NJ Breeders Say Bill Would End Racing and Breeding in New Jersey

[Wandering Eyes]

A vote scheduled for Thursday, Jan. 8 in New Jersey's Senate Budget and Appropriations Committee appears to threaten Thoroughbred racing dates in the state, cutting the required number from 50 to 25. The story was first reported by DRF's Matt Hegarty.

Michael Campbell, the executive director for the Thoroughbred Breeders' Association of New Jersey, sent out a letter to Association members Tuesday warning breeders of “serious threat” to the New Jersey Thoroughbred breeding industry if the bill is passed.

“This drastic reduction would effectively eliminate the foundation necessary to sustain Thoroughbred breeding in New Jersey,” said Campbell.

Dennis Drazin, chairman and CEO of Darby Development LLC, which operates Monmouth Park, said he disagreed with that assessment.

“It's not a requirement in the law that we run 50 days,” said Drazin Wednesday evening. “It's in order to be eligible for account wagering money and off-track wagering money that we're required to run the days.

“But,” Drazin emphasized, “we have no intention to cut days. We've already applied for our days for this year. We have no intention of ever cutting days unless we're forced do so because we don't have revenue. If we don't have revenue, then our choice is do we close down the operation or do we go to the horsemen and ask them to reduce days?”

The state of New Jersey is slated for 60 race dates in 2026. Currently, Monmouth Park has 50 scheduled programs this year, with another nine cards in New Jersey at the Meadowlands and one date at Far Hills. The law currently allows–with written consent from the New Jersey Thoroughbred Horsemen's Association (NJTHA)–the actual number of dates to total 50 annually. If passed, Senate Bill 5028 and Assembly Bill 6301 would allow those 50 race dates to be cut in half to just 25 days.

“This was not a management decision of Monmouth Park,” said Drazin. “The horsemen came to us, not the breeders–they have two separate organizations in the state–and the NJTHA came to us and asked us to protect them by floating a bill that would give us the option if they consent of doing fewer days.”

Drazin said race dates are dependent on purses and racing in the state relies upon a number of different sources to pay purses.

“Part of that purse structure that we have is based upon a subsidy that we get from the state that goes through the budget process each year. And it's been difficult over the past years,” said Drazin, who added that New Jersey subsidizes $10 million for Thoroughbred purses that can only be used for purse money.

“We go through this process, where each year the subsidy gets cut back from $10 million to $5 million,” continued Drazin. “Our legislative friends go to our aid and negotiate and get us back to $10 million. But we don't know from year to year whether or not the state will have sufficient revenues to give us the subsidy.

“If you wait until you have a crisis to have a safeguard legislation, you're going to be closing a racetrack. So this bill was always intended to give the Thoroughbred horsemen the control of this. We can't reduce days below 50 unless the horsemen sign in writing that they want us to do that. And the only we'd ask them to do that and the only way they'd agree to do that is if the option is to stay open or to close.”

The Senate bill is co-sponsored by Senator Vin Gopal (District 11) and Senator Paul Sarlo (District 36), and the Assembly bill (A6301) is sponsored by District 11 Assemblywomen Margie Donlon and Luanne Peterpaul. The Assembly has not yet scheduled a hearing, but has the freedom to do so with little to no notice, according to Campbell's letter.

“Frankly, this was really just trying to enable the future, not hurt anybody,” said Drazin. “The only intention of this bill was to protect ourselves so at the last minute, if we did not get a subsidy in some year going forward or we get a reduced subsidy, we have means of trying to handle that situation. Then we would go to the horsemen, we would say given these revenues, here is what the gross looks like, and we need to figure out how much to pay every day [in purses].”

He continued: “I want as many days as possible but this is a defensive mechanism. We have to protect ourselves. What I like to do each year is look at the gross revenues we have, look at the purse structure required to be competitive in the region, and figure out how many days we can run in that situation.”

Drazin said he and his team are working on casino expansion, a deal pending with NYRA Bets and United Tote, and other possible revenue streams.

“As long as we can continue to pay purses that are competitive, there is no intention whatsoever to reduce days.”

Campbell's letter to breeders promised a threat far more dire. “If this bill is approved, it will end Thoroughbred breeding in New Jersey.”

 

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