Hearing Before
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Public Hearing before NEW JERSEY GAMING SUMMIT LOCATION: Monmouth Park Race Track DATE: September 29, 2010 Oceanport, New Jersey 10:00 a.m. MEMBERS OF SUMMIT PRESENT: Senator Jim Whelan, Co-Chair Assemblyman John J. Burzichelli, Co-Chair Senator Paul A. Sarlo Senator Stephen M. Sweeney Senator Jeff Van Drew Assemblyman Ralph R. Caputo Assemblyman Matthew W. Milam Assemblywoman Sheila Y. Oliver Assemblyman Connie Wagner ALSO PRESENT: Sonia Das Senate Majority Summit Aide Hearing Recorded and Transcribed by The Office of Legislative Services, Public Information Office, Hearing Unit, State House Annex, PO 068, Trenton, New Jersey TABLE OF CONTENTS Page Michael J. Mahon Mayor Borough of Oceanport 3 Senator Jennifer Beck District 12 3 Unidentified Member Board of Chosen Freeholders Monmouth County 6 Senator Robert M. Gordon District 38 7 Jon F. Hanson Chair New Jersey Gaming, Sports, and Entertainment Advisory Commission 17 Tom Swales IV President Thoroughbred Breeders Association of New Jersey 69 Michael J. Gulotta Owner and Operator Deo Volente Farms 69 Thomas F. Luchento President Standardbred Breeders and Owners Association of New Jersey. Inc. 69 Ryck Suydam Representing Suydam Farms, and Second Vice President New Jersey Farm Bureau 69 Ed Wengryn Representing New Jersey Farm Bureau 69 TABLE OF CONTENTS (continued) Page Anthony Perretti Representing Perretti Farms, and Director Hambletonian Society, and Director Standardbred Breeders and Owners Association of New Jersey, Inc., and Trustee New Jersey Sire Stakes Program 70 Dennis Drazin Chair New Jersey Racing Commission Office of the Attorney General New Jersey Department of Law and Public Safety 100 Joe Bravo Private Citizen 105 John Campbell Private Citizen 107 William J. Pascrell III, Esq. Lobbyist Princeton Public Affairs Group, Inc. 125 Stephen Burn President TVG, and Global Director Betfair 125 Melissa Blau Representing MBlau Consulting 133 TABLE OF CONTENTS (continued) Page Scott E. Palmer, D.V.M. Chair AAEP Racing Committee, and Representing New Jersey Equine Clinic 149 Rick Wills Owner Rick’s Saddle Shop 156 Jane Gilbert President ReRun, Inc. 159 Michelle McSweeney Private Citizen 162 Laurence Danza Private Citizen 163 Bo Smith Private Citizen 166 Tim Gavin Private Citizen 168 APPENDIX: Statement, plus attachment submitted by Michael J. Mahon 1x Statement, plus attachments submitted by Anthony Perretti 5x TABLE OF CONTENTS (continued) APPENDIX (continued): Page Statement submitted by Scott E. Palmer, D.V.M. 24x rs: 1-171 ASSEMBLYMAN JOHN J. BURZICHELLI (Co-Chair): Good morning, and welcome. This meeting marks the third meeting of the Gaming Summit, as organized and advanced by Senate President Sweeney and Assembly Speaker Sheila Oliver. There are many in this room who have attended, I think, the Meadowlands. So neither myself nor Chairman Whelan is going to be very long-winded with opening statements, because we’re very anxious to get to those who have taken the time to come testify before this group. But I do want to welcome all the sitting committee members back -- those traveling from different parts of the state; having the opportunity to be in this really, truly unique and spectacular venue, this magnificent Monmouth Park, which of course is coming off this wonderful racing season -- setting new standards that drew both the nation’s attention and the world’s attention to horse racing; and sending the message loud and clear that New Jersey is very serious about protecting what it has and growing what it has to be even greater. We look forward to the testimony today. As I said, I will be very brief. Senator Whelan -- he and I are Co-Chairs -- will be back and forth in running the meeting today. He’s asked me to just kick it off. I’m going to ask Senator Whelan to say a word, then we’re going to call the first panel. And I believe the Mayor is going to give us a welcome. Jim. SENATOR JIM WHELAN (Co-Chair): Thank you very much, Chairman. 1 We want to thank everyone who has participated in this process up to this point. We had one hearing, as we know, in Atlantic City; one in the Meadowlands; and one here. We thought we would cover, geographically, South, North, and Central Jersey, and also, obviously, be in the actual venues that are very much a part of this discussion. Again, we thank everyone for coming out today and those who have testified in the past. We will follow the same format. We do have invited speakers. And when we finish the list of invited speakers and panelists -- we’ll bring them up in panels, because it moves a little quicker -- we will go to the general public who have signed up. We’d like to acknowledge the presence of some of our colleagues who are here. Senator Bob Gordon is here from the Meadowlands area, but he’s here in Monmouth. Assemblyman Dancer, of course, a great champion of the horse industry, is here as well. And I think we’re going to hear from Senator Beck when we bring the Mayor up. So with that, let’s go to the first panel. ASSEMBLYMAN BURZICHELLI: Thank you, Chairman. As the Chairman mentioned, first we’ll invite this panel up. These are almost, for lack of better terms, our official greeters for the day, representing our host community today. The Mayor joins us; Mayor Michael Mahon. Michael, please come on up. Senator Beck. And I think Senator Gordon wanted to give us a word as well. 2 And also, Congressman Pallone, who was unable to make it, has asked that a brief statement from him be read into the record, which I will do after the panel greets. Let’s start with the Mayor. And, of course, as elected officials, I don’t think I have to say this, but brevity is always greatly appreciated by the sitting committee. And I’m sure the wisdom you’re going to impart to us is going to be impactful. If you can do that in the shortest timeframe, that’s greatly appreciated. And you’ll need to sit at the silver microphone. M A Y O R M I C H A E L J. M A H O N: (microphone interference) Thank you. S E N A T O R J E N N I F E R B E C K: Colleagues and friends, welcome to Monmouth Park. As you know, this past year marked a historic moment for New Jersey as we had the best racing in the country. And I think we proved, through the effort that all of us had a chance to vote on -- the 50-day meet -- that there is truly a passion among our citizenry for horse racing, and that it can be successful and it can be self-sustaining. So I appreciate you taking the time to come here and hear from many of the folks that deal with this issue day-to-day and run businesses day-to-day that affect the horse racing industry. And I would certainly like to turn this over to the Mayor of Oceanport, who has a little bit different perspective as the host municipality that serves Monmouth Park. (applause) MAYOR MAHON: Thank you. 3 On behalf of the Borough of Oceanport and the Monmouth Park Task Force, I am pleased to welcome the Senate Majority Gaming Summit to the Borough as they continue to discuss the future of horse racing in New Jersey and the $13 billion equine industry. The underlying benefit to the State must be considered by this group as part of its research,4189*9-+9 to the benefit of jobs and open space throughout our state, owed in large measure to horse racing and the equine industry. Monmouth Park Racetrack directly and indirectly employs 3,000 people. These include building trades, horsemen, concessionaires, clerks, service workers, veterinarians, and horse owners and trainers. Each of these jobs contribute to the regional economy by patronizing businesses in the area. Each pays their share of income taxes and contributes to the State’s revenue. We’ve discussed the physical importance of Monmouth Park racetrack, but it can’t go without mentioning the value of horse racing in our county and around the state in terms of open space. Monmouth County has more than 27,000 acres dedicated to equine uses and almost 5,000 in preservation. Only Hunterdon County has more acres, at 29,000. Only four of New Jersey’s 21 counties are without a preserved horse farm supporting this industry. The employment generated statewide is nearly 31,000 jobs. No discussion on the sustainability of horse racing in New Jersey is complete without mentioning competition from neighboring states. At every border we are surrounded by gaming opportunities. In many cases these gaming outlets are more convenient than trips to Atlantic City, and certainly less expensive. There are currently 10 locations along our borders, with another 4 two destinations planned. These gaming destinations are a direct threat to Atlantic City and the casino industry in New Jersey. As a State, we could choose to compete by offering gaming destinations of our own or watch as profits continue to drop. This problem is as much horse racing’s as it is the casinos’. Introducing slots or video lottery terminals outside of Atlantic City may be the answer to local casinos and the racetrack. Other options that exist must be considered. We haven’t heard any discussion of sports betting come up in the debates about gaming in New Jersey. A sports book at Monmouth would give the track a very substantial competitive advantage over its regional competition, while adding a new source of revenue to the State.