There was an editorial in yesterday's Newark Star Ledger which basically stated "Why not let horse racing die a natural death in New Jersey?". While the article may have some validity regarding the number of political patronage jobs that may be at the NJSEA (I am sure there are no patronage jobs in Newark), it is a smokescreen for their true motives.
For those of you that may not be aware, Newark built an arena for the New Jersey Devils in Newark hoping to attract the Nets and all the concerts that occur at the Meadowlands to Newark in an effort to revitalize Newark. While the Devils were entitled to build their own arena, the City of Newark decided to contribute $210 million dollars of lease payments from Newark Airport instead of using that money for the benefit of their citizens. There is one problem, the Nets are still at the Meadowlands and will move to Brooklyn, not Newark; the vast majority of concerts and family entertainment that were held at the Meadowlands are still there and many people still prefer going to the Meadowlands rather than having to drive into Newark with its reputation (deserved or not) for being crime ridden and overly expensive parking. In effect, Prudential Center has the potential of being an economic failure and the only way it can be assured of success is if the Izod Center at the Meadowlands is forced to close. So what the Star Ledger is advocating is if you can't win the fair way in open competition, use political will to circumvent the free market even if it means taking away a valid entertainment option for Bergen County residents to help a sports team in Newark make money. Getting rid of the NJSEA would help with their goal of closing Izod.
In addition, the Star Ledger talks about how racing only accounts for 1% of the legal gambling revenue in New Jersey and how interest in racing is dying. While there is some truth that interest in racing has declined, it needs to be mentioned that one reason for this is racing is an industry which is not allowed to innovate. Casinos are free to offer new games, allowed to accept wagers on horse racing and otherwise innovate. Racetracks, which are part of the gaming industry have not been allowed to offer new gaming options. If racing was treated like any other industry and allowed to follow the natural order of things it would be given the opportunity to innovate, change their business in order to compete. Instead, the state of New Jersey allows the lottery to come into the state and change their business plan as time goes on (allowing it to offer Mega Millions, scratch off games and various drawings) and it allows the casino industry to come into the state and doesn't allow racing to compete against it by providing the casinos a monopoly.
The Star Leger also cites the NJSEAs excessive debt. Well, much of that debt comes from political decisions made in Trenton to allow Xanadu to be bult as well as deciding to allow the Jets and Giants build their own stadium forcing the NJSEA to tear down a perfectly good stadium.
The Star Ledger disputes the number of people involved in racing by only counting people that work at the racetracks. What about people at the training facilities, breeding farms, Vets and people who grow hay and the feed suppliers? There are 13,000 jobs connected to the industry, not just the 3,280 that work at the tracks themselves.
All the other states surrounding New Jersey have decided the racing industry is worth saving and they have done it by offering VLTs and in the case of Delaware, table games. How many new jobs would be created at the tracks as a result of introducing VLTs? How many farms would be preserved and additional farm jobs created if alternate gaming is offered at the racetracks? For a state which is teaming with excessive development, here is a way to preserve open space and increase revenue for the state. Offer VLTs at the Meadowlands and once again the NJSEA can be contributing to the state coffers and help pay off the debts which result from political decisions. It is the lack of politcal will in Trenton to go against the Casino interests which allows millons of dollars in gambling revenue to go to New York, Pennsylvania and Delaware instead of New Jersey's coffers by not allowing VLTs at the racetracks in the state. Face it, that money is never coming back to the Atlantic City so the state should be coming up with a way to get the revenue back in state. Come up with a way that the casinos and racetracks share the responsibilties for the VLTs; this way everyone gets half a loaf instead of no loaf.
Bottom line is the Star Ledger in ignoring key facts in an effort to serve their agenda. Racing and the people of New Jersey need to stand up to them. So let's apply the Star Ledger's logic to them. They almost went out of business recently because advertisting and declining readership. What they did was make a lot of their employees accept layoffs and changes to working conditions in order to survive. Let's have the subscribers to the Star Ledger to pull the plug on their subscriptions to the Star Ledger and "Let the Star Ledger Die a Natural Death in New Jersey". After all, I am sure there are less employees of the Star Ledger than there are involved with horse racing. So which industry should be saved?
What's good for the goose is good for the gander.
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