By KENNY WALTER
Staff Writer
OCEANPORT — Despite an uncertain climate and competition from neighboring states, Monmouth Park officials are confident in the future of horse racing in New Jersey.
During a May 10 press conference, Dennis Drazin, adviser to the New Jersey Thoroughbred Horsemen’s Association (NJTHA), said despite the uncertainty regarding revenue sources, there will always be horse racing in the state.
“Despite what you may read from time to time, Monmouth Park is here to stay, racing will never die here in New Jersey,” he said. “We want to continue to be world-class here at Monmouth Park.”
Drazin said the future of horse racing is tied to a Nov. 8 referendum that would allow two more casinos in the northern part of the state and allocate at least 2 percent of the revenue to the racing industry.
“This is the only state in the Northeast region that doesn’t have alternative gaming, we don’t have casino revenue,” Drazin said. “We have to try very hard to offer a better product, and the team here works very hard every year.
“We will share in a revenue distribution from the casinos, and that will help our bottom line to some extent.”
According to Drazin, the 2 percent set aside is a minimum, and he has had assurances that the revenue given to the horse racing industry will be much larger.
Drazin said the exact locations are subject to public bid, but the most likely locations will be the Meadowlands in East Rutherford and Jersey City.
Sen. Jennifer Beck (R-Monmouth) said the referendum is a much-needed step to stay competitive with neighboring states.
“As far back as 2000, we began to see neighboring states expand their casino operations and slowly taking away revenue from the state of New Jersey,” Beck said. “There is a constitutional dedication of 2 percent of the generated revenue that would be dedicated back for the purpose of breeding and racing in the state.
“It provides us an opportunity for us to win back both jobs and revenue lost to surrounding states because of the inaction of the Legislature.”
The 2016 season will be the fifth season the NJTHA is in charge and the 71st season overall for Monmouth Park.
The 57-day meet season began this past Saturday, May 14. The season features several festivals and special days, including the $1 million Betfair.com Haskell Invitational, which will be held July 31.
The track will also offer exchange wagering this year, where bettors can get fixed odds on horses, as well as in-race betting where participants can bet on a horse from the starting gate to the finish line.
Drazin said New Jersey will be the first state to offer exchange wagering, with California also having legislation allowing it but not yet implementing it.
“Exchange wagering was signed into law in New Jersey in 2011 — the regulatory process has taken several years now as you could see by the late rollout,” he said. “Exchange wagering will begin today, we’ve been in beta testing for several weeks now.
“We hope that it will be an exciting component. We are hopeful this will bring people who want to see it live.”
Drazin said he expects exchange wagering to be particularly popular with a younger demographic.
Drazin and Monmouth Park officials and state officials have been embroiled in a fight to legalize sports betting in recent years in an effort to increase revenues.
The state argued for the legalization of sports betting in February in Philadelphia in front of 12 Third Circuit Court of Appeals judges, who have not yet ruled on the case.
Monmouth Park’s development plans — including an indoor water park, hotel and other amenities — are tied to the additional revenues projected from sports betting.
Drazin has estimated that $1 billion would be wagered each year at Monmouth Park if sports betting were legalized. That could net $75 million in annual revenue for the racetrack, which is Oceanport’s largest taxpayer.
According to Drazin, the Blue Grotto restaurant, a year-round high-end Italian steakhouse with outdoor casual dinning and a beer garden, is slated to open at the end of May at the racetrack.