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Keeping Slots Off Horses’ Turf

By Christopher Palmeri

Atlantic City, the nation’s second-largest casino market, has just experienced its first down year since New Jersey legalized gambling, in 1978. Casino revenues fell 5.7%, to $4.9 billion last year. Blame the decline on a smoking ban that went into effect in 75% of casino floor areas—and on new slot machines at horse racing venues in New York and Pennsylvania that have siphoned off bettors. Almost a dozen states now allow slot machines at horse tracks. But Atlantic City’s casinos are ensuring that New Jersey won’t follow suit: A group of operators, among them MGM Mirage and Harrah’s, recently agreed to pay the state’s big horse tracks a total of $90 million over three years to keep slot machines out of the venues. The tracks will use the money for bigger purses and improved equine breeding. It’s a bet casino owners feel they have to place to prevent bigger losses. In black jack, that’s known as taking insurance.