The casino and horse racing betting scene in New Jersey is facing tough challenges against neighboring states that are reporting an increase in gaming revenues.

The industries within the state are still undecided on how to save the struggling four horse racing tracks. The officials from these venues have been proposing the installation of electronic betting parlors to augment income.

These establishments with electronic gaming machines are now called “racinos” and neighboring states have been offering these services to patrons.

“Racinos” may have difficulty establishing itself in New Jersey considering that major casinos in Atlantic City might protest this sudden development.

Standardbred Breeders and Owners Association of New Jersey President Thomas Luchento stated in a recent meeting of operators that the decline in horse racing betting is due to lotteries and casinos. To offset the losses, part of casino revenues has subsidized New Jersey’s tracks for the past five years. The subsidy still takes effect until 2011.

As of now, “racinos” is gaining popularity throughout the country. There are now 36 such establishments in the country and it is expected to reach 45 in six years time.