Less Slot Machine Revenue Means Less Purse Money

With the casinos bringing in less slot machine revenue, the amount of subsidy that they give the racetracks in the state of New Jersey will be less as well. This obviously does not sit well with the tracks, whose agreement with the state expires at the end of this year.

The casinos and the racetracks had signed a four year deal that gave the tracks $86 million in purse subsidy so that they would not go out and try and get their own slot machines. However, with it expiring this year, and no sign of a signed extension yet, the racetracks are starting to get a little antsy. There is some talk that the casinos may not be able to promise the amount of money that they have in the past because of less slot machine revenues coming in for them.

This obviously will not fly for the racetracks, as they say without the subsidy they cannot compete against the tracks in New York and Pennsylvania that do have slot machines. They say that they told the state five years ago that they needed slot machines or a new revenue source in order to save the industry, and now they have missed a golden opportunity.

But they are waiting to see what the state government comes up with for them this time as they have been told that a study is being conducted by Governor Jon Corzine’s office They have repeatedly asked what has been found out so far and aren’t getting any answers, so they say they can only assume that the Governor has their best interests in mind.

Back to August 2007 Archive.