New Jersey Senate Passes Subsidy For Purses

The New Jersey senate passed a bill Jan. 8 that would send additional money to Monmouth Park to go toward its race purses. Assembly Bill 5893 passed with a 35-1 vote and now goes to Gov. Phil Murphy, who is expected to sign it into law.

The bill allocates $20 million annually toward horse racing purses in the state, something New Jersey already does. But the current law has the subsidies going to purses until state fiscal year 2023, with the budget for 2024 also providing the same subsidy. That $20 million is split between Thoroughbred and Standardbred racing.

What differentiates current law and the bill passed Monday is that the new bill requires the appropriation of funds for horse racing purses in an additional five fiscal years, through fiscal year 2029.

“We’re extremely appreciative of all the legislators and the governor’s office who helped us get the bill passed and obtain a subsidy that will continue to invigorate racing in New Jersey,” said Monmouth Park CEO and chairman Dennis Drazin. “The legislators for as long as I can remember, which goes back probably 40 years, have always been supporters of racing and the governors—all of them—have all tried to do what’s right, in terms of preserving our industry. And in particular, Gov. Murphy has been supportive from Day 1.

“We think that what this does for us, is it recommits to all the owners, trainers, breeders, and employees in New Jersey, that we have a future and that racing is not going to go away.”

Drazin noted the last subsidy bill was passed five years ago and expired in 2023. After the one-year appropriation for 2024, the status of those monies going forward was “up in the air.”

Trainer Pat McBurney, who was 15th in earnings last year at Monmouth, said the subsidy has helped the state-bred foal crop rise in recent years. Data from The Jockey Club State Fact Book shows New Jersey’s foal crops have increased annually since 2018. The subsidy also makes racing in New Jersey more appealing.

“I think it’s fantastic, and for it to be dedicated to purses—the better the purses, the better the quality of your racing,” McBurney said. “Purses just fuel everything for horse owners, and to make owners want to come there, it’s fantastic.”

The funds are distributed by the New Jersey Racing Commission, which gives 100% of the Thoroughbred funding to Monmouth Park for overnight purses. Of the remaining $10 million, which goes to Standardbred racing, 60% will be allocated to Meadowlands Racetrack overnight purses; 16% to Freehold Raceway overnight purses; 12% to the New Jersey Sire Stakes purses; 6% to purse bonuses for New Jersey-sired horses; and 6% for breeders awards purses.

The Daily Racing Form reported that last year Monmouth Park “distributed $31 million in purses over 56 live racing days, for an average of $553,000 a day, the highest in its history, with one-third of that money coming from the subsidy.”

Surrounding states have one advantage, which is they get funding from slot machine revenues. While New Jersey can’t match purse size with New York, it can hold its own with Pennsylvania, Delaware, and Maryland. 

While that is a more complicated issue, Drazin is confident that Monmouth Park will strive to do what’s best for the state’s horsemen.

“We will continue to do everything we can to make sure that New Jersey stays competitive in the region, and that our horsemen have purses that they can make a living off of and get rewarded for the hard efforts that every horseman puts in on a daily basis to make the industry survive,” he said.