Atlantic City Casinos Move to finish Racing Subsidies

Casino interests in New Jersey are trying to find cost-cutting measures to offset the plunging income of Atlantic City gaming venues, and the state's horse-racing subsidy is a primary target.

The policy of state casinos supporting the pony racing industry in New Jersey could also be coming to an end. The astonishing plummet in business for Atlantic City gambling venues has caused lawmakers to inspect the subsidy and question its necessity.

The race track subsidy involves $30 million annually, and, with the present casinos struggling to circumvent bankruptcy, state Senator Jim Whelan has proposed ending the unreal support for horse racing.

"If there’s no demand for a product, why should we as an industry and as a society feel obligated to prop it up?" asked Whelan on the East Coast Gaming Congress. His position was supported by Senate President Stephen Sweeney.

"Race tracks should be capable of stand on their own," Sweeney added. "I don’t think casinos need to be spending $30 million on horse racing. They need to be spending it on promoting casinos."

The subsidy is granted to tracks in return for permitting the casinos exclusivity for slot machine gambling. Track operators say if the subsidy is removed, they would like to put slots on the tracks.

According to figures from Rutgers, horse racing in New Jersey is chargeable for 2500 jobs and roughly $31 million in government revenue.

Published on May 31, 2010 by EdBradley

Read More... [Source: Horse Racing News]