“Horse-racing bills advance to full state Assembly” plus 1 more |
| Horse-racing bills advance to full state Assembly Posted: 25 Dec 2010 09:08 PM PST Horse-racing bills advance to full state Assembly Potential new revenue stream for purses at Monmouth Park, Meadowlands Alegislative package aimed at keeping the horse-racing industry at the Meadowlands in East Rutherford and Monmouth Park in the borough afloat has advanced to the state Assembly.The bills, which were approved and moved forward by the Assembly Regulatory Oversight and Gaming Committee, call for the creation of new revenue opportunities, which lawmakers hope will eliminate the racing industry's reliance on state subsidies. "This is certainly going to help us develop the beginning of what we hope will be a revenue stream that … will keep New Jersey racing alive," said John Forbes, president of the West Long Branch-based New Jersey Thoroughbred Horsemen's Association. Monmouth Park racetrack is designed for use by thoroughbred racers only. "We think that these are good measures that can contribute to some revenue stream for purses, which is essential," he added. One of the bills, A-3498, approved by the full Assembly on Dec. 13, authorizes Internet wagering by residents of eligible United States jurisdictions on in-state horse races. According to Sen. Jennifer Beck (R-12th District), the legislation will have a "substantial impact [on Monmouth Park]." Beck was a sponsor of the Senate's version of the off-track wagering legislation. "The biggest issue horse racing has is that its product isn't distributed well," Beck said. "In other words, if you want to wager on a horse race, you … need to go to the track or a casino. And so you don't have a lot of opportunities to participate in horse racing. "Off-track wagering [is] a way to raise a lot of revenue for the industry and indeed will lead to it being self-supporting. So that bill in particular is really critical to the industry and its future frankly," Beck said. The legislation still awaiting approval by the full Assembly includes the following bills that were passed by the Assembly Regulatory Oversight and Gaming Committee. If the Assembly speaker posts them, they will go to the full Assembly for approval. • Assembly bill ACR-167, which allows for wagering at Atlantic City casinos and horse racetracks on sporting events. • Assembly bill A-2570, which authorizes Internet wagering at Atlantic City casinos by state residents and persons located out of the country. A portion of the revenue generated through the Internet wagering will be allocated to the New Jersey Racing Commission for the benefit of the racing industry. That appropriation will lapse after one year. • Assembly bill A-3200, which permits racetrack permit holders to provide a single pari-mutuel pool for each running or harness horse race run • Assembly bill A-3531, which dedicates revenue derived from sales tax to provide incentives for the breeding and development of certain racehorses in the state. Forbes said he welcomes the bills that provide the racing industry with new revenue streams; however, he is on edge about the bill allowing sports betting at casinos and racetracks. "The sports betting issue seems to be something that the casino industry is interested in nationally, because they are, of course, at war with each other from state to state. "It's direct competition for the gaming dollar, and if racing receives a piece of that, then that would be good for racing. But if racing doesn't receive any revenue stream from a sports-betting scenario, … it would negatively impact us," Forbes said. Of particular interest to Forbes is a portion of the legislation that authorizes exchange wagering, which allows bettors to bet against each other on the outcome of a particular race at fixed odds. "We have seen the [exchange wager] model work well in Europe," Forbes explained. "It's a little bit of a mixed bag because we are not able to make a decent projection of what kind of revenue stream it will produce. "Exchange wagering," Forbes said, "is a little different in that the money doesn't go into a huge pool. It's a variant of parimutuel racing, but it is basically individual against individual." Monmouth Park currently offers parimutuel wagering, which allows bettors to bet against each other in a pool. The new legislation permits racetracks to provide a single pari-mutuel pool for each race run. However, while the legislation could help the racing industry, Forbes said, it does little to address one of its main problems. "The essence of our issue is that casino gaming in New Jersey has devastated the racing industry," Forbes said. "When [neighboring states] have legalized casino gaming, they have made sure that their racing industries receive a revenue stream, so that casino gaming and racing … would survive," he explained. "Those legislators recognized that the racing industry in those states was a vital industry." Yet Forbes said he is still thankful that the Legislature has begun looking into possible ways to save the state's racing industry. "Suffice it to say, we appreciate that the Legislature is cognizant of the fact that the racing industry is an over $1 billion industry, economic impact-wise to the state," he said. "Racing pays the state somewhere around $160 million of tax money … and since the state through the Sports and Exposition Authority runs racing, they have a shortfall in the operation of the sports authority. "But to do away with racing would lose the state $160 million of tax revenue," Forbes said. This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php |
| Value of Irish racing industry down by €500m, says breeders' chief Posted: 27 Dec 2010 04:21 PM PST The Irish Times - Tuesday, December 28, 2010 BARRY O'HALLORAN and STEVEN CARROLL THE VALUE of the Irish horse-racing industry has fallen by close to €500 million over the last two years, according to some calculations as the recession has hit both commercial breeders and training yards around the country. The number of racehorses in training in Ireland has been declining sharply over the last three years and the trend is expected to continue. About one in every 10 racehorses born in the world is foaled here, and Ireland is one of the leading European producers of thoroughbred foals. In 2009, 10,617 thoroughbreds were foaled here out of a world total of just over 100,000. But according to a recently published report by Colm McCarthy for the racing and breeding industries, that number was down from a peak of 12,633 in 2007, and a further fall is expected when the figures for this year are calculated. Brian Kavanagh, chief executive of Horse Racing Ireland (HRI), says the number could be down by as much as 15 per cent. "The number of horses in training is tied to the numbers that are foaled," he said. There were about 7,500 in training at the end of November, and HRI expects this to drop in 2011. Shane O'Dwyer, chief executive of the Irish Thoroughbred Breeders' Association, said the overall value of the racing industry has fallen from €1.4 billion to less than €1 billion since 2008. Demand for racehorses is falling. Mr O'Dwyer said sales at bloodstock auctions fell 60 per cent between 2008 and 2010. The effect of this initially hits breeders and stallion owners, who produce the horses, but then also impacts on trainers, jockeys and stable staff. The number of jobs in the industry fell to 17,000 from 22,000 in 2008, said Mr O'Dwyer. Breeding is also an important export business and €175 million worth of Irish racehorses were exported last year, according to Mr McCarthy. A share of this goes straight to the exchequer. Mr McCarthy stated in his report that it is difficult to find a country where racehorse production survives without a parallel racing industry. Racing has a number of revenue streams, one is the owners themselves, who contributed €275 million in training fees, prize money contributions and other costs last year. Owners range from large, commercial stallion and breeding operations – such as Coolmore, Aga Khan and Darley – to small-scale owners, many of whom form syndicates to share the cost. Syndicates were plentiful during the Celtic Tiger years but they are now waning. Another source of funding is betting, but this has become mired in controversy. When the area was restructured in 2001, the State-administered horse and dog racing fund was paid for through betting tax, which was then 2 per cent. It was cut to 1 per cent in 2005, and applied only to bookmakers' turnover and not to punters' bets. The State made up the shortfall between the money raised from the tax and total due to the fund. This has meant cuts of almost €20 million in three years – €57 million next year down from €76 million in 2008. HRI wants the tax doubled and extended to online betting. The Government is committed to taxing internet betting, but has yet to work out how to do it. Individual tracks sell sponsorship rights to the races they stage, but this spending has fallen down the list of priorities for many ailing businesses. Liam Holton, director of marketing at Punchestown, said the environment is tough, but that where sponsors feel there is a relatively quick payback, they can still be interested. Punchestown has recruited new backers such as Boylesports and Ryanair, both of which benefit directly from the festival and racing generally. Under an umbrella agreement with SIS, which provides television pictures to bookmakers and specialist racing channels, each course receives €37,500 for every meeting that it stages. This is due to be renegotiated in 2013, and talks are likely to begin soon. However, according to Mr Kavanagh, there is unlikely to be a dramatic increase in the fee. The golden age of sporting media rights is over, he said, and many sports, including racing, are finding it harder to get into new markets, further broaden their appeal and boost the value of their rights. "There is room for growth," he said, regarding new audiences for Irish outside the traditional pool of Ireland, Britain and France. "But there's no pot of gold out there," he said. This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php |
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