Bill would allow restaurants to add horse racing bets to the menu

New Jersey’s move toward expansion of gambling opportunities is leading lawmakers to consider licensing a limited number of bars and restaurants to host betting on horse races.

State Senate and Assembly committees on Thursday will consider legislation (S3115/A4285) that would create a pilot program in the state’s northern counties and part of Ocean County, in which electronic wagering terminals could be placed where food and alcohol is served.

The measure would essentially create mini off-track-wagering (OTW) sites, which prospective private managers of state-owned tracks have sought, said Leo McNamara, executive administrator of the Standardbred Breeders and Owners Association of New Jersey.

Current law provides for 15 full-scale OTW facilities, but after more than 10 years since it was enacted the only sites developed are in Woodbridge, Toms River and Vineland.
“The full-scale OTWs cost about $15 million to develop if you start from scratch, or about half that if an existing site is retrofitted,” McNamara said. “The new bill in the Legislature would probably mean about a $20,000 to $25,000 investment for a restaurant to set up a couple of kiosks, televisions and terminals.”

New Jersey voters in November approved a referendum that would allow sports betting, but only if a federal ban can be overturned. Sports betting would be allowed at casinos and racetracks.

The Legislature also approved a bill allowing online casino-type gambling, though it was vetoed by Gov. Chris Christie. Christie now says he’s willing to work with lawmakers on an amended measure after the U.S. Department of Justice recently softened the federal stance against Internet gambling.

The bar and restaurant measure limits the pilot program to Bergen, Hudson, Essex, Passaic, Union, Morris, Somerset, Hunterdon, Warren and Sussex counties, and northern Middlesex and Ocean counties.

Monmouth County is excluded because the county is home to two racetracks. The state’s southern counties are excluded to protect the Atlantic City casinos from competition.
Host municipalities would collect a local impact fee of 1 percent from each betting machine’s gross revenues. Other funds would go to horse racing purses and be used to prevent underage gambling.