Assemblyman Alex Sauickie’s bill extending state subsidies to support prizes for winning racehorses through fiscal year 2029 was signed into law by the governor on Thursday.
Continuing a commitment the state made in 2019 to annually subsidize horse racing purses, the law (A2610) directs the Legislature to include the $20 million appropriated this year in every state budget until June 30, 2029.
“This annual appropriation is a win for New Jersey’s horse racing industry, its employees, and our overall economy,” Sauickie (R-Ocean) said. “New Jersey racetracks and businesses that support the sport generate millions in economic activity. Helping to sustain their future is a smart investment.”
A recent study found that horse racing generates $564.3 million annually, supports 3,720 jobs and produces $75 million in tax revenues to the state.
Three New Jersey racetracks host horse racing: Freehold Raceway, the Meadowlands, and Monmouth Park.
“New Jersey’s racetracks need to offer purses that are on par with our neighbors. Attractive purses allow owners to reinvest in the industry, bring in better horses and make New Jersey a top destination for horse racing,” Sauickie said.
In 2002, the average purse in New Jersey was $29,213. It is now over $50,000. Purses totaled $33 million in 2022. The United States offered its first million-dollar purse in 1981.
The New Jersey Racing Commission will equally divide the subsidy between the Thoroughbred and the Standardbred industries. Monmouth Park will receive 100% of the Thoroughbred purse subsidy. For the Standardbred subsidy, 60% will go to the Meadowlands, 16% to Freehold, and 12% will support New Jersey Sire Stakes purses, while bonuses for New Jersey sired horses and the breeders awards purses will each receive 6%.
New Law Passed Extending Annual $20M Horse Racing Subsidies
In a recent development, a new law has been passed that extends annual $20 million subsidies for horse racing in New Jersey. The law, which was signed by Governor Phil Murphy, aims to support the horse racing industry and ensure its continued growth and success in the state.
The subsidies, which were set to expire at the end of the year, have been extended for an additional five years. This move comes as a relief to many in the horse racing industry who rely on these funds to support their operations and maintain the quality of racing in New Jersey.
The subsidies are used to support various aspects of the horse racing industry, including purse money for races, track maintenance, and breeding programs. Without this financial support, many tracks and breeding farms would struggle to stay afloat, leading to a decline in the overall health of the industry.
Proponents of the subsidies argue that horse racing is not only a beloved tradition in New Jersey but also an important economic driver for the state. The industry provides thousands of jobs and generates millions of dollars in revenue each year, making it a vital part of the state’s economy.
Critics, however, question the need for such substantial subsidies and argue that the funds could be better spent on other priorities, such as education or infrastructure. They also raise concerns about the ethical implications of subsidizing an industry that relies on gambling for its revenue.
Despite these criticisms, the passing of this law demonstrates the state’s commitment to supporting the horse racing industry and ensuring its continued success. With the extension of these subsidies, horse racing enthusiasts can look forward to many more years of exciting races and thriving breeding programs in New Jersey.
