N.J. horse industry feels betrayed by Gov. Christie's support of Atlantic City, but not Meadowlands

Without state support, N.J.'s equine industry could face shutdown

MONMOUTH COUNTY — The black fences and white pickets lining the fields along Route 526 in Monmouth County signal the changing borders of horse farms with quaint names like White Birch, Fair Wind and Birch Creek.

Dark brown mares and their thick-maned yearlings graze in the corners or under the shade of the few trees that rise from the rolling plains. Away from the road, clusters of stables housing hundreds of horses dot the landscape.

This is the heart of New Jersey’s horse country and Wednesday, breeders, trainers and owners who work in this pastoral setting were wringing their hands and shaking their heads.

They were feeling betrayed.

Gov. Chris Christie’s sweeping report on the state’s gaming industry calls for a dramatic overhaul of horse racing in the state. Although it outlines four options — without indicating a front-runner — the plan will undoubtedly mean the state’s horse racing subsidy will end. And without that support, a critical piece of the state’s equine business is in peril.

"The whole industry in New Jersey will be gone, including Perretti Farms," said Anthony Perretti, general manager of Perretti Farms in Cream Ridge, the state’s largest breeding farm. "The governor and his team are willing to support Atlantic City, but not the Meadowlands? Give us support, so we can reinvent as well."

Horses are big business in New Jersey. According to a Rutgers University report from 2007, horse racing and racing-related operations generate more than $780 million in economic activity each year. Some 3,800 of the industry’s 13,000 jobs are tied to racetracks. Horse farms represent one-fifth of the state’s 790,000 agricultural acres, and house upwards of 12,500 standardbreds and thoroughbreds.

New Jersey is a national leader, too. In 2007, the state was second only to Kentucky for horse sales as a percentage of agricultural sales, said Paul Gottlieb, associate professor at Rutgers University. And it ranked second, after Rhode Island, for total breeding per acre of land, he said.

"We are one of the top equine states in the country," said Gottlieb, who noted potential race track closings will have far-reaching implications. "The impact is likely to be felt by agricultural suppliers, including hay growers who do not keep horses themselves, veterinarians, trainers, farriers, and so on."

Christie’s report offers broadly sketched options for fixing the horse racing industry, a significant part of the state’s $3.5 billion equine economy. The state could eliminate harness racing at the 34-year-old Meadowlands Racetrack and convert that facility to off-track wagering or another sports or entertainment based use. It could lease the Meadowlands to the state’s standardbred horsemen, who would be responsible for operating and capital expenses.

The options do not include turning Meadowlands Racetrack or Monmouth Park racetrack into so-called racinos with the addition of slot machines, an industry trend credited with reviving attendance at race tracks.

"I’m not wed to any one option," Christie said at a press conference at the Meadowlands Wednesday. The governor said the state is "willing to be a partner" but it "can no longer sustain the subsidy we’re giving to the standard-bred industry and the Meadowlands Racetrack."

Carol Hodes, spokeswoman for the Standardbred Breeders and Owners Association of New Jersey, the state’s harness racing trade group, did not endorse the idea of taking over the Meadowlands operation. "We really don’t have purchasing on the table right now," she said. "There could be alternative funding formulas. Somebody needs to put that on the table. Every other state around us is operating racinos. There’s no reason we shouldn’t do that."

Another option in the Hanson report calls for Monmouth Park to host both thoroughbred racing and 70 standardbred dates throughout the year. Finally, a private entity could be found to buy and convert one of the state’s standardbred farms with a mile track for commercial use. This option includes construction of a 5,000-seat grandstand and an off-track wagering parlor at the Meadowlands.

Hodes said it was too soon for her organization to voice an opinion on this idea.

"Our number one option is to stay at the Meadowlands and offer world-class racing," Hodes said. "It would be very hard to replace the Meadowlands with any other option."

The mood among the trainers and horse owners at the Meadowlands Wednesday was a mixture of anger, resignation and fear.

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John McDermott, 44, of Lyndhurst, is a trainer who runs a stable at the track. He said he has no option but to take his business someplace else.

"I talked to my wife and I’m ready to sell my house and move out to Pennsylvania or New York," McDermott said. "I have three kids that I’ll have to relocate."

Things may not be as grim at Monmouth Park, which has cut back race days and increased daily purses. The park is losing less money, though it is not breaking even. But it is less expensive to run than the Meadowlands, making it more attractive to an outside buyer.

Without the state subsidizing purses, there is no real financial incentive for owners to race their horses.

"It will be a lower quality of racing and no one will bet on it," said Pat McBurney, a trainer from Fair Haven, who said the economics don’t work without the state’s aid. For example, this weekend the state contributed $250,000 to increase a purse to $400,0000.

Many at both tracks voiced frustration that the state did not bring slot machines to the races as neighboring New York and Pennsylvania have. In the end, however, it doesn’t matter why the Meadowlands has declined.

"We love what we do here," said Joe Tosies as he brushed a horse. "It’s almost like being shot in the back."

Staff writers Meredith Galante, Rohan Mascarenhas, Steve Strunsky and Conor Orr contributed to this report.