by Tom De Martini

Expanded gaming issues are currently under examination by New Jersey and Pennsylvania politicians who are eager to garner additional funding for state coffers, and both plans would directly affect each state’s racetrack operations.

New Jersey politicians are considering legislation allowing installation of video keno machines as early as this year under the auspices of the state’s lottery commission.

Governor Jon Corzine’s administration continues to search for ways to close the state’s 2008-‘09 fiscal year budget deficit and is currently in talks with state lottery officials.

Administration officials are seeking a deal to include video keno provisions in this year’s budget, which must become law by July 1. The Newark, New Jersey, Star-Ledger reported that video keno could bring between $200- and $300-million into the state’s Treasury.

Earlier this year, Corzine helped broker a three-year, $90-milion subsidy from the Casino Association of New Jersey to the racing industry in lieu of slot machines at the state’s racetracks.

Corzine has steadfastly refused to expand gaming outside of Atlantic City during his tenure, as have several other previous New Jersey chief executives.

Dennis Drazin, president of the New Jersey Thoroughbred Horseman’s Association, said racing interests would seek a share of any expanded gaming operated by the state.

“You can be assured that the horse racing industry in New Jersey will be seeking a piece of any video keno gaming,” Drazin said. “The casinos will likely oppose it. Just because someone introduces a bill doesn’t mean there won’t be controversy. Any bill would have to go through committee and nothing ever happens quickly.”

Lawmakers passed video keno regulations in 2005 in anticipation of its possible passage during that year’s budget cycle.

Drazin said he was unsure concerning the specter of video keno machines at Meadowlands Racetrack in East Rutherford, New Jersey.

“I’m not sure we would want them there,” Drazin said. “We want to look at the bigger picture and we eventually would like slot machines there.”

Pennsylvania lawmakers huddled in Harrisburg on May 15 to consider a bill introduced by House Majority Leader William DeWeese (D-Greene County), which would allow live table games at the state’s casinos including Philadelphia Park, Hollywood Casino at Penn National Race Course, and Presque Isle Downs in Erie.

At issue is the tax rate, which would be set at 34% under the bill. Pennsylvania slots are currently taxed at 55%. Some legislators want licensing reforms passed before they will support table games.

Governor Ed Rendell has maintained that introducing table games should be delayed until all of the state’s 14 casinos have opened. However, competition in the western portion of the state with table games in operation at West Virginia’s Mountaineer Racetrack and Casino.

Tom De Martini is a New Jersey-based Thoroughbred Times correspondent