus on revitalizing the gaming industry in Atlantic City.

“You would think the emphasis would be on developing a synergy between the two industries to create jobs and maintain open space,” he said. “Unfortunately, it seems that the state wants to promote the casino interest at the expense of the horse racing industry.”

Beck was also critical of the state’s refusal to allow slot machines at racetracks.

“At the moment, as the governor acknowledged, these are just recommendations; he hasn’t made any decisions yet, so it’s preliminary,” she said.

“I think the glaring omission in the report is that there is no discussion of convenience gaming [slots and table games.]

“I think there’s a certain irony because today, Harrah’s at Chester Downs, Pennsylvania, is cutting the ribbon on their table games while they are standing here in New Jersey opposing table games.”

She said revenues from slots and table games could be used to fund improvements to Atlantic City and the horse racing industry.

“The recommendations obviously need to be reviewed and vetted. I think the horse racing industry has acknowledged that it needs to change its business model, and Monmouth Park has embraced significant change this year and it has been wildly successful.

Beck contends that Monmouth Park’s new purse structure, the largest in North America, has revived interest in horse racing.

“We have seen over $200 million bet in 2010 compared to $94 million bet last year, so the interest in horse racing, when it’s quality racing, exists, and it can be a successful business,” she said.

Monmouth Park spokesman John Heims said attendance is also up 12.5 percent this season.

Beck said that privatizing the track is something that has been discussed.

“I think you’re going to see an effort to seek private investment in the track, particularly in light of the fact that we had such a successful season this year,” she said.

“There’s nothing wrong with seeking private investment; it’s something we’ve suggested before.”

According to Beck, horse racing is a $4 billion industry in New Jersey that provides the garden state with 13,000 jobs and 200,000 acres of open space through horse farms.

Beck said that initial reactions claiming that Monmouth Park could be closed were inaccurate.

“The governor made no reference to that at all. He said just the opposite, that he would like to see the horse racing industry survive, but obviously we need to revisit the business model, and I couldn’t agree with him more.”

Irace said the borough considers Monmouth Park as vital because it provides jobs to several industries and provides open space for the borough.

He acknowledged that he was concerned about the impact of the Hanson Report prior to its release.

“I was worried because you never know when you go into these things,” he said. “I think it was as good as we could have hoped for.”

According to the report, the next steps will include creating a master plan for the horse racing industry and new legislation regulating the industry.

Oceanport Mayor Michael Mahon confirmed that borough officials would meet this week to discuss the report as part of Oceanport’s newly formed Monmouth Park Task Force.

Staff Writer Andrew Davison contributed to this story.




No Flash Detected

Click here to enlarge



No Flash Detected
Please download the latest version by clicking below:

Get

Click for www.tomsford.com