According to an article by Times & Transcript, after an agreement was struck earlier this spring which stipulated that the Liberal government would infuse $5 million into the New Brunswick horse racing industry, that money has started to flow
.
The capital will be injected into the provincial industry over a five-year term at a rate of $1 million per year. The capital is supposed to aid the industry until the 150 video lottery terminals it was recently allocated are up and running. Government estimates that the VLTs, once fully operational, will provide the industry $1.2 million a year. Until then, government will cover the shortfall and any money raised through the machines will be subtracted from the taxpayer-funded grants.
"We're going to take a look at it again in January to see what kind of revenues they're generating on their VLTs," acting finance minister Jack Keir was quoted as saying in the article.
"This industry, through prior operators or what have you, fell upon hard times (and) the government's provided bridge funding based on our strategic plan to get this industry back up and running," Jamie Hachey, president of Horse Racing New Brunswick, was quoted as saying. "This industry, for the small contribution the government has made, the spin-off is huge."
There is also opposition to the move. To read quotes from those in opposition, click here to view the Times & Transcript article in its entirety.
(With files from Times & Transcript)