Racetrack gets $3.5M to offset tax hike
Appropriations meant to keep 2 venues afloat
By: Daniel Munoz
NorthJersey.com
USA Today Network - New Jersey
..... New Jersey's two racetracks are each getting $3.5 million in the state's record-high budget to offset cost increases from, a tax hike Governor Phil Murphy previously sought on revenue from sports betting.
.....
As part of New Jersey's $58.78 billion budget approved on June 30, [2025] the state increased the tax on Online gambling and sports betting to 19.75% from 15% and 12%, respectively.
..... 0This is expected to generate more than $315 million through the current state fiscal year, which runs until June 30, 2026. the two racetracks are also subject to a 1.25% sport betting gross revenue tax from the state.
..... But the tax threated to eat into the bottom lines for the Meadowlands Racetrack in East Rutherford and Monmouth Park Racetrack in Oceanport, said Jeffrey Gural owner of the Meadowlands Racetrack.
..... That's because of the partnerships that the two racetracks have - with FanDuel for the Medowlands Racetrack and with Caesars for Monmouth Park - which means the tax would eat into the racetracks' revenue, Gural said.
..... Between January and May 2024, the three racetrack in New Jersey at the time - Freehold Raceway has since closed - brought a combined $41.2 million of tax revenue for the state, versus $26.2 million during the first five months of 2025, according OT figures form the New Jersey Division of Gaming enforcement, which regulates casinos, racetracks, Online gambling and sports betting in the state.
..... But the two remain racetracks generated $6.3 million in tax revenue for the state this past May, [2025] versus $5.5 million in May 2024.
..... The $3.5 million "basically keeps us afloat for another year," Gural said in a July 8 [2025] phone interview.
Racetrack casino considered
..... State lawmakers said they want to get a discussion going to put casino at the Meadowlands and Monmouth Park racetracks in order to compete with a potential new casino in New York City.
..... A potential casino at either establishment would need to provide many new amenities and luxury offerings to stay afloat in the era of Online gambling, analysts and industry executives told NorthJersey.com .
..... Illustrating the challenge posed by Online gambling, New Jersey's nine casinos, all in Atlantic City, have been posting disappointing brick-and-mortar revenue numbers compared with Online and mobile app gambling.
..... A Meadowlands casino "would be first-class to compete with New York," owner Gural said.
..... "You have to not just be a gambling hall. You have to be a destination," said Dennis Drazin, the chief executive officer of Darby Development, which operates Monmouth Park.
..... Gural told NorthJersey.com that the yearly appropriation - like the $3.5 million from this year's [2026] budget - are meant to keep the racetracks afloat while the state waits out the election of a new governor, as well as whatever decisions is made on a New York city casino.