NJ Legislature Passes Bill to Extend Purse Subsidies Through 2029

Assembly Bill 5893, which called for an extension of annual purse subsidies given to New Jersey's Thoroughbred and Standardbred Industries through 2029, was passed Monday by the New Jersey Senate by a 35-1 margin. The bill had earlier been passed by the Assembly, by a margin of 73-0, and will now head to the desk of Governor Phil Murphy, who is expected to sign the legislation into law.

The bill calls for a $20 million subsidy to be split evenly among the two breeds.

The money is seen as a critical lifeline as New Jersey's tracks do not receive revenue from any outside sources, namely from the Atlantic City casinos. Without the subsidy, Monmouth purses would fall behind those offered in nearby states like Pennsylvania and Maryland.

“What it does is give our breeders, owners and trainers opportunities through 2029,” said New Jersey Thoroughbred Horsemen's Association Executive Director Michael Musto. “It establishes a continuation of the stability we have now in New Jersey. Thanks to Dennis Drazin [the chairman and CEO of Darby Development, operator of Monmouth Park] 100% of our money goes to overnight purses and that's the heart of what makes racing in New Jersey. It's really encouraging. It's really Dennis Drazin who makes this all possible.”

Earlier bills had already guaranteed the subsidy for 2024. The extension will now keep the subsidy in place through 2029.

According to the Daily Racing Form, last year, Monmouth distributed $31 million in purses over 56 live racing days, for an average of $553,000 a day, the highest in its history, with one-third of that money coming from the subsidy.

As a condition of receiving the subsidy, Monmouth, which is run by the state's horsemen, must issue a report to the legislature, the governor and the New Jersey Racing Commission on how the funds were appropriated.

The subsidies appear to be helping as Monmouth has recorded increases in average total handle and average on-track handle three straight years. The average total handle in 2023 was $4,032,648, an 11.4% increase over last year's average of $3,620,719.

Monmouth is scheduled to open on May 11 and run a 51-day meet. A 10 day meet of all-turf racing at the Meadowlands will commence when Monmouth closes.

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New Jersey Lawmakers Cut Only 25 Percent Of Purse Subsidy For 2021 Racing Season

Though the initial budget proposal floated by New Jersey Gov. Phil Murphy cut the state's entire $20 million horse racing subsidy, the budget passed on Tuesday by state lawmakers reduced the subsidy by only $5 million. According to the Thoroughbred Daily News, the 2021 racing season will have a purse subsidy of $15 million, to be split evenly between Thoroughbreds and Standardbreds.

Dennis Drazin, Chairman and CEO of Darby Development, which manages Monmouth Park, said he believes the $5 million difference won't cause purse reductions for the track's 2021 season.

“I am pleased that the Governor has seen fit to give us back 15 of the $20 million that is going to go support purses next year,” Drazin told thoroughbreddailynews.com. “Since it was taken out of the budget, we have worked hard on this and, fortunately, through leadership in the Senate and the Assembly, as well as a lot of our local politicians who supported the effort, the Governor saw fit to put it back in the budget. We would have liked to have had the full $20 million, but given that he is cutting everybody, I am thrilled that the Governor has our back and recognizes the importance of the industry and how important it is to save a lot of jobs and keep us competitive.”

Read more at the Thoroughbred Daily News.

The post New Jersey Lawmakers Cut Only 25 Percent Of Purse Subsidy For 2021 Racing Season appeared first on Horse Racing News | Paulick Report.

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New Jersey: Proposed Budget Cuts $20 Million From Annual Purse Subsidy

Owing to revenue loss caused by the coronavirus pandemic, New Jersey Gov. Phil Murphy's proposed budget released on Wednesday includes multiple spending cuts. According to njonlinegambling.com, one of those cuts is to the annual horse racing purse subsidy that became law in February of 2019, in the amount of $20 million.

The purse subsidy, financed by slot machine revenue, is typically split evenly between Thoroughbred and harness horsemen, affecting Monmouth Park and harness tracks Meadowlands and Freehold.

The 2019 law was approved for $100 million over five years, at $20 million per year.

While 2020's subsidy has already been paid, there is still a lot of negotiating that may be done before the state budget is finalized in late September, so the purse subsidy may be revived for 2021.

Read more at njonlinegambling.com.

The post New Jersey: Proposed Budget Cuts $20 Million From Annual Purse Subsidy appeared first on Horse Racing News | Paulick Report.

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