Freehold Raceway Enters NJ Sports Betting Market

Freehold Raceway was slow out of the gate but hopes to have a strong finish after becoming the third and final New Jersey racetrack to offer sports betting in the increasingly crowded market.

The racetrack launched its retail sportsbook recently and has three online sites waiting for regulatory approval.

But there are still many unanswered questions surrounding Freehold’s entry into the NJ sports betting market. Not least of which is, how will the 50-50 Penn National and Greenwood Racing (Parx) ownership affect the future of the new sports betting venture at the track?

Is Freehold Raceway Sportsbook Too Late?

It’s taken Freehold Raceway in New Jersey over two years to introduce sports betting, but the US’ oldest running harness racing track has ambitious plans as it enters the arena.  The historic track, which dates its operations back to the 1830s, has become the third racetrack in the Garden State to offer sports betting. Eight of nine Atlantic City casinos have also taken advantage of the US Supreme Court’s reversal of PASPA, when the highest authority ruled to allow states to determine their sports betting industries’ fate in May 2018.

The casinos and tracks in New Jersey started offering sports betting one month after the Supreme Court ruling was made and have developed a significant advantage over Freehold.  But the track’s operator, Parx Casino, is optimistic and points out the advantages that the racetrack has over the competition.

Freehold is offering in-person sports betting seven days a week from noon to 8 PM at its recently launched Parx Sportsbook. However, it’s in the process of having up to three internet skins approved by the state’s gambling authorities. The online sportsbooks are all-important in a state where 80% of sports betting occurs online and where records are shattered regularly. Having internet skins is crucial for success.

Freehold Sportsbook Is An Ideal Location

According to Matt Cullen, the senior VP of interactive gaming and sports for Parx Casino in Pennsylvania, Freehold is “growing every day.” He added that the track is located in “a great area.”

Cullen believes that customers looking for on-site sports betting will come to Freehold Sportsbook from the western part of the county and surrounding area.  The track will be competing for customers with the William Hill Sportsbook at Monmouth Park, situated just 17 miles away in Oceanport.

The Meadowlands Racetrack, located just a stone’s throw away from New York City in East Rutherford, is the third track in the state and boasts the state’s top revenue-generating sportsbook operated by FanDuel.

Parx admits that it will need to work harder to attract customers since it’s so late in the game. Cullen told CDC Gaming Reports: “We’re going to need to raise awareness in the area, to let people know Freehold is open for sports betting, especially since we were late to the party.”

Freehold’s Complicated 50-50 Relationship

Freehold is owned and operated through a 50-50 partnership agreement between the Penn National Group and Greenwood Racing (owners of Parx Casino and Racetrack in Bensalem, just outside of Philadelphia).  

The retail sportsbook at Freehold Raceway bears the Parx brand, but it is unclear what online brands it will house under its New Jersey sports betting licensing umbrella.

One likely candidate is Parx, but the more interesting possibility for one of those three online sites is Barstool Sports. Penn National inked a deal with Barstool Sports that saw Penn pay $163 million for a 1/3 stake in the company.

The Barstool’s sports betting app has already gone live in Pennsylvania, and Penn National properties in other states, including Michigan, Indiana, New Jersey, Iowa, and Illinois, are expected to follow suit very soon.

The question remains whether Barstool will appear at Freehold when mobile gambling goes live at the racetrack. As of this week, there was still no sign of the group at Freehold.

Another question is, who is calling the shots at Freehold Raceway Sportsbook? Parx? Penn National? Some combination of the two? And there’s also the contentious history between Penn National and Greenwood Racing. In 2010, Penn sued Greenwood over its failure to build an off-track betting parlor in Camden County, NJ. A year later, the case was closed, but this prickly relationship could affect Freehold’s operations in the long run.