Slots crucial to horse industry, open space
BY JANE MEGGITT
Staff Writer

Without intervention from state officials, New Jersey may lose its $1.1 billion horse industry to surrounding states.

That is what the New Jersey Horse Council and the New Jersey Farm Bureau were trying to convey to state legislators with a lunch and tour of the cross country course during the Jersey Fresh CCI** and CCI*** event held in June at the Horse Park of New Jersey, Upper Freehold Township.

Jane Gilbert, president of the New Jersey Horse Council, told the assembled guests that an event sponsored by the Federal Equestrian Internationale, which is the governing body of horse sports, is rarely held in the Northeast. She praised the Horse Park's board of trustees and Lynn Mathews, the equine specialist for the state Department of Agriculture, for what they have done with the Jersey Fresh two- and three-star over the past five years.

Gilbert said all the people riding in the weekend event were either at the Olympic level or striving to be in the Olympics.

"The Jersey Fresh isn't just a plain old horse show - it's an international event," Gilbert said. "It's a huge event to come to New Jersey."

Three-time Olympian Karen O'Connor, of Plains, Va., also spoke to the guests and said the competitors could not thank the Horse Park enough for providing the facilities. She said the Jersey Fresh CCIs are great spectator opportunities for families to see top horse and rider athletes.

O'Connor noted the tremendous history New Jersey has in the equine world and also discussed how the state's ability to preserve large tracts of land such as the Horse Park is vital for the future of horse sports.

Karyn Malinowski, director of the Rutgers Equine Science Center, New Brunswick, spoke about the results of a recent Rutgers University study on the economic impact of the horse industry in New Jersey. She said the total economic impact of the industry is $1.1 billion annually.

Malinowski said 176,000 acres in the state are involved in the equine industry. New Jersey equine-related acres represent about one-fifth of the state's total acreage in agriculture, according to Malinowski.

The state horse industry employs 13,000 people and generates an estimated $160 million in annually paid federal, state and local taxes. This includes $85 million generated by equine operations and owners, she said, and $75 million generated by New Jersey race tracks.

The large equine farms in New Jersey are due to the state's race horse breeding, she said. However, New Jersey is now surrounded by states such as New York, Pennsylvania and Delaware that have video lottery terminals, or slot machines, at their race tracks, which are threatening those Garden State farms.

To this point, gaming interests in Atlantic City have opposed permitting slots at New Jersey race tracks. The state Legislature approved a four-year deal with the casino industry to supplement racing purses, but the deal expires this year.

State Assemblyman Tom Giblin (D-Essex and Passaic) said there is a race track with slots in Pennsylvania called Chester Downs that is only 50 miles from Atlantic City. He noted that if New Jersey places slot machines at the Meadowlands in East Rutherford or at Freehold Raceway in Freehold, they would be a much greater distance from Atlantic City.

This was Giblin's first visit to the Horse Park. He said while his district is urban, he recognizes the importance of the horse industry in the state.

"Maintaining the horse industry is an important element of making sure we have open space," he said.

State Assemblyman Ron Dancer (R-Ocean, Monmouth, Mercer and Burlington), whose district includes the Horse Park, is a member of a prominent harness racing family.

"We are facing challenging times," Dancer said.

He called the renewal of the Garden State Preservation Trust "crucial" to maintaining open space and farmland preservation. He said it is important for all aspects of the horse industry to come together to make sure the racing industry has a sustainable revenue stream.

On Dec. 31, the $21 million racing supplement expires. Dancer said that without such a revenue stream, stallions, breeders, trainers, drivers and jockeys will leave New Jersey.

"We are facing a crossroads in the future of our industry," he warned.

Dancer said a grassroots lobbying effort is necessary from the entire equine industry.

Anthony Perretti, whose family farm encompasses 750 preserved acres in Upper Freehold Township, said that breedings to five of the six standardbred stallions the farm stands at stud are down 20 to 30 percent. The only exception is 2005 Horse of the Year Rocknroll Hanover. Perretti said the decrease is directly due to the presence of slot machines in other states.

Without slots in New Jersey or Sire Stakes and purse supplementation, he said, Perretti Farms will have to consider moving the majority of its stallions out of state. The farm stands six of the 14 standardbred stallions at stud in New Jersey, according to Perretti, and has introduced two new stallions every year for the past five years.

In Perretti's view, the New Jersey Sire Stakes program needs supplementing. He estimates that at least $10 million will be necessary to compete with the slot money from neighboring states. He thinks at least $250 million in supplementation will be needed for purses at New Jersey race tracks, since slot money in other states puts money into their racing purses.