NEW BRUNSWICK, N.J.
(November 7, 2014) – The Rutgers Equine Science Center released – “2014 State
of the New Jersey Horse Racing Industry”, a follow-up to the 2009 white paper
which reported the impact of slot machines and video lottery terminals on the
horse racing and breeding industry, agriculture, and open space.
The authors of the current
report, Dr. Karyn Malinowski, Director of the Rutgers Equine Science Center and
Dr. Paul Gottlieb, Chair of the Rutgers Department of Agricultural, Food,
Resource Economics, utilized indicators of horse racing industry health in
comparison to two neighboring states where alternative gaming revenue supports
horse racing. These indicators included: purse monies awarded, number of race
days, races restricted to state-bred horses only, mares bred, and foals
registered.
Data were also collected to
assess the number of horse farms entering the Farmland Preservation Program and
the number of preserved horse farms sold during 2010-2014, the number of horse
farms currently on the market, and any changes in hay, grain, or straw
production by New Jersey animal feed producers. Malinowski and
Gottlieb believe that these parameters serve as indicators of the confidence
race horse owners and breeders have in the future of the industry as
demonstrated by their willingness to invest in it.
The
year 2010 was chosen because it was during this year that the Report of the
Governor’s Advisory Commission on New Jersey Gaming, Sports and Entertainment
was released and the process began for privatization of the two racetracks
operated at that time by the state. Since 2010 it is evident that indicators
of the health of the horse racing industry demonstrate that New Jersey race
horse owners, trainers, and breeders have been hit hard by the cessation of the
purse enhancement awards in 2010 and by competition from the purse and breeder
incentive structures that exist in neighboring states where racing is supported
by alternative gaming.
“While
the horse racing industry and state government are to be commended for actions
taken since 2010 to ensure sustainability of horse racing in New Jersey,
indicators of the health and well-being of the horse racing industry suggest
that the industry is struggling in spite of efforts by racetrack management and
organizations representing horse owners and breeders,” says Malinowski.
Also reported is the
fact that equine
operations represent a small and declining share of New Jersey’s preserved
farms, which means that their acres cannot be protected by deed restriction
alone. In addition, race horse breeding operations in the state’s
preservation program are being sold at a disproportionately high rate.
These operations are now transitioning to other uses, including sport,
competition, and recreational segments of the equine industry.
This comes at a time when New
Jersey voters on November 4th 2014 overwhelmingly supported Ballot
Question Two, which would reallocate money from the corporate business tax to
specifically designate funds for the preservation of open space and farmland.
“There should exist a
partnership, in New Jersey, between the casino and horse racing industries to
enable both to remain sustainable, as competition for gambling dollars
continues to escalate. Slot machines and table games in New York and
Pennsylvania are impacting Atlantic City casinos now, and will continue to do
so with increasing force as more gaming is put into place until the regional
market is saturated. The installation of casino gaming and sports betting
at New Jersey racetracks would be a relatively quick and easy way to slow down
these trends, much to New Jersey’s advantage,” says Malinowski.
Any
increase in gambling revenue would enhance the state budget significantly
(depending on state tax revenues) and provide capital for use by the casino and
horse racing industries to keep them competitive. Casino gaming outside
Atlantic City would also add jobs to the state, during construction and
renovations of the racetracks as well as during operation.
The 2007 Equine
Science Center economic impact study of the New Jersey horse industry found the
industry to be valued at $4 billion (including racing & non-racing
interests) and generated $1.1 billion annually in positive impact on the New
Jersey economy.
For a copy of the full report, as well as the previous papers mentioned, please visit the Rutgers Equine Science Center at www.esc.rutgers.edu.
For a copy of the full report, as well as the previous papers mentioned, please visit the Rutgers Equine Science Center at www.esc.rutgers.edu.
About Rutgers Equine Science Center
The Equine
Science Center is a unit of the New Jersey Agricultural Experiment Station at
Rutgers, The State University of New Jersey. Its mission is better horse care
through research and education in order to advance the well-being and
performance of horses and the equine industry. Its vision is to be recognized
throughout New Jersey as well as nationally and internationally for its
achievements in identifying issues in the horse industry, finding solutions
through science-based inquiry, providing answers to the horse industry and to
horse owners, and influencing public policy to ensure the viability of the
horse industry.
