NJ Assembly Approves $10 Million Annual Purse Subsidy

New Jersey horsemen and breeders are encouraged by the New Jersey Assembly's approval Jan. 31 of a purse subsidy that will see $10 million committed annually to Thoroughbred purses over the next five years.

Assembly members approved the purse money by a vote of 68-6-1.

The New Jersey Senate approved the subsidy Dec. 17, which will award a total of $100 million to Thoroughbred and Standardbred purses in the state over the next five years. The legislation now goes to Gov. Phil Murphy, who is expected to sign it into law. Each breed will see a $10 million boost in purses for each of the next five years, 2019-23.

Owner/breeder Dennis Drazin, who heads Darby Development, which operates horsemen-owned Monmouth Park, has been working on the reinstatement of purse supplements for at least a year as part of a goal to provide multiple revenue streams for Monmouth and its horsemen. He said the governor has worked with them throughout that process.

While things are still being hammered out, Drazin expects the new money will be used to add racing days at Monmouth and increase daily purses. He said in 2019 New Jersey most likely will see 61 race dates at Monmouth and six dates for the Monmouth-at-Meadowlands meet.

In 2018, Monmouth Park offered 52 race dates, and Monmouth-at-Meadowlands had four race dates. Combined paid purses at the two meets reached $17,272,187 for average daily purses of $308,431. In adding $10 million to that equation—not accounting for any possible boost from the 2018 addition of sports wagering at Monmouth—the 67 dates at the two New Jersey tracks figure to offer average daily purses of $407,048. That would mark a 32% increase in average daily purses and a 58% increase in total purses.

Drazin said horsemen are debating a championship meet that would feature bigger purses and could bring added focus to Monmouth, or simply spreading the money evenly throughout the meet. Either way, Drazin said the added purse money will provide stability for horsemen and breeders.

"We've been working on this for a year or longer. It's come to fruition. There's been significant support from leadership and the governor throughout," Drazin said. "We're obviously very happy. It puts us in a more competitive position in the region.

"Now we know we have the stability of $10 million a year for five years. So the first thing it does is it lets the breeders know they can come drop their foals in New Jersey because there's support for the next five years."

A 40% bonus for New Jersey-breds who win or place in open company will be restored to attract more breeding activity in the state. From 1996-2016, the annual New Jersey foal crop declined from 454 to 79.

Purse supplements, derived from payments from Atlantic City casinos in exchange for the racing industry not pursuing casino-style gambling, had previously been in place in New Jersey but were ended under former governor Chris Christie.

Primary sponsors of the current legislation include Reps. John Burzichelli, Eric Houghtaling, Joann Downey, and Ronald Dancer. Sponsors of the Senate bill include Sens. Vin Gopal, Paul Sarlo, Steven Oroho, and Richard Cody.

Amendments to the bill require annual reports be filed with the governor and lawmakers, as well as the New Jersey Racing Commission, to allow for a comparison of each fiscal year during which funds are received. Should lawmakers determine that receipt of the funds has not substantially improved the New Jersey racing industry based on a review of the filed reports, they can choose to not appropriate funds provided by the bill. 

Supporters of the subsidy had argued that New Jersey racing and gaming was losing ground to surrounding states that boost purses with money from casino-type gaming. This week, Burzichelli outlined the need in an Asbury Park Press story.

"As we struggle to figure out how to make things better in this state, this industry and its ripple effect to farms and everything that supports this industry has been starved over the previous eight years, prior to this new administration coming into place," Burzichelli said. "We are playing catch-up, as we have watched our neighboring states steal a lot of the benefits this industry brings. Things that many in this state hold dear, as evidenced by public referendums on farmland preservation, for example.

"The success of the horse racing industry automatically means farmland preservation."