The end of the line for horse racing in Meadowland Racetrack
Dark clouds loomed over the Meadowlands Racetrack after a plan to close or sell the state owned racetrack was presented to New Jersey Governor Chris Christie. More troubling is the fact that the Governor is completely on board with the plan.
The report leaked by the New Jersey Gaming, Sports and Entertainment Advisory Commission fears that this news may prophesize the death of horse racing in Meadowlands and Monmouth. The New Jersey Sport and Exposition Authority (NJSEA) operate the Meadowland Racetrack and are expected to lose $20 million on an annual basis. The report by the advisory commission recommends that the NJSEA should divest from operational responsibilities from Meadowland and Monmouth Park. The report recommends that the NJSEA should offer horse owners the opportunity to lease the Meadowlands Racetrack.
Experts say that Governor Christie cannot have the state of New Jersey wipe its hands off horse racing in such a manner. Those associated with the horse racing industry are not at all amused. The casino industry has subsidized the racing industry on an annual basis by $17 million in expenses. However, the New Jersey Gaming is also suffering from financial difficulties as well and the Governor’s plan includes a state takeover of Atlantic City.
Horse racing would be left to fend for its self in that case. The simple fact of the matter is that attendance has not been what it should be for the racing industry to stay afloat. The Governor has made it clear that the ailing gambling industry will not be supporting the weak horse racing industry anymore.
The sale of Meadowlands Racetrack is the only option but would Meadowland find a buyer? It’s highly unlikely, given the state of horse racing in America and the trends in New Jersey fare no better. “You can’t look at any crystal ball, and see in any shape or form they are going to be profitable again,” claimed the Sports Authority Commissioner, emphasizing that the state had no other option but to cut its operational losses. The most likely outcome now - if the state goes through with its plans to no longer continue losing money at Meadowland along with the bettors - is a complete shutdown of the racetrack.
According to experts, the tracks didn’t always lose money. The races used to be highly profitable but the crowds stopped coming in because bettors started heading out towards Pennsylvania or New York where tracks employed a number of slot machines. These instruments were hailed as a new lease of life for the Yonkers Raceway which is situated quite close to Meadowlands, just across the state lines in New York. The slot machines that the New York Racing Association and the Kentucky Horse Racing Commission believe would rescue their racetracks have been stringently opposed by Governor Christie.
The Standardbred Breeders & Owners Association of New Jersey came out swinging at the Governor and the report. They alleged that the Commission that prepared the report for the Governor was not allowed to explore the option of video slot machines which were available at tracks that Meadowlands competes with. They accused the state of abandoning the horse racing industry and backing out of promises that it had made to these racetracks. The Breeder and Owners Association disparaged the state for spending the taxpayer’s money to rescue private enterprises such as Xanadu and protecting gambling in Atlantic City while abandoning horse racing to its own device.
But as they say, timing is everything. Trying to sell the track when the industry is nose-diving just won’t work. Six years ago, the state sought bids for Meadowlands and bids as high as $300 million had been made. During the same era, the advisor to the state had valued the Big M at $250 million. Despite the offers, the state did not bite and decided to retain the ownership of the tracks.
With that opportunity nowhere in sight in 2010, horse racing in New Jersey is nearing the finish line albeit at the last place. 13,000 jobs and a financial activity worth half a billion dollars threaten to disappear with the demise of horse racing in New Jersey while Governor Christie attends to more pressing matters at Atlantic City.
Tags: