The Meadowlands Racetrack, and the horseracing industry in general, has seen better days. State Senator Paul Sarlo and others advocate the installation of video lottery terminals, like slot machines, at the Meadowlands to keep the industry afloat. An agreement between the racetracks and the casino industry in Atlantic City means it will be at least three years before slots in the Meadowlands could become reality.

Giants Stadium remains the top-grossing stadium in the country, according to Robinson. Even the IZOD Center, called an "outdated" facility by some, continues to rank as the third highest grossing entertainment venue in the country, after the Staples Center in Los Angeles and New York’s Madison Square Garden.

Decline at racetrack

But the Meadowlands Racetrack stands out in that it requires subsidies just to exist as it struggles to fill a fifth of its seats on an average night. The Meadowlands Racetrack stays afloat with the help of revenues generated by Atlantic City casinos. In recent years, horseracing has gone from raking in 80 percent of gambling revenues in New Jersey to just one percent, according to Robinson.

Revenues at the Meadowlands Racetrack have been on a steady decline, from $114 million in 2005 to $107 million in 2006 to $92 million in 2007. The decline is more pronounced by the amount of empty seating at the track, which Robinson described as a "cavernous" facility built for 40,000 people but more likely to attract just 6,000 on an average night.

Governor not slot happy

Senator Paul Sarlo, who represents the south Bergen area in Trenton, wants the state to allow slot machines at "The Big M" to keep the racing industry afloat. If his bill were to pass tomorrow, it is unlikely Governor Jon Corzine will sign the bill. Earlier this year, the governor ratified an agreement between the casino and racing industries, which effectively put a moratorium on slots in the Meadowlands for three years.

"Right now, my legislation is still out there. The administration would not sign it at this point in time," said Sarlo. "I don’t feel that’s in the best interest of the racing industry."

Video lottery terminals, which include slot machines and other electronic gambling machines, would generate an interest in racing by raising the stakes. Some of the revenue from the machines would go to the "purse," the pot of money awarded to the winning bettors. By raising the stakes, gamblers would have more to win and, as the logic follows, be more likely to place their bets at the track.

Currently, the purses are being raised by the $30 million annual payment from the casino industry, according to New Jersey Sports and Exposition Authority spokesman John Samerjan.

Open space could suffer

Sarlo believes the state should either allow video lottery terminals in the Meadowlands or leave the racing industry altogether. Exiting the racing industry would have a different set of consequences. Despite declining revenues, horseracing in New Jersey still grosses $1 billion per year and horse farms in New Jersey make up large swaths of open space. "That open space may go the way of suburban sprawl [if the state were to leave the horseracing industry]," he said.

The casino industry in Atlantic City, and some south Jersey legislators, are against the move, believing that "racinos," as they are referred to, will take revenue away from Atlantic City, which has already seen a decline in revenue.

Sarlo pointed out that many casino owners in Atlantic City also own video lottery terminals in Pennsylvania, geographically closer to Atlantic City than the Meadowlands. In addition, racetracks with slot machines in New York state, Connecticut and Rhode Island are already pulling in customers from northern New Jersey, he added.

Local impact

East Rutherford Mayor James Cassella remains undecided on whether or not slots are a good idea for his borough. While the mayor is by no means an advocate for slot machines, revenues from gaming could alleviate an increasing tax levy if some of the revenues are diverted to area towns.

"Is it good to have gambling in your backyard? I’m not sure that it is," he said. "But if a certain percentage is allocated to the local municipalities, then you have to seriously look at it."

Sarlo’s bill would put slot machine revenues into four separate pots: one for the racing industry as a whole, one for the state of New Jersey to support senior programs and education, one for economic development for local municipalities and the last to support the Big M’s operating expenses.

Regardless, Cassella does not believe slot machines will make their way to the Meadows any time soon. "I don’t see Atlantic City and the powers to be associated to be with Atlantic City allowing that to happen. It’s something that may not happen in the Meadowlands," he said.

Earlier this year, the casinos and the racetracks came to an agreement. The agreement means for the next three years, casinos will continue to pump money into the fledging horseracing industry, but racetracks will be barred from installing slot machines and other video gambling devices.