People involved with harness racing in New Brunswick are saying the province's new gambling policy has left them with concerns about the future of the industry.

Brent Briggs of the New Brunswick Harness Racing Association said he was surprised the government is only allowing one casino to be built in the province.

The future of harness racing will be in danger if that casino doesn't include a racetrack, Briggs said.

The province released its new responsible gaming policy on Thursday and has issued a request for proposals to establish a casino in the province by 2010.

The government is leaving it up to private developers to propose where the casino should be built whether it will include a racetrack, hotel, entertainment theatre, restaurants or recreation facilities.

"We have been lobbying government for close to three years about having destination gaming be with a racetrack component and that wasn't addressed," Briggs said.

"It is very possible when it's all said and done that the racing industry will be a part of the accepted proposal for a casino in this province but until that happens we're still in the same boat we've been in all along."

New Brunswick's harness racing industry has been struggling for survival for nearly a decade and has argued without a racino it may disappear from the province.

Mayor hopes Saint John gets racino

The Exhibition Association in Saint John has already announced plans to build a $20-million multiplex that would include a racino — a casino combined with a racetrack — along with hockey rinks and indoor soccer fields.

Saint John Mayor Norm McFarlane said he hopes the plan for a racino matches the vision of the provincial government.

"Exhibition Park Raceway in Saint John made a very good proposal last week and it's very possible that could be the site that's chosen for it," McFarlane said. "We have very grave concerns about the future of harness racing if this casino does not include a harness racing component."

But New Brunswick should learn from Prince Edward Island's experience, said Peter McKenna, a professor at University of P.E.I. who has written a book on gaming industry in Atlantic Canada.

"Harness racing is on its last legs," McKenna said. "It's dying a slow death."

The racino in Charlottetown is losing about $5 million a year and is doing nothing to assist the harness racing industry, McKenna said.

"What the racino did was put it on life support but for how long and at what cost?"

Members of the restaurant industry are also unhappy with the policy, which will be eliminating video lottery terminals from any space that any unaccompanied minor can enter by Oct. 1, 2009.

VLT reduction may impact food industry

VLTs are an important source of revenue for many eating and drinking establishments, said Luc Erjavec, regional vice-president of the Canadian Restaurant and Food Services Association.

"This has been the third major hit to our industry in the past year from government," Erjavec said. "First they increase business taxes, they increase the price of beverage alcohol, they increase income taxes and now, it's one more thing, one more hit to our industry."

The number of locations where VLTs are allowed will be reduced from 625 to 300 while the total number of VLTs allowed in the province at a given time will see a 25 per cent reduction from 2,650 to 2,000.

Bars and Royal Canadian Legions will be allowed to keep the VLTs and even increase their numbers. But a moratorium will be placed on new sites until 2008.

At least some restaurants are bars are likely to go out of business after they lose the VLT revenue, Erjavec said.

The Canadian Gaming Association, however, is applauding the new policy.

"I think you're going to have some economic development here, you're going to have some more jobs, you're certainly going to add one more facet to your tourism infrastructure," said Bill Rutsey, president of the association.

The Liberal government is expecting to collect about $25 million from the casino that it can redirect to services such as health care and education.

It currently collects about $135 million annually from VLTs.

With files from the Canadian Press