STENDER/VAN DREW/MORIARTY REVISIONS
TO OFF-TRACK WAGERING LAW CLEARS COMMITTEE
Measure Would Expedite Horse Betting Parlors in Garden State (TRENTON) -- The Assembly Tourism and Gaming Committee today released legislation Assemblywoman Linda Stender and Assemblymen Jeff Van Drew and Paul Moriarty sponsored to speed up implementation of the state's five-year-old off-track wagering (OTW) law.

Expressing dissatisfaction over the fact that New Jersey still doesn't have any OTW parlors, Stender/Van Drew/Moriarty said their measure (A-979) would inject some sorely needed competition into the process for licensing off-site horse betting franchises.

"New Jersey's off-track wagering industry has yet to break out of the gate," said Stender (D-Union/Middlesex/Somerset). "Right now, the process is one of inertia instead of progress and accomplishment. Five years have passed and we're still far away from the finish line on getting off-track wagering in this state."

The New Jersey Sports and Exposition Authority (NJSEA) currently is the sole licensee to open OTW parlors around the state.

The Stender/Van Drew/Moriarty bill would allow other entities to compete for licensing authorization. OTW is wagering at a licensed facility that broadcasts horse races and accepts bets on those races.

Under the bill, OTW license applications would negotiate the terms of their license with the New Jersey Racing Commission (NJRC), including the revenue to be shared with the horse racing industry. In order to facilitate and supervise a competitive system, the bill would expand regulatory authority over OTW and provide guidelines for the commission to follow in the awarding of OTW licenses.

"This past weekend's 132nd running of the Kentucky Derby generated hundreds of thousands of dollars in revenue for states across the country," said Van Drew (D-Cape May/Atlantic/Cumberland). "Had New Jersey had its off-track wagering parlors up and running, there would be a new stream of revenue to factor in to the budget crunch."

The NJRC has allowed up to 15 OTW parlors to be opened in the state. The 2001 OTW law authorized the NJSEA --which runs the Monmouth Park and Meadowlands racetracks -- to be the sole licensee and to negotiate with the state's other racetrack owners to determine where the betting parlors would be and how to decide potential revenue.

The closest the state has come to opening a parlor is Vineland. An application for a facility in Vineland is currently pending before the NJRC, but the earliest a ruling may come is June.

Moriarty said opening up the industry to competition would speed up the process.

"The NJSEA has dragged its feet on off-track wagering for five years," said Moriarty (D-Gloucester/Camden). "Giving the NJSEA some healthy competition would give a much-needed boost to an industry that could serve as a catalyst to a variety of South Jersey communities."

New Jersey voters approved an amendment to the New Jersey constitution allowing the Legislature to authorize wagers on live or simulcast races in 1998.

On August 5, 2001, OTW-implementation legislation was signed into law by Acting Governor Donald DiFrancesco.

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