New Legislation Would Bring Slots to NJ Racetracks

Lawmakers in the Garden State tend to focus on New Jersey casinos as the venues are money-makers. However, legislation to revitalize the horse racing industry is back on the table this year. Two measures were introduced in 2024, with one set to allow slots at racetracks and the other having the tracks act as a proxy for the Atlantic City casinos.

The legislative effort is the second time that lawmakers have pushed for changes to the horse racing industry in New Jersey. This time around, the sponsors of the bills have more optimism that the measures will pass into law. The bills would help support race tracks like Monmouth Park, Meadowlands, and Freehold Raceway.

The facilities have been able to benefit from sports betting services; with each venue partnered with a major brand, more work is needed to ensure that the facilities remain a destination for visitors. Atlantic City is a prime spot for gambling, but more effort needs to be placed on options outside the boardwalk area.

Currently, while Atlantic City is doing well, the majority of earnings come from digital gaming. Players are logging online now more than ever. As part of the legislation, revenues from the horse racing changes would be sent to Atlantic City to help where there is a decrease in earnings.

With the SCR14 measure, voters in the state will need to approve an amendment to the constitution. New language would then be inserted that allows slots at racetracks. The regulations and tax rates for the new option have yet to be determined.

The legislation does allocate where the money will go from the new gaming options. The bulk will be used for employee pensions and debt obligations for pensions as needed for state employees, at 60% of the total.

A 30% cut will go to casino operators and will be given based on the size of investment. An additional 7% will go to the recovery, stabilization, and improvement of Atlantic City. Another 3% will go to the help of thoroughbred and standardbred horsemen.

The additional money generated from slot gaming would be beneficial to Atlantic City and the state. Players would have more entertainment options at racetracks, which will also entice more tourism to the facilities.

With A107, the measure would allow racetracks to be available for online casino players to wager online at AC casinos. The former mayor of Atlantic City, Assemblyman Don Guardian, created this bill. The bill would allow racetracks to create agreements with casinos in Atlantic City or their online partners.

The online wagers would be under the jurisdiction of the Division of Gaming Enforcement at participating racetracks. The New Jersey Racing Commission would not be in charge, as they are with race track dealings.

Casino venues and online operators would be responsible for sharing revenues with any partner racetracks.

Now that the legislation is on the table, it becomes a waiting game. Lawmakers will plead their case and see if the bills can gain enough support to move forward. It may be some time before we see any movement, but it seems 2024 is as good of a time for changes to be made within the racing industry.

It will be interesting to see if there is any pushback from casinos on the slot subject. Will the AC venues be okay with the racetracks offering reeled machines and possibly taking away some of their tourism? Only time will tell, and we will continue to monitor the situation and report on any new information as it becomes available.