Racetrack supplement issue still unresolved
Horsemen could pull simulcast after Nov. 13
BY JENNIFER KOHLHEPP Staff Writer

Aconference call among representatives from the New Jersey horseracing and casino communities has failed to yield a resolution to the Freehold Raceway purse supplement issue.

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, since the racetrack's parent company, Pennwood Racing, has so far refused to accept the funding. The funding 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.

According to Leo McNamara, executive administrator of the Standardbred Breeders and Owners Association of New Jersey (SBOANJ), legislation gives horsemen the right to shut down simulcasting at Freehold Raceway and its Toms River off-track wagering facility if Pennwood Racing does not accept the purse supplement. 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.

The conference call to yield a resolution to the Freehold purse supplement issue took place on the afternoon of Nov. 7. Those participating in the conference call were attorney Joel Sterns, of Sterns and Weinroth in Trenton, New Jersey Casino Association representatives Joe Corbo and Joe Fusco, New Jersey Sports and Exposition Authority representatives Dennis Robinson and Mark Stefanacci, Penn National representatives Chris McErlean and Karin Ashford, Freehold Raceway representative Donald Codey, Philadelphia Park representative Frank McDonnell, and SBOANJ representatives McNamara and Tom Luchento. During the call, Corbo agreed to take a written request from Pennwood Racing to the New Jersey Casino Association but gave little encouragement that the casinos would agree to pay $1.6 million to Freehold's purse account without Pennwood signing off on the purse supplement agreement.

Sterns, who moderated the 90-minute conference call on behalf of SBOANJ, told the Freehold Raceway representatives that they were looking at the demise of the track if they did not accept the agreement.

Luchento, president of the SBOANJ, said, "The SBOANJ is prepared to pull authorization for simulcasting signals at Freehold and will be notifying Freehold that its deadline will now be Thursday, Nov. 13, 2008."

McNamara 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 if Freehold Raceway's parent company does not accept the supplement, the funding would go toward races at the Meadowlands in East Rutherford, where horses from all over the world race. He said Pennwood Racing would be hurting Freehold area horsemen and racing if it did not accept the funding.

McNamara also said that maintaining New Jersey purse levels affects other qualityof life issues in the state because horsemen breed and stable their horses on New Jersey farms, which helps maintain farmland and stave off development.

After the conference call, the SBOANJ scheduled a meeting regarding both the future of racing in central New Jersey and the dispute over the purse supplement money for Freehold Raceway.

"The refusal of Pennwood Racing to accept $1.6 million in casino supplement funds for Freehold's purses is endangering the future of racing at Freehold and the infrastructure of farms, training centers and related industries that have flourished in the state," Luchento said. "We're calling this meeting so that our members understand what is at stake."

The meeting took place the evening of Nov. 11, after the Examiner's deadline.