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Chris McErlean, a vice president at Penn National Gaming — which for two decades has co-owned the Freehold track with Greenwood Racing — said no exact date for a sports betting launch has been determined. “The goal was to be up and running by the start of football season, but the reality is we’ll start sometime during the football season,” McErlean said. “We don’t think that is going to be a big detriment.” Freehold did recently apply to the state Division of Gaming Enforcemen t for a transactional license, McErlean said, but negotiations are ongoing to land a partner to run the sports betting operation (Monmouth Park has a deal with British bookmaker William Hill, while FanDuel Group is running the sports betting show at the Meadowlands). The high volume of legal sports betting applications led DGE officials to warn that we’ve reached the point where it won’t be practical to reach all of the final casino and racetrack approvals before NCAA football kicks off in late August. McErlean believes that “sports betting is not going to move the needle as much as people think. There’s not a lot of margin there. It’s a nice added amenity, but not a huge bonanza.” That thinking is based not only on expectations about revenue — which might only be 5 percent of the total amount bet — but also on the fact that the sports betting partner collects a significant chunk of the revenue. Then there are state taxes of 8.5% for land-based betting and 14.25% for online sports betting run through a racetrack like Freehold. Adding to the feeling that sports betting won’t cause a massive windfall for Freehold Raceway is competition from Monmouth Park, which is only 17 miles east. But McErlean said that Monmouth’s proximity to the Jersey Shore might give Freehold “a geographical advantage.” McErlean is referring to the fact that as New Jersey’s westernmost track, it’s the closest sports betting option for those out as far as eastern Pennsylvania, where sports betting is approved but not yet launched.
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