Freehold Raceway, one of New Jersey’s most iconic landmarks and the nation’s oldest racetrack, has announced its plans to cease all live racing and simulcast operations on December 28, 2024. Situated in the heart of Freehold, a central New Jersey town, the racetrack has been a staple in the horse racing community since its establishment in 1853. After over a century and a half of operation, the closure of Freehold Raceway marks a significant chapter in the history of New Jersey’s horse racing industry.
Factors Leading to Freehold Raceway’s Closure
The decision to shut down Freehold Raceway comes after years of financial and operational challenges. Despite its rich history and significance within the local community, Freehold has struggled to maintain profitability in recent years due to increased competition from other forms of gambling, such as casinos and online gaming.
General Manager Howard Bruno, reflecting on the difficult choice, said, “This was an extremely difficult decision, especially given the historical importance of Freehold Raceway to the local community and the New Jersey horse racing industry. Unfortunately, the operations of the racetrack cannot continue under existing conditions, and we do not see a plausible way forward. We are incredibly thankful for our dedicated employees, horsemen, and fan base for their support and patronage for so many years.”
While many in the horse racing community will mourn the loss of Freehold Raceway, its closure also highlights a broader trend within the state. The rise of sports betting, casino revenue, and online gambling has created a more competitive and challenging environment for traditional horse racing tracks. These shifts have rendered horse racing less profitable than in the past.
Closure Process and Employee Severance
Freehold Raceway officials are working closely with the New Jersey Racing Commission, state and local authorities, as well as various industry stakeholders, to facilitate the orderly closure of the racetrack. The remainder of the approved live racing schedule for 2024 will be completed, and daily simulcasting will continue until the closure date in late December.
An important aspect of the closure is ensuring the welfare of the track’s employees. As part of the closure process, Freehold Raceway has committed to paying severance to its workers, as mandated by New Jersey’s Worker Adjustment and Retraining Notification (WARN) Act. Additionally, compensation will adhere to any relevant collective bargaining agreements in place. This is a crucial step to ensure that workers affected by the closure are treated fairly during the transition period.
A Rich History of Horse Racing in Freehold
Freehold Raceway’s historical significance extends far beyond its current operations. Having first opened in 1853, the racetrack has been a cornerstone of the horse racing industry in New Jersey and the surrounding regions. It has hosted countless events, showcasing both harness and thoroughbred racing over its lengthy lifespan.
Generations of racing enthusiasts have passed through the gates of Freehold, witnessing a tradition that helped shape the culture of the sport in the state. Over the decades, Freehold has evolved alongside the racing industry, but the pressures of the modern era have ultimately proved too great for the historic venue to withstand.
The Changing Landscape of New Jersey’s Gambling Industry
The closure of Freehold Raceway cannot be fully understood without examining the broader evolution of New Jersey’s gambling landscape. In recent years, the state has experienced a significant shift in gambling revenue, with sports betting and online gambling taking center stage.
According to the New Jersey Division of Gaming Enforcement, the state’s total gaming revenue reached $555.1 million in August 2024, representing a 4.4% increase from August of the previous year. This rise in revenue is largely due to a surge in online gambling, which set a new monthly record of $198.4 million, marking a 27.8% year-over-year growth.
While this growth is encouraging for the state’s gaming industry, it underscores the declining profitability of traditional racetracks like Freehold Raceway. In the same period, land-based gambling revenue stood at $294 million, a 4.9% increase from August 2023. However, it’s important to note that six of Atlantic City’s nine casinos won less from in-person gamblers than they did before the pandemic. Only Borgata, Hard Rock, and Ocean have managed to exceed their pre-pandemic levels of in-person gambling revenue, further highlighting the shift towards online and digital forms of wagering.
Impact of Online Gambling on Traditional Racetracks
New Jersey’s gambling landscape has changed rapidly in recent years, with the state emerging as a leader in online gambling. The availability of online platforms has not only attracted new players but also shifted traditional gamblers towards the convenience of digital betting.
For racetracks like Freehold, this has created a challenging environment. While horse racing has long been a popular form of gambling in the state, the ability to place bets online from the comfort of one’s home has reduced attendance at live races. Simulcasting has been a temporary solution for some tracks, offering remote wagering on races happening elsewhere, but even this has not been enough to sustain profitability for Freehold.
The growth of sports betting, following the Supreme Court’s decision to lift the federal ban in 2018, has also contributed to this shift. With more options available to gamblers, horse racing has struggled to maintain its position in the state’s evolving gaming market.
The Economic Significance of Freehold’s Closure
While Freehold Raceway’s closure marks the end of an era for horse racing in New Jersey, it also raises questions about the future of the state’s gambling economy. With the rise of online gambling and sports betting, traditional venues like racetracks may continue to face difficulties unless they adapt to the new realities of the market.
At the same time, the closure of Freehold could have economic ripple effects within the local community. The racetrack has long been a source of employment and local revenue, and its absence will be felt by many in the Freehold area. The severance packages and WARN Act compensation will provide some financial relief to workers, but the long-term economic impact remains uncertain.
Looking Ahead: The Future of Gambling in New Jersey
The closure of Freehold Raceway is part of a larger narrative about the future of gambling in New Jersey. As online platforms and sports betting continue to grow, the state’s gaming industry is undergoing a profound transformation. The success of online gambling and the record-breaking revenue in this sector suggest that the future of gambling lies in digital innovation.
Yet, this shift does not come without challenges. While online gambling offers significant opportunities for growth, it also threatens the viability of traditional gambling establishments. Atlantic City’s casinos have already felt the pressure, with many struggling to return to pre-pandemic levels of profitability. The closure of Freehold Raceway further underscores the need for innovation and adaptation within the industry.
For New Jersey’s gambling sector, the key to future success may lie in striking a balance between tradition and innovation. While horse racing and in-person gambling will likely continue to have a place in the state’s gaming market, their role may become more niche as digital platforms take over.
The impending closure of Freehold Raceway is a sobering reminder of how much the gambling industry has changed in New Jersey. As one of the oldest racetracks in the nation, Freehold holds a special place in the hearts of racing fans, horsemen, and employees alike. Yet, despite its rich history, the economic realities of today’s market have made it impossible for the racetrack to continue operating.
While New Jersey’s gaming industry continues to thrive, particularly in the realms of online gambling and sports betting, the loss of Freehold Raceway will be felt by many. As the state looks to the future, it will be important to remember the legacy of venues like Freehold and ensure that the evolving gambling landscape includes space for tradition alongside innovation.
The rise of new forms of gambling, coupled with Freehold’s closure, signals a changing tide in New Jersey’s gaming industry—one that is moving towards digital platforms and away from traditional, land-based venues. However, the history and impact of Freehold Raceway will not be forgotten, even as the state looks ahead to its future in the world of gambling.