he New Jersey Sports and Exposition Authority operates the Meadowlands and Monmouth Park racetracks in the eastern American state and revealed in a budget statement last week that the tracks are set to lose us$ 16.9 million for this year. According to a piece in The Star Ledger newspaper, things are set to get even worse for the state’s two publicly owned tracks with an expected shortfall for 2009 of us$ 20.8 million.
The Authority stated that it expects revenues of us$ 238.5 million for 2009, which is us$ 5 million less than it made in 2008, and has instituted a hiring freeze for next year in order to cut costs. According to Dennis Robinson, CEO for the New Jersey Sports And Exposition Authority, the regulator saw a two percent increase in total betting for this year despite a six percent national decline.
However, the Authority’s Giants Stadium continues to be the top-grossing venue of its kind in the world and earned nearly us$ 26.5 million this year with the nearby Izod Center taking in us$ 37.8 million to remain as the fourth top-grossing arena in the country.
In addition, income from Internet, phone and off-track wagering is rising and the Authority predicted such operations would take in us$ 9.3 million after expenses next year, roughly us$ 220,000 more than was seen in 2008.
Horse breeders and owners have argued that the tracks should be allowed to run slot machines but casinos have opposed such plans because this competition would hurt their businesses in Atlantic City. Casinos are currently paying us$ 90 million in exchange for an agreement from the Authority not to add slots before the end of 2011.