Casino interests in New Jersey are searhing for cost-cutting measures to offset the plunging income of Atlantic City gaming venues, and the state's horse-racing subsidy is a main target.

The policy of state casinos supporting the pony racing industry in New Jersey could also be coming to an end. The astonishing plummet in business for Atlantic City gambling venues has caused lawmakers to inspect the subsidy and question its necessity.

The race track subsidy involves $30 million annually, and, with the prevailing casinos struggling to bypass bankruptcy, state Senator Jim Whelan has proposed ending the substitute support for horse racing.

"If there’s no demand for a product, why should we as an industry and as a society feel obligated to prop it up?" asked Whelan on the East Coast Gaming Congress. His position was supported by Senate President Stephen Sweeney.

"Race tracks must be in a position to stand on their own," Sweeney added. "I don’t think casinos need to be spending $30 million on horse racing. They need to be spending it on promoting casinos."

The subsidy is granted to tracks in return for permitting the casinos exclusivity for slot machine gambling. Track operators say if the subsidy is removed, they would like to position slots on the tracks.

According to figures from Rutgers, horse racing in New Jersey is accountable for 2500 jobs and roughly $31 million in government revenue.

Published on May 31, 2010 by EdBradley

Read More... [Source: Atlantic City Casino News]