Horsemen counting on new revenue sources

Off-track wagering, betting would help racetrack, state

BY KENNY WALTER
Staff Writer

OCEANPORT — Sports betting and off-track wagering were two major topics that were discussed at an opening-day press conference at Monmouth Park.

Dennis Drazin, consultant to the New Jersey Thoroughbred Horsemen’s Association, which operates Monmouth Park, said during the May 7 press conference that he believes the state will prevail in its legal challenge to a federal ban on sports betting at racetracks.

“We are confident that it may take us to the [U.S.] Supreme Court to prove that Gov. [Chris] Christie was right for pushing for the legislation to enable New Jersey to compete in the gaming arena,” he said. “We are confident that ultimately we will prevail in that case.”

In January 2012, Christie signed legislation allowing sports wagering at casinos and racetracks in the state, although federal law bans it.

The New Jersey law authorizes sportswagering lounges at casinos and racetracks to be licensed and regulated by the state Casino Control Commission. It prohibits wagering on any sporting event held in New Jersey and on any event in which a New Jersey college team participates, regardless of location.

Four professional sports leagues — the National Football League, the National Basketball Association, the National Hockey League and Major League Baseball — and the National Collegiate Athletic Association filed suit in August 2012 in federal District Court to block the state law, claiming that it violates the federal Professional and Amateur Sports Protection Act of 1992, which bans wagering on sports events.

On May 6, Kansas, West Virginia, Georgia and Virginia filed amicus briefs in support of New Jersey.

According to Drazin, sports betting would generate a windfall for Monmouth Park and for the state.

“We believe the Monmouth Park share alone will probably generate $800 million to $1 billion a year in handle,” he said. “The [revenue] on that is probably about $75 million. That’s about a 10 percent share for Monmouth Park, and the rest of the state will also benefit.”

While the future of sports betting is in limbo, the international sports betting company William Hill was brought in to serve as Monmouth Park’s official betting provider.

“There are several things that are happening at this point,” Drazin said. “If sports betting comes, William Hill will be here. William Hill has made a substantial commitment to Monmouth Park to build a Las Vegas-style gaming parlor.”

Speaking at the press conference, Joe Asher, U.S. CEO of William Hill, said the company operates about 100 sports books in Nevada and is the exclusive risk-management company for the sports lottery in Delaware.

The U.K.-based company, which has been in business for almost 80 years, will be ready should the state prevail in the legal wrangling.

“We all know that one day sports betting will come to New Jersey. And when it does, William Hill will be here and we are really excited about that,” he said. “I am looking forward to a long and successful relationship with Monmouth.”

The agreement with Monmouth Park provides that William Hill will sponsor the annual Haskell Invitational.

“As Dennis mentioned, our deal has a few different components, one of which is to sponsor the Haskell for the next couple of years,” Asher said.

Another way the track’s operators are hoping to increase revenues is by building off-track wagering (OTW) facilities across the state.

“We have picked out several potential OTW sites, and we are in the final phases of negotiating a lease,” Drazin said. “Sometime this summer, we will have a new offtrack wagering venue that is under construction and approved by the racing commission, and ready to move forward to increase the revenues here at Monmouth Park.”

Drazin said off-track wagering is one of the ways to secure the future of horse racing and Monmouth Park in the state.

“Ultimately, I think the only way that Monmouth Park survives in the long run is to create new ways of generating revenue,” he said. “So, off-track wagering is one key component of that.”

Another change for the track is the addition of online betting company TVG to handle account wagering on the Internet. Since TVG took over in March, revenues are up 47 percent and 1,000 new accounts have opened, Drazin said.

“That not only benefits the operators who give us money, but also gives purse money to the horsemen,” he said.

The final addition to the track this season will be implementation of the Jersey Shore Six, a progressive betting pool that offers a 10-cent bet where bettors are asked to correctly pick the final six races of the racing day. The money is placed in an overall pool, and a bettor who correctly picks the final six winners wins the entire pool. If no winner emerges, the money carries over to the next day.

The Jersey Shore Six mimics a similar bet at Gulfstream Park in Florida that last year paid out more than $1 million on two occasions, including a $3 million ticket sold in New Jersey.

The Haskell Invitational for 3-year-olds will take place on July 28 at Monmouth Park.

Contact Kenny Walter at [email protected].