New Jersey Horse Council - Here to support you!

Statements from prominent horse people about the future of horse racing in New Jersey

• What does New Jersey stand to lose if there is no horse racing in the state? Karyn Malinowski, Ph.D.
• SBOANJ ISSUES CALL FOR UNITY & SUPPORT FOR RACING IN NEW JERSEY

What does New Jersey stand to lose if there is no horse racing in the state?
Response to the Report of the Governor’s Advisory Commission on New Jersey Gaming, Sports and Entertainment
Karyn Malinowski, Ph.D.
Director – Rutgers Equine Science Center
July 23, 2010

The New Jersey equine industry benefits every resident in the state through its socio-economic influence, reflected in its positive annual economic impact and its role in the preservation of working agricultural landscape, which enhances the quality of life for all in the “Garden State.” The industry includes various sectors such as horse racing, breeding, sport/recreation and pleasure interests. Infrastructure for the equine industry includes people working throughout the state in areas such as: retail, veterinary medicine, feed and supply, insurance, and real-estate, to name a few.
The New Jersey equine industry is valued at $4 billion and generates $1.1 billion ($780 million due to racing) annually in positive impact on the state economy. It is responsible for 13,000 jobs, more than half of which are generated by racing-related interests such as race tracks and horse breeding and training facilities. The New Jersey equine industry pays an estimated $160 million annually in federal, state, and local taxes ($85 million generated by equine operations and owners and $75 million generated by New Jersey racetracks).

A total of 176,000 total acres support equine facilities in New Jersey. Approximately 96,000 of these acres are directly related to equine activities, 78,000 are devoted to pasture and hay production, with 46,000 additional acres producing hay and forage on non-equine-related operations. Equine-related acres represent more than one-fifth of the state's 790,000 acres in agriculture.

Equine animals and operations account for 42,500 horses housed in New Jersey at 7,200 facilities. Of this total, 12,500 (nearly 30 percent) are in racing-related activities. These include 8,200 Standardbreds and 4,300 Thoroughbreds (on a total of 700 facilities) that are either actively racing or are racing breeding stock.

In 2006, at the request of the Hall Institute of Public Policy, the director of the Rutgers Equine Science Center, Karyn Malinowski, was invited to address economic development for the equine industry and the future of horse racing in New Jersey in a white paper. In 2009, Malinowski and Ryan Avenatti wrote an overview of the impact of slot machines on horse racing, agriculture, and open space which was published on the Hall Institute website. Once again the Hall Institute has requested assistance from the Center in responding to the “Report of the Governor’s Advisory Commission on New Jersey Gaming, Sports and Entertainment” (also referred to as the Hanson Report).

Center director Karyn Malinowski shares her views regarding the impact of the Hanson report recommendations on New Jersey and specifically, the equine industry, if adopted as presented to Governor Chris Christie on July 21, 2010:
“It is obvious from the report that the state of New Jersey is no longer interested in the “live-racing” business. This opinion comes from a summary of the Commission’s recommendations which in essence eliminates the major player in harness racing, i.e. the Meadowlands Racetrack, and proposes to change legislation in order to permit off track wagering (OTW) without the need for live-racing. This would be convenient for the operators of the OTWs where revenue from gambling can be secured without the expense of providing live racing. What’s puzzling is the fact that no where in the Hanson report is the value of the horse industry to the state’s agricultural business mentioned.

The Garden State stands to lose the greatest portion of its premier agribusiness that generates $780 million of economic impact annually, 7,000 jobs, $115 million in federal, state and local taxes, and 57,000 acres of working agricultural landscape and open space, if racing-related training and breeding farms leave New Jersey. Contributing to the total economic impact are New Jersey’s four racing venues: The Meadowlands, Freehold Raceway, Monmouth Park Racetrack, and Atlantic City Race Course, valued at $502 million annually.

In 2007, a Center analysis of preserved farmland in the state showed that only a small portion is actually in equine-related activity. The analysis determined that only eight percent of the acreage in the Farmland Preservation Program is used for horse-related activities and 11 percent of preserved farms are in the horse business. Currently, acreage supported by equine interests makes up more than 20 percent of the total farmland in New Jersey. This reinforces the argument that the state stands to lose this farmland to development (up to 57,000 acres) if racing is no longer viable.

One recommendation by the Commission is to close the Meadowlands Racetrack or offer the Standardbred Breeders and Owners Association of New Jersey (SBOA-NJ) the opportunity to lease the track for $1.00 per year for up to three years. Under this option, the SBOA-NJ would assume all of the expenses for the facility and its management, but would not be permitted to offer alternative gaming opportunities to customers. This would pose a tremendous financial burden on the horsemen’s organization, while limiting their ability to compete with other gaming interests inside and outside the state. The option of closing the Meadowlands Racetrack would deliver a devastating blow to the harness racing industry in the state and globally.

While the thoroughbred racing industry is valuable to the state, the breeding component of this segment of the racing industry is small compared to that of the standardbred industry. Therefore, one must realize that New Jersey stands to lose a significant amount of tax-paying open space unless it develops a mechanism(s) for assuring sustainability for both thoroughbred and standardbred racing.

One must also realize that while the initial success of the “elite meet” at Monmouth Park is encouraging, it is indeed an experiment, the impact of which is yet to be determined. The long-term sustainability of a million dollar-a-day “elite meet” at Monmouth Park also needs to be looked at carefully and realistically. To deem this experiment a success at this time and apply this model indefinitely would be premature.

Racing is not the only equine discipline that will lose if New Jersey racing ceases to exist. Sport competition and recreational horse users stand to suffer as will traditional agricultural interests such as grain, hay, and straw farmers who continue to survive and maintain open space because their major customers are horse owners. The “top shelf” level of services that New Jersey horse enthusiasts have come to expect, such as equine veterinary clinics and feed and
supply stores, are at risk. While these small businesses are frequented and supported by sport horse competition and recreational users, a predominant economic flow to these entities is from the racing industry. There already exists a shortage of large animal veterinarians in the state. If racing clients ceased to exist in New Jersey, this demand would be even greater.

The New Jersey Equine Advisory Board (EAB), which is part of the New Jersey Department of Agriculture, provides the annual budget that predominantly supports the Horse Park of New Jersey and the sport and recreation segments of the horse industry, including 4-H Youth Development programs. The annual EAB budget, which is correlated to a percentage of the pari-mutuel handle from racing, has shrunk from a high of $498,000 in 1990 to a new low of $290,400 in 2009. This budget would disappear if racing ceased to exist in New Jersey.

It is widely known that New Jersey loses its “best and brightest” to neighboring states when it comes to high school graduates choosing higher education and career paths. The Rutgers School of Environmental and Biological Sciences is proud of its track record in placing its Animal Science undergraduate students into graduate and veterinary schools. Many of these young college graduates express interest in future careers in the New Jersey horse industry. It begs the question: Why would they want to stay in the “Garden State” if the equine industry infrastructure crumbles?

The fact remains that horse racing is the economic driving engine of the entire horse industry in New Jersey and is extremely valuable to the quality of life in the form of agricultural working landscape that benefits all residents of New Jersey. If racing interests no longer find farming in New Jersey a viable option, they will seek alternative locations, taking with them their financial contributions and leaving in their wake joblessness and a scenic vista of preserved but unproductive land; a fiscal burden to the community that helped to preserve it. New Jersey stands to lose some of its biggest tourism events such as, the Hambletonian, Haskell, and Far Hills Steeplechase races; and the New Jersey Fresh three-day event, to name a few.

Without a long-term vision for the sustainability of horse racing in New Jersey, owners, trainers, and breeders who currently are invested in its infrastructure would leave en masse for other locations.”
For more information about the figures and information provided in this response, visit the Equine Science Center website at esc.rutgers.edu.

SBOANJ ISSUES CALL FOR UNITY & SUPPORT FOR RACING IN NEW JERSEY
NEWS from the STANDARDBRED BREEDERS & OWNERS ASSOCIATION OF NEW JERSEY

SBOANJ ISSUES CALL FOR UNITY & SUPPORT FOR RACING IN NEW JERSEY

MANALAPAN, NJ - July 29, 2010 -- The Standardbred Breeders & Owners Association of New Jersey held a meeting with nearly 150 trainers, drivers, breeders, owners and caretakers on Thursday, July 29, 2010 at the Meadowlands Racetrack, calling on the horsemen to support efforts to revitalize racing in the state.

"Horses have been a cornerstone of New Jersey since colonial days and a major component of the state's agri-business for a hundred years," said Tom Luchento, president of the SBOANJ. "Notwithstanding the Governor's Report prepared by Jon Hanson, we are not folding, fading or leaving. Let me dispel the rumors. We are not done here. We are not close to closing the doors here [the Meadowlands] or at Freehold.

"Given the nature of the Commission [The New Jersey Gaming, Sports and Entertainment Advisory Commission], the Hanson Report was not a surprise but it was still a hard pill to swallow," he added. "What the Report offers racing are largely undoable options.

"Our appeal to the state is not only for the preservation of racing but also the land that is dedicated to horse farms, training centers and the supporting industries," Luchento noted. "This is a Green Acres issue in this state. Already half the open space in New Jersey has been developed and more will follow.

"We are not going quietly into the night," Luchento said. "We have a battle to fight and both the thoroughbred horsemen and the standardbred horsemen are united in this battle."

The overriding theme by Luchento and several other speakers who asked questions was their frustration with the Hanson Report and the need for unity.

Luchento asked horsemen to express their concerns to their legislators and to attend the Gaming Summit at Atlantic City's Convention Center at 10 a.m. on August 6 and a second session that will take place at the Meadowlands in September.

FULL TEXT OF TOM LUCHENTO'S PRESENTATION

Horses have been a cornerstone of New Jersey since colonial days and a major component of the state's agri-business for a hundred years.

Notwithstanding the Governor's Report prepared by Jon Hanson, we are not folding, fading or leaving.

Let me dispel the rumors. We are not done here. We are not close to closing the doors here or at Freehold.

Given the nature of the Commission, the Hanson Report was not a surprise but it was still a hard pill to swallow.

What the Report offers racing are largely undoable options. No one would lease or buy the track without slots. Racing at other venues like Monmouth Park, Atlantic City or a training center are not good alternatives.

Never has racing in this state been in a more precarious position. We need your support. It is crucial that you support New Jersey racing at the entry box and by voicing your concerns to the Governor and your representatives in Trenton.

We are well aware that you and I are standing on an incredibly valuable piece of property, coveted by power brokers who have visions of sleek hotels and sparkling casinos. Well, they are not going to deny us slots and turn this into Atlantic City north.

We are not going quietly into the night. We have a battle to fight and both the thoroughbred horsemen and the standardbred horsemen are united in this battle.

We have the support of horsemen throughout North America. We have met with representatives of the Hambletonian Society, the United States Trotting Association and other groups who support us. We thank Mike Tanner, executive director of the USTA, for coming tonight. We appreciate the wisdom of the Hambletonian Society Board, including president Tom Charters and chairman John Cashman.

Breeders including Anthony Perretti of Perretti Farms, Mark Mullen of Fair Winds Farm, Mike Gulotta of Deo Volente, George Segal of Brittany Farms and Jim Simpson of Hanover Shoe Farms have championed our cause and support us.

We are reviewing solutions offered by many sources. Among them could be something similar to what is taking place at Monmouth Park this summer - an elite meet of 100 days with $400,000 a day in purses. We will look for funding to support this as well as our breeding programs. We believe that at least half of this can be generated by handle on our live races.

• We look for the expansion of Off Track Wagering locations and a share in their ownership.
• We could ask for the sales tax on horse sales and claiming races to be dedicated to purses.
• We have not given up on a purse enhancement agreement - or even racinos.

Our appeal to the state is not only for the preservation of racing but also the land that is dedicated to horse farms, training centers and the supporting industries. This is a Green Acres issue in this state. Already half the open space in New Jersey has been developed and more will follow.

We need to continue to speak with one voice. We need the taxpayers of New Jersey to understand that a racino at the Meadowlands will yield $1 billion in tax relief and services for all citizens, not the chosen few in Atlantic County.

A group of legislators has called for a Gaming Summit which will make its first stop in Atlantic City on Friday, August 6 at 10 a.m. in the Convention Center. We will be there. We would like you there too.

There will also be another session held at the Meadowlands in September. It will be essential that this is fully supported by all horsemen.

Ladies and gentlemen, the Meadowlands is not only the cornerstone of New Jersey racing, it is essential to the entire industry.

Like the Yankees are to baseball, the Meadowlands is the most important franchise in the sport. We cannot let this franchise die.

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