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November 7, 2008 New Jersey horsemen negotiated more than $1.6 million in supplementary purse money for Freehold Raceway, but may have to pursue legal options to force the track to accept the funds. Freehold Raceway's parent company, Pennwood Racing, has so far refused to accept the funding, which is part of the purse enhancement agreement that the New Jersey Sports and Exposition Authority (NJSEA) negotiated with the Casino Association of New Jersey in August. The casino association agreed to pay the state's racetracks $90 million over the next three years in return for banning the use of video lottery terminals (VLTs) at the tracks during that time. The funding would help the state's horseracing industry to maintain purse levels and to keep New Jersey's $1.1 billion horse industry viable in the face of increased competition from neighboring states, which already have slots at their racetracks. Freehold Raceway General Manager Don Codey did not return calls for comment as to why the track would not accept the funding. Codey is the brother of state Sen. Richard Codey, who has called for slot machines to be placed at state racetracks and for New Jersey to establish offtrack betting parlors. Leo McNamara, executive administrator of the Standardbred Breeders and Owners Association of New Jersey (SBOANJ), said Pennwood Racing's reason for not accepting the funding remains unclear. "Unfortunately, Freehold Raceway is owned by Pennwood Racing, which is a partnership of Penn National Gaming and Greenwood Racing, and anyone receiving the funding has to agree to the terms of the contract between the NJSEA and the casino industry, and they include a slot ban," McNamara said. McNamara said the benefits to Freehold Raceway of taking the funding include an "overall better product," because higher purses mean better horses competing in full races of eight horses, rather than six. He said better races draw more betting and bigger profits for the track. The SBOANJ and Freehold Raceway were not part of the negotiations for the purse supplement agreement between the NJSEA and the casino association, according to McNamara. "Freehold Raceway may be upset about that, but not agreeing to accept the funding is hurting Freehold horsemen," he said. SBOANJ President Tom Luchento said horsemen still have hope for a settlement, but are prepared to use state and federal laws, including the Interstate Horse Racing Act, if the track continues to decline the supplement. McNamara said legislation gives horsemen the right to shut down simulcasting at Freehold and its Toms River off-track wagering facility. He estimated that if Freehold Raceway garners $500,000 in bets, $150,000 to $200,000 of those bets are made on-site, with the rest resulting from the transmission signal. "It would be a severe financial cut for them and for our purses, but it is the only tool we have," McNamara said. If Freehold Raceway's parent company does not accept the supplement, the funding would go towards races at the Meadowlands, according to McNamara. He said horses from all over the country and the world race at the Meadowlands. "The real people getting hurt by this are New Jersey's trainers and drivers who have openclass horses ... Freehold Raceway's bread-andbutter racehorses," he said. "People don't come from all over to race at Freehold Raceway. It's a local track and most of the horses come from the Freehold area." Maintaining New Jersey purse levels affects other quality of life issues in the state as well, according to McNamara. "People don't understand that it's not just a horse going around in a circle with a driver on its back or a cart behind it," he said. "The horses at the tracks are all stabled in New Jersey and trained and bred on New Jersey farms. All of this means free green acres to the taxpayers of he state." McNamara said the supplement agreement with the casino association is a Band- Aid solution to the state's horse industry problems, and New Jersey horsemen continue to seek a permanent solution to stabilize funding. He said the SBOANJ considers slots at the tracks a solution, but the political climate in New Jersey precluded them as an option this year. "The governor would veto such legislation [for slots at the tracks] and there are a number of legislators who would vote not to approve such legislation at this time," he said. "This is why the state orchestrated the supplement with the casino industry until another funding source could be found." Prior to the supplement agreement, Freehold Raceway reduced its purse structure and threatened to reduce it even further if the state could not come to an agreement for supplementing the purses. McNamara said since the agreement was signed in August, Freehold Raceway's parent company sent various e-mails asking horsemen to refrain from "making a rash decision" regarding pulling the simulcast transmission but never mailed a letter to Dennis Robinson, the CEO of NJSEA, regarding its stance on accepting the supplement funding. "This has been going on for weeks," McNamara said. McNamara said the track itself has been understanding about the issue, but is caught between its parent company and the horsemen. "If there is not a significant change in [Pennwood Racing's] position with the NJSEA, we don't feel that leaves a choice for the SBOANJ and we will pull the right to transmit the signal," he said. McNamara added that the provisions of the supplement agreement include a study of the state's horse industry and its overall benefits to New Jersey. |
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