Published: October 8, 2024, 10:01h.
Updated on: October 8, 2024, 10:02h.
A horse racing association in New Jersey has filed a federal lawsuit against Pennsylvania casino operators Penn Entertainment and Greenwood Gaming and Entertainment, collectively known as FR Park Racing in New Jersey, for their decision to close the Freehold Raceway.
In September, FR Park announced it would close the nation’s oldest horse racetrack by the end of the year. Freehold has a long history dating back to the 1830s, with harness racing starting on the half-mile dirt oval in 1854.
FR officials cited that “the operations of the racetrack cannot continue under existing conditions” and that they did “not see a plausible way forward.”
The Standardbred Breeders and Owners Association of New Jersey (SBOANJ) has brought a lawsuit in New Jersey’s federal district court, alleging that FR Park’s sudden closure violates its Operations Agreement and sports betting Revenue Sharing Agreement.
Penn and Greenwood purchased Freehold in November 1998 for $57.5 million and later became FR Park Racing. Initially focused on horse racing, both companies shifted to gaming after Pennsylvania legalized slot machines at racetracks in 2008.
Seven-Count Complaint
SBOANJ filed a lawsuit against FR Park Racing, alleging seven counts of wrongdoing, including breach of contracts and duty of good faith, and demands for accounting.
The horsemen stated that the relationship between a racetrack and its local horsemen group is crucial, as they both rely on each other – the horsemen provide the product to sell, and the racetrack allows them to compete.
The lawsuit claims that FR Park failed to fulfill its obligations. The horsemen argue that FR Park’s parent companies deliberately did not launch sports betting at the facility after the legalization of sportsbooks in New Jersey in 2018.
Instead of starting a sportsbook at the facility, which would have required sharing revenue with SBOANJ, the casino companies partnered with Atlantic City casinos to retain more of the sportsbook profits.
The complaint alleges bad faith actions by Penn and Greenwood in partnering with other entities for online sports betting privileges, while failing to launch a retail sportsbook at the racetrack until 2020.
FR Park opened a Bet Parx Sportsbook at the raceway and partnered with the troubled sportsbook operator PlayUp for its online platform. However, after poor performance, FR Park closed its physical and online sportsbooks in August 2024.
The complaint asserts that FR Park Racing breached its contractual obligations regarding the operations of Freehold Raceway and sharing of sports wagering revenues, according to the horsemen.
“FR Park Racing has failed to fulfill its agreement with SBOANJ to maintain the raceway, ensure a safe environment, and make necessary repairs. They also owe SBOANJ hundreds of thousands of dollars from sports betting revenue sharing,” the statement continued.
Lawsuit Complaints
The plaintiffs claim that FR Park’s decision to close the historic racetrack will result in forfeiting a $1.6 million purse subsidy authorized by Gov. Phil Murphy, leading to job losses and missed opportunities for horse racers and breeders.
The lawsuit states, “The closure of Freehold Raceway will also result in lost jobs and the horse racers and breeders will lose the opportunity to race for a chance to win this purse money.”
The plaintiff is seeking a court order for FR Racing to improve the track conditions and provide damages to SBOANJ.