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A June 6 special report, "Can slots save horse racing? Don't bet on it, New Jersey," and a June 9 editorial, "Subsidizing racing/ Senseless policy," were riddled with misleading statements about New Jersey's $1.1 billion horse racing and breeding industry.

Contrary to what was reported, the "handle" (the amount of money wagered) on Monmouth Park's racing product has increased. A comparison of 2006 and 2008 revenues generated shows an increase of 9.2 percent with the wagering percentage for 2007 being 25 percent higher than 2006 levels because Monmouth Park hosted "The Breeders' Cup."

Much as Atlantic City casino revenues saw a 5.7 percent decrease in 2007 and a 7.6 percent decrease in 2008, The Meadowlands racetrack has experienced a decrease in wagering as well directly attributable to regional competition.

Atlantic City's geographic model for gaming is outdated. Where every other state uses a model that disperses gaming destinations strategically throughout their state, discouraging residents from traveling, New Jersey uses a centralized gaming model requiring travel. For more than 30 years, Atlantic City's casino industry has operated with virtually no competition. Now, Delaware has slot machines and legalized sports betting at the racetracks. Pennsylvania has generated $1.9 billion in new revenues from seven of the 14 licensed venues. Approximately 9,000 new gaming jobs and 17,000 new construction jobs are attributable to Pennsylvania's gaming industry. New York, West Virginia and Maryland have or will have video lottery terminals or slot machines at their state's racetracks, and Connecticut has two of the country's top-notch Indian casinos.

Now, let's talk subsidies. Yes, a 2008 law provided the horse-racing industry with a three-year, $90 million subsidy for purses from the casino industry, but this is not all it did. It also provided a long-term tax break on promotional gaming credits offered by casinos, which will ultimately produce a cumulatively larger financial benefit for the casino industry than the purse subsidy. The casinos benefit will go on indefinitely while the purse subsidy ends after three years.

This tax break is only a fraction of the other major subsidy the casino industry receives. New Jersey taxes its casino industry roughly 9 percent (an 8 percent tax on gross gaming revenues together with a blending of a 1.25 percent community investment alternative tax and a 2.5 percent investment alternative tax on gross gaming revenue). Based on the 2009 American Gaming Association's Survey on States, New York taxes its gaming industry at 47 percent, West Virginia taxes its gaming industry at 45 percent, Pennsylvania taxes its gaming industry at 43 percent and Delaware taxes its gaming industry at 35 percent. Isn't a tax rate that is a fifth of the size of New York's a subsidy?

Finally, why is The Press and the casino industry attacking the horse-racing and breeding industry? It's like Goliath attacking David. New Jersey's horse-racing and breeding industry wants our state's casino industry to grow and prosper. Both industries serve a vital purpose to our state providing jobs, tourism and entertainment.

The racing and breeding industry also supports the preservation of farmland and open space. To this point, only 10 percent of the 176,000 acres of equine-related land is preserved.

It is time that northern New Jersey and southern New Jersey interests unite so our state can compete against regional gaming interests. Competition for the wagering dollar is not just an Atlantic City issue, it is a New Jersey issue, and it must be addressed in a way that helps the entire state - not just one region.

Barbara DeMarco is a lobbyist for the New Jersey Thoroughbred industry.

1 comment:

• VoicelessNF (2) posts 4:37 pm

  ****why is The Press and the casino industry attacking the horse-racing and breeding industry? It's like Goliath attacking David.**** It's not Goliath attacking David. It's a human attacking a tapeworm or a tick. The racing industry in New Jersey is a parasite, sucking the blood from the casino industry. They latched on for a $90 million dollar bite, and don't want to let go. If Mrs. Demarco wants to talk about an outdated industry, she can take a look in the mirror. The days of the ponies being viable are long in the past. Except in the rare years where a horse has a shot at the Triple Crown, no one cares about horse racing. And even then, they only care for a month. The Press is doing the right thing in attacking the tracks, particularly the odious connection to Richard Codey. The horse racing industry is leeching money from the casinos. But the tracks have a figurative broken leg, and need to be put out of their misery.

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