2003 - Harness Tracks of America, Inc.

Transcription

HARNESS TRACKS OF AMERICA
Executive Newsletter
A daily fax and e-mail report on racing and gaming developments in North America and beyond
Stanley F. Bergstein, Editor
January 2, 2003
ROCK FEELS RUNNERS WRATH
A HERO RETURNS IN TOLEDO
Thoroughbred horsemen, who shot themselves in
their feet at Rockingham Park and lost their meeting there to harness racing, now are in full retribution. They and their HBPA buddies from Kentucky
are withholding simulcasting signals from Suffolk
Downs and Turfway Park to Rockingham, and The
Rock has sued both of them. Suffolk Downs COO
Bob O’Malley says he expects to be sued as well.
HBPA attorney Donald Sheldon said the cutting
off of simulcasting was not retaliation against
Rockingham and his horsemen are not picking on
that track, which is about as believable as that
George W. really has no hard feelings towards
Saddam.
After a century of relative obscurity, the great trotter Cresceus returned in glory to Toledo, Ohio,
today, the subject of a long and interesting feature
in the Toledo Blade. A world champion at the turn
of the century, Cresceus was as popular then as
Seabiscuit was made to appear in his latest revisionist incarnation, and the Blade’s story, by staff
writer Rebekah Scott, began with this lead: “He
was a hot-tempered professional athlete with glossy
brown hair and deep black eyes. Wherever he
traveled, cheering crowds met his train and followed him to the track.” The well-written story
went on to list sites in Toledo that still echo his
fame today, including Cresceus Road, a seasonal
Cresceus Belgian Ale brewed at a local brewery,
and Mambrino and Patchen roads, named for
horses carrying that standardbred blood owned by
George Ketcham. “A hundred years ago,” Ms.
Scott wrote, “Toledo was mad for Cresceus.”
We’re happy about his return to celebrity today.
BUFFALO FEELS COMPETITION
With anxious crowds shouting, “Open the doors,
open the doors” as ribbon-cutting ceremonies
droned on, western New York got a new gambling
operation on New Year’s Eve as the new Seneca
Niagara Casino opened in Niagara Falls, NY. The
casino is located just across the Niagara River
from Casino Niagara in Ontario, and gives Buffalo Raceway more competition that is needed like
two heads. Not only did the casino open, but veteran racing writer Bob Summers, who reported on
the barbarians at the gates, wrote a long column - the first of a series -- exploring gambling options
in the new venue in a play-by-play account. Bob
was given $500 by the paper to explore the possibilities, and wound up winning $15 on 25-cent video
poker. The series assures steady coverage for
the casino, and less for the raceway.
Bowman Brown Jr., the former publisher of the
weekly Harness Horse magazine, which his father founded in 1935, has died at 80. A breeder
and owner as well as a publisher, Brownie also
was involved earlier in the Standardbred Horse
Sales Company, which his father helped found
and which remains the largest sales venue in the
sport today. Bowman also was a trustee of the
Harness Racing Museum and Hall of Fame and
a member of its Living Horse Hall of Fame committee. He was elected to the Writers Corner of
the Hall of Fame seven years ago.
CHI FEELS CONTINUED PAIN
40 SHOPPING DAYS TO FLORIDA
Nothing new to report on the Chicago boycott of
Balmoral and Maywood entries by Chicago
horsemen. The new year got underway
with no change in the strike action.
BOWMAN BROWN JR. DIES
You now have only 40 days in which to make
your hotel reservation for the joint HTA/TRA annual meeting in Florida. Contact Sable Downs
in the HTA office to assure your room at
the Westin Diplomat.
January 3, 2003
WHICH PAPER DO YOU READ?
INTERESTING INDIAN DECISION
There was an interesting juxtaposition of news
in two of the leading newspapers in the United
States this morning. The New York Times, in its
lead editorial titled “A Bad Bet”, contended that
“the worst budgetary outlook in decades has left
plenty of desperate state governments once again
vulnerable to being snookered by the gambling
lobby’s ‘something-for-nothing’ sales pitch, the
equivalent of a comped buffet.” The Times, piously attributed the development to pro-gambling lobbyists, conveniently ignoring the clear
fact that many Americans like to gamble, and
people in other parts of the world like to do so
even more. As the Times was lamenting Indian
gaming and slots at tracks, and advising “courageous leaders...to resist this destructive race to
the bottom,” the Washington Post carried a highly
interesting column by Andy Beyer titled “British Web Site Lets Gamblers Have It Their Way”.
The column’s lead read, “A revolution has rocked
gambling in Britain. So-called “sports betting
exchanges....have enthralled gamblers, giving
them unprecedented opportunities, while generating fear and intense opposition from established bookmaking firms.” Beyer was writing
about Betfair, one of the exchanges, which he says
has done for wagering what eBay has done for
commerce. Through the Internet, it brings together two parties who make a betting transaction without the middleman. Beyer says the idea
has been “stunningly successful,” and it includes
American horse racing in its scope. Betfair calculates wins and losses, and takes a 2 to 5% commission, depending on betting level. New York
Times editors may be too young to remember prohibition, but a guy named Andrew Volstead tried
to stop drinking in this country 75 years ago, and
“courageous leaders” of today will have
about as much success trying to curb gambling as Volstead did drinking in the early
1930s.
In a decision called “very important” by a U.S.
attorney, the 10th U.S. Circuit Court of Appeals
issued a ruling that gives authorities more power
to regulate gaming on American Indian land.
The 3-0 decision came in a case affirming the
right of the chairman of the National Indian
Gaming Commission to temporarily close all of
a tribe’s casinos even when only a few of the
games are determined to be improper. The decision reverses a February 2001 ruling by a federal judge that the commission chairman had
overstepped his authority in temporarily closing
all four of a Seminole Nation’s casinos. The Seminoles’ attorney, realizing the possible reach of
the Circuit Court’s decision, said he thought it
“very dangerous that the chairman is being given
this broad authority.” The case revolved around
slots at Indian casinos, and the lawyer said he
will recommend that the tribe ask for reconsideration by the full 10th circuit court, rather than
the 3-man panel that handed down this decision.
STILL NO CHICAGO PROGRESS
Tony Morgan may have won 699 races in 2002,
second only to Walter Case’s 708, but he didn’t
have to race against the Johnstons of Chicago.
He is now, and so far hasn’t had a winner, as the
stalemate in the boycott of the entry box at the
Johnston’s Balmoral and Maywood Parks in
Chicago continues. There will be no racing at
either track at least until Monday. Morgan has
called a meeting of the Illinois Harness
Horsemen’s Association for Sunday to discuss the
issue and other matters, including financial
strains.
HEY, A CHANCE TO BUY TIOGA
If you thought you lost the chance because
TrackPower said it was going to lease the place,
you still have a shot. TrackPower is nowhere in sight, and the New York track will
be sold at foreclosure next week.
COURT DENIES IHHA REQUEST
A Circuit Court judge in Cook county (Chicago)
has refused to issue an emergency temporary restraining order to prevent Balmoral and
Maywood Parks from keeping horsemen off their
race tracks for training purposes. The lockout
of track training was the latest development in
the increasingly nasty impasse between Tony
Morgan’s Illinois Harness Horsemen’s Association and the Johnston family’s Chicago area
tracks. The horsemen had claimed irreparable
harm with the lockout, but found no sympathy
in court for their argument, given the fact that
they were boycotting the entry boxes. Bettors
obviously found some solace, since they wagered
$1,450,000 in Illinois Friday night on out-of-state
products. On a normal Friday night $1,650,000
is bet on full card simulcasting and live racing,
so the Friday number is significant.
CASH FLOWING OVER NIAGARA
Water isn’t the only thing flowing over Niagara
Falls. Cash is too, as the Seneca Niagara Casino
piles up impressive numbers in its first week of
operation. Staffing problems were the major
glitch, with only about 75% of the casino’s staff
on board so far, and delays in service -- food and
cashing and technical support -- angered some
patrons. The casino’s vice president of slots operation said that for the most part the public had
been patient and understanding, but he did not
know when he would be fully staffed. Parking
turned out to be a bonanza in the first week, and
traffic turned out to be the major problem in
getting the casino open, with long lines waiting
for valet parking and heavy traffic reported on
city streets even at 3 a.m. City-owned garages,
which did not charge a year ago, took in
$15,000 in the first 48 hours, according to
the Buffalo News, but Niagara Falls hotels reported no increases in business over
a year ago.
January 6, 2003
The News reported one interesting statistic. It said
that while there was no early indication of how well
the casino drew from outside the Buffalo area, at
one point among 14 cars waiting in the valet line
its reporters saw a Cadillac from Ohio, a BMW
from Ontario and a Lincoln Town Car from Pennsylvania. The tourists, at least, appear to have a
buck or two with which to gamble.
SLOT STIRRING IN MD, INDIANA
The Washington Post reports that secret meetings with racetrack representatives have been
called by governor-elect Robert L. Ehrlich Jr. to
“forge a united front as they push to legalize slot
machine gambling in Maryland.” The paper says
the meetings began Dec. 18 after Ehrlich warned
the tracks that unless they end their infighting
and reach consensus on slots revenue they are in
danger of having the legislature reject the new
governor’s proposal for slots in the new session
that begins Wednesday. The paper also reported
that “so far, however, there are few signs that
Ehrlich’s stern words have ended the feuding
within Maryland’s horse racing industry.”
In Indiana, meanwhile, the Indianapolis Star reports that a bill to legalize slot-like pull tabs will
resurface in the new session of the General Assembly. The paper says the legislation will be
introduced by Democratic lawmakers prior to the
January 13 filing deadline. A similar bill, which
would have provided for 750 pull-tab machines
at Hoosier Park, Indiana Downs, Trackside in
Indianapolis and a second OTB location in
Marion county, passed the Indiana House last
year but died in the Senate.
36 SHOPPING DAYS TIL HTA
You now have 36 days in which to make reservations with Sable Downs at HTA for the
March meeting at the Diplomat.
January 7, 2003
INDIANS IN THE NEWS AGAIN
TWO DISPUTES DRONE ON
Three interesting developments this morning on
the Indian front. In California, in a test of the
extent of tribal sovereignty, the Fair Political
Practices Commission has sued the Agua Caliente
Band of Cahuilla Indians, which operates two
casinos in the Palm Springs area. The Agua
Caliente’s are a rich and influential tribe, and
the Commission contends they have violated campaign finance reporting laws. The tribe says they
have not, contending those laws do not apply
because they are a sovereign entity. The commission says the state has the right to enforce
those laws to ensure the integrity of its election
system. Common Cause has joined the fight, its
executive director claiming the dispute has enormous potential ramifications for California and
the country. He says that if the tribe, among the
state’s largest political donors, isn’t required to
file reports on campaign spending, it would
“completely undermine the system of campaign
reporting.” The Agua Calientes say the case is
not about disclosure but about power, and that
under the U.S. Constitution no state agency may
use a state court to compel a federally recognized
Indian tribe to submit to a state statute. An initial hearing on the matter is set in state court in
Sacramento tomorrow.
The Illinois Harness Horsemen’s Association
boycott of entries at Balmoral and Maywood
Parks now has resulted in nine lost nights of racing, with no resolution in sight. Out-of-state simulcasting continues at both tracks.
In Gary, Indiana, the mayor says he still hopes
to reach agreement with the Miami tribe of Oklahoma, which wants to trade its historic land
claims in Indiana and Illinois for a casino in
Gary. The University of Texas is doing an analysis of the Miamis’ claim under the Treaty of
Greenfield.
In Hartford, Connecticut, the House voted, 8359, and the Senate 25-10, to repeal the state’s Las
Vegas Nights law that allows church and
civic group gambling. Repeal of the law,
which paved the way for the Foxwoods and
Mohegan Sun casinos, is intended to stop
additional Indian gaming.
In New Hampshire, a hearing on the simulcasting dispute between thoroughbred horsemen and
Rockingham Park, which has switched to harness racing, is scheduled for January 16. Ed
Callahan, vice president of Rockingham, says,
“There are a number of questions for the court
to hear, and we’ll see where it leads. It appears
the local thoroughbred horsemen are seeking to
be paid for all simulcasting in New Hampshire
and Rhode Island. I don’t believe they can do
so, but the courts will decide.” Callahan is negotiating to have the $325,000 Zweig Memorial for
3-year-old trotters, which has been raced at the
Syracuse State Fair in recent years, moved to
Rockingham as the racing centerpiece of his new
harness meeting.
EHRLICH: NO REFERENDUM
Governor-elect Robert Ehrlich of Maryland is
determined to resolve the slots-at-tracks issue in
his state by legislative action, and not by referendum, in order to bring quick financial relief to
the state. Maryland’s assistant attorney general
says that while most bills passed by the legislature can be petitioned to referendum, that is not
true of bills that appropriate money or raise significant state revenues. The governor thinks slots
can close as much as $400 million of the state’s
expected shortfall of $1.3 billion.
GOODBYE TO ALL THAT
The governor of Washington, Gary Locke, is
proposing to do away with both the state racing commission and gambling commission
and replace them with a Department of
Gaming.
TURMOIL IS THE RIGHT WORD
In fact, it is the precise word to use for what is
occurring around the country on the slots-attracks issue and other related developments.
Consider:
In Maryland, the odds of slots at tracks, once
regarded as a cinch bet with the election of Robert Ehrlich as governor, are going up each day.
The latest developments, which indicate clearly
that the issue will face a tough time in the legislature, include strong statements by the leader of
the Legislative Black Caucus that AfricanAmericans intend to be cut in on any slots operations. Elijah Cummings, a Baltimore Democrat who is a member of the U.S. House of Representatives, says of slots, “If it happens, we want
to make sure we’re on the ground floor. It is
going to be very difficult to get any slots legislation through without the Legislative Black Caucus. That’s what politics is all about.” His statement was underlined by one from another Maryland congressman, Albert Wynn, who said,
“People are meeting other than the Maryland
Jockey Club. People with votes.”
A dead man also now figures prominently in the
slots legislation that will be a key item of consideration in the Assembly session that gets underway today. The Baltimore Sun this morning published an article featuring documents released by
the Maryland Racing Commission in response
to the newspaper’s request under the state’s public records act that showed that the estate of Jack
Kent Cooke, the late owner of the Washington
Redskins, will get some $6 million if Maryland
legalizes slots at tracks. That development occurs because of an agreement Cooke made with
Joe DeFrancis when he loaned him $8.2
million to buy out former partners. If at
least 1,250 slots are approved for Laurel
and/or Pimlico, Cooke’s heirs get the $6 million as settlement of the loan.
January 8, 2003
The latest revelation, coming on the heels of news
that DeFrancis and his sister Karen will be principal beneficiaries of slots for the next 20 years,
led Senator Thomas M. Middleton, a Democratic
foe of slots, to tell the Sun, “My reaction to that
is, who’s next? Nothing would surprise me about
how many fingers and how big this web of interests in slot machines might be.”
In Indiana, Indiana Downs has renewed its quest
for an OTB parlor in downtown Indianapolis, a
move opposed by Hoosier Park, which already
has one there. The racing commission will rule
next month.
In New York, the Racing and Wagering Board
has issued Monticello Raceway a temporary license and told the track to clean up the place or
lose its license after May 1.
In Iowa, a court-ordered revision of the tax on
tracks, and a suit by the tracks seeking $112 million in back taxes, could lead to higher taxes when
the legislature returns next Monday.
In Illinois, the House killed Senate bill 2291,
which would have given the National Jockey Club
as much as $11.5 million a year in aid to recover
from its auto racing disaster that ultimately
closed the track entirely and put it on the real
estate market.
In Quebec, horsemen say they will have to dispose of their horses, by sale to riding stables or
food producers, if three small tracks there are
closed, as seems likely.
In Pennsylvania, a decision is expected tomorrow on the application of Chester Downs Inc.,
headed by former Penn National executive and
HTA director Joe Lashinger, to build a new harness track in the depressed port city on the Delaware river south of Philadelphia.
In Kentucky, a House bill for slots at tracks
is to be introduced today or tomorrow.
January 9, 2003
LEACH LOSES NO TIME
OPEN UP THOSE GOLDEN GATES
Congress got underway for the 108th time yesterday, and Republican congressman Jim Leach
of Iowa was standing in line with his Internet
gambling ban in hand, waiting for the doors to
open. Leach introduced H.R. 21, with 14 original sponsors and more to come, and it has been
referred jointly to the House Financial Services
Committee and the House Judiciary Committee.
Leach’s spokeswoman said the bill is a top priority and that it is expected to be among the first
to be considered by the Financial Services Committee. One insider told Interactive Gaming News
that the committee might either hold a hearing
to gain publicity or mark it up without a hearing
to speed up passage. The bill would make it illegal for online gambling Web sites to accept credit
cards, wire transfers, checks or any other bank
instrument from bettors in the U.S. Eleven Republicans and three Democrats are original cosponsors, and passage in the House seems almost
certain. The bill passed the House on a voice vote
last September, but was not acted on in the Senate before that body adjourned. In another development on the first day of the new session,
Rep. Jerry Weller, an Illinois Republican, was
named chairman of the House Gaming Caucus.
In Indiana, meanwhile, the state Senate is set to
consider Senate Bill 71, which would provide
felony charges and jail time for any gamblers who
used the Internet for betting in that state. The
bill’s sponsor, Republican senator David Ford,
called Internet gaming “completely unregulated
and pretty insidious.”
In California, another Republican, state senator
Jim Battin of La Quinta in the heart of Palm
Springs affluence, wants the state to remove the
current limit of 2,000 slot machines imposed on
Indian tribes. “Many Indian casino developments have been artificially limited because of
the 2,000 slot machine limit,” he told The Desert
Sun.com, “and eliminating the cap would allow the
marketplace to decide the success of Indian casinos, not the state of California.” Battin thinks the
state should negotiate some sort of sharing plan,
as Lowell Weiker did when he was governor of
Connecticut, whereby the tribes would make some
type of payment in return for an increase in the
number of slots they can have. Connecticut gets a
20% cut of revenues from its huge Foxwoods and
Mohegan Sun casinos under the original Weiker
agreement that cleared the way for them to be
built. California faces a $34.8 billion budget deficit this year.
ON THE INDIAN FRONTIER
A MONTH TO GO ON ROOMS
Outgoing Michigan governor John Engler, as one
of his final acts, cut a deal with the Chippewa Indians, owner of Detroit’s Greektown Casino,
to open another casino in either Flint,
Romulus or southern Monroe county to
settle a land claim. Detroit is not happy at
the development.
AN INFORMATIONAL PICKET?
What, pray tell, is that? How does it differ from
a rowdy picket, or a militant picket, or a noisy
picket? In any event, Tony Morgan’s striking
Illinois harness horsemen were to set up picket
lines -- pardon me, informational picket lines -in Chicago today, at the West Jackson street
OTB. With 11 days of racing now cancelled, John
Johnston said the effect of the strike on handle
has been ‘minimal’ because of out-of-state simulcasting.
Room reservations at the Westin Diplomat in
Hollywood for the joint HTA/TRA convention
will close a month from today. Why wait for the
last minute rush? Sable Downs sits poised to
take care of your reservation needs. Plan
on arrival no later than Tuesday, March 11.
CONFLICT RULES THE SPORT
The key word in racing news today is conflict...
everywhere!
In Pennsylvania, a weird development. The
Pennsylvania Harness Racing Commission had
scheduled a hearing on the Chester Downs application yesterday, and had slated it on its official agenda of the meeting. When the day
dawned, however, the commission withdrew consideration of the matter, chairman Roy Wilt reading a Jan. 8 letter from the chief counsel of the
Department of Agriculture saying that, after consultation with outgoing governor Schweiker’s
office, the commission was ordered to remove the
item from the agenda. For a Department of Agriculture to tell a racing commission what to do
is unusual, in Pennsylvania or anywhere else, and
commissioner Ed Rogers Jr. was furious. “I am
personally outraged and deeply offended that we
are receiving such an order from whatever level
of government at this late date,” he said at the
commission meeting. Chester Downs’ lawyer
also was deeply upset. “This borders on compromising the racing commission,” he said. Two
other applicants for a harness license -- W. B.
Downs in Wilkes-Barre and Philadelphia Trotters and Pacers in Penn’s Landing -- filed motions with the state the same day the order came
down to the commission, asking that the commission postpone the hearing and consider all
four pending applications at one time. Obviously
they spoke loud enough that they were heard by
the people with power in Harrisburg.
In New Mexico, a similar case of gubernatorial
intervention. The former state fair commission
chairman said Gov. Bill Richardson’s administration asked him to withdraw the fair’s request for bidders to operate horse racing
and gaming at the fairgrounds racetrack in
Albuquerque.
January 10, 2003
In Chicago, bitter words and action on the strike
front. The Illinois Harness Horsemen’s Assn.
posted noisy pickets at an OTB in Chicago’s Loop,
and strike leader Tony Morgan, apparently suffering from a complex of sorts, said Billy Johnston
and his sons Duke and John would settle because
“it has to stick in their craw that a bunch of people
they consider to be unsophisticated hayseeds can
cost them millions.” Duke Johnston had a calmer
response. “There’s really no reason to meet until
these guys get serious,” he said. He acknowledged
the strike hurt the bottom line at Balmoral and
Maywood, but said cutting down on trifectas and
superfectas, which Morgan wants to do, is not an
acceptable approach. Training has been halted at
both tracks and 12 days of live racing have been
lost.
In Maryland, the racing industry told incoming
governor Robert Ehrlich Jr. it was willing to pay
the state $300 million in licensing fees to spread
18,000 slots among five tracks -- Pimlico, Laurel, Rosecroft, a new track to be built in western
Maryland, and Ocean Downs on the eastern
shore. Ehrlich called the proposal unacceptable,
restating his opposition to Ocean Downs being
included, saying he had promised in campaigning that he would not include the eastern shore,
where he says there is local opposition. In their
proposal, Pimlico, Laurel and Rosecroft said they
would pay $75 million each for 4,500 machines
at each location, with the state getting 37% of
revenues initially and 55% later. The tracks
would receive 49% initially and 41% later. The
proposal was to have been kept confidential, but
the Washington Post obtained a copy and printed
it.
In Arizona, the racing commission denied a request from the department of racing to reconsider
granting Turf Paradise owner Jeremy Simms
a license. He was relicensed, and the request denied, both by 3-2 votes.
SHORT ODDS BECOME LONGER
You may not believe everything you read in newspapers, which could be prudent, but if newspapers in Maryland, the District of Columbia and
Kentucky are to be believed, the odds on slots at
tracks in those states are growing longer. The
Washington Times joined the parade today with
an article headlined, “Delegation to legislature
skittish on slots,” which claimed that the powerful delegation from Prince George’s county,
where Rosecroft Raceway is located, could be key
to the governor’s proposal. All of the delegates
from the county are liberal Democrats who hold
leadership positions including chairmanship of
the Senate Budget and Taxation Committee and
the Black Caucus, and they presumably will have
something to say about the program of the first
Republican governor in Maryland in 34 years.
Another member of the delegation is House parliamentarian, and still another is chairman of the
House Economic Matters Committee. If they
were to vote the party line, the newspaper says,
it would put them at odds with the Republican
governor. The House speaker, asked about the
slots issue, said, “That’s the governor’s bill.
That’s the governor’s baby.” But Carolyn J. B.
Howard, the chair of the Black Caucus and chairwoman of the Prince George’s House delegation,
voiced a moderating position that would indicate
that governor Robert Ehrlich Jr.’s views will prevail. She said Ehrlich has been fair in opening
the executive office to all members of the Democrat-majority General Assembly, and said the
county had not received such courtesies from
outgoing governor Parris N. Glendening, who
was from Prince George’s county. She asked,
concerning Ehrlich, “What more can you ask
from a governor,” and the guess here is that
Ehrlich will get his way, and Maryland
tracks will get their slots, regardless of
press speculation -- and perhaps wishful
thinking -- to the contrary.
January 13, 2003
Kentucky may be a different story. John Harrell,
writing from the state capital in Frankfort in the
Louisville Courier-Journal, says that most legislators there dismissed the slots-as-savior plan
even before the gavel had dropped to begin this
year’s session last Tuesday. He quoted the Senate minority leader as saying gambling had little
chance of solving the current budget crisis, and
said that while Kentucky tracks would rather
have a law than a referendum, the sentiment in
Frankfort was just the opposite. The House minority caucus leader was quoted as saying, “We’ll
have to go the constitutional route because it will
get challenged,” which would mean 2004 at the
earliest. Alex Waldrop, Churchill Downs senior
VP for public affairs, said, “We’ll go forward
even if a lawsuit is filed. We can start up in a
temporary facility until the law is resolved.”
Harrell said the racing industry should not expect much help from the governor’s mansion,
unlike Maryland and Pennsylvania. “Crippled
lame duck” Paul Patton, as he called himself, said
he would not offer slots legislation this session as
a budget cure, as he did last session. Churchill
president and CEO Tom Meeker, meanwhile,
told the National Council of Legislators from
Gaming States in Florida that “I firmly believe
that alternative gaming is a necessary adjunct to
our overall gaming product and portfolio.”
Meeker was optimistic the legislature would legalize slots when it reconvenes next month.
FLORIDA JOINS SIMO BOYCOTT
The Florida HBPA board of directors has voted
to withdraw its permission for Rockingham Park
to simulcast racing from Gulfstream Park. Thoroughbred Times reports that lawyers are expected
to finish reviewing the action today, and that
Linda Mills, president of the horsemen’s group,
expects the signal to be pulled by Wednesday. Rockingham bet $5,658,666 on
Gulfstream racing last year.
EHRLICH SAYS HE HAS VOTES
Yesterday’s Newsletter carried reports that legislative opposition was a threat to new governor
Robert Ehrlich Jr.’s plans to install slots at Maryland tracks. Today the picture brightened considerably, with Ehrlich saying that he would not bully
Republicans to back legalized slots at tracks because he already had lined up enough votes from
both parties in the General Assembly. As quoted
in the Washington Times, Ehrlich said, “Our count
is a majority for slots in both parties in both chambers.” He said slots could produce perhaps $400
million for the state in the first year, and eventually as much as $800 million annually, and would
help close the $1.6 billion shortfall that the state
faces in the next year and a half. “Without those
dollars,” Ehrlich said, there would be increasing
pressure on the budget, and he said their presence will enable him to keep his campaign promise to balance the budget without layoffs of state
workers.
GET READY FOR INTERNET BAN
That was the word Sebastian Sinclair, president of
Christiansen Capital Advisers, had for gambling
leaders at the American Gaming Summit in Las
Vegas. Sinclair said, “Unless the industry speaks
with one voice, prohibition will become a reality.”
What industry and what one voice was he referring to? One voice from casinos in Las Vegas?
One voice from the NTRA, which doesn’t talk to
harness racing? One voice from horsemen? One
voice from breeders? The gaming industry, which
presumably was his reference, doesn’t speak with
one voice in Las Vegas, let alone the nation. The
idea of American gambling interests, and that includes racetracks, speaking with one voice is
something out of Lord of the Rings, a fantasy so
compelling that it boggles the mind. The
nearest approach is the joint annual meeting of HTA and TRA in Florida in March,
a small step in the right direction.
January 14, 2003
INDIANA MOVES TOWARD BAN
It was watered down a bit yesterday by a Senate
economic and technology committee, but an
Internet gambling ban bill still received committee approval and went to the full Senate in Indianapolis yesterday. The committee deleted provisions that would have allowed local prosecutors to
charge individuals who gambled online, and their
service providers, with felonies, but it left intact a
provision that allows them to charge operators of
Internet-based casinos and other gambling Web
sites with class D felonies, which carry up to a
$10,000 fine and three years in the slammer. One
dissenting senator, Democrat Glenn Howard of
Indianapolis, told the committee, “We shouldn’t
be trying to control people’s lives. Are we going
to tell them when to go to the bathroom.” No one
answered, except by voting for the bill.
HARTZ PLAYS HARDBALL
We reported last week that everyone, including
the companies competing to redevelop the Meadowlands, is fighting, and today comes hard evidence. Hartz Mountain Industries, based a furlong or so from the Meadowlands, took what the
Newark Star-Ledger called “a searing 11-minute
video shot” at Mills corporation, saying Mills’ proposal is nothing more than a glamorized shopping
mall. Mills said Hartz Mountain lied. George
Zoffinger, CEO of the Sports Authority, said, “I’m
a little surprised at how vicious the attacks are,
but they have no influence over our decision, and
are counterproductive to what we’re trying to accomplish.”
TWO DEATHS IN HTA FAMILY
HTA’s deepest condolences to Margaret Zayti of
Northville Downs, who lost her 53-year-old son
James to cancer, and to Hugh Mitchell of Woodbine Entertainment, who lost his mother.
NOW FOR THE FUN & GAMES
Robert L. Ehrlich Jr. took office as governor of
Maryland today, and even before he raised his
hand the wrangling over his plans for slots at
tracks had broken into the open. Ehrlich is only
45 years old, but he has served 16 years as a legislator, so he is well equipped for the battles
ahead. One of them is who will get what from
slots, and some thinly veiled warnings were issued to Maryland tracks by Ehrlich’s chief of
staff. “If the current track owners are unable or
unwilling to finance the licenses for slots, we
might have to look elsewhere to provide the best
return for Maryland taxpayers,” he said. The
“elsewhere” are out-of-state gaming firms, including Harrah’s Entertainment and IGT, the
world’s largest manufacturer of slots, both of
whom recently hired well-connected Maryland
lobbyists. Steve Wynn also visited Annapolis
recently, so the wolves are at the door. Yesterday, Delegate Howard P. Rawlings, a Baltimore
Democrat, circulated a draft bill that would authorize 10,000 slots at four tracks -- as opposed
to the 18,000 at five tracks that racing is asking
for -- and require $500 million in licensing fees
and 50% of proceeds to the state in the form of a
betting tax. Of what was left, 34% would go to
tracks, 8% to purses and 8% to local governments. Fasten your seat belts and get ready for
a thrilling ride.
READY FOR DEAD-BEAT DADS?
We rarely agree with Frank Fahrenkopf, but he’s
right when he said this week that “dumb ideas
never go away.” The Bush administration, in its
2004 budget that goes to Congress in the next
few weeks, is asking for a provision that would
require tracks to deduct amounts owned for child
support from gambling winnings. The
idea is that your tellers would have to
check a federal database of deadbeat dads
before paying winnings.
January 15, 2003
If this sounds totally unworkable and impossible
to administer, you had better start telling your
elected members of Congress. Health and Human Services secretary Tommy Thompson says
the federal provision -- originally proposed by
the Clinton administration -- would ensure “that
gambling winnings may be returned to where
they rightfully belong -- to children.” We’ll refrain from further comment on this, since we
cater to a family audience.
THEN THERES THE LEACH BILL
Of more immediate concern is H.R. 21, the Leach
bill, which prohibits the use of credit for “unlawful Internet gambling.” All kinds of credit,
including credit cards, fund transfers, checks,
drafts, money orders, wire transfers, whatever.
Because hearings have been heard on all of this
in previous sessions, the American Horse Council says it is possible that the Financial Services
Committee could dispense with further hearings
and move H.R. 21 directly to mark-up. Although
it refers to illegal Internet gambling, its co-sponsors do not represent a pep rally for racing.
AND VEGAS VS. THE NFL
This one is bizarre. No one knows just how much
money is bet on football, but it is safe to assume
what is bet in Las Vegas alone exceeds the national budget of a number of smaller countries
worldwide. Last month the National Football
League turned down a request from the Las
Vegas Convention and Visitors Authority to buy
spots on the Super Bowl telecast on ABC, saying
it wouldn’t be good for the NFL to be linked with
gambling. Las Vegas’ outspoken mayor, Oscar
Goodman, is enraged, noting that the NFL’s image already is tainted by former and current players charged with everything from murder to sexual
assault. “As far as I’m concerned,” he said,
(commissioner) Tagliabue has the most deviant athletes in professional sports.” He
is threatening to sue.
January 16, 2003
LIVING HALL GETS TWO GREATS
HIPPODROME TO CARRY PRIX
Harness Racing’s Living Horse Hall of Fame got
two new starters this week, when members of the
museum voted the trotter Speedy Somolli and
pacer No Nukes into the select circle.
Hippodrome de Montreal again will simulcast
Europe’s best known trotting classic, the Prix
d’Amerique from Vincennes near Paris, on Sunday morning, January 26. The field this year
will include the 2001 Hambletonian winner, the
American-bred, Swedish-owned Scarlet Knight.
Tracks interested in satellite reception of the race
should contact Yvon Giguere at 1-514-739-2741,
extension 2361.
No Nukes, a dynamic performer during his racing career, is the third leading all-time sire of
pacing money-winners, his sons and daughters
having won more than $113 million. He has sired
both outstanding colts and fillies, his sons including Western Hanover, himself one of the top sires
in the sport, and the brilliant juvenile performer
and now exceptional broodmare sire Jate Lobell,
and Die Laughing. His daughters include two of
the best filly performers of their eras, Nadia
Lobell and Immortality.
Speedy Somolli, now standing in Sweden, won
the 1978 Hambletonian and has sired million
dollar winners Mr. Lavec, Baltic Speed, Go Get
Lost and Alf Palema. His daughters have produced such outstanding performers as Pine Chip,
CR Kay Suzie, American Winner, Giant Force
and Supergrit.
The two new inductees will be enshrined July 6
at the Hall of Fame in Goshen, NY, and will join
previous honorees Abercrombie, Albatross,
Artsplace, Cam Fella, Fan Hanover, Handle With
Care, Mack Lobell, Niatross, On the Road Again,
Peace Corps, Speedy Crown, Super Bowl, Valley Victory and Western Hanover.
ISLE OF CAPRI DRAWS 36
Pompano Park’s richest race, the $150,000-added
Isle of Capri Pace, has drawn 36 nominations,
led by the 2000 Horse of the Year Gallo Blue Chip,
now closing in on $4 million in lifetime earnings.
Two $50,000 preliminary legs will be raced
Feb. 8 and 15, with the rich final set for
Feb. 22. The $60,000 Mack Lobell Invitational Trot also will be raced that night.
CHESTER GETS A SECOND SHOT
The Pennsylvania State Harness Racing Commission, still furious over being told by the Department of Agriculture not to conduct a scheduled January 9 hearing on the application of
Chester Downs for a harness racing license on
the Delaware River waterfront in Chester, PA,
has rescheduled the hearing for next Monday.
The commission says it will consider the application and possibly vote on it that day. All five
members of the Delaware County Council, also
angered by the cancellation action, signed a protest against what they called “unprecedented interference in a quasi-judicial process.” The Delaware County Redevelopment Authority, which
owns the land on which the proposed track would
be built, asked the governor’s office “to clarify
the reasons and purpose of the governor’s staff
and attorneys’ interference with the operation
of the harness racing commission.” The
Authority’s attorney said that an explanation
could “avoid any need for any investigation,”
adding that “we’re not going to stand for it.”
STRANGE BEDFELLOWS IN MD
Bar owners and faith-based groups, not known
normally to join forces on any issues, are teaming up in opposition to slots at tracks in
Maryland...for vastly different reasons. The
bar owners want slots too, and the faithbased folks, well, you know their story. The
Lord doesn’t like slots.
CHICAGO STRIKE DRONES ON
Striking Illinois harness horsemen and representatives of the Johnston family that controls
Balmoral and Maywood Parks met yesterday,
but could have saved the trouble. Nothing of
substance was accomplished, according to both
sides, and the boycott of entry box, and closure
of the race tracks to training, continues. The
purse account continues to pick up contributions
from simulcasting, which has not been affected
by the stoppage of live racing.
HIALEAH GETS A LEGAL JOLT
The legal status of Hialeah Park was challenged
yesterday when a Leon county, Florida, circuit
court judge ruled that year-old legislation that
permitted the track to keep its license without
honoring its dates commitment is unconstitutional. The decision came in a proceeding filed
by Gulfstream Park against the Division of PariMutuel wagering and the Department of Business Regulation, the two organizations that control racing in Florida. The judge who ruled, L.
Ralph Smith, said in essence that only a natural
disaster or act of God were valid excuses for Hialeah not performing up to its state requirements.
Hialeah has not raced in two years, since
Gulfstream extended its season, but Hialeah
owner John Brunetti has asked for racing dates
for next year, hoping, obviously, that Florida may
turn to slots at tracks, along with other states, to
solve its budgetary problems.
EHRLICH GOES TO TRENCHES
The honeymoon may not be over just yet, but
the bickering about who does the dishes and who
takes out the garbage has begun. Maryland’s
new governor, Robert has prepared his message
to the legislature, and one surprise is that
money from slots go straight to the state’s
general fund and not allocated directly to
education.
January 17, 2003
Ehrlich has campaigned on a “slots for tots” program to improve public schools, and the change
could lead to problems with public support, according to the chairman of the House Appropriations Committee. Even opponents concede, however, that the legislation is likely to pass.
OTHER GOVS, OTHER VIEWS
In California, meanwhile, governor Gray Davis
has said for the first time that he is amenable to
a further expansion of Indian gaming in the state
if “first, there is an indication of demand, that
there is local approval, that local governments
approve an expansion or a new casino as the case
may be.” Davis made it clear that such expansion would be linked to tribal revenue to help
close California’s huge deficit. His revenue-sharing plan envisions receiving $1.5 billion from the
tribes, and is based on the Connecticut model
where the state gets up to 25% of the tribes’ revenues in return for gambling rights. Davis made
it clear that he thinks the tribes need to help pitch
in and help with the budget crisis. “Sovereignty
is a two-way street,” he said in addressing the
Sacramento Press Club in an annual visit there.
In Vermont, where Green Mountain Park has
tried thoroughbred, harness and dog racing, all
unsuccessfully, legislation has been introduced
to allow year-round simulcasting without live
racing. It ran into quick unexpected opposition,
however, from Gov. James Douglas, a spokesman saying, “The governor has made it clear that
he is only willing to support simulcasting of horse
racing only, and on days when there is racing at
the track.” That position came as a surprise to
the sponsors of the simulcasting legislation, one
of whom said he had been led to believe the governor supported his idea.
In New York City, OTB president Ray
Casey reiterated his support of night simulcasting of thoroughbred racing.
January 20, 2003
IOWA CASE TO TOP U.S. COURT
NO SLOTS AT MEADOWLANDS
In a surprising development, the United States
Supreme Court has agreed to review a decision
of the Iowa Supreme Court that paved the way
for a $112 million tax rebate to Iowa’s racetracks.
The court said it would take the case, in which
the Iowa court declared the state’s racetrack casino tax unconstitutional and said that the tracks
and Iowa riverboats should be taxed equally.
Following that decision, the tracks filed for the
multimillion dollar rebate, which would have
returned some $54 million to HTA member Prairie Meadows alone. The speaker of the Iowa
House, exultant at the news, said, “This is like a
heart patient being wheeled into the emergency
room on a gurney, and they slap the paddles on
him and bring him back to life.” The appeal to
the Supreme Court by the Iowa attorney general had been considered a longshot, since the
high court hears roughly one case for every fifty
requested. The Iowa AG, Tom Miller, said he
was elated that the court had agreed to hear the
matter. The Iowa decision last June came on a 43 vote that the tax was discriminatory, and it reversed an earlier decision by a district court in
Polk county, where Prairie Meadows is located.
Under the law at issue, tracks had been paying
taxes at a 32% rate, while riverboats were taxed
only 20%. The Iowa Supreme Court had ruled
that the two entities should pay the same tax. The
Iowa legislature had scheduled hearings to consider raising the tax rate, but those have been
put on hold with the latest Supreme Court development. Prairie Meadows’ attorney Tom
Flynn said the track was willing to negotiate an
out-of-court settlement.
There will be no video lottery terminals at the
Meadowlands, at least not for now. Gov. James
McGreevey apparently has taken the proposal,
which had generated optimistic talk in New Jersey, off the bargaining table, although a spokeswoman for the governor denied that. Stating it
as a fact, however, was Senator Bill Gormley, who
speaks loudly for the Atlantic City casino industry. He pronounced the issue dead, and the Newark Star-Ledger said “one person familiar with
the discussion said Gormley was instrumental in
convincing the McGreevey administration that
putting video lottery terminals in the Meadowlands would be devastating to Atlantic City.”
FRANK DREA DEAD AT 69
Frank Drea, the colorful former newspaperman and politician who was chairman
of the Ontario Racing Commission during
the last half of the 1980s, died last week at
69.
CHESTER HEARING OFF, AGAIN
The Pennsylvania Harness Racing Commission
today cancelled, for the second time, a hearing
on the harness racing license application of
Chester Downs. The reason this time was not an
order from the outgoing governor, but from the
new one, Ed Rendell. A Rendell spokesman said
the governor-elect “didn’t want to rush to judgment and he wants the state to have a comprehensive approach.” The move caught Chester
Downs partner Joe Lashinger Jr. by surprise. He
said Rendell had been “100% supportive before
the election. I believe that the political pressure
from other applicants was just too great.”
BRANDYWINE SITE SOLD
When Brandywine Raceway, one of harness
racing’s major venues for 36 years starting in
1953, closed in September of 1989, work began
on development of a Town Center as a regional
shopping destination. The process has now been
completed with the sale of the center, for $145
million, by the company founded by the late John
W. Rollins to Acadia Realty Trust of Port
Washington, NY. An adjoining strip was sold
for homes last September for $8.5 million.
January 21, 2003
GOOD NEWS FROM NYRA
37 STILL ELIGIBLE FOR PRIX
Despite the efforts of New York City OTB and
state senator Bill Larkin to get night thoroughbred racing in New York, Thoroughbred Times reports today that Terry Meyocks, president and
COO of the New York Racing Association, says
that NYRA has not discussed it and personally he
does not think it is in the best interest of either
NYRA or its horsemen. Larkin was quoted as saying, “It would help the coffers of the city and the
state and it would be good for the tracks as well.”
It is always disturbing when a state official, in any
state, charged with the welfare of racing talks about
one breed and ignores another. Larkin is chairman of the New York senate’s Racing and Wagering Committee, and to talk about things being
“good for the tracks” -- meaning thoroughbred
tracks -- without considering the welfare of New
York’s six harness tracks is disappointing.
After Sunday night’s deadline for entries, 37 trotters remain eligible for Europe’s greatest trotting
race, the Prix d’Amerique at Vincennes outside of
Paris. The final field of 18 will be drawn Friday for
the 82d edition of the French classic to be raced
next Sunday. Of the current eligibles, 26 are
French trotters, 7 are from Sweden, and Spain,
Denmark, Italy and Germany each have 1 entrant.
There are no U.S.-owned horses, but the American-bred, Swedish-owned Gigant Neo, by Super
Arnie out of the Speedy Crown mare Clorita
Lobell, is undefeated in France and an almost certain starter, as is Scarlet Knight, the Swedishowned winner of the 2001 Hambletonian. Hippodrome de Montreal will simulcast the race Sunday morning, and tracks interested in the signal
should contact Yvon Giguere at 514-739-2741, extension 2361.
NEW VOICES IN NEW ENGLAND
VERNON GETS AN EXTENSION
Some interesting developments in Massachusetts
as talk of slots at tracks heats up in the legislature. Ten legislators fired off a broadside today
saying that if slots are legalized, they should not
be confined to the four tracks in the Boston area.
Whether the legislators have been contacted by
Las Vegas casino interests is unknown, but they
expressed concern that if tracks were the sole recipients Vegas interests would lose interest in
building resort hotels in other areas of the state
and those areas would not receive any job or tax
benefits. Gary Piontkowski of Plainridge Racecourse, HTA’s Massachusetts member, was quick
to note that the legislators had failed to factor in
or consider the economic contributions of the
breeding industry in western Massachusetts. In
another development, Dan Bucci, CEO of Lincoln
Park in Rhode Island, said that track
would be happy to form “an alliance” if
Massachusetts tracks got slots.
Vernon Downs, fighting for its life, has received
a 30-day extension of the temporary restraining
order that extends its simulcasting license
through February. The New York Racing and
Wagering Board denied Vernon a license for
2003, but a New York State Supreme Court TRO
nullified that decision for the moment, and
Hoolae Paoa, the new president installed by Las
Vegas investor Shawn Scott, says he hopes to have
all issues resolved by the end of next month.
NO BUFFALO CASINO FOR NOW
The Seneca Nation, flush with the instantaneous
success of its Niagara Falls, NY, casino that
opened on New Year’s Day, has said it is in no
rush to build another in downtown Buffalo. The
Nation’s president said the next step would be “a
brainstorming session to explore options and
see where everyone is on how to proceed.”
The Nation’s biggest current problem is traffic at its new venue.
January 22, 2003
4,500 SLOTS FOR ROSECROFT?
CITY OF BROTHERLY HATE
That’s what the new governor of Maryland, Robert Ehrlich, is proposing, according to legislative
sources, but he apparently also has made it clear
that he understands negotiation is likely. Ehrlich
said his proposal “is still being vetted” by his legislative staff, and he told the Washington Post,
“Don’t forget, there’s going to be an administration bill, and there’s going to be other bills, and
we’re all going to sit down and negotiate. To some
extent, our bill will be our wish list. There are certain things you do when you try to get to yes. We’re
trying to get to yes.” The chairman of the House
Appropriations Committee, Howard P. Rawlings,
said Ehrlich’s numbers “exceed those that most
legislators will support.”
The proposal calls for the same numbers of slots
at Pimlico and Laurel, and a lesser number at a
new Rickman family track being built in
Cumberland in western Maryland.
If Philadelphia is the City of Brotherly Love, as it
claims, Chicago may be able to take title to the
opposite end of the spectrum. The boycott and
lockout continues at Balmoral and Maywood
Parks, the Illinois Racing Board yesterday refused to grant striking horsemen a motion that
would have suspended nightime simulcasting,
and the Emerald Casino dispute has flared again
into a major contentious issue. On the harness
front, horsemen’s president Tony Morgan tried
to “even the negotiating field” by ending simulcasting while the dispute rages, but the racing
board voted 8-to-0 not to do so. The executive
director of the board, Walter Dudycz, said, “The
board deemed it best not to get involved in a labor dispute between these two entities. At this
point, there is nothing that the state can do to
mediate.”
IOWA CONFIDENT IT WILL WIN
Iowa legislators are so confident they will win on
the gambling tax matter in the U.S. Supreme Court
that they have cancelled a debate on the issue,
according to the Des Moines Register. As reported
here Monday, the Supreme Court has agreed to
hear the case stemming from an Iowa Supreme
Court decision that tracks and riverboats must be
taxed equally. The House Majority Leader in
Iowa, Chuck Gipp, interprets that as a victory,
saying, “Right now, it looks like we’re back in the
driver’s seat and that we don’t have to do anything at this point.” If Gipp is wrong and Iowa
loses in Washington, it would have to pay Iowa’s
tracks some $112 million in a tax refund, exacerbating the state’s financial crisis and requiring a
special summer session of the legislature, at which
it probably would raise the gambling tax
structure for all parties. House speaker
Christopher Rants is confident, along with
other legislators, of victory.
On the Emerald front, the Chicago Sun-Times
reports today that the deal allowing the defunct
Emerald Casino to sell its valuable casino license
“fell almost completely apart Tuesday,” with
state regulators now charging the company with
abandoning a fair, open and competitive bidding
process for one that is based on greed. The attorney for the state gaming board held out a ray
of hope, saying that Emerald still could present
a plan following the settlement agreement, but
that if it did not the entire process could go down
the drain. Nine bidders are interested in the
Emerald license, particularly with Mayor Richard Daley indicating he might favor a casino in
downtown Chicago, but the gaming board is insisting that the agreement to allow Emerald’s
original investors to recoup their investments and
nothing more hold firm. The board administrator was enraged that Emerald is seeking a $102,000
June thru September salary payment for
former CEO Kevin Flynn, whose dealings
led in part to Emerald’s license revocation.
NO END IN SIGHT IN CHICAGO
Following a meeting yesterday between representatives of the Illinois Harness Horsemen’s Association and Balmoral and Maywood Parks, the
horsemen’s leadership issued an “Important Negotiation Update” in which they claimed they had
been “insulted” and asked their members to stand
firm in boycotting the two Chicago area tracks.
Racing has been cancelled through the rest of this
week, the fourth week in which there is no live
racing in Chicago.
MORE RUMBLES IN MARYLAND
Black legislators in Maryland, a number of whom
have expressed views against the new governor’s
slot proposals, now are talking about pushing for
legalizing slots at locations other than the four
tracks proposed by Gov. Robert Ehrlich Jr. One
of them -- Ulysses Currie, chairman of the Budget
and Taxation committee -- described by the Baltimore Sun as “one of the state’s most powerful
African-American lawmakers,” has questioned
why tracks should receive any share of slots profits other than their costs and purse increases. A
contrary view was expressed by Buddy Roogow,
chief executive of the Maryland Lottery, who assured the Senate Finance committee that the impact of slots on lottery revenues would be “minimal” if the slots were restricted to tracks. Not
surprisingly, Illinois anti-gambling activist Rev.
Tom Grey was in Annapolis, meeting with legislative leaders and saying “I like a good fight, and
this is a good fight.” Nothing like a minister who
loves to fight.
THE TAIL THAT WAGS THE DOG
It was interesting to note, in view of the fact that
racing is cancelled for football games at Giants
Stadium, that the stadium made $16.3 million for the New Jersey Sports and Exposition Authority last year, while the Meadowlands racetrack made $20.7 million for it.
January 23, 2003
ODDS CHANGES IN NEWS AGAIN
The California Horse Racing Board is troubled by
wide swings in odds changes after races are underway. The issue is not bets placed after races
begin, but rather last minute influxes of money
from off-track, and the board is considering the
possibility of shutting off betting early at those
locations. Daily Racing Form reports that a
board auditor cited two recent cases at Hollywood Park where odds on a winner dropped from
24-to-1 to 12-to-1 in the final betting cycles, and
another where the winner went from 8-to-5 to 4to-5 in the same final cycling, both as the result
of a series of big bets placed through the Racing
and Gaming Services offtrack site. Ron Charles,
a director of the Thoroughbred Owners of California, was quoted in the Form as saying “racing fans are disillusioned.”
CAL INDIANS WANT MORE
There are 53 gaming Indian tribes in California,
with a maximum allotment of 2,000 slot machines
and a statewide cap of 61,700. Meeting in the
Western Indian Gaming Conference in
Temecula, California, they announced that they
want more, do not want to share them with anyone else, and are not interested in making the
state a partner. They want to expand, and in
their coming round of negotiations with Gov.
Gray Davis they plan to ask to have the number
of slots raised or have the cap removed in return
for a bigger commitment to state and local governments. They also want a promise of exclusivity, their spokesman saying that “racetracks and
card clubs are whining and complaining that they
need slots.” The tribes obviously hope to prevent that from happening.
17 DAYS FOR RESERVATIONS
You now have 17 days remaining in which
to make hotel reservations for the annual
meeting, if you haven’t already done so.
TRACKS REOPEN FOR TRAINING
PRIX DAMERIQUE SUNDAY
There has been no settlement of the horsemen’s
strike in Chicago, but Balmoral and Maywood
Parks have reopened their tracks for training.
Balmoral president John Johnston said keeping
them closed wasn’t accomplishing much, so
horsemen can resume keeping their steeds in condition. The Illinois Thoroughbred Horsemen’s
Association, meanwhile, is going to court hoping
to end the recapture provisions that led to the
harness strike. Don Fritz, executive director of
the ITHA, said his group decided on litigation
after the Illinois Racing Board certified a $15
million recapture provision this week. The
horsemen’s fund has been reimbursed for the
recapture losses in the past, but Gov. George
Ryan ended that last summer as his budget crisis developed. A court hearing is expected to be
held as early as next week, according to BloodHorse Interactive.
The European continent’s greatest trotting race,
the Prix d’Amerique at Vincennes outside of
Paris, will be raced for the 82d time Sunday. The
$856,000 trotting classic can be seen in North
America at 9:40 Sunday morning, when Hippodrome de Montreal simulcasts it and five other
rich races from France. The Racing Network
will carry the telecast in Canada, along with 10
other tracks taking the Hippodrome signal, including HTA members Windsor Raceway and
Woodbine Entertainment. In the U.S., the race
is being carried by HTA members The Meadowlands, Plainridge Racecourse in Massachusetts
and the Red Mile in Kentucky, and also will be
carried by Youbet.com. Insert Gede and General du Pommeau are likely favorites in the 18horse field. Any tracks interested should contact Yvon Giguere at 514-739-2741, extension
2361.
10 HORSES DIE IN OHIO
HALL OF FAME STUD AUCTION
An outbreak of equine herpes has killed 10 horses
at the University of Findlay in Ohio, and 28 others are being treated there and at Ohio State
university’s veterinarian school. The disease affects horses’ neurological and respiratory systems and causes swelling of the brain and spine.
It is not transmitted to humans or other animals,
and an epidemiologist at the University of Kentucky department of veterinary science says the
chances of it spreading to other areas are very
remote. The University of Findlay has a student
equestrian program that houses more than 400
horses.
The Harness Racing Museum and Hall of Fame
is holding its annual Stallion Breeding Auction,
and broodmare owners have until Saturday, Feb.
22, to postmark bids with a 10% deposit. Scores
of stallion breedings are available, including such
top sires as Albert Albert, Artiscape, Dream
Away, Magical Mike, Malabar Man, No Nukes,
On the Road Again, Sierra Kosmos,
Sportsmaster, Village Connection and Tagliabue.
To bid or donate a breeding, contact Joanne
Young at the Museum, P.O. Box 590, Goshen,
NY 10924, phone 845-294-6330, fax 845-2943463, e-mail hrm@frontiernet.net.
ART GALLERY OPENS MONDAY
STRONG AGENDA FOR HTA/TRA
The new Online Art Gallery of the HTA College Scholarship Fund opens Monday, and
can be accessed on the HTA’s Web site at
www.harnesstracks.com. You’ll like what you
see.
A strong agenda for the March 11-14 joint meeting of HTA and the Thoroughbred Racing Associations is nearing completion. To assure
hotel rooms, contact Sable Downs at HTA
no later than February 10.
January 24, 2003
January 27, 2003
MORGAN DRIVER OF THE YEAR
HTA ART GALLERY NOW ONLINE
Tony Morgan has won Harness Tracks of
America’s Driver of the Year title -- one of the
most difficult honors to win in harness racing -for the third time. The Chicago-based driver
(and current strike leader as president of the Illinois Harness Horsemen’s Association) also won
the title in 1997 and tied for it in 1996 with Luc
Ouellette. The award is based on standings in
the top 25 in North America in three categories - money won, races won and percentage standings -- with a 25-point bonus for finishing in the
top 25 in all three. Morgan was second in races
won last year with 700, ninth in money won with
$5,112,006 earned by horses he drove, and seventeenth in percentage standings, for a point total of 75. Canada’s Randy Waples was second
with 63 points, and last year’s HTA champion,
Stephane Bouchard, was third with 56. Two
other former HTA titleholders, Walter Case Jr.
and Dave Palone, finished fourth and fifth.
As promised, HTA’s Online Art Gallery made its
debut on the HTA Web site this morning, with 22
oils, watercolors and bronzes by some of HTA’s
most popular artists available for sale. New works
of art will be added continually. The first consignment includes four watercolors by the Russian artist Svetlana Gadjieva, which have been extremely
popular at the HTA fall art auction, four works by
David Pavlak, and four of the small oils by Jo
Hodos that have won a wide auction following. The
Gallery can be seen by going to
www.harnesstracks.com and clicking on the HTA
Online Art Gallery. Clicking on the individual
works of art will enlarge each of them. All paintings are sold unframed, unless noted otherwise,
giving the purchaser the opportunity to select his
or her own frame color, style and mats.
TWISTS AND TURNS IN MD
Gov. Robert Ehrlich Jr. will not unveil his specific slot machine proposal until Thursday, but
that isn’t holding up opponents of the plan, whatever it may be. The Washington Post reports that
key Democrats are signing on to a House of Delegates bill that would place a one-year moratorium on slot machines, but even the organizers
acknowledge that the bill has little chance of passing. A spokeswoman for the governor called it
“an exercise in futility.” The governor did tell
Baltimore legislators that his plan will include a
percentage for Baltimore and for counties where
the four tracks he proposes to give slot are located. He also assured lawmakers that his bill
will require participation by minority businesses,
although he did not spell out how that will
work. The bill has been called “a work in
progress” and one wit on the Baltimore
Sun suggested that it may wind up being “11
slots and a mahjong table.”
TRAFFIC TROUBLES AT FALLS
Success breeds its own problems. The Seneca
Nation Niagara Casino, which opened on New
Year’s Day in Niagara Falls, NY, has been an
unqualified success, but it now is raising the ire
of the good burghers of the town, long noted for
its world class tourist attraction. The Buffalo
News reports that politicians and business leaders, who have complained about the town’s empty
downtown core for 20 years, now are talking
about moving their offices out of the center of
town because of horrendous traffic and parking
problems engendered by the casino. Niagara
Falls police are writing dozens of $25 parking
tickets in the casino area, up from zero before
the casino opened. Ironically, two city parking
garages are mostly idle, also creating unhappiness because the city rejected several million dollars for them in a lease deal. The fact that they
charge $8 might have a lot to do with it, and home
owners as far as five blocks from the casino
are complaining about cars parked in front
of their homes.
January 28, 2003
COURT OKS GELROD PENALTY
BEEN TO BANGOR LATELY?
An appellate court in New Jersey has upheld the
New Jersey Racing Commission’s denial of a stay
on Monte Gelrod’s five-year suspension for a
fourth high CO2 (milkshaking) test. Unless he
gets a hearing from the state Supreme Court,
Gelrod is suspended and out of action.
Shawn Scott was there yesterday, or was supposed to have been there. He missed three previous appointments with city officials there in the
last two months, but the Vegas wheeler-anddealer was scheduled to blow into town yesterday to talk about investing $30 million in Bass
Park, the little harness track in Bangor. This
might seem a little odd to people, since Scott also
is pouring money into troubled Vernon Downs,
but then again he is the guy who bought Delta
Downs for $10 million and turned around and
sold it to Boyd Gaming for $120 or $130 million
-- take your pick -- so it might be foolhardy to
dismiss him lightly. He now wants to turn Bass
Park, or Bangor Raceway as it is known in official circles, into a racino. The track was built in
1849, averaged $29,586 a program last year, and
bet a total of only $887,588 on 30 programs, with
average attendance of 1,043. Per capita wagering there was $28.37. Its biggest crowd showed
up 19 years ago, and its largest handle was bet
15 years ago, a whopping $143,547. Bangor is
Bangor, not particularly known as the resort center of the east, but Scott is Scott, so Bangor city
fathers gathered last evening for a workshop
prior to Scott’s scheduled hearing, to figure out
what he had in mind and whether it was good
for Bangor.
DOES THE NFL KNOW THIS?
That bastion of piety, the National Football
League, raised hell last week about Las Vegas
wanting to advertise on the sacrosanct Super
Bowl telecast. Having made that point, the NFL
blithely went ahead with commercials that looked
like a course in Violence 101, with guns pointing
at you at every commercial break, hoods shooting up the place, guys getting blown away, and
broads in bikinis and less, plus some of the most
tasteless commercials seen on television. This
double standard is so ludicrous that Commissioner Tagliabue, in his spare time, should review the show. If he has any decency or concern
for the kids that watch football, instead of worrying about ads for Las Vegas, he’ll stop this stuff.
Underlying all the hypocrisy, it is now announced
that the Women’s National Basketball Association, in trouble, has abandoned its policy of limiting franchises to NBA cities, and is granting a
franchise to the Mohegan tribe that operates the
Mohegan Sun Casino in Connecticut. So while
the NFL worries about Las Vegas ads, the
Mohegans buy the Orlando Miracle for $5 million, rename the team the Mohegan Suns, and
announce it will play at the casino’s 9,700-seat
arena. Two other franchises in the six-year-old
WNBA -- Miami and Portland -- with NBA teams
there as well, are throwing in the towel on
women’s basketball, and folding the franchises
after taking financial beatings. The
Mohegans apparently are counting on
spillover from the popularity of the phenomenal University of Connecticut womens’
college team in Storrs, 25 miles downstream.
FORBES DISCOVERS BETTING
Forbes, the venerable reporter of business doings, has discovered that $80 million was bet
alone in Vegas casinos on Sunday’s Super Bowl,
and now thinks sports betting might be the answer to state budget crunches everywhere. It
says “the math for further legalization of sports
wagering is compelling,” and thinks regulated
sports books “could draw significant action off
the black market.” It thinks sports bets
could reduce tax hikes and budget cuts, and
laments the fact that Washington doesn’t
seem to want to explore it.
January 29, 2003
PATAKI FIRES BOMBSHELLS
ROCK SETTLES WITH HBPA
Gov. George Patkaki has submitted his budget
proposal to the New York legislature, and it contains video lottery provisions and simulcasting
changes that can have huge impact on racing in
New York. The bill also will shake the industry
from top to bottom.
Rockingham Park and the New England HBPA
walked out of federal court yesterday with an
agreement on simulcasting, and did it after hearings but before their dispute reached a judge.
The problem arose after Rockingham replaced
the runners with a harness meeting for 2003, and
the horsemen forced a halt to simulcasting from
six tracks, including Gulfstream Park, using the
1978 Interstate Horse Racing Act as leverage.
Under the five-year agreement reached yesterday, Rockingham will pay Suffolk Downs a flat
fee of $500,000 a year for thoroughbred simulcast signals, plus 5% of its handle on thoroughbred racing bet through telephone accounts.
Suffolk, in turn, has promised that a large percentage of the monies will go to thoroughbred
purses. Ed Callahan, Rockingham vice president, said of the agreement, “Ultimately, racing
is the winner and the customers are the winners.
They’ll get the product they’ve been hoping for,
and the rest of us can go back to our businesses
instead of being in court.”
On VLTs, the governor’s bill reduces commission from VLTs to purses from 35% in the first
year and 45% in subsequent years to zero in the
first two years, 10% in the third, fourth and fifth
years; 15% in the sixth thru ninth years and 20%
in the tenth year and thereafter.
It increases the hours of slot operation from 12
hours a day to 18, with the actual hours to be set
by track operators, subject to approval by the
lottery, and provides that VLTs cannot be operated between 2 a.m. and 12 p.m. on Sundays.
It eliminates the Dec. 31, 2007 sunset provision,
which had been a stumbling block to track construction plans because of difficulty in obtaining
long term financing.
It eliminates state payments for judges, stewards,
drug testing and state racing and wagering board
oversight, and replaces them with a .5% fee on
the industry. At the same time, to help cover that
cost, it provides tracks with the discretion to set
takeout levels within prescribed ranges. “By giving tracks the ability to set the amount of takeout on their races,” the bill states, “tracks can
respond to changes in market and other economic
conditions, thereby maximizing revenues for
tracks, OTBs and local governments, which receive revenues from their local OTBs.”
It authorizes nightime thoroughbred simulcasting by eliminating the current restrictions on broadcast hours.
MAGNA ASKS FOR PA RUNNERS
Magna Entertainment, already represented in
the Pittsburgh market with The Meadows harness operation southwest of the city and its extensive television network, now has applied for a
thoroughbred license near the Pittsburgh airport,
northwest of the city. President Jim McAlpine
says that Magna has viewed that area as a prime
location for a thoroughbred track, and that it
would complement its harness operation in
Washington county. The proposed mile track
would be called Allegheny Downs and would be
built on 172 acres of former farmland .
SUIT TO PAY PICK 6 FUNDS
Churchill Downs and the Breeders’ Cup filed
a petition yesterday asking to have $3.1 million in Breeders’ Cup Ultra Pick Six funds
released to 78 rightful winners .
THE GOVS LAY DOWN THE LAW
Governors in three states had their say yesterday, and left some followers furious, some fretful, and some flabbergasted.
In New York, the reaction from horsemen left
out of Gov. George Pataki’s proposed budget bill
was predictable: rage. Under Pataki’s proposal,
horsemen would receive nothing from VLT revenues in the first two years, and then graduate
upwards to a maximum of 20% in 10 years. The
president of the New York Thoroughbred
Horsemen’s Association, Richard Bomze, called
the idea “preposterous and stupid”, and his harness racing counterpart, Joe Faraldo, told HTA
that the proposal was “so draconian and so drastic” that it will require high level negotiation in
Albany, and he reminded all concerned that it
was a proposal and not a law at this point.
In Pennsylvania, new Gov. Ed Rendell called his
racing commissioners together in Harrisburg
yesterday and told them he wants them to give
careful consideration to awarding Pennsylvania’s
remaining racing licenses. Rendell thinks slots
at the tracks, which he favors, can close $500
million a year in the state’s $2 billion budget deficit, and he does not want any rush to judgment
on awarding the two remaining harness racing
licenses or one remaining thoroughbred permit.
He said he stopped consideration of licenses, including the Chester Downs harness application,
to prevent “a gold rush” and to ensure that companies that get licenses are dedicated to building
quality racing operations rather than simply
cashing in on the promise of slots.
In Maryland, it is getting wild and wooly in the
General Assembly after Gov. Robert L.
Ehrlich Jr. gave a 45-minute introductory
speech that contained not a word about his
slots-at-tracks proposals.
January 30, 2003
The speech drew sharp criticism from Democrats,
who control the state house, with the chairman of
the House Appropriations Committee calling it “a
glad-hand, nonrealistic speech that didn’t deal with
the tough issues we have to address.” Another
Democrat, Senator Paul Pinsky of Prince George’s
county, where Rosecroft Raceway is located, said,
“Unbeliev able! This is our governor? Five heartwarming stories, but no plan and no vision.” He
was referring to Ehrlich’s speech, in which he used
the plight of five Maryland citizens to illustrate
the social problems of the state. While other critics said slots would come too late to help the current budget crisis, Ehrlich’s chief spokesman made
it clear that if the legislature doesn’t pass his
scaled-back gambling legislation he will drop it and
instead impose “painful” budget cuts. “It’s now
or never,” the governor’s communications director said. “The fiscal disaster is here and now. It
doesn’t need to be fixed next year.” The
governor’s slot plan will be released today, and
is expected to call for 10,500 machines at four
tracks, down from 16,000 mentioned just a week
ago.
ELSEWHERE.......
In other developments of interest, the Chicago
suburb of Des Plaines said it would share 25%
of any tax proceeds from a casino with as many
as 10 economically depressed communities in
Cook county if it was awarded the currently floating Emerald casino........Colorado voters will get
a chance next November to approve video slots
for the state’s five racetracks............Youbet.com
reported a positive cash flow for the fourth quarter ended Dec. 31, the first time in seven years
the company could issue that good news........In
Niagara Falls, New York, the Seneca Nation Casino is averaging roughly 10,000 customers a
day......John Gallaway is retiring as president
and COO of Isle of Capri, effective July 1.
WHO GETS WHAT IS BIG ISSUE
It’s true everywhere, of course, but particularly
true in Maryland and New York these days. The
plans put forth by governors George Pataki in
New York and Robert Ehrlich Jr. in Maryland
have caused considerable consternation and discussion, and are likely to cause more of both before being finally resolved.
In New York, Pataki’s proposal to shut horsemen out of any proceeds from VLTs for the first
two years of operation has created the biggest
stir, perhaps surprisingly, from Barry Schwartz,
chairman of the New York Racing Association.
Schwartz, who will be a panelist at the upcoming HTA/TRA joint meeting in Florida, says that
while horsemen are willing to give up something
to get VLTs running, zero is too big a hit. “I just
don’t think that’s fair,” he said, and added, “It’s
not going to happen.”
Another panelist at the upcoming HTA/TRA
meeting, former New York racing commissioner
and current coordinator of the Racing and Wagering Law Program at Albany Law School, says
there is nothing that legally prevents tracks from
giving horsemen more than the proposed zero
split by taking the money out of their share after
expenses for constructing VLT outlets. The governor, in his proposal to the legislature, does not
envision any money coming to New York this
year.
In Maryland, Governor Ehrlich unveiled specifics of his slots-at-tracks proposal, and they were
a “shrink-the-baby” proposition. The total number of slots has dropped from 18,000 to 10,000,
with Pimlico, Laurel and Rosecroft to get 2,500
each instead of a previously floated 4,500.
Ehrlich again said that if legislators do not
accept the plan, he will drop it entirely and
seek sharp state cutbacks.
January 31, 2003
Under Ehrlich’s proposal, 64% of slots revenues
would go for education, tracks would get 24.8%,
and horsemen would receive 8%. Earlier, according to Daily Racing Form, the president of
the Maryland Horse Breeders Association had
said a 30%-track, 7%-horsemen share would
“devastate the racing industry.” Ehrlich envisions that the slots would produce as much as
$800 million a year for Maryland schools, and
the track would pay $350 million in one-time licensing fees for the privilege of having them.
Ehrlich said he had been lobbying all day yesterday “behind closed doors” and said he had “a
pretty good day.”
HOLD THE PHONE AT BIG M
Don’t hang up yet on VLTs at the Meadowlands.
The Newark Star-Ledger reports this morning
that the issue is still alive, with Gov. McGreevey
not only facing a $5 billion budget gap in his
upcoming budget but another $1 billion shortfall in the current budget. The governor’s chief
of staff told the paper that “Everything is on the
table except income, sales and corporate tax increases.” Ultimately, this issue may come down
to whether the well-being of Atlantic City casinos is more important than the well-being of the
state of New Jersey. When that happens, and
the people of New Jersey start to speak, all that
boardwalk clout may be dissipated a bit.
In another Meadowlands development, CEO
George Zoffinger may put on a striped shirt and
step in as referee between the warring big companies vying to rebuild part of the Sports Complex. The two main contenders, the Mills corporation/Mack-Cali Realty power group, has been
enlisting political aid, and their rival Hartz
Mountain/Forest City Ratner, has been pulling
out all stops that it can. The third contender,
Westfield corporation, has been relatively
quiet. Zoffinger may try for a joint venture.
February 3, 2003
FAIR WARNING ON ROOMS
CARLSON CALLS FOR CALM
This is the final week in which to make reservations for a guaranteed room at the new Westin
Diplomat, where HTA and TRA will meet jointly
March 11-14. When you see the agenda later this
week, you won’t want to miss this meeting, so
contact Sable Downs at the HTA office and make
sure you have a stall.
In New York state, where horsemen are up in
arms over Gov. George Pataki’s proposal to cut
them out entirely from any proceeds from slots
for the first two years of operation, Skip Carlson,
vice president and general manager of the
Saratoga Equine Sports Center, spent time last
week trying to calm his horsemen, saying he was
confident there would be legislation passed that
would restore a share of slot revenues for them.
Carlson said he felt “there was a premature rush
to judgment from the budget memorandum that
came down. That’s not a piece of legislation. I’m
confident things are going to work out.” He also
said Saratoga Equine could be ready to start construction “in 30 to 60 days” on a VLT renovation project that will cost between $5 million and
$8 million. Some Saratoga Equine horsemen
were suggesting the county rescind its permission for VLTs, a dangerous idea that could bring
the whole house down on them, but the Saratoga
town supervisor said he wouldn’t vote to rescind
the VLTs unless there was no chance of the horsemen getting anything.
TRICKY PATH ON TRACK SLOTS
Track operators in Maryland are walking a fine
line on Gov. Robert L. Ehrlich’s slots proposal.
The bill, which currently calls for 2,500 slots at
Pimlico, Laurel and Rosecroft and 1,500 at a
track to be built in Cumberland in western Maryland, has drawn public comment only from Bill
Rickman Jr. and Joe DeFrancis, but the Washington Post reports that track “lobbyists worked
furiously all day Friday to persuade lawmakers
in the General Assembly to amend the governor’s
bill, which would impose one of the highest gambling taxes in the nation on slot machines.”
Rickman, who owns HTA member Ocean Downs
and plans to build the western Maryland track,
was quoted in the Post as saying, “It’s got to be a
win-win deal or nobody will want to do it.”
DeFrancis, apparently nervous at the hassle in
the legislature over the proposal, said, “This is
truly a once-in-a-lifetime opportunity for all of
us, and we need to make sure it doesn’t slip
through our fingers.” Ehrlich has threatened to
ditch the slots-at-tracks proposal entirely if the
legislature refuses to go along with his proposal,
which calls for one-time licensing fees totaling
$350 million and gives the state 64% of slot revenues, with tracks getting 25%, horsemen 8%,
and the balance going to breeders and local governments. Ehrlich, commenting on his proposal, said, “Is everybody going to get
what they want? No. But we’re the first
administration in years to pay attention to
the needs of horse farmers and racing.”
SCIOTO ISSUES BLEAK REPORT
In a somber report filed with the Securities and
Exchange Commission, Scioto Downs warned
last week that it might not survive if a deal with
MTR Gaming, the parent of Mountaineer Race
Track and Gaming Resort in West Virginia, does
not close. “At this time,” the report said, “it is
uncertain that the company will be able to continue as a going concern.” Scioto revenue was
up last year, $14.3 million as against $13 million
in 2001, but the company lost $1.5 million. MTR,
which agreed to a takeover at $32 a share, or an
alternate plan of $17 a share plus 10 annual payments based on track performance, is conducting due diligence examinations and provided a $1 million infusion in December,
which will become a loan if the sale is not
finalized.
February 4, 2003
DANGEROUS GAMES IN MD
THAT SCREAM IN NJ IS CASINOS
No one knows at the moment how it’s going to
play out, but the rhetoric in Maryland about the
slots-at-tracks issue is getting scary. Pimlico,
Laurel and Rosecroft have been offered 3,000
slots each with a one-time licensing fee of $100
million each, and a Rickman track still not built
in western Maryland is scheduled for half that
arrangement. Daily Racing Form’s Matt Hegarty
quotes Thomas Bowman, president of the Maryland Horse Breeders Association, as saying that
plan “is not viable....it won’t work. No track
could afford slots under this plan. And if it’s not
viable for the racetracks, it doesn’t work for anyone else.” Gov. Robert Ehrlich’s numbers people
say it will work, for everyone, but they still have
to convince both the legislature and tracks and
horsemen of that fact. If this goose gets killed
before it hatches, it would cast a pall over Maryland racing that may last for years. A bill has
been introduced in the House of Delegates, incidentally, that proposes to ban political contributions by gambling interests.
In New Jersey, where doctors are striking over
the cost of malpractice insurance, there is another
piercing scream, this one from Atlantic City’s
casinos. As The Press of Atlantic City put it, “the
lovefest between Gov. James E. McGreevey and
Atlantic City casinos is over.” It was a brief romance. McGreevey issued his budget yesterday,
and it includes an increase in casino taxes that
the industry says could cost them between $135
million and $200 million a year. McGreevey proposes raising the casino revenue tax from 8% to
10%, imposing a sales tax on the comp rooms
and meals the casinos lavish on their best customers, and impose a 7% occupancy tax on hotel rooms statewide. In 2001, the last year for
which full figures are available, Atlantic City
casinos gave away $582 million in free rooms,
meals, drinks, show tickets and other comps to
their customers. If that amount were taxed as
proposed, the casinos’ guests would have paid
$43 million in sales taxes on the freebies, according to the Press of Atlantic City. Until yesterday,
McGreevey was a hero in the resort, making
speeches there, attending functions, signing a
deregulation bill and making friends. Now,
snarling, the casinos say they control 100,000
votes and are threatening to use them.
Turmoil elsewhere in the industry continues to
escalate. Add to the shutdown of racing in Chicago another shutdown, this one of prosperous
Mountaineer Park in West Virginia. Horsemen
there, led legally by Harry Buch, the former
chairman of the West Virginia Racing Commission, have filed a lawsuit accusing the track of
sending out its simulcast signal without their
permission. The track, in return, shut down racing, canceling “until further notice while it attempts to clarify issues surrounding its contracts.” The number of live racing days is a major issue, the track applying for only 210 days
this year after racing 234 last year. On that
matter Mountaineer seeks summary judgment, saying it satisfied its existing contract with the HBPA requiring that it request not less than the minimum 210 days required by state law.
IN OTHER NEWS..........
Bill Wellwood, one of Canada’s greatest harness
horsemen, has died at 62......Trainer-driver Jim
Burke has been suspended for three years at
Fraser Downs for an alleged betting coup, lowering a horse’s performance by seven
seconds...Magna Entertainment is assessing operating losses at Great Lakes Downs and
Remington Park. It also is considering a major retail, business and residential development at the
Meadows with Praxis Resources..... Another
bill that would legalize slot-like pull tab machines at Indiana tracks has been introduced
in the House.
February 5, 2003
MONTICELLO IS IN PLAY
TOM ARONSON LEAVES TVG
It’s not quite clear who is doing what to whom,
but Monticello Raceway apparently is changing
hands, or names, or something. A release out of
Northbrook, Illinois, reported on Yahoo!Finance,
says Alpha Hospitality corporation has signed a
letter of intent that, if completed, will make the
company responsible for the ownership and operation of Monticello Raceway. Alpha would
exchange 80.25% of its stock for a 48-year lease
on the track and its 230 acres of property and all
rights to any related gaming activities. The lease
calls for an annual base rent of $1.8 million, and
provides for placing a 29-acre parcel in trust for
a Native American tribe or nation at a purchase
price of $1, pending federal and state approvals.
The remaining property may be purchased
within two years of the opening of a casino. Bottom line, after some complex paper exchanges,
and if the deal closes, Alpha -- which says it will
likely change its name -- will be responsible for
the ownership and operation of the Raceway and
will be entitled to the track’s net income and future VLT operation, if any. We’ll let you know
more details after our lawyers figure this one out.
Don’t sit up waiting.
One of American racing’s brightest minds -- Tom
Aronson -- has resigned as senior vice president
of TVG Network after eight years in various capacities with the Gemstar-TV Guide International subsidiary. Aronson described his parting as “fully amicable” and he will continue to
provide consulting services to the company for
some time. As a member of TVG’s start-up
group, Aronson is widely credited with having
developed the original “source market fee” revenue distribution plan that is now the underpinning of account wagering in this country, as well
as having helped secure key exclusive contractual commitments to the fledgling network early
on from many of the country’s most important
racetracks. His career in racing began when he
was hired in May, 1977, as executive assistant at
Harness Tracks of America on graduating from
Harvard University, where he was sports editor
of the Harvard Crimson, and he has been a major contributor of creative concepts and ideas in
the sport since that time.
DALEY: NO CASINO IN CHICAGO
There is frantic scrambling among suburban
Chicago communities for the 10th and final casino license in Illinois, but one competitor is now
out of the picture: Chicago itself. Mayor Richard Daley told the Chicago Tribune’s editorial
board that he has ruled out applying for the 10th
license, and since Illinois’ new governor Rod
Blagojevich, says he will not expand licenses beyond the present ten, that seems to settle that issue. Far from settled, however, is who will g e t
the vacant license. The latest suburb to
enter the race for the license of the bankrupt Emerald Casino group is Waukegan on
the lakefront north of Chicago.
USTA GETS A FAVORABLE NOD
Two prominent anti-trust lawyers have told the
United States Trotting Association that if it were
sued or subjected to antitrust enforcement action in connection with the embryo transplant
issue, it would in their opinion probably win the
case. The lawyers, David Roll and Fred Home,
both of whom worked in the Bureau of Competition at the Federal Trade Commission, were
asked by USTA director Russell C. Williams,
himself a lawyer and vice president of Hanover
Shoe Farms, for their opinion on the controversial issue. Citing genetic diversity as “the appropriate area of inquiry,” Williams said he felt
USTA “could not ask for a clearer or more authoritative opinion,” and he requested that
USTA retain the lawyers’ firm, Steptoe and
Johnson, as counsel on the embryo transplant matter.
February 6, 2003
JUSTIN ABBOTT GONE IN NJ
EVERYBODY IN THE POOL
New Jersey racing has lost its second controversial trainer in a week. Following the five-year
suspension of Monte Gelrod, Justin Abbott disappeared from the scene yesterday when the New
Jersey State Police arrested the 30-year-old
former Australian rugby player and turned him
over to Immigration and Naturalization Service
agents from Newark pending deportation proceedings. Abbott’s arrest came after state police
and Freehold borough detectives investigating an
assault in which he was involved discovered that
he was in the country illegally. The Newark StarLedger reported that the personal identification
information that Abbott supplied to them did not
match information he had listed on his New Jersey racing license, but the state police spokesman
reporting the incident did not elaborate on exactly what data Abbott allegedly falsified.
Today’s Star-Ledger also reported that the number of illegal immigrants in New Jersey more than
doubled during the 1990s, from 95,000 to 221,000
between 1990 and 2000 -- almost the population
of Jersey City -- and now represents 3.2% of the
state’s population. If the IRS deports Abbott,
the number will be one less.
If you’re not doing anything today, why not apply for a thoroughbred racing license in western
Pennsylvania. Everyone else is.
Gelrod, meanwhile, has filed an appeal to the
New Jersey Supreme Court, hoping to get the
racing commission’s five-year suspension and
$5,000 fine overturned. An appeals court refused
to reverse the ruling, which came after a fourth
Gelrod offense for elevated carbon dioxide levels, or milkshaking. The horses involved were
owned at the time of the violations, which cover
racing during the last seven years, by Alan and
Cloah Fair and Christopher and Laurie Comley
of Ontario; Norman Vartanian of Stoney Creek,
Ontario; Antonio Chiaravalle of Hamilton,
Ontario; and the Peter Pan Stables of Pepper Pike, Ohio, the nom de course of leading owner Bob Glazer.
Magna Entertainment has filed for a license near
the Pittsburgh airport. Vorum Racing, owned
by Daniel Vorum and Elizabeth Eelkema, who
own a training track near the Meadows, wants a
license. Centaur Pennsylvania LLC has asked
for one in not-too-distant Beaver county. Five
siblings of the Biros family, mall owners, want
to build in South Versailles. And now, according to the Pittsburgh Post-Gazette, a realty group
named DGD Realty Associates, out of Putnam
county, New York, that owns a remote hillside
tract in Pittsburgh’s 31st ward, has joined with
a Pittsburgh developer named Charles J. Betters
in applying to build a track on that site. DGD
bought the 635 acres of wooded slopes from bankrupt LTV Steel in 1989, planning to build 700
homes there, but that never materialized. Now
DGD and Betters are seeking to build a track
there, overlooking the Monongahela river, under the name of Pittsburgh Development Group.
Own some land near Pittsburgh, or have a friend
who does? Jump in. Ben Nolt, executive director of the Pennsylvania Horse Racing Commission, says there’s no deadline, so type something
up and send it to Harrisburg. And hope that
slots are legalized on schedule.
On that note, Maryland, New York and New
Jersey are finding that introducing slots is not
quite as simple as envisioned. New legislation
giving horsemen a share has been introduced in
New York, Gov. McGreevey of New Jersey has
named a panel to consider VLTs beyond Atlantic
City, and Maryland has turned into a battleground, with counties, horsemen and legislators all involved in the fray.
MAJOR SPEAKERS IN FLORIDA
Thirty-four leading figures in North American racing will be featured speakers in eight panel discussions on issues of the sport at the joint meeting
of Harness Tracks of America, the Thoroughbred
Racing Associations and Racetracks of Canada
at the Westin Diplomat in Hollywood, Florida,
March 13 and 14.
A management panel discussing current racing
issues brings together for the first time leaders
of the four major racing ownership groups in the
sport: Churchill Downs, Magna Entertainment,
the New York Racing Association and Woodbine
Entertainment. John Long, president of
Churchill Downs Inc., will represent Churchill;
Jim McAlpine, president of Magna, will speak
for his group; Barry Schwartz, chairman and
CEO, will represent NYRA; and David Willmot,
president/CEO, will speak for Woodbine. The
management panel also includes Chris McErlean
of the Meadowlands, president of HTA; Bryan
Krantz of Fair Grounds, president of TRA; and
Bernard Goldstein, chairman/CEO of Isle of
Capri Casinos and president of Pompano Park.
Penny Chenery, thoroughbred racing’s spokeswoman extraordinaire and owner of Secretariat,
will appear with author Mary Midkiff and David
Rovine, director of marketing at Gulfstream
Park, on a panel titled “Women as Racing Fans:
An Objective or an Afterthought.”
Coverage -- and non-coverage -- of racing will
be discussed by an all-star panel including Andy
Beyer of the Washington Post; Steven Crist,
editor-publisher of Daily Racing Form; Bill Christine of the Los Angeles Times; Bill Finley, writer
for the New York Times; Allen Gutterman,
director of marketing for Hollywood Park
and former publicity director at the Meadowlands and NYRA; Charlie Leehrsen, ex-
February 7, 2003
ecutive editor of Sports Illustrated; and Neil
Milbert of the Chicago Tribune.
Progress on detecting currently undetected illegal medication will be addressed by Drs. George
Maylin of Cornell university, Ken McKeever of
Rutgers university, and Scot Waterman, executive director of the Racing Medication and Testing Consortium.
A critical view of simulcasting and racing on television will be the subject of a panel that includes
Maury Wolff, racing economist, columnist and
professional handicapper; Tom Graham, a
mathematician and player; and Bennett
Liebman, coordinator of the Racing and Wagering Law Program at Albany Law School.
“Racing Today and Tomorrow” will be discussed
by Ron Barbaro, chairman/CEO of the Ontario
Lottery and Gaming commission; Bill Oberle,
speaker pro tem of the Delaware House of Representatives; Stanley Sadinsky, chairman of the
Ontario Racing Commission; and Frank
Zanzuccki, executive director of the New Jersey
Racing Commission.
Three presidents of OTBs in New York -Raymond Casey of New York City OTB, Michael
Connery of Capital District; and Mea Knapp of
Suffolk OTB, will join Drew Shubeck of The
Meadows in discussing the off-track aspects of
racing. The Future of International Simulcasting will be addressed by Bill Hogwood, president
of TRNI; Scott Finley of Attheraces; and Lorne
Abony, CEO of Columbia Exchange Systems.
Dave Johnson, CBS and ESPN racing commentator, will join Chris Scherf of TRA and Stan
Bergstein of HTA in moderating the discussion
sessions and audience participation that
follows.
February 10, 2003
SLIGHT DIFFERENCE OF VIEW
REAL DESIRE HORSE OF YEAR
The possibility of slots at the Meadowlands was
in the news again over the weekend, this time in
the context of what the Newark Star-Ledger called
“a nasty turn” involving a conversation that apparently took place between Gov. James E.
McGreevey and Phil Satre, chairman of Harrah’s
Entertainment. Both sides agreed that a conversation took place, but differ widely on what was
said. Harrah’s claims McGreevey “made a proposal” for Harrah’s to manage proposed slots at
the Meadowlands. McGreevey’s office flatly accused Harrah’s of lying, and not in gentle terms.
“I don’t know where this guy’s from,”
McGreevey spokesman Micah Rasmussen told
reporters, “but in New Jersey when you have a
conversation with the governor and then you flat
out lie about that conversation it’s unacceptable.
He completely misrepresented the conversation.
It’s disrespectful to the office. In the future, the
governor will deal with more responsible members of the casino industry.” Translated freely,
that would seem to mean that if slots come to the
Meadowlands, it’s 1-to-10 that they won’t be
managed by Harrah’s.
The United States Harness Writers made it official Saturday night in Atlantic City, naming the
brilliant pacing star Real Desire Harness Horse
of the Year. The American-bred, Canadianowned four-year-old, winner of 10 of 13 races and
$1,059,790 this year and $1.6 million lifetime, is
owned by Bob and Karin Olsen-Burgess and
Brittany and Perretti Farms, was trained by
Karin’s husband Blair Burgess, and driven in
all but one start by John Campbell. He received
93 votes in the writers’ balloting to 44 for
Kadabra, the exceptional 3-year-old trotting colt
named best in his division and Trotter of the
Year.
MAGNA BUYS ANOTHER TRACK
Magna Entertainment, through its wholly owned
subsidiary MEC Oregon Racing, Inc., has purchased Portland Meadows and an interest in its
real estate from Portland real estate developer
Thomas P. Moyer. No financial details were announced. Magna has been operating the track
for the past two racing seasons under a sublease.
Magna president Jim McAlpine said, “We have
long believed that the Oregon racing industry
offers tremendous potential for growth.
Oregon’s favorable regulatory environment and
established system of off-track wagering
fit well with our ongoing initiatives in the
account wagering and electronic media
fields.”
7TH WEEK OF CHICAGO STRIKE
Other than strong letters between John Johnston
and Tony Morgan, there seems to be little to report on the Chicago scene, where the horsemen’s
boycott of racing enters its seventh week and no
live harness racing has been conducted in 2003.
The only other Chicago news of the moment is
that the Chicago Motor Speedway at
Sportsman’s Park will not present a CART race
this year, ending four years of Championship
Auto Racing Team competition at the now shuttered track in Cicero. CART scheduled its own
race at Sportsman’s last year, and is still listing
May 18 as a tentative dates for Chicago, but possibly not at Sportsman’s. The association wants
to stage a Lemans-like street race in downtown
Chicago. Pedestrians in the Loop had better fasten their seatbelts -- or flee -- if this happens.
VALENTINES DAY IN MONTREAL
If may be a day for love elsewhere, but at Hippodrome de Montreal it will be a battle of the sexes.
That’s the name the track has given to a holiday feature pitting four women drivers
against four of the track’s male driving
colony.
February 11, 2003
THE POGO PRINCIPLE AGAIN
JOHNSTONS TO BUY ELLIS?
It was Walt Kelly’s Pogo, of course, who memorialized the line, “We have met the enemy....and
it is us.” Racing, however, keeps it fresh in mind,
as current events indicate, Indiana being the latest example. The legislature there is considering
the issue of slot-like pull-tab machines at tracks.
A bill -- House Bill 1598 -- that would do that
was introduced by Rep. Scott Reske, a Democrat
whose district includes Hoosier Park. Under his
bill, Hoosier and Indiana Downs each could install 700 pull-tab machines at their tracks and
another 700 at one of their OTB sites. The chairman of the committee considering the bill said
“This could save and build the horse racing industry in the state of Indiana.” Then a former
racing commissioner named Ed Martin Jr., now
representing the Indiana Horse Racing and
Breeding Coalition, told the committee the horsemen don’t like the way the bill splits the money
it would raise. They think the tracks are getting
too much and the horsemen too little. Rep. Reske
was not pleased. He said he had been
“blindsided” by the opposition. “I have not been
approached by the industry with this concern,”
he told fellow committee members. “I wish
they’d talked to me before they came to the committee.” Rick Moore, Hoosier Park president,
told the committee that without the revenue the
video pull-tab machines could generate, the
state’s tracks might not survive. “We’d have two
sick tracks, and maybe one closing,” he told the
lawmakers. An Indianapolis representative,
meanwhile, proposed an amendment to the bill,
calling for 1,500 machines at each of two OTBs
and 750 at each track, but with a price attached.
It would require Hoosier Park to close its
Merrillville OTB and give up either its Fort Wayne
or Indianapolis site. Indiana Downs would
have to close its Evansville OTB, opened
just last week. The horsemen have proved
Pogo right once more.
John Johnston, speaking for his father Billy and
brother Duke who collectively own Maywood and
Balmoral Parks in the Chicago area, says he expects they will make an offer “in the next week
or 10 days” to buy Ellis Park in Henderson, KY,
from Churchill Downs. Johnston said they had
approached Churchill four or five weeks ago after Churchill indicated it might sell the track, and
added, “We’re in the racing business, so it’s
something we’d look at.” If the deal goes
through, it would mark the first divestiture of
Churchill track properties since Churchill began
its holdings that now include Arlington Park in
Chicago, Hollywood Park in California, Calder
Race Course in Florida, and majority interests
in Hoosier Park in Indiana and Kentucky Downs.
ATLANTIC CITY VICTORIOUS?
That’s what Bill Gormley says. Gormley is the
New Jersey state senator who represents Atlantic City casinos in the legislature, and he says that
not one of Governor James E. McGreevey’s tax
proposals, which include healthy increases on
A.C. casinos, will pass. Gormley told a press
conference call arranged by Deutsche Bank Securities that “McGreevey’s position is so weak
on taxes, he basically had to concede them the
day after he made them.” He also said a call the
governor made to the casinos to assure them of
his continuing support really was an effort to
arrange a trade-off, slots at the Meadowlands in
return for calling off the tax increase. Gormley
said the governor had gotten bad advice from
his treasurer, who formerly was acting business
administrator of McGreevey’s home town of
Woodbridge, but the governor’s office refused
to be drawn into that debate. “The governor and
Sen. Gormley continue to be close personal
friends,” his office said, “and the governor
looks forward to Sen. Gormley playing a
role in balancing this budget.”
February 12, 2003
AGREEMENT IN CHICAGO
OBJECTIONS TO EXTORTION
The Johnston family and the Illinois Harness
Horsemen’s Association have agreed to fast-track
binding arbitration to bring an end to the sevenweek strike that has closed down harness racing
in Chicago. As soon as the parameters of the
arbitration process are resolved, racing will resume, perhaps as early as Friday, Feb. 21.
Balmoral Park president John Johnston issued
a release following a six-hour meeting Monday
which said it was horsemen’s leader Tony
Morgan’s “acquiescence to the tracks’ previous
suggestion of arbitration that broke the deadlock.” Morgan earlier had issued a release in
which he urged Johnston “to remain on task as
we are committed to doing. To that end, we once
again call upon you to agree to binding arbitration as a show of your true desire to resolve this
matter fairly and equitably.” Qualifying races
will begin Friday, which seems appropriate since
it is Valentine’s Day and a show of love and affection is in order.
A bizarre plan by Massachusetts governor Mitt
Romney to bar casinos in his state if casinos and
tracks with slots in other states would pay “blocking” money has been met with cries of “extortion” by Indian casino operators in Connecticut
and “ransom” by the head of Lincoln Park in
Rhode Island. Romney suggested that he might
prohibit casinos from being built in Massachusetts if those in neighboring states would pay as
much as $80 million to stay competition-free.
One administration official thought the idea
“seemed a clever way” to enhance revenues from
gambling without the long term costs and impact
of bricks and mortar construction. Another said
it was “exactly the type of innovative and creative thinking that we need to deal with this casino issue.” Dan Bucci, who runs Lincoln Park,
said it seemed to him “not to be a very well
thought-out brainstorm.” Mark Brown, CEO
of the hugely successful Mohegan Sun casino in
Connecticut, asked Romney to, as Sam Goldwyn
used to say, include us out.
NO KISSES IN MARYLAND YET
The administration team of Maryland governor
Robert Ehrlich has returned to the drafting table,
“working with various elements of the industry
to assure that the allocation of slots revenue is
reasonable.” That was the word from the
governor’s office, but the notice also made clear
that Ehrlich was not pulling the bill under any
circumstances. An Ehrlich spokesman said it was
not “a foregone conclusion” that the numbers
would be changed, although a member of the
House Ways and Means committee that will hear
the bill first said staffers told him they were “retooling” the numbers. As introduced, the bill
calls for a $100 million license fee for each
track plus the expense of building casinos in return for 25% of the revenues. No
word yet from New York on similar “retooling” efforts.
YOU REMEMBER GARDEN STATE
It was one of the glittering racing venues in
America, which went up first in smoke and fire
and then in a real estate transaction to convert it
into a huge mixed-use office and living community. The latter happened two years ago, but that
project is still stalled two years later, deeply
troubled, and one of the principal developers now
has pulled out of the deal. Realen Properties of
Berwyn, PA, which played a key role in the idea
of converting Garden State from a track to an
oasis of homes, stores, offices and parks, now
says, “It was a wonderful plan, one we believed
in strongly. But the time has come to move on.”
You can interpret “moving on” as you wish, but
Turnberry Associates of Florida now will
handle the problems of redeveloping the 212
acres of prime property on its own.
February 13, 2003
VEGAS LOOKS TO WINDY CITY
A WINNER AT MEADOWLANDS
Chicagoans have for years flown west to Las Vegas for fun and frivolity. Now, in an interesting
reversal, the big chiefs of Vegas are flying to Chicago, seeking the elusive tenth casino license still
available -- maybe -- in Illinois. No less than the
big kahuna himself, Steve Wynn, is interested, and
so are MGM Mirage and Harrah’s Entertainment.
But before any of them get the license, there are a
lot of administrative, legal, regulatory and -- this
being Chicago -- political hurdles to cross.
And a rich one at that. The joint venture of the
Mills corporation and Mack-Cali Realty corporation were named yesterday as the winners in the
three-horse competition to rebuilt the Continental
Airlines Arena at the New Jersey Sports and Exposition Authority, and George Zoffinger, CEO of
the Authority, made it clear that money was what
made the mare go.
Wynn likes the idea of a casino in Des Plaines, a
partnership between his Wynn Resorts, Chicago
real estate baron Neil Bluhm (each with 40%) and
a third, as yet unnamed 20% partner. Their
riverboat, according to the Las Vegas ReviewJournal, would be a “boat-in-a-moat,” sitting in a
9-inch deep body of water, and located only six
blocks from where the Emerald Casino sank into
the muck of failure. Why Steve wouldn’t simply
resurrect and build on the still-standing steel skeleton of that mess is unanswered. Regardless,
Wynn says his present site, with 6,000 hotel rooms
located nearby at O’Hare Airport, is “the best
riverboat site in America.”
CLEAR THINKING AT THE ROCK
Rockingham Park has said thanks, but no thanks,
to Massachusetts Governor Mitt Romney’s weird
idea to buy off Massachusetts’ competition.
Rockingham became the second entity to call the
idea “extortion,” after Connecticut casinos used
the same term yesterday. Romney called the idea
of collecting millions from competition as a “blocking fee” to guarantee that Massachusetts would
not license its own “a creative possible source of
revenue,” but the folks in New Hampshire,
Rhode Island and Connecticut don’t like
his theory of creation.
Mills/Mack-Cali offered $160 million to the Authority this year to built a sports entertainment
complex called Xanadu, and Authority CEO
George Zoffinger stated frankly that “The significance of the money cannot be underestimated.
We’re finally going to be able to deal with this significant debt problem.” Carl Goldberg, chairman
of the Authority, called the development “a major
day in the history of the Sports Authority.” The
Authority’s board voted 9-2 to accept the Mills/
Mack Cali bid, but officials in Bergen county are
not thrilled, and one of the competing bidders, Hartz
Mountain Industries and its partner Forest City
Ratner, is expected to file a lawsuit challenging
the decision. One of the two Authority commissioners voting against the proposal, former chairman Ray Bateman, called the Xanadu proposal
“Gridlock, USA”. Mills claims it spent eight years
and $100 million on development of the idea. It
initially encountered bitter opposition because its
original plan would have destroyed the wetlands
of the Meadowlands. Under its revised plans, it
will donate the wetlands to the state. Among the
claims of benefits, 21,000 construction workers will
be employed, 19,500 full time jobs will be created
in the next decade, and $65 million will be spent to
improve highway access to the site. The latter
item could be good news to harness racing and thoroughbred fans who occasionally sit idly by when
football takes over at the adjoining stadium.
Hopefully the $65 million will address this.
VALENTINES, FOR LAWYERS
It’s Valentine’s Day, but everyone is fighting.
We’re holding our next meeting, as you know, at
the Westin Diplomat March 11-14 in conjunction
with the Thoroughbred Racing Associations and
Racetracks of Canada, but perhaps we should think
about the Colosseum in Rome for next year. Consider:
In Chicago, the Illinois harness horsemen, nearing their second month of striking, have repudiated a Balmoral report that they had agreed to
arbitration and said they are nowhere near settling with the tracks. In a release attributed to
president Tony Morgan, Illinois Harness Horse
Association executive director Jack Kelly wrote,
“A recent press report from Balmoral and
Maywood mistakenly indicates that an agreement
to our contract dispute is near and that racing is
set to begin. Nothing could be farther from the
truth. Although we did have a lengthy negotiating
session with the tracks on Monday, no agreement
has been reached and no parameters have been
established upon which to enter binding
arbitration......Until they are worked out, no contract will be signed.” Maywood’s Duke Johnston
says he wonders if the horsemen really want to
settle.
In Maryland, politicians are now going to churches
to make speeches drumming up opposition to Gov.
Robert Ehrlich’s slots-at-tracks. Michael Busch,
speaker of the Maryland House, traveled to St.
Paul’s Community Baptist Church to address 31
ministers summoned by the Interdenominational
Ministerial Alliance. The Associated Press reported that Busch was one of the few whites in the
gathering, and the preachers wore anti-slots stickers on their lapels. Busch said it was easy
to put the burden on the poor, but an
Ehrlich spokesman said slots revenues
would help those communities, not hurt them.
February 14, 2003
In New Jersey, some politicians are concerned that
the Sports Complex reconstruction award to Mills/
Mack-Cali needs teeth to assure that changes in
economic conditions down the road don’t lessen
the benefits to the Authority, and that the developers don’t switch to retail emphasis and turn the
project into a mammoth mall that would cannibalize existing stores and malls in the area. Also of
concern, according to the New York Times, is that
no long sought mass transit connection still is in
sight for the Meadowlands site.
Also in Jersey, a retired state Supreme Court
justice issued a report paid for by Atlantic City
casinos concerning slots at New Jersey tracks,
but issued it saying it was “flawed” because he
had not looked at the type of VLTs that New York
proposes for its tracks. “I did not look at that,”
the judge, Robert Clifford of Morristown, said.
“I suspect it’s because I was not aware of the type
New York had.”
In California, one of the nation’s best known
harness horseman, Lloyd Arnold, has filed a legal challenge to the California State Fairgrounds
extending the lease of Alan Horowitz, who runs
the Capitol Racing meeting at the state fairgrounds. Arnold previously ran the Golden Bear
meeting at Cal-Expo and he alleges the authority is not maximizing revenue with its current
agreement. Capitol Racing, meanwhile, sued the
fairgrounds for breach of contract.
Elsewhere, Gulfstream Park threw out a vet, saying the integrity of the meeting was paramount,
and six positives for the pain killer Oxy-Contin
are under investigation in Pennsylvania. Don’t
get concerned, however. Rudy Giuliani says
customer confidence and public opinion has not
declined since the Breeders’ Cup Ultra Pick Six
scandal, and if anything has improved. That’s
what Rudy says, so rest easy.
February 17, 2003
INTERESTING INTEGRITY ISSUE
CLOSE, BUT SLOTS GET OK
Strange economics are at play in the Illinois
horsemen’s strike, and stranger logic. President
Tony Morgan reportedly told his constituents at
a meeting yesterday that one reason for not agreeing to arbitration was that he was worried the
tracks might confuse an arbitrator, who would
probably not be familiar with the state of the industry and its history in Illinois. He felt having
an arbitrator who really didn’t know the racing
business wouldn’t have been good for the horsemen. No one apparently asked him about any
concern he might have about going to court,
where presumably he might find a judge no more
conversant with the industry than an arbitrator.
That was the verdict in a comprehensive Bluegrass Poll conducted by the Louisville CourierJournal. The poll surveyed 804 adults in Louisville and surrounding counties between Feb. 5
and 10 and found that 51% support slot machines
at Kentucky’s eight racetracks, 41% oppose the
idea, and 8% have no opinion. The approval
number was down from 56% last March and
55% in September. In other findings, the poll
showed that 58% of those surveyed had bought
a lottery ticket in the last year, 18% had bet on a
horse race and played bingo or bought a pulltab or gambled on a riverboat, 11% had gambled
at a legal casino, and 33% had done none of the
above. The survey also showed that 32% said
they knew someone who was either a compulsive
gambler or has a gambling problem. The newspaper quoted problem-gambling researcher
Rachel Volberg, president of Gemini Research
in Massachusetts, as saying of that finding, “I
would not interpret that to mean that you have
an enormous number of problem gamblers in
Kentucky. I would interpret that more as gambling is definitely an issue that people in the state
are thinking about.”
Perhaps more interesting, however, was
Morgan’s take on the integrity issue, which he
has claimed tracks don’t really care about. The
tracks have expressed concern about unlicensed
training facilities and the transferring of horses
into another trainer’s name after positives and
other violations. This issue goes to the crux of
racing’s integrity, in Illinois, in New Jersey, and
everywhere else where unlicensed training facilities are used. Morgan contended that this affected horsemen closer to Chicago more than
those seeking shelter in Wisconsin or Indiana,
where Illinois tracks could claim no jurisdiction.
And according to one account of the meeting, he
pointed out that the law currently says that
people on farms in Illinois are allowed to have
needles and syringes in their possession in order
“to care for their livestock.” The tracks want to
have the power, he said, to say when and to whom
a suspended trainer can give his horses. The
ability to conduct surveillance at training centers,
also proposed in Florida, would be a hugely positive step for racing. And trainer transfers following positives and other violations need to be curtailed to avoid making a
mockery of regulation in racing.
AROUND THE CIRCUIT.....
The New Jersey Supreme Court has turned down
the appeal of suspended trainer Monte Gelrod,
leaving him with the prospect of serving his fiveyear suspension......The United States Trotting
Association has denied trainer Bob Belcher a license, but that doesn’t stop him from training in
Ohio, which does not require a USTA license for
its licensing procedures.......Marvin Shapiro,
president of Western Harness Racing in the late
1960s, has died at 83.......A county judge has
thrown out a lawsuit filed by Dairyland Greyhound
Park asking to stop all Indian gaming in
Wisconsin....Horsewoman Brenda Walker
has been named to the Ontario Racing Commission.
INTERESTING INTERNET NEWS
The Internet is so huge, and so all-encompassing, that efforts to curtail operations on it, or legislate against it, are virtual exercises in futility.
That doesn’t mean, however, that people won’t
try, and Interactive Gaming News, which covers
the worldwide I-scene diligently and efficiently,
recently reported on two examples that can affect racing.
One is a Web site developed by a company called
UseMyBank, which IGN thinks may be the best
“alternative payment solution” for online gamblers to fund their accounts through online banking services such as savings and checking accounts. The Web site enables consumers to pay
any bill through any bank that can be accessed
on the Internet. Users sign on and make a payment to UseMyBank, which sends the payment
to the bank, which confirms that the funds are
good. The creator of the system, one Joseph Iuso,
says UseMyBank.com is the first and only payment company in the world to facilitate direct
payments from online bank accounts in real time.
Over 7 million online accounts are eligible to pay
the merchant/sellers with zero chargebacks in
real time for less than 1%, according to Iuso. His
system currently supports all major Canadian
banks, and he hopes to add major U.S. and European banks by the second quarter of this year.
The company’s vice president of merchant services, who has a background in Internet gaming
in St. Kitts, says online gaming operators are
determined to get payment solutions, and he feels
UseMyBank is well positioned to do the job. The
main element of the system is its Automated
Online Payment Interface, which gives consumers the ability to make payments at their own financial institution’s supported Internet
site. What makes it unique is that it facilitates real-time verification of payments,
which the company says no one else can do.
February 18, 2003
“Everyone else who has tried this has fallen flat
on their face because they can’t provide that accommodation,” vice president Brian Crozier
says. UseMyBank’s system for merchants and
affiliates accommodates wire transfers, checks
and several other payment methods, as long as
the account is accessible on the Internet.
In another development, Holland is aggressively
leading the way in trying to block foreign gaming operators from taking wagers from Dutch
citizens. A court in the Netherlands recently
ruled that Ladbrokes must block all Dutch bettors from its Internet site because it is not licensed
to offer online gambling to Dutch citizens. Now
Holland Casino, which operates an online version of its games for the Dutch government, has
gone to court to stop Casino Lux, an international
online gaming site, from allowing Dutch residents
to use its online services. The director of the Hong
Kong Jockey Club is impressed with the Dutch
legal developments to keep unauthorized online
gambling from being offered to its citizens. He
called the Dutch case “a precedent that is going
to impact how Internet operators are able to do
business.” Hong Kong has its own Betting Ordinance, which makes it illegal for offshore gaming sites, including Ladbrokes, to take Hong
Kong bets, according to IGN.
INDIANS NEW FRIENDS: BANKS
Bankers, normally a staid and conservative
bunch, have discovered the thrill of Indian casinos, and like it. The Las Vegas Review-Journal
reports that “after years of benign
neglect....major banks in Nevada are actively
building business with American Indian tribes
and backing their development of casinos.” Wells
Fargo, Bank of America, US Bank, Bank of Boston and National City in Michigan have
loaned $4 billion to Indian tribes for casinos and other projects in the last few years.
February 19, 2003
KENTUCKY, FLORIDA ON SLOTS
FIRST EPO POSITIVES
Tracks in Kentucky and Florida would dearly
love to have slots, and serious budget shortfalls
in both states are making their chances appear
brighter. It never hurts to have the House majority leader on your side, and yesterday Greg
Stumbo, who holds that position in the Kentucky
legislature, made what the Associated Press
called “a forceful case” for slots. Stumbo told
his fellow legislators that the state’s tracks were
offering $400 million up front, and would follow
with payments of at least $200 million in each of
the next four years for a total of $1.2 billion, if
they got slots. Stumbo was impressed, and told
his colleagues that he thought it pretty commendable that the tracks would make the offer, which
he said would solve most of the state’s budgetary needs not only in the current two-year cycle
but for several years to come. One Lexington
legislator, Republican Stan Lee, wasn’t impressed, saying he didn’t think the idea had “a
snowball’s chance.” Stumbo, in his speech, said
Kentuckians gamble $400 million in neighboring states, and urged the legislature to “put a
store on this side of the river. It’s not a moral
issue. It is strictly a business issue,” Stumbo said.
Under the proposal as outlined by Stumbo, proceeds from slots would be subject to a graduated
tax, 28% on the first $50 million ranging upwards
to 41% over $200 million. The state would get
just over 33% of the revenues, purses 12.5%, and
the balance would go to the tracks, with the Kentucky Lottery Corporation handling the slots,
according to the AP.
The labors of Drs. George Maylin of Cornell and
Ken McKeever of Rutgers, working in cooperation with the New Jersey State Police on a test
for erythropoietin, or EPO, have begun to bear
fruit. Texas and New York, which have been experimenting with the tests, both have had EPO
positives, six in Texas and an unannounced number in New York. The present status of the test
will be discussed by Dr. McKeever, and drug testing in general by Dr. Scot Waterman, executive
director of the Racing and Medication Consortium, at the joint HTA/TRA/Racetracks of
Canada meeting in Florida March 11-14.
In Florida, where next year’s budget faces a $4
billion shortfall, tracks are pushing hard for slots
legislation. Pompano Park general manager Dick
Feinberg told the Ft. Lauderdale Sun-Sentinel, “Video lottery already exists under
our noses -- at the Indian casinos and on
the cruises to nowhere. It’s here, and the state
is getting zero dollars out of it.”
28 ARTWORKS NOW ONLINE
Also up for discussion at that groundbreaking
convention will be a discussion on European simulcasting developments, which were in the news
today on two fronts. Attheraces, the British betting service that operates from 49 United Kingdom tracks, announced a partnership with
Broadsystem, a telephone service provider, that
will greatly increase the reach of the service.
Attheraces will be represented at the Florida convention by its North American development
manager, Scott Finley, in a discussion to be led
by Bill Hogwood, president of TRNi. Lorne
Abony, CEO of Columbia Exchange Systems,
also will be on that panel.
Also in Britain, Betfair, the interactive online
stock exchange-type betting market, announced
it has closed the accounts of its U.S. customers
on advice of its American counsel.
HTA’s Online Art Gallery, announced last
month, now has 28 works of art on display on the
HTA Web site, www.harnesstracks.com. The
work includes oils, watercolors, bronzes and
woodcarvings by some of HTA’s most popular fall auction artists.
KY INTERESTED IN EPO TEST
Racing writer Jennie Rees reports in today’s
Louisville Courier-Journal that Kentucky Racing Commission executive director Bernie Hettel
is “very encouraged” about the viability of EPO
testing that has been tried on an experimental
basis in New York and Texas, and that he is interested in incorporating the test into Kentucky.
A firsthand report on the tests will be made by
the co-developer, Dr. Ken McKeever of Rutgers
university, at the upcoming joint HTA/TRA/
Racetracks of Canada meeting in Florida in two
weeks.
JOINT MEETING NEARS 250
With the addition of 55 representatives of Thoroughbred Racing Associations tracks, attendance
at the March 11-14 joint meeting of TRA with
Harness Tracks of America and Racetracks of
Canada is approaching 250. In addition to separate board meetings of the three racing associations, eight panels featuring more than 30 of the
most prominent names in North American racing will discuss topics of interest to racing management during the convention at the Westin
Diplomat in Hollywood, Florida.
CHURCHILL MAY BRANCH OUT
Churchill Downs management says it is “intrigued” by the possibility of pioneering an offtrack betting partnership with Jillian’s, a popular Louisville area entertainment complex that
contains two restaurants, a billiards room, a
game room and arcade, a dance hall and concert
area, and facilities for rented and catered social
activities. Churchill spokesman John Asher told
the Louisville Courier-Journal that the potential
partnership “would allow us to reach a new
audience, people who are younger than
those who might be at the racetrack on a
given day.” The project would be classified
as a satellite of Churchill Downs.
February 20, 2003
Kentucky commission executive director Bernie
Hettel told the paper that unless major opposition arose he saw no problem with the project,
and said he thought New York might be the only
other jurisdiction that allows offtrack wagering
in places like restaurants. Maryland and Arizona, among other locations, have done that for
years.
Also in Kentucky, time is running short in the
legislature if the state is to take up its eight tracks
in their offer to pay $400 million up front for slots.
A bill acceptable to the tracks must be written
and passed in the 14 remaining days of the current legislative session, according to the Lexington Herald-Leader, and then would have to survive a legal challenge almost certain to come. The
$400 million proposal was put forth by Greg
Stumbo, majority leader of the House, but Bob
Elliston, president of Turfway Park, told the
newspaper that Stumbo was speaking “conceptually” and the idea would have to be put quickly
into legal language that all the parties can accept. In track talk, that’s known as a longshot.
FORMER HTA AIDE LOSES OUT
Wade Turner, a former executive assistant at
Harness Tracks of America and more recently
director of the Arizona Racing Commission, has
been replaced by the state’s new governor, Janet
Napolitano. Turner’s job was given to Geoffrey
Gonsher, director of the Arizona Lottery for the
last six years, but it hardly was a promotion. As
lottery chief, Gonsher earned $107,000. As part
time head of the department of racing, he will
make $46,000.
YOUTH MUST BE SERVING
The Rio hotel in Las Vegas is replacing its aging
corps of bikini-clad waitresses with
“bevertainers”, who will sing and dance
while they serve. Times -- and costumes
and customs -- change.
HTA ANNOUNCES ITS AWARDS
The Harness Racing Museum and Hall of Fame
in Goshen, New York, one of the nation’s finest
sports museums and the repository of harness racing history, has been named the 2003 winner of
Harness Tracks of America’s Stan Bergstein
Messenger Award, the highest honor bestowed by
the association of 39 major racing organizations in
the U.S. and Canada.
February 21, 2003
has done it in spectacular fashion.” The award carries a large magnificent bronze and marble statuette by renowned Texas sculptress Lisa Perry.
Dean Hoffman is being honored for his immense
contributions to the literature of harness racing.
HTA’s Bergstein said, “No one has written more
or more knowledgeably about the leading figures
of the sport, human and equine.”
HTA also announced six individuals it will honor
on its Night of Champions at the Westin Diplomat
in Hollywood, Florida, Friday night, March 14.
Ed Keys has photographed the sport’s best horses
and major owners, breeders, trainers and drivers
from coast to coast for 38 years.
Named as this year’s winners of the HTA Distinguished Service Awards are Stanley Sadinsky,
chairman of the Ontario Racing Commission, and
William Oberle, speaker pro tem of the Delaware
House of Representatives. Sadinsky, a professor
of law at Queens College, has been a vigilant and
strong protector of integrity in Ontario. Oberle
was largely responsible for the revitalization of
harness racing in Delaware and on the eastern
shore as the legislative proponent of video lottery
terminals at Delaware’s racetracks.
Moira Fanning, a master publicist whose intelligence and dedication has helped elevate the
Breeders Crown to international prominence, is
the first woman ever elected to the presidency of
the national harness writers organization.
A quartet of veteran contributors to the publicity
of the sport will receive HTA’s Dan Patch medallions. They are two mainstays of the United States
Trotting Association, Hoof Beats editor Dean
Hoffman and photographer Ed Keys; Moira Fanning, president of the U.S. Harness Writers Association and publicist of the Hambletonian Society/
Breeders Crown; and Bob Heyden, racing statistician of the Meadowlands who has raised the compilation of racing statistics to a high art.
“No individual or organization has contributed
more than the Museum to this sport’s welfare and
tradition,” HTA president Chris McErlean
of the Meadowlands said of this year’s
Messenger winner. “It has preserved the
storied two-century history of the sport, and
Bob Heyden, the Meadowlands’ statistician for
20 years, has a dazzling and encyclopedic knowledge of the horses and records of racing at the
sport’s leading venue, and beyond. He also is a
commentator on Meadowlands telecasts and a columnist for the Canadian Sportsman.
ELSEWHERE......
Democrats in Maryland have paved the way for a
confrontation with governor Robert Ehrlich, saying they do not intend to support Ehrlich’s proposal
for slots at tracks.........Pennsylvania governor Ed
Rendell says he will present a budget proposal to
the legislature by March 4 that requires no tax
increase or income from slot machine gambling.....a
slots bill in Kentucky was approved yesterday by
the House Committee on Licensing and Occupations by a 9-3 vote, although its sponsor says it
still is a longshot, and pull tabs for tracks in Indiana were approved 9-4 in Indiana by the
House Ways and Means Committee.
.
February 24, 2003
WHO MORGAN SPEAKS FOR
13 TELLERS TOLD ITS OVER
Tony Morgan, president of the Illinois Harness
Horsemen’s Association, has been expansive in
his statements about representing Illinois horsemen in his two-month strike against Balmoral
and Maywood Parks. Last week Ed Teefey, a
banker who is president of the Illinois Standardbred Owners and Breeders Association, wrote a
letter to Morgan letting him know that he does
not speak for that organization, and suggesting
that Morgan “end this distracting and divisive
strike and turn our attention to making the best
of the more important opportunities that may
become available in Springfield.”
Thirteen of the sixteen former pari-mutuel clerks
caught laundering money and evading taxes at
NYRA tracks last year now have had their licenses revoked by the New York Racing and
Wagering Board, and are history. The clerks
confessed to a scam over three years in which
they took money from their drawers for personal
purposes, paid NYRA back the cash, and then
claimed tax deductions for the amounts. The
government has yet to be heard from, but that
shoe also is likely to drop.
Teefey suggested that unless there is an immediate end to the strike, Morgan should stay with
his previously announced call for binding arbitration. He said that with new leadership in the
state capital, he felt that “exciting opportunities
to revitalize racing exist,” and he said that the
state “will not be held hostage by recurring
strikes that could curb the flow of future slot revenue to the state coffers,” adding that not even
the tracks think recapture will survive a slot bill
in Springfield. Above all, Teefey made it crystal
clear that Morgan rein in his pronouncements
about whom he represents, saying, “While you
claim 100% horsemen backing for the current
strike, and that you have implied that you speak
for all of the many families and workers around
the state who have a vital interest in the economic
welfare of Standardbred breeding and
racing....you do not speak for Illinois Standardbred Breeders and Owners Association.” The
ISBOA represents most of the harness horse
breeders in Illinois and many of the horsemen who
race at the downstate agricultural fairs. Obviously
they do not share Morgan’s enthusiasm
and aggressiveness in continuing a strike,
the losses of which experience has taught
will never be made up.
MORE GRIEF FOR EHRLICH
In addition to general opposition from Democrats
and demands from blacks for a share, Maryland
governor Robert Ehrlich Jr. now has another
annoyance in his quest for slots at the state’s
tracks. State legislators from Baltimore have
filed identical bills in the House and Senate that
would require that 5% of slot revenues go to
neighborhoods within one mile of the track venues. When the principal sponsor of the bill, state
senator Lisa Gladden, was reminded that her bill
excluded some wealthier communities because it
defined “priority schools” and “priority areas”
based on income and other requirements, she
began scrambling to amend it, saying that although the intent is to help poorer areas she
didn’t intend to exclude others.
VERNON DEBATE DELAYED
The New York Racing and Wagering Board
hearing on a license for Vernon Downs was slow
off the mark this morning, leading to speculation that some negotiation may be underway. Ben
Liebman, writing for the Web site of the Government Law Center of Albany Law School, said
that “all this hearing will do is affect the price
that the current owners of Vernon Downs
can command for the property. If they get
licensed, their sales price will increase.”
SPEAKER SPEAKS, TABS GONE
With one fell swoop and a ringing invocation of
integrity for himself and his fellow legislators, the
speaker of the Indiana House, B. Patrick Bauer,
killed pull-tabs for Indiana’s tracks yesterday.
Bauer said he had been ‘blindsided’ by the fact
that a substantial contributor to his campaign stood
to benefit from legalization of the slot-like machines by buying an interest in the ownership of
Hoosier Park. “I believe the integrity of this institution, the integrity of this speaker, the integrity of my chairman and my members, must be preserved,” Bauer proclaimed dramatically, adding,
“So I, as speaker, have the power to stop the bill,
and will, and have.” Bauer’s self-proclaimed anger came after he learned that Albert Schumaker,
president of the Coca-Cola Bottling company of
Columbus, Ohio, who contributed $25,000 to
Bauer’s campaign, was in the process of purchasing a $4 million equity interest in Centaur, which
owns 38% of Hoosier Park. A Centaur spokesman said Schumaker’s investment would have
given him a 5% interest in the company. The Indiana Racing Commission approved Schumaker’s
Centaur investment last Friday, and Joe Gorajec,
the commission’s executive director, said, “His
background posed no problems or concerns whatsoever. We have every reason to believe then and
now that Mr. Schumaker is a person of the highest level of integrity.” The bill that Bauer killed
would have given Hoosier Park and Indiana Downs
up to 750 video pull-tabs, similar to slots, at their
tracks and another 1,500 at off-track betting parlors in Indianapolis and Fort Wayne. Projections
had indicated the machines would have meant $87
million for the state, $60 million for purses and
breed development, $60 million for local governments and $20 million for schools and government
in the two counties where Hoosier Park
and Indiana Downs are located.
February 25, 2003
Rick Moore, president of Hoosier Park, said he
hoped Bauer would reconsider in view of those
numbers. “I hope that when things calm down,
this bill is not killed. I think it’s important legislation for the state, and it’s vitally important for the
horse racing industry.” Moore also issued a press
release, in view of a Bauer statement that “There
was a for-sale sign on this track while there was
pending legislation,” that Hoosier had not been
for sale, was not for sale now, and that Bauer’s
statement was inaccurate.
CHANGES IN KENTUCKY, TOO
Kentucky’s eight racetracks had a minor setback
yesterday in their push for VLTs, after a legislative budget staff report said the tracks had overestimated by one-third how much money the move
would produce. The tracks scrambled and last
night offered the same $400 million upfront payments --an advance on taxes on slots revenue -but said they would extend from four years to eight
the time in which they would recapture the advance.
They were hopeful the House Democratic Caucus, which tabled the matter yesterday, would vote
today on whether to send the measure to the House
floor for a vote to have the Appropriations and
Revenue committee consider it.
CASINOS LOSE IN TOP COURT
The U.S. Supreme Court yesterday refused to hear
an appeal from casino operators in Louisiana who
claimed that a state ban on political contributions
violated their First Amendment free-speech rights.
Louisiana claimed the ban is intended to prevent
corruption, as it is in seven other states (but not
Nevada). It was not a good day for Louisiana, as
the high court also turned down an appeal from
former governor Edwin Edwards, currently serving 10 years in federal prison in Fort Worth for
extortion and racketeering.
ITS NOT JUST IRAQ, FOLKS
War seems certain in Iraq, but it already has
broken out here at home in the world of racing
and politics. And like all war, it’s dirty.
In Maryland, the Democrats who oppose governor Bob Ehrlich’s slots-for-tracks proposal imported heavy artillery, the Wolf himself. They
brought in Virginia’s congressman Frank Wolf
to address a hearing in Annapolis, and Wolf told
the standing-room, overflow gallery that legalized gambling is the same as prostitution, bankruptcy and child and spousal abuse. The crowd
gathered for the hearing was so large that a line
extended outside the building into the bitter cold.
Governor Ehrlich took the unusual step of appearing personally before the House Ways and
Means committee hearing, where he said of racing, “I think that way of life and that industry
and that culture are worth saving.” Earlier
Ehrlich had accused his major opponent on the
slots issue, House speaker Michael E. Busch, of
playing the race card, and when asked about that
by a legislator he said, “I meant what I said. No
one has explained to me why African-American
preachers are being targeted. Why not white
preachers?” Speakers pro and con spoke well
into the night, and those supporting the Ehrlich
proposal was state schools superintendent Nancy
S. Grasmick, making what the Baltimore Sun
called “an unprecedented appearance.”
In Indiana, meanwhile, the speaker of the House
said he would not reconsider his killing of the
pull-tab slot legislation, despite the fact that the
cause of his agitation was removed. Albert
Schumaker, who had contributed $25,000 to
speaker Pat Bauer’s campaign and also offered
to buy $4 million in stock in Centaur, which owns
38% of Hoosier Park, withdrew his offer,
but Bauer said his decision was “based
on a wider perspective than the matter involving Mr. Schumaker.”
February 26, 2003
In Illinois, the Thoroughbred Horsemen’s Association entered the fray with the striking harness
horsemen, filing a suit in Cook county Circuit
Court against the Illinois Racing Board and all
Illinois thoroughbred and harness tracks over the
recapture issue. The association asked the court
to examine the 1999 changes in legislation and
the rules adopted by the racing commission following those changes.
Also in Illinois, the state gaming board voted
unanimously yesterday to authorize the transfer
of the license for the Hollywood casino in Aurora, 30 miles west of Chicago, to Penn National
Gaming. Penn National will pay Hollywood Casino corporation $347.5 million and assume $569
million of that company’s debt.
In Pennsylvania, governor Ed Rendell won a
court order halting an investigation that the Delaware county Redevelopment Authority had
called for to find out why a hearing was cancelled
on Joe Lashinger’s bid for a harness track in
Chester. Lashinger asked why the people involved “would run from the truth.” Rendell also
introduced his slots bill today, but a key member of his own party -- the Democratic whip -said he would not support slots at tracks unless
he got riverboat gambling as well, and may ask
for keno at taverns too.
In Massachusetts, governor Mitt Romney said
that if Connecticut and Rhode Island reject his
proposal to pay Massachusetts $200 million a
year in “blocking fees” in return for no slots in
Massachusetts, he will then propose expanding
gambling with slots at the state’s four tracks.
In Nevada, a state senator called for higher casino taxes, saying the casinos “cooked their
books” and saying casino operators were “not
nice guys.”
Outside of all that, things were quiet.
February 27, 2003
JACK WALLS DIES AT 63
SHAWN SCOTT MOVES AHEAD
John (Jack) Walls, president and CEO of
Harrington Raceway and that track’s director
on the Harness Tracks of America board, died
this morning at his home in Milford, Delaware.
Walls had been hospitalized at Johns Hopkins
University hospital since January 9 with a brain
tumor, and was sent home last Friday after radiation treatments failed to halt the malignancy.
He had headed Harrington through a period of
huge expansion during the past 10 years, and was
also a director of the United States Trotting Association and served on the board of the Delaware State Fair. A farmer, he had been interested in harness racing as a youth and has owned
and bred standardbreds for the last 15 years. He
was state director of the federal Department of
Agriculture rural development program from
1993 until 2001, was active in local and state politics, and was chairman of the board of Polytech
High School. Jack is survived by his wife Sandy,
three daughters, and eight grandchildren, and
HTA sends its sympathies to the Walls family.
Shawn Scott, the Las Vegas entrepreneur whose
Capitol One LLC now controls Vernon Downs
and is a 49% stakeholder in little Bangor Raceway in Maine, moved forward in Maine yesterday and appears poised for clear sailing at
Vernon as soon as he negotiates a contract with
his horsemen, the Harness Horse Association of
Central New York. In Maine, the secretary of
state certified a referendum issue for November
which could give Bangor Raceway slots. A referendum vote needed at least 50,519 signatures
for certification, and the Scott-backed political
action committee Best Bet for Maine collected
81,794, of which 56,581 were declared valid. In
New York, Scott’s chief lieutenant, track president Hoolae Paoa, and counsel Martin Gersten
must come up with a horsemen’s contract to get
a state license. Gersten said they are reviewing
a multiyear proposal submitted by the
horsemen’s association.
CHANGES AT INDIANA DOWNS
Illinois’ auditor general had some unkind words
yesterday for the Illinois Racing Board, issuing
a scathing compliance audit report that listed six
findings of laxity by the board. According to the
audit for the two years ending June 30, 2002, the
auditor general’s office said the board did not
obtain reviews of the computerized tote systems
used at Illinois tracks, failed to collect timely
admission fees from OTB parlors, did not perform audits of major systems of internal accounting and administrative control, did not maintain adequate control over equipment, does not
have adequate controls for its hiring of per diem
employees, and failed to establish procedures to
determine if occupational licensees were also
delinquent Illinois taxpayers. The board’s current executive director, Walter Dudycz,
said, “We are taking it as constructive criticism to move forward.”
Gil Short, who directed the planning, development and construction of Indiana Downs as vice
president and general manager, has moved to the
new position of President of Business Development, and Jon Schuster has been named as general manager. Short will concentrate on developing and constructing the track’s satellite wagering facilities and will act as an advisor to the
board of directors and serve as liaison in the
track’s relations with its horsemen. Schuster,
currently assistant general manager, came to
Indiana Downs after seven years as mutuel manager at Penn National Race Course in Pennsylvania. An Indiana native, he is a graduate
of the Race Track Industry Program of
the University of Arizona. The track
opens for thoroughbred racing April 11 and
returns to harness racing June 3.
SHARP REBUKE FOR IL BOARD
ELECTRONIC CHARTING HERE
The Meadowlands opens a new era of racing technology tomorrow night when it introduces electronic charting of its races. American Teletimer
corporation of Mountainside, New Jersey, has installed its Electronic Imaging Charting System
at the Big M, utilizing its existing digital photo
finish methodology combined with remote, wireless, high-sensitivity digital photo finish cameras
at each quarter pole as well as an eighth of a mile
from the finish for a stretch call. Joel
Rosenzweig, president of American Teletimer,
says the new system is accurate to 1/1000ths of a
second, with visual confirmation of all presented
data, without the expense and problems related
to installing and maintaining fiber optic cabling.
“The cameras,” Rosenzweig says, “are able to
capture the images with wireless technology.
They have super high sensitivity, and do not need
the lights that are at the finish line. They are
located on a pipe 12 feet off the ground and are
in weatherproof enclosures with a 12-inch by 12inch antenna that radios the information to the
photo finish room. Chart callers will continue to
provide the flavor of the race, noting breakers,
parked out horses, interferences and other information.”
In a different approach to automatic charting,
Video Projects of New Hyde Park, NY, is experimenting at Showplace Farms in Millstone Township, New Jersey, with a completely wireless, solar powered system that needs no infrastructure
or cabling. Its technology uses a 2.5-ounce device on the head number of each horse, which
transmits instantaneous chart data output in real
time for all horses in the race. Video Projects
expects to launch its project later this year.
Also in the race is Equibase, which hopes
to use a global positioning satellite system
or radio frequency transmission.
February 28, 2003
Chuck Scaravelli, data collection manager of
Equibase, told Daily Racing Form today that
while the American Teletimer system is “perfect”
for harness racing, where virtually all races are
at one mile, the installation of “perhaps a dozen”
cameras or nearly constant relocation of existing cameras would be required for its use in thoroughbred racing. Asked about that, American
Teletimer’s Rosenzweig said his system would
cover 95% of thoroughbred races with eight cameras, handling all 6-furlong, mile, mile and an
eighth and mile and a quarter races.
The French Pari Mutuel Urbain also is working
with -- and using -- a system that entails cabling
of the entire track, in which timing is only one
aspect. The central computer also provides data
for bookkeeping, clerk of the course, paymaster
and other departments. The system has been
used, at least in part, at Hippodrome de
Montreal.
Concerning continuous data transmission, as
Equibase proposes with its GPS system, a question: how would this flood of information be used
in practical applications for the racing fan?
IN OTHER NEWS.....
New Jersey tracks and horsemen are asking the
racing commission for 120 days of thoroughbred
racing this year, rather than 146, and are seeking a legislative amendment to reduce the required number for OTB and account wagering
to 120 rather than 141.....Slots at tracks in Kentucky appear to be dead for this year.....HTA’s
member Northlands Park in Edmonton, Alberta,
opens tonight, a week earlier than originally
scheduled, with an 11-race card brimming with
full fields. The 58-day spring meet will carry
daily average purses of $98,000. Plans for a $40
million track expansion are underway under the leadership of Dr. David Reid, chairman of Horse Racing Alberta.
BIG M TIMING TRIAL FLAWLESS
Meadowlands officials were impressed and delighted Saturday night with the first trials of
American Teletimer’s ®Electronic Imaging
Charting System. The system -- simple, straightforward and inexpensive -- involves wireless cameras on distance poles already in place around
the track, and provides a photo strip that is easily converted into lengths at all calls. Chris
McErlean, VP and general manager of the Meadowlands, said the system worked “flawlessly” in
its debut, and the day of automated charts appears to be close at hand. Other systems are in
development in the U.S. and around the world.
This one already is here.
SOME GATE EXPERIMENTS
In an effort to increase the excitement of racing
and handle, and please horsemen at the same
time, The Meadows has been experimenting with
horse position behind the gate in full 10-horse
fields. During February, track management and
the horsemen’s association experimented with
having the number 9 horse start behind the field
as a trailer with the 10 horse in the two superfecta
races on the card. Number 9 now is back on gate
on the outside of the front tier, but the slanted
gate, used some years ago with a 13.5 foot edge
for the outer horse, will be returned to use but
will be slanted with only a 6.5 foot differential to
give outside horses a more equitable advantage.
A majority of horsemen asked for the change,
citing that their contract with the track calls for
all horses to be on the gate in stakes races, including early and late closing series. To accommodate the 10-horse superfectas, the Meadows
now will pay through sixth place instead of harness racing’s traditional five. The traditional 5025-12-8-5 split will come from the
horsemen’s purse fund, and management will add 3% for the sixth finisher
from its own non-purse accounts.
March 3, 2003
SETTLEMENT IN ONTARIO?
Pending ratification by the membership of the
Ontario Harness Horse Association within the
next two weeks, it appears the contract dispute
between that organization and Woodbine Entertainment Group may be resolved. The OHHA
announced an “agreement in principle” on a fiveyear contract, but neither the horsemen’s group
nor Woodbine mentioned terms of the proposed
settlement. The OHHA said only that it “looked
forward to a future based on trust, understanding and cooperation,” which would be a pleasant change in itself.
HORSEMEN KISS IN ILLINOIS
There was a reconciliation among horsemen in
Illinois over the weekend -- sort of a kiss and hug
and making up between north and south -- but
no settlement of the strike that now enters its
third month.
Last week Ed Teefey, president of the Illinois
Standardbred Owners and Breeders Assn. which
is based largely in central and southern Illinois,
wrote to his counterpart Tony Morgan of the
striking Illinois Harness Horsemen’s Assn. to say
the IHHA did not speak for the Teefey group. A
meeting of the two leaders followed, with an announcement that they will work together to secure a fair and equitable contract with Balmoral
and Maywood Parks, pursue a way to eliminate
recapture, secure slots legislation, protect the Illinois-bred program, gain an equitable split on
all pari-mutuel wagers, and -- strangely enough
-- remove language from the Illinois Horse Racing Act that precludes the opening of new tracks.
Although they will work jointly, the IHHA will
be the sole bargaining agent for both associations
(which means Morgan), and Teefey and the
IHHA’s Tim Wilson will work toward the
legislative objectives. No word on who
wants to build a new track.
March 4, 2003
PLENTY FOR ONE PANEL
MAGNA MOVES ON DIXON PLAN
The eight one-hour panel discussions scheduled
for next week’s joint HTA/TRA/Racetracks of
Canada meeting promise to be lively and informative, and one of them -- the opening medication panel -- certainly will not be short of material for discussion. The detection of 12 positives
for EPO in Louisiana, coming on the heels of
similar positives in Texas and New York indicate widespread use of the substance, plus findings of ephedra in horses in New York and OxyContin derivatives in Pennsylvania, and the open
discussion of the use of cone snail and cobra
venom in Florida, assure a full agenda on the
subject.
After three years of discussion, Magna Entertainment yesterday unveiled its plans for a $250 million racetrack, shopping and entertainment complex in the town of Dixon, California, that would
be operational by 2006 at the earliest. Dixon is
some 30 miles southwest of Sacramento, and the
Sacramento Bee yesterday ran a layout of the
proposed ambitious plan, which incorporates not
only a mile turf course and mile and an eighth
dirt track, but a huge complex with restaurants,
a theater, office space, and extensive retail shops
and anchor stores. Magna president and CEO
Jim McAlpine called the track, to be named
Dixon Downs, “one of the first of a new generation of racetracks designed to introduce the tradition and excitement of thoroughbred horse
racing to new customers. By combining a worldclass racing venue with high quality entertainment, shopping, and fine dining, MEC plans to
create a whole new entertainment experience....
a place where those who live and work in Dixon
can come together in an architecturally striking
and beautifully appointed setting, be entertained,
enjoy a great meal, shop in high quality stores
where service is emphasized, and return home
excited by the horseracing and entertainment
experience.” It is expected it will take over a year
to complete approvals necessary for the project.
The complex will reach a market of some 600,000
in the Sacramento area and 3 million people
within a two-hour drive.
“Rules of engagement” have been announced for
the two general sessions Thursday and Friday
morning, with the audience asked to be participants throughout the discussion sessions, rather
than in any question-and-answer segment at the
end. Staffers with wireless microphones will be
in the audience to ensure questioners being
heard, and spontaneous interaction is urged for
all attendees.
A note on getting to the Diplomat as well. Fort
Lauderdale is the preferred airport, and those
driving from there should take Route 1 direct
from the airport south to Sheridan, left there to
A1A, and then south (right) to the Diplomat, with
a left turn into its driveway. An option is to continue on Route 1 south to Hallandale Blvd., on
which Gulfstream Park is located, a left there off
Route 1 to A1A, with a left on A1A half a block
to the Diplomat on the right, which will eliminate the need for crossing against northbound
traffic. The Diplomat Country Club, where
HTA’s Night of Champions will be held Friday night the 14th, is just off Hallandale
Blvd. to the north, and is a 5-minute drive,
10 if the bridge is up, from the hotel. Transportation will be provided.
SARKIS TAKES TRACK PRIVATE
With slots in sight in Massachusetts, Wonderland Greyhound Park owner Charles Sarkis has
decided to take his track private and cash out
400 of the company’s 428 shareholders at $4 for
each share they own, leaving only those with more
than 1,500 shares. Some are not thrilled.
One, who bought shares at $15 in the 1980s,
called it “a big insult to shareholders.”
March 5, 2003
PENNSYLVANIA: PLAN OF PAIN
A CAUTION TO YOUR SECURITY
That was how the Philadelphia Daily News described the first installment of the state budget
introduced yesterday by Gov. Ed Rendell, but
the paper’s writer, John Baer, had much more
to say. He noted that yesterday was Fat Tuesday, and said “There shoulda been beads.” He
called the scene in Harrisburg “a carnival atmosphere” and said the governor’s slash and burn
proposal included cuts in health care and mass
transit, AIDs programs and research, help for
the homeless, higher education, and a freeze in
basic education. The governor, in introducing
the cuts, told the Republican-controlled legislature, “I hate this budget. I hate it with every
fiber of my body.” And he asked the legislature
to hold off until he returns March 25 with a second budget proposal that would increase spending on education but could mean a tax increase.
In effect, the governor asked the legislature to
accept his bare-bones budget now, or wait for
one with new programs and new taxes. Republicans thought they might have enough votes to
pass yesterday’s budget without waiting, although the Democratic minority leader said that
would be “a prelude to a budgetary apocalypse.”
All of this is germane for tracks, since the governor also asked the legislature to legalize slots at
tracks.
HTA tracks that are members of Wagering Insurance NorthAmerica, the association’s offshore captive insurance company, have heard
frequent warnings that security detention and interrogation needs to be handled carefully, and
with full documentation. The warning was underlined this week when an appeals court in Nevada ordered the MGM Grand hotel-casino to
pay a $3.3 million judgment to a customer who
had been drinking heavily and became obstreperous and obnoxious. The three-judge panel of
the 9th U.S. Circuit Court of Appeals overturned
a decision by a federal judge who had granted a
new trial to the hotel. The case goes back nine
years, when the Mexican businessman involved,
after a comp meal, became abusive. He was detained, and his wife informed security that her
husband was an insulin-dependent diabetic. He
complained of lung pains, but paramedics who
responded to a call found only that the man was
inebriated. They did not evaluate his heart rate
or blood pressure. He was taken to jail, booked,
and released the next day, when he went to a
hospital and it was determined he had suffered a
heart attack. In addition to the upholding of the
award against the hotel, the subject involved
reached out-of-court settlements with American
Medical Response, the ambulance company, for
$50,000, and with the Las Vegas Metro Police
for $10,000.
NEW MD SLOTS BILL FRIDAY
In Maryland, meanwhile, where new governor
Robert Ehrlich has been buffeted by criticism
and opposition with his slots-at-tracks bill, a revised version is due Friday. Ehrlich’s chief adversary on the matter, House speaker Michael
E. Busch, indicated that a bill emerging from the
House Ways and Means committee is unlikely to
give Ehrlich anything more than a commission to study the slots issue. One key
Democrat, Maggie McIntosh, said,
“There is significant discomfort in passing
any slots bill this year on the House side.”
GOLDSTEIN OPENS NASDAQ
Bernard Goldstein, chairman of the board and
CEO of Isle of Capri Casinos and president of
HTA member Pompano Park Racing, presided
over the Market Open of the NASDAQ Stock
Market in New York yesterday with NASDAQ
vice chairman David Weild. Goldstein will participate on a management panel next Friday at
the joint HTA/TRA/Racetracks of Canada
convention.
March 6, 2003
OKAY, HERES THE BLUEPRINT
GOOD NEWS, BUT WILL IT PASS
The World Anti-Doping Agency met in
Copenhagen this week in a three-day summit,
with 65 sports federations and 73 national governments represented. They approved a worldwide anti-doping code, a unified commitment in
what the Los Angeles Times called a previously
“inconsistent fight against the use of illicit drugs
to enhance performance in sports.” Under the
new blueprint, all athletes -- including NBA players who are candidates for national Olympic
teams -- will be subject to random, out-of-competition testing. The code calls for a two-year
suspension for a first serious violation, a life ban
for a second. It also includes a long list of banned
substances ranging from steroids to stimulants.
Dick Pound, the Canadian who is president of
the WADA, called yesterday’s approval “a seminal moment” in the anti-doping fight. Frank
Shorter, chairman of the U.S. Anti-Doping
agency, called it “a giant step forward.” The
Danish Sports Minister, Brian Mikkelson, said,
“We now have formed a united front against
cheats in sport.” The code will not apply to
American professional sports teams and leagues,
because they do not fall under the jurisdiction of
the U.S. government or international sports bodies. But they will apply to all Olympic athletes.
What a wonderful model for racing and its medication consortium. Here’s a blueprint boys. Get
yourself some good lawyers and take it from here.
Gov. Robert Ehrlich Jr. of Maryland boldly accepted the challenge of his Democratic opponents
in the state’s General Assembly last night, not
only almost doubling the share tracks will receive
from his slots plan but lowering by two-thirds
the one-time fee they will be charged. At a news
conference hastily called at 9 p.m., the besieged
governor said support of the tracks was essential to his bill, but in announcing that he was cutting the amount of slots revenue earmarked for
public education he invited even more media
criticism and Democratic opposition. One Democratic delegate said of the legislation, “It’s going
to have a very rough reception in the House,”
but governor Ehrlich said, “This is the best arrangement to benefit public education in the
country....I believe the votes will ultimately be
there for slots.” Maryland tracks hope so, for
the new bill not only increases their share of annual slots revenues from some 25% to 45%, but
also increases the total number of slots to be allowed from 10,500 to 11,500, as well as sharply
reducing the one-time licensing fee. A spokesman for the governor said that reduction was
necessary since the tracks “have to pay for salaries of perhaps thousands of people and other
expenses.” HTA’s member Rosecroft Raceway
will get 3,500 slots under the new proposal, as
will Pimlico and Laurel, with a thoroughbred
track still to be built near Cumberland in western Maryland would get 1,000. The Washington
Post, which has editorially criticized the plan,
reported that the new proposal could mean an
extra $325 million a year for the tracks.
ROSEMONT -- BACK AGAIN
The muddled and muddied issue of who gets the
10th casino license in Illinois took a new turn
yesterday, when Rosemont -- where the original
ill-fated Emerald Casino was to have been located
-- returned to the picture. It turns out that
MGM-Mirage is back too, wanting to locate in Rosemont, and the mayor has told
them it’s fine with the town. Who gets the
license, however, is another matter.
NO ACTION YET ON 30% ISSUE
As of post time, the House of Representatives had
not taken up the issue of a military tax-break
bill that includes a provision to eliminate the
30% withholding tax on foreigners betting
into U.S. pools.
March 7, 2003
SIMULCASTING WINS IN COURT
WIN A FEW, LOSE A FEW
A federal judge in West Virginia has denied a
request of the Horsemen’s Benevolent Protective
Association (HBPA) seeking a preliminary injunction “prohibiting and enjoining Mountaineer Park from engaging in interstate off-track
wagering until such time as it obtains the authorization of HBPA and other necessary parties.”
U.S. District Court judge Frederick P. Stamp Jr.
denied the request yesterday, refusing to allow
the HBPA to amend an existing contract with
Mountaineer. Harry L. Buch, the former chairman of the West Virginia Racing Commission
who represented the HBPA, told the Wheeling
News-Register that Judge Stamp acted for two
reasons, the first being equity principals, “where
you have to consider what the economic impact
will be,” and the second being that the judge
didn’t think HBPA had the right to amend the
existing contract. That agreement says that
“within 30 days prior to the end of each calendar year of this authorization, the HBPA and the
track shall have the right to review and amend
the conditions herein.” The HBPA wanted to use
that clause to force Mountaineer to increase the
number of live racing days by not renewing the
current simulcast agreement and attempting to
halt simulcast operations. Buch said he didn’t
know what HBPA could or would do.
It’s better to win, of course, and gambling scored
a big win in court this week after a loss last week.
Executive Newsletter reported on Wednesday
that an appeals court in Nevada had ordered the
MGM Grand in Las Vegas to pay $3.3 million to
a Mexican businessman who was detained after
drinking and becoming abusive, and suffered a
heart attack while in detention. Today’s news is
better. Aztar corporation won a summary judgment in federal court in Indiana when U.S. District Judge John Tinder dismissed all claims of
David Williams, a former Indiana Department
of Revenue auditor, who lost his money, home
and job gambling Casino Aztar in Evansville.
Williams filed suit based on Aztar’s knowledge
that he was an addicted compulsive gambler. The
judge found that despite Williams’ “long and embarrassing spiral downward through the (addictive) circles of Hell, and despite his counsel’s creative efforts and regardless of Williams’ sympathetic plight, neither federal nor Indiana law
provides him any refuge or reward.” Williams’
lawyer said, “The problem of pathological gambling is still here. What the courts will do about
it and what the companies will do to address it is
still up in the air.”
STRANGE MATH IN CHICAGO
The House of Representatives postponed action
yesterday on the Armed Forces Tax Fairness Act
bill that contained a provision repealing the 30%
withholding tax on foreign bets on U.S. races.
The fate of the measure is in doubt.
Tony Morgan is a great talent at driving horses - he has won HTA’s difficult Driver of the Year
title three times -- but his math leaves something
to be desired. His Illinois harness horsemen are
now in the third month of their strike -- there
has been no harness racing in Chicago in 2003 - and they have lost roughly $3 million in the 65
days they have refused to race. Their differences with Balmoral and Maywood
Parks are now essentially over $770,000,
and we doubt seriously the difference will
ever be made up.
NO ACTION ON 30% BILL
NO NEWSLETTER NEXT WEEK
The newsletter gang will be busy in Hollywood,
Florida, next week at the joint HTA/TRA/Racetracks of Canada meeting. HTA’s daily Executive Newsletter will return when we do.
Meanwhile, check our Web site,
www.harnesstracks.com, for news.
March 18, 2003
WERE BACK, IN TIME FOR WAR
NEW TRACKS, NEW POLICIES
We’re back from Florida, just in time for the war.
The first ever joint board meetings of HTA and
TRA and Racetracks of Canada went smoothly,
and the eight panel sessions were received
warmly and enthusiastically. We’re hoping for
a reprise at Sanibel Harbour -- one of the loveliest spots in Florida -- next year, where the meeting dates are March 2-6.
Four new members -- and an important new awards
policy -- were approved at the HTA board meeting
last week. The Delaware, Ohio, county fair, home
of the Little Brown Jug; Flamboro Downs in
Ontario; Rockingham Park in New Hampshire;
and Indiana Downs were welcomed into membership, bringing the association membership to 39.
The board also approved a resolution, offered by
Plainridge Racecourse director Paul Fontaine, that
no HTA Nova award in the future would go to the
owner of a horse whose trainer was under suspension.
AND MARYLAND STILL IN NEWS
The stormy and controversial slots battle in Maryland was raging when last we met, and still is. The
General Assembly voted last Friday, 126-11, for a
six-month study before enactment of slot legislation, but Daily Racing Form says the measure
does not preclude the body voting on any other
slot bills than the pending one during that time.
The tracks told state senators last week that
43.6% of revenues was the lowest figure they could
accept, but that was followed by advice to the General Assembly from its chief policy analyst to “call
the tracks’ bluff” and let them get along with 39%.
The analyst, Warren Deschenaux, told the Senate
Budget and Taxation Committee that the situation
had become “a game of liar’s poker.” More than
a hundred horsemen, meanwhile, showed up in
front of the State House wearing black shirts with
yellow lettering that read, SLOTS=JOBS. Bill
Boniface, a major breeder, said the issue was not
just about jobs, but about “a way of life,” and Alan
Foreman, general counsel to the Maryland Thoroughbred Breeders Association and president of
the Thoroughbred Horsemen’s Association, said
his group supported slots for the racing industry,
but that Ehrlich’s current forecast of a purse increase of $40 million was not enough, and the
horsemen would like to see purses rise by $70
million. Both a Republican supporter and
Democratic opponent of the plan expressed doubts that it would pass.
TRACK SLOTS IN TEXAS?
A state senator in Texas has introduced a VLT at-tracks bill, but Thoroughbred Times reports
that the bill would have to clear a Republicancontrolled legislature that last year adopted opposition to expanded gambling as part of its platform. It also noted that while governor Rick
Perry has run his campaign as an opponent of
additional gambling, his top aides now are saying he would take no official action until he saw
how the bill read.
CIRCLE THE WAGONS
If your track plans to contribute to political campaigns and there is Indian competition in your
area, take for granted you most likely will be
outspent. Under current law on political giving,
you’re limited and they are not. Donor limits
imposed by recent legislation restrict your overall limit to $95,000 to candidates, political action
committees and parties, but do not apply to Indian tribes, who can give as much as they want
and do it from their tribal treasuries. The tribes
are bound by the same rules that prohibit unlimited soft money donations, but the National
Indian Gaming Association successfully lobbied
to keep exemptions granted by the Federal
Election Commission, which regards them
as persons, not corporations.
March 19, 2003
A DAY MAKES A DIFFERENCE
FLORIDA NEWS NOT AS GOOD
In Maryland, it makes all the difference, from
defeat to potential victory. The president of the
Maryland Senate, Thomas V. Mike Miller, is regarded as a master politician, and last evening
he showed why. With his help, a bill to allow
slots at Maryland’s tracks sailed though the Budget and Taxation Committee on an 11-2 vote, and
even Democratic opponents consider it is likely
to pass on the Senate floor. Miller managed the
revisions that made it palatable, cutting the
tracks’ share to 39% from the 43.6% in the latest plan offered by governor Robert Ehrlich Jr.
The new proposal follows the governor’s formula
of 3,500 slots at Rosecroft, Pimlico and Laurel,
and 1,000 at an Allegany county track still to be
built. It also dramatically changes the outlay to
get a license, from the original $100 million a
track and then the governor’s $40 million a track
to $5 million a track as an “application fee.” Just
how adroit a politican and negotiator Miller is
was revealed when the bill passed just five minutes after a leading opponent, Majority Leader
Kumar P. Barve, had declared slots legislation
dead for this year. Informed of this, Miller, said
simply, “This is his first year on the job.” The
new bill boosts the share allocated to Maryland
education from 42% to 46%, and local government share goes up from 3.4% to 4.75%. It also
provides for state improvement of roads in Baltimore. The package isn’t sold yet -- it still faces
Senate approval and House concurrence -- but
for the moment it appears that the agony of defeat may have been turned into the ecstasy of victory. If it passes, the slots bill could mean some
$595 million for the tracks at 39%, and $700
million for public education. Job hunters apparently thought its chances good, for some 1,000 of
them turned up at a job fair at Laurel Park
sponsored by the Maryland Jockey Club.
Applicants signed up in 73 categories from
VP of slots operations to security.
Things weren’t quite as rosy in Tallahassee as in
Annapolis. A Florida House committee voted 63, on strict party lines, to defeat House Bill 663,
which would have legalized slots at tracks and
jai-alai frontons. The rejection is not necessarily fatal, since the president of the Senate still
favors it, but it now would require a two-thirds
vote to bring it up for a House vote. The Senate
president, Republican Jim King, had hoped the
Republican-dominated House committee would
not have considered the matter in the third week
of the two-month session, but the conservative
chairman called the measure “a siren’s call for
easy money” and pressed ahead with the vote that
killed it. A Senate committee will hear a similar
measure next week.
AUTOTOTE ASKS TOUGHNESS
Chris Harn, the ringleader of the Breeders’ Cup
Pick Six manipulation, is to be sentenced in New
York tomorrow, and Autotote corporation, for
whom he worked, has asked the sentencing judge
to throw the book at him. Autotote’s lawyers
sent a letter to U.S. District Judge Charles L.
Brieant, asking him to consider the harmful effects of Harn’s action on the company and the
fact that his “betrayal of Autotote’s trust caused
an industry-wide financial upheaval, the effects
of which linger today.”
GARLANDS MOTHER DIES
HTA extends its deepest sympathy to its former
president Bruce Garland, senior executive vice
president of racing at the Meadowlands, whose
mother Barbara Springer Garland passed away
yesterday morning. Viewing will be from 6 to 9
p.m. Thursday at the Saul Colonial Home, 3795
Nottingham Way, Hamilton Square, NJ, and
the funeral will be held from there at noon
Friday. The funeral home’s telephone number is 609-587-0170.
March 20, 2003
JOE AND GEORGE DISAGREE
GUESS WHOS IN THE ACT?
The two most powerful men in New York state,
governor George Pataki and Senate majority
leader Joe Bruno, do not agree on how slots revenue should be divided, once the legal obstacles
are out of the way. Pataki had suggested a plan
that would take money away from purses and provide it to tracks, but Tom Precious, who covers
Albany and writes for Blood-Horse, quotes Bruno
as saying, “We can’t do that,” referring to the
Pataki bill that gives nothing to purses for the first
two years of slots. Bruno told Precious that he
didn’t want VLTs in the first place, but went along
to enhance racing. But he said New York is competing against the world, and “a correctly written
VLT law” would create world-class racing in the
state once again. Bruno supports a bill proposed
by William Larkin, chairman of the Senate’s racing committee, which would give education 55%
of slots revenues, the Lottery division 10%, and
35% to racing. “That bill works,” Bruno said.
Usually in New York state Joe Bruno gets what
Joe Bruno wants, so make your bets accordingly.
The battle royal for the last thoroughbred racing
license in Pennsylvania got new entrants yesterday, a couple of hardball players from Detroit.
Tyner and Hartman, who operate Hazel Park Harness in Detroit, two dog tracks and countless other
ventures, have jumped into the fray with Oxford
Racing Associates, a newly created affiliate of
Pittsburgh-based Oxford Development Company,
a real estate development company. The joint venture hopes to obtain the final license and build Pennsylvania Downs, a $25 million facility along the
Pennsylvania Turnpike in Beaver county in southwestern Pennsylvania. There are some cute twists
to the proposal, one being that the new venture,
called Western Pennsylvania Racing Associates,
says it will donate 25% of annual net profits from
both track and slots operations (if slots are approved) to 11 charities in 10 western Pennsylvania counties, through the Pittsburgh Foundation and
United Way. Five other applicants, including Magna Entertainment, are bidding for the lone thoroughbred license. Oxford holds an option on 150
acres of land at its proposed site, and plans a covered grandstand seating 500, a restaurant seating
300, standing room for 1,000 and an indoor betting facility accommodating another 1,000. In
additon to Tyner and Hartman, another familiar
racing name is represented in the deal. Arthur
Rooney II, vice president of the Pittsburgh Steelers
and a member of the famed Rooney family of Pittsburgh, is a partner in Klett Rooney Lieber &
Schorling, Oxford’s legal counsel.
SAMS IN THE VICE OF POLITICS
That’s “vice” as in the squeeze, of course. It seems
Kentucky state auditor, Ed Hatchett, has ordered
an investigation of the Kentucky Racing Commission, acting partly on anonymous complaints of how
the commission handled a $50,000 consulting contract with Dr. Rick Sams of Ohio. Some in Kentucky resent outsiders horning in on their act, and
the chairman of the racing commission, Frank
Shoop, says he is “personally outraged” at the investigation, and considers it “no less than an assault on the thoroughbred industry in Kentucky.”
The auditor sent two investigators to the commission offices to check on “mismanagement of
funds.” Shoop and other commission
members think the whole thing is a
Hatchett job.
D-DAY FOR THE DREXEL BOYS
Chris Harn, Glen DaSilva and Derrick Davis, the
Breeders’ Cup Pick Six manipulators, were to be
sentenced today, and the holders of 78 five-of-six
winners in the big pool could get their $40,000+
bonus payoffs as early as tomorrow.
March 21, 2003
HARN GETS A WRIST SLAP
IT DIES! IT LIVES! GUESS WHAT
It may not pay to play crooked games with
American racing, but it clearly pays to sing about
it. U.S. District Judge Charles L. Brieant, sitting in White Plains, NY, rewarded master pool
manipulator Chris Harn yesterday with a one
year and one day sentence, meaning he will be
back on the streets in a little more than ten
months. The judge felt -- and said -- that he did
not think prosecutors could have won the case
without Harn’s confession, so he blessed him and
bombed his two confederates and college fraternity buddies, Glen DaSilva and Derrick Davis,
with sentences twice as long for DaSilva and three
times as long for Davis. Carrying his charity a
bit farther, he agreed to chop a year off each of
their sentences if they completed a drug rehabilitation course while in the slammer. Both
showed up at their hearings last fall with cocaine
positives. Given the enormity of the misdeed and
the lightness of the sentences, we can only conclude Judge Brieant is not a racing fan. Harn
apparently had a clearer idea of what he did than
the judge. “I realize I’ve hurt a great number of
people,” he said, and then added, with great piety, “Forgiveness is earned, not granted. I hope
to pay my debt to society not with words, but by
my future actions.” Wonderful, Chris. You
touch our hearts.
VLTs for tracks in Florida are not dead after
all. That’s the word from a man who should
know, the president of the state senate, Jim King.
Although a House committee killed a slots-attracks bill on a party line 6-3 vote two days ago,
as reported here, King says the idea is still very
much alive. “The naysayers were very quick to
come in and say Florida is not a gambling state,”
King said in a speech yesterday, to which he replied “Bull-hockey.” Senator Steve Geller, who
will draft the Senate’s measure, said any move
toward a compromise would likely happen at the
end of the session, when it would be a bargaining chip. Geller said he did not expect to see
VLTs pass in the next 40 days, “but you may see
it in the last five days of the session. Don’t speak
too soon, because the wheel’s still spinning.”
BIG GUNS, IN MD, NOT IRAQ
If the Washington Post has it right, “Maryland
Senate President Thomas V. Mike Miller Jr. has
elbowed Gov. Robert L. Ehrlich Jr. aside and
taken full charge of the effort to ram a slot-machine bill through the legislature this year.” That
is what the Post says this morning, noting that
the deft Miller has trashed the governor’s
“poorly researched” bill and substituted
a slots measure of his own that the newspaper says “is tagged for an all-out Miller
power push on the floor this week.”
A MAYBE ON ELLIS PARK SALE
The Johnstons of Chicago -- father Billy and sons
John and Duke -- have not decided just yet if they
are going to buy Ellis Park in Kentucky, according to the Louisville Courier-Journal. The paper reports John as saying they have not yet made
a decision on whether they will bid for the
Churchill Downs property, but in any event they
are not the only ones interested. Pat Flavin, who
first became interested in racing through his computerized accounting operation, has joined thoroughbred owner and multiple McDonald franchisee Mike Pegram in thinking about buying the
western Kentucky track.
FARTHER THAN THAT, FOLKS
The United States Trotting Assn. has correctly
reported that HTA’s board voted in Florida not
to give Nova awards to owners whose trainers
are under suspension. The action goes farther
than that. HTA will not give its Driver of
the Year award to anyone under suspension,
either.
Paul Joseph Estok, Editor
MD. SENATE APPROVES SLOTS
The Maryland Senate voted narrowly on Saturday
to legalize slot machines at four of the state’s
racetracks. While Gov. Robert Ehrlich has already
endorsed the bill, it faces strong opposition in the
House of Delegates, where Speaker Michael
Busch has vowed to kill it unless he wins major
concessions from the governor. The Washington
Post noted that debate on the issue has “bitterly
divided the General Assembly since it convened
in January,” and the vote on Saturday showed that
“a middle ground has yet to emerge.” Despite
strong lobbying by Ehrlich, Senate President
Thomas “Mike” Miller and racetrack owners, the
bill squeaked by on a 25-21 vote, with one
abstention, as several senators switched sides at
the last minute. The Senate bill would permit 10,500
slot machines at three racetracks: Pimlico in
Baltimore; Laurel Park in Anne Arundel County;
and Rosecroft Raceway in Oxon Hill. A fourth
track, scheduled to open in 2006 in Allegany
County, would get 1,000 of the machines. A public
education trust fund would receive 46 percent of
the gross revenues from the slots, estimated at
$1.5 billion annually. Local governments, the state
lottery commission and racing interests would each
get a five percent cut. The remaining 39 percent - about $595 million a year -- would go to track
owners. They would be required to invest $150
million at each track to build the slots parlors.
Their exclusive licenses to run slots would cost $5
million a piece and last for 15 years, with an option
to renew. Ehrlich praised passage by the Senate
but acknowledged that slots face an uncertain fate
in the House. “We understand this bill has a long
way to go,” he said. “It’s a fluid process. But we
do believe that [the Senate vote] was a step in the
right direction.” House leaders have passed a
bill that would create a commission to
examine the ramifications of gambling but
have shown little inclination so far to approve
slots this year. The pressure to cut a deal is
March 24, 2003
expected to rise as time runs out on the legislative
session. The General Assembly is scheduled to
adjourn April 7.
CAMPBELL INJURED IN SPILL
Hall of Famer John Campbell, the all-time leading
money-winning driver in harness racing history, was
taken to Hackensack University Medical Center
with a possible right arm fracture after a spill in
the ninth race on Sunday afternoon at the Meadowlands. The spill was a chain reaction triggered
when a horse stumbled, unseating driver Daniel
Dube, just past the quarter pole and Campbell was
unable to steer his horse, Bonanza Alert, around
them. Bonanza Alert suffered a compound fracture of the front left cannon bone and was
euthanized. Dube and his mount escaped with
bruises. Campbell, who will be 48 on April 8, has
more than $215 million in career earnings, capturing an unprecedented five Hambletonians among
his 9,207 career victories.
IN OHIO, LOBBYISTS LINE UP
Political and economic pressure is mounting to
expand legal gaming in Ohio, but if proponents
are successful on any one front, the push for more
gaming will only become more forceful, according
to a report in the Dayton Daily News. Racetracks
in the Buckeye State have now hired “one of the
top Republican consultants, Scott Borgemenke, to
advise them on how to get VLTs approved.” Lobbyists for anti-gaming interests and Indiana
riverboat casino interests are also working, but
their agendas involve preventing additional gaming. Lobbyists for Indian gaming are floating the
idea of a bingo center and resort in Ohio as well.
“There’s a lot of movement going on. There’s a
lot right under the surface going on,” said former
Ohio Senate President Richard Finan. The political landscape is still unwelcoming. Gov.
Bob Taft has promised to veto any expansion of gaming that is not voter approved.
SLOT BILLS AN OBSESSION
No matter which direction you turn, someone is
voting on slots for tracks, and the windows of opportunity seem to be narrowing. In Maryland, the
battle now centers on the governor, Robert Ehrlich
Jr., being able to shake a slots bill out of the House
Ways and Means committee, after a narrow 2521 Senate victory on a bill that cuts track shares
from 46% to 39%. The Washington Times says
the administration is considering the possibility of
rolling slots into a revenue bill and sending it back
to a House vote, but veteran legislators are questioning the propriety of such a move. Another possibility is to urge lawmakers to petition the bill out
of committee, but that seems doubtful given the
opposition of House Speaker Michael E. Busch,
the chief opponent of the measure.
In Florida, the Senate Regulated Industries Committee approved a measure yesterday that would
allow VLTs at all horse and dog tracks and jai alai
frontons in the state, and the sponsor of the measure said, “I think we sent a message to the House
today...that allows us to live within our means without shortchanging our children and their education.” The House speaker, Jim King, had a short
answer. He said, “It ain’t gonna happen.”
In Minnesota, the Governmental Operation and
Veterans Affairs committee of the House passed
a bill authorizing slots and VLTs for Canterbury
Park, but it was a 9-8 vote and hardly an endorsement, the measure passing “without recommendation.” Under the racino proposal supported by
the track and passed yesterday, the Minnesota
lottery would own and operate the gambling equipment but the casino would be owned and operated
by the holding company that owns and operates
the track. Canterbury would receive 45% to pay
operating expenses, debt service and
boost purses.
March 25, 2003
In Pennsylvania, where slots also are occupying
legislators’ time, Albany Law School prof Bennett
Liebman was quoted by the Scranton Times’
Northeastern Pennsylvania News as saying, “If
you’re going to give track management the ability
to have slots, the least you could do is force track
management to lower its price on the bets.” The
service reported that while “some gambling proponents say they have heard complaints that
Pennsylvania’s takeout rates are too high, they
have not heard a rumbling in the Legislature to
lower takeout rates.” HTA director Mike Jeannot
of The Meadows responded that while his track
and others had experimented with lower takeout
rates, they did not see a measurable increase in
betting.
In Massachusetts, where track slots also are being considered, a new concern was voiced by influential state senator Michael Morrissey, who indicated he would vote for slots only if the legislation
assured that the track slot licenses were nontransferable. Morrissey insists that if a track received
a license and then sold the track to a gaming company, the slots license would automatically revert
to the state, with the new owner having to pay a
hefty fee to obtain the license. He went farther,
saying the state could ensure profits by seizing
tracks by eminent domain. The track owners would
be compensated for their property, stay on as managers, and the state would take most of the profits. On that wild and wooly note, we leave Massachusetts.
USTA OKS CONSORTIUM HELP
USTA yesterday agreed to join HTA in a $20,000
total industry contribution to the Medication and
Drug Testing Consortium, and also approved a
Paul Fontaine-sponsored resolution, approved earlier by HTA, not to issue awards to persons
under integrity suspension, or to horses if
those horses were trained by someone under integrity suspension.
March 26, 2003
SLOTS ISSUE TO COURT IN NY
FORGET NJ VLTS FOR AWHILE
Saratoga County Chamber of Commerce v. Pataki
gets its court hearing in the Court of Appeals in
New York tomorrow, with the governor’s right to
approve gaming without legislative approval at
stake. The case examines the separation of powers between the executive and legislative branches
of government, and affects the legality of VLT legislation on which tracks in New York state are
hanging their hats. The case is on appeal from the
Appellate division, which voided casino agreements and found that Pataki and his predecessor,
Mario Cuomo, usurped the power of the legislature.
You’ll still be able to play horses, live or simulcast, at New Jersey tracks for the foreseeable,
future, but the Atlantic City casino operators have
prevailed and tracks will not have slots this year
and perhaps next as well. Mayors of New Jersey
towns and cities wanted them, but their will (and
money) were no match for casino interests, and a
study committee for the governor was said to need
more time to do its work. “Needs more time” in
this case means the unlimited future, for no date
was set to replace the May 4 deadline originally
imposed. The committee, despite its original deadline a month and a half from now, had not met in
full and was caught by surprise to find out it now
had presumably forever to do its studying. One
member said, “Sometimes this administration
reaches decisions in its sleep and never tells anyone else.” The Atlantic City casino industry
praised governor McGreevey’s decision to call off
the dogs. Surprise, surprise.
NEW COMMISSION IN NJ
Governor James E. McGreevey has signed a revised racing commission bill into law in New Jersey, so the state will have a new racing commission in the next two months. Under the bill as
signed, the commission will consist of nine members, two to be nominated by the New Jersey Standardbred Breeders and Owners Assn. and two by
the New Jersey Thoroughbred Horsemen’s Association, the two in each case to be from different
political parties. Each will serve a six-year term,
and none shall be a New Jersey breeder nor hold
a license to train or race in New Jersey. Present
commission members will be terminated when the
act takes effect sixty days from its enactment this
week.
POLS SCURRY IN ILLINOIS
Political appointees in Illinois were rushing around
in force this week, as new governor Rod
Blagojevich moved forward with his efforts to
merge and amalgamate state boards and commissions. The gov says he can save $5 million by
dropping some boards, trimming others and
reducing and eliminating salaries, but
some members were claiming the state
would be robbed of “invaluable background
and experience.” Well, maybe.
SHOWS OF STRENGTH IN MD
Muscles were bared in Maryland, where the
speaker of the house put a hold on action on the
proposed track slots bill, and said,”When we feel
its’s appropriate, we’ll have a hearing.” Since there
are only 12 days left in the session, that sounded
ominous, but the president of the Senate said he
would keep the General Assembly in session past
its scheduled close on April 7 if the House speaker
does not relent and a slots bill is not passed.
AND $200 MILLION AT NIAGARA
While states battle on the slots issue, the Seneca
Nation announced that its fledgling casino operation in Niagara Falls, NY, would likely make $200
million in profit during its first year. If it does,
New York state will get $36 million, Niagara Falls
$9 million.
HOW ABOUT SOME TEAM SPIRIT
In the course of compiling a report on the Web
sites of HTA’s 39 member tracks, it was discovered that only two had links to HTA’s Web site,
and one of those -- Flamboro Downs -- added it in
an immediate, impressive and appreciated response to a call to Flamboro’s Webmaster. Since
all HTA monthly reports, daily newsletter, columns,
promotional materials, and the HTA Online Art
Gallery, among many other items, are part of the
site, it seems strange that track Webmasters are
either unaware of its presence or remiss in including it in the often lengthy lists of links they include,
most of them less germane to member tracks than
HTA’s site. The issue was raised at the board of
directors meeting in Florida, and is being raised
again here. It is more than academic. The Online
Art Gallery, for example, is a source of funding
for HTA’s College Scholarship Fund, and could
benefit greatly if readers of member track sites
were made aware of its existence. The Meadowlands carries a highly visible banner nightly informing its viewers of the Gallery, and similar notices
would be appreciated from other member Web
sites. HTA directors and track executives also
access the site daily to receive the Daily Executive Newsletter and other reports, which are available in the proprietary portion of the site available by password. The public section of the site,
however, contains a news summary of the previous week, the Online Art Gallery, press releases,
commentary, columns, and other information of
general interest. We urge HTA Webmasters to
familiarize themselves with the site, and we again
urge directors, as we did at the annual meeting, to
instruct your Webmasters to include a link to HTA.
We’re proud of each individual member of the association, and hope that each member is proud
enough of HTA to include its Web link on
your site. This is an oversight that needs
correction.
March 27, 2003
GUESS WHOS UPSET IN KY?
The veterinarians. Having operated for years
under the most permissive medication rules in the
country, they’re suddenly chafing because Kentucky has moved forward to bring its rules into
conformity with the rest of the nation, and is issuing penalties to vets for overdoses of marginal
medications, muscle relaxants and other treatments that could affect performance. The vets,
who presumably know as well or better than anyone else what these substances do, suddenly are
claiming that the guidelines are too vague. In a
state where official guidance is being challenged
because the expert is from Ohio and not Kentucky,
it is clear that the good-ole-boy network still is alive
and well.
ILLINOIS BOARD NEXT UP?
Serving on racing commissions is getting to be a
high risk occupation. Yesterday’s newsletter reported Gov. McGreevey signing the death knell
for the present New Jersey Racing Commission.
Now comes word that House bill 3511 in Illinois
would end the reign of the current 11-man Illinois
Racing Board and replace it with a new 7-man
board, with no $300 per diems and the governor
having the right to appoint the executive director
of the board. And in Washington state, where governor Gary Locke wants to combine the horse racing and gambling commissions into one (against
legislative opposition) two of the racing board
members, chairman Patrick LePley and James
Hovis, have resigned in the face of highly contentious confirmation hearings.
KING LOUIE GETS ROYAL SPACE
Longtime HTA director Lou Carlo, bossman of
Northville Downs in Michigan and president of
Lebanon Trotting Club in Ohio, is featured with
a front cover color picture and story on his
50-year racing career in the March issue
of Michigan Harness Horseman.
A PLETHORA OF WARS
Iraq is just one. They’re all over the place.
In Maryland, of course, it’s hand-to-hand combat,
between the governor, Robert L. Ehrlich Jr., and
the speaker of the house, Michael E. Busch. They
were due to meet this morning and hammer out a
compromise, and if they don’t Maryland’s slots
bill remains in limbo with the current legislative
session coming to an end. Each has been firing
heavy artillery, pulling out all the stops short of
chemical warfare, and the speaker thinks he has
the votes to stop Ehrlich’s bill. The problem lies
in the Baghdad of the Maryland general assembly -- the House -- and both Ehrlich and Busch think
they have enough delegates in the 141-member
body to carry the day.
In Massachusetts, the House has scheduled April
15 as D-Day -- Debate Day -- for an all-day session on slots at tracks and/or casinos for the state.
One view of this is that the House wants to consider the issue before it takes on the budget; another, less charitable, is that it plans to dismiss
both the track slots and casino issue and send a
message to the governor and Senate that gambling
is a dead issue.
In New Mexico, a decision is expected by July on
who gets to build a new racetrack in Hobbs. The
three candidates are R. D. Hubbard, former operator of Hollywood Park, who operates Ruidoso
Downs and was touched by scandal in an Indiana
riverboat incident; Shawn Scott of Delta Downs
(and now Vernon Downs and Bangor Raceway
fame); and Ken Newton, operator of the late Downs
at Santa Fe. It is taken for granted that the license will be issued, making Hobbs the site
of a fifth New Mexico racetrack. Scott
had been disqualified from the hearing
process, but was reinstated by a new commission yesterday.
March 28, 2003
In Chicago, where the battle is for the tenth Illinois gaming license vacated by the disqualified
Emerald Casino, the wife of movie critic Roger
Ebert told the Illinois Gaming Board that minorities who invested in Emerald are being mistreated
in the handling of the matter. Mrs. Ebert, who is
black, told the board that minorities who invested
in the Emerald are not people “with a million dollars laying around to invest. This was part of the
American dream for minorities, and at some point
we should be able to tell our story.” Her story was
that the wrongdoers who got Emerald in trouble
by allegedly lying and associating with organized
crime are receiving interest and attorney fees, and
the minority investors in the project, mandated by
law, and other ‘little investors,’ are not. The gaming board still has not reached a settlement with
Emerald that would allow new bidding on the license. Meanwhile, the state’s new governor wants
the license back for bidding and revenue.
In Wisconsin, Republican legislators have asked
the federal government to intervene and stop
Democratic governor Jim Doyle from carrying out
the agreement he signed with the Potawatomi tribe
giving them an open-end compact with no expiration date and expanded games. The legislature
has passed two bills to give it oversight, but Doyle
has vetoed both.
In all of this, a key town to remember, besides
Umm Qasr and Basra and Nasiriya, is Botkins in
western Ohio. A man named Terry Casey, representing an undisclosed Indian tribe that wants to
build a $550 million bingo hall and gaming complex in Botkins, calls Ohio “one of the last prizes
left.” He says “You’ve got a lot of people in Ohio
that like to do gambling,” and he thinks Botkins is
just the place for them to do it. One problem is
that a man named Bob Taft doesn’t want gambling, in Botkins or anyplace else in his domain.
March 31, 2003
MARYLAND STILL A MESS
BATTLE OF WORDS IN MAINE
With eight days to go in the current legislative
session and an extension likely, the battle over
slots at tracks continues in the Maryland General
Assembly. House speaker Michael E. Busch continues to hold the governor’s bill hostage, but the
House did pass a bill that would return “casino
nights” at the request of the Prince George’s
county delegation. This might seem strange in view
of the scandals -- a half-million dollar shortfall, alleged skimming, and improper controls -- that accompanied such casino nights before they were
outlawed by former governor Parris Glendening
six years ago. Sixteen such casinos operating between 1993 and 1995 handled a total of $77 million in those years, and although they were touched
by scandal 96 members of the House voted to restore them.
The Portland Press Herald in Portland, Maine, has
joined the battle over wording of a referendum on
casino gaming scheduled for vote next November.
Maine is one of only a few states that lets citizens
petition their legislature to put a referendum question on the ballot, but the newspaper says this process has been corrupted by outside interests that
pay professional consulting companies big money
to draft deceptive wording for the ballot questions.
It cites a proposed referendum that will appear on
the November ballot, where a Las Vegas casino
developer, working with Maine’s two Indian tribes,
paid an out-of-state firm more than $300,000 to
get a petition on the ballot. The paper says lawyers for CasinosNO! will go to court this week to
argue that the question should be thrown out because there are no guarantees that proceeds would
be used for municipal revenue sharing “with the
intent of providing property tax relief,” as the wording states. The newspaper says it has no problem
with Maine citizens deciding whether they want to
legalize casino gambling, but it objects “to proponents using their money and influence to present
a biased, unfair and misleading question to the
voters.”
QUEBEC PROSPECTS GLOOMY
Denis Gauthier, the chairman of SONACC, which
operates racing in Quebec, called a press conference with horsemen last Friday to update them on
negotiations with the Quebec government, but was
given a hard time by members of ATAQ, the aptly
named horsemen’s association. The horsemen
are unhappy over the state of racing in Quebec,
and prospects do not seem bright for the sport in
this election year. The province’s finance minister, Pauline Marois, has not been inclined to give
racing what it says it needs to survive and thrive,
and it seems likely that Hippodrome de Montreal
will not receive an additional 1,570 VLTs, which it
says is essential to profitable operation. Paul
DeLean, writing in the Montreal Gazette, says
“while Hippodrome Trois-Rivieres and Hippodrome Aylmer now seem likely to survive with Hippodrome de Montreal, it doesn’t look good f o r
Hippodrome de Quebec, where the municipality has placed conditions on renewal
of the lease.”
SPORTSMANS SALE NEAR?
To those of us who once worked there, the end of
Sportsman’s Park as a racetrack brings mixed
emotions. But the end appears near, as prospects
for an 80-acre site lying between two major northsouth Chicago streets and just north of Midway
airport appears too good for developers to pass.
The city of Cicero, where Sportsman’s lies, is reported to be considering acquiring the track as a
middleman, with the Palatine-based DiMucci companies considering developing a 500,000 squarefeet convention center and 400-room hotel. A
deal appears imminent, perhaps this week.
April 1, 2003
HEARING, EXTENSION IN MD
IN TEXAS, A DIFFERENT TUNE
There may not be resolution, but there is movement in Maryland. Governor Robert L. Ehrlich
Jr. extended the legislative session, which ends
next Monday at midnight, and the House speaker
opposing his slots plan, Michael E. Busch, who
has bottled up the governor’s proposal, said he
would allow a hearing today on the matter. A
hearing does not necessarily mean a vote, however, and although Busch’s action was regarded
as a positive sign, the president of the Senate,
Thomas V. Mike Miller, who supports slots at
tracks, said he was not sure the measure would
receive a positive vote because of the speaker’s
opposition to it. The governor did not say directly that he would veto any tax package if the
Assembly fails to approve his slots-at-tracks plan,
but he did say he would not sign off on taxes,
and his budget secretary -- in a Rumsfeldian
warning -- said a rejection of the slots measure
would have “serious and dire consequences.”
The governor of Texas, Rick Perry, also opposes
an expansion of gambling, but he signaled yesterday that there is an opening he would accept.
He said that if slots at tracks were included in a
bill that would assure continuing the state lottery -- which faces sunset legislation -- he would
not veto such a bill. “I’ve made it abundantly
clear I’m not for the expansion of gambling in
the state of Texas,” Perry said, “but vetoing a
bill that will not allow the Lottery Commission
to continue its work is another thing altogether.”
Texas, like many other states, faces a serious revenue shortfall. In the case of the Lone Star state,
the number is $10 billion.
ROMNEY DECLARES FOR SLOTS
The gauntlet was thrown down in Massachusetts
yesterday, too, when governor Mitt Romney unveiled a proposal for auctioning off 7,200 slots
in the state and the powerful House Government
Regulations committee immediately announced
its opposition to the idea. Romney said he would
back a limited expansion of gambling after neighboring states declined with thanks his suggestion
that they pay $75 million in “blocking payments”
that would assure them of Massachusetts staying out of the competitive gambling picture. A
Romney spokesman said the objective of the slots
proposal was “to generate tax revenue to help
meet the Commonwealth’s budget gap.” The
influential co-chairman of the Government
Regulations committee, Daniel Bosley,
who spoke to HTA a few years ago, said
he thought the revenue was “illusionary”
and the House speaker also opposes the idea.
HTA WEB LINK GETS RESPONSE
HTA’s appeal to have its Web site linked to member track sites has drawn a quick response.
Harrington Raceway was first in, noting that it
has carried the link for two years. It was overlooked in the survey of member track Web sites,
and we both apologize and thank Harrington.
Pompano Park also added the HTA site to its
home page, perhaps the most colorful in all of
harness racing. And the Michigan racing commission also quickly added the HTA site to its
link list. A suggestion to other HTA track operators: don’t ask your Webmasters to link our
site; tell them to do it. They still work for you.
TWO NEW STUDIES ONLINE
Speaking of Web sites, two new HTA monthly
studies now are online on the proprietary portion off our Web site at www.harnesstracks.com.
They are the January report, HTA Survey of
Member Track Web Sites, and the February report, Current Issues for Racetracks: the Clean
Water Act and Concentrated Animal Feeding
Operations. This report on the CAFO
threat is of interest and concern to all track
operators.
D-DAY IN MARYLAND?
Today could be the end of the line for slots at
tracks in Maryland, with a vote expected in the
Ways and Means Committee of the House after
a hearing on the bill yesterday. The speaker of
the House, Michael E. Busch, who has been a
bitter foe of governor Robert L. Ehrlich’s slots
bill, said following the hearing, “I don’t think
this legislation is ready to be passed.” The bill
was defended in the hearing by James C. (Chip)
DiPaula Jr., Ehrlich’s budget secretary, who predicted “dire consequences” if the bill does not
pass. Democrats hit him hard with questioning,
and one lobbyist said after the hearing, “It’s like
a wake without booze.” There is no humor in
sight for tracks, however, if the measure fails.
The Baltimore Sun reported that if the Assembly turned down the governor’s proposal and
substitute new taxes, a veto was likely, and “in
anticipation of a veto, budget negotiators began
reviewing a drastic series of cuts that would occur if and when Ehrlich rejected a tax package
or a separate revenue bill -- setting up a high
stakes game of chicken with the executive
branch.” The paper said a $1 billion ‘super
doomsday’ cut list would likely include some layoffs of state employees, plus a $171 million cut to
higher education.
OTHER POSSIBLE SETBACKS
In Pennsylvania, harness breeders rallied support across the state to head off the threat of H.B.
520, which proposes to impose an 18-month
moratorium on any action to legalize slots. Paul
E. Spears, chairman of the Standardbred Breeders Association of Pennsylvania, issued a call for
opposition, saying, “We see no reason to delay
action on this issue. It is apparent the public
supports the governor and the legislature
and expects action this session to provide
needed state revenue and remedy to our faltering racing industry.”
April 2, 2003
CHESTER HEARING TOMORROW
The Pennsylvania Harness Racing Commission
has scheduled a special meeting tomorrow at 2
p.m. to consider the track application of Chester
Downs, which proposes building a harness track
on the waterfront in Chester, south of Philadelphia. Another group also has entered the picture in Pennsylvania, hoping to build a harness
track in Philadelphia itself. The commission is
expected to deal with procedures for new or
amended license applications at tomorrow’s
meeting.
OPTIMISM IN MASSACHUSETTS
Track operators in Massachusetts had their spirits buoyed yesterday by a hearing before the Joint
Committee on Government Regulations. Gary
Piontkowski, president of HTA’s member
Plainridge Racecourse and former chairman of
the Massachusetts Racing Commission, said,
“What I heard was: We do need this, it’s just
how and how much money for the state. I think
there will be a spirited debate in the House, but
when it comes budget time, both the House and
Senate will have their say. It’s either raise revenue or raise taxes. That’s it. It’s not going to
be easy for a representative to go back to his district and say, ‘We’re going to have to lose firefighters, cops and teachers.’”
MEADOWS ON BOARD, AND HOW
Not only has The Meadows linked to HTA’s Web
site, big time, with both the HTA logo and online
art gallery, but general manager Drew Shubeck
says the track will raffle off a special piece of HTA
art at its big horsemen’s party Saturday, April
26, for the benefit of HTA’s College Scholarship
Fund. This kind of cooperation, if duplicated by
other member tracks, could enable HTA to
continue its $50,000 a year in scholarships
to worthy harness kids, which is totally
separate from dues support.
DOOM, GLOOM IN MARYLAND
Whatever bad happens to horse racing in Maryland, harness and thoroughbred, in the near future -- and there is little chance that anything
good will happen -- it can be laid at the doorstep
of Michael E. Busch, the Speaker of the House
who dedicated himself, successfully, to stopping
Governor Robert L. Ehrlich Jr.’s plan for slots
at tracks. Busch orchestrated opposition to the
bill and yesterday the House Ways and Means
committee voted, at his strong urging, to defeat
the slots measure, 16 to 5, effectively killing the
legislation for this year.
The reverberations were heard throughout racing in the state. Magna Entertainment, which
bought controlling interest in Pimlico and Laurel presumably in part because of the prospect
of slots, caught the brunt of the turndown even
before the House vote, when it was chastized by
the Maryland Racing Commission for not starting $5 million in backstretch improvements it intends to make. Ed Hannah, Magna’s executive
VP and general counsel, made the logical argument that there was no sense making $5 million
in improvements before a vote on slots which
would have resulted in the rebuilding rather than
restoration of barns, but the racing commission,
apparently sensing that the slots bill was heading toward defeat, was not in a mood for logic.
No word was heard from Centaur, which is buying Rosecroft Raceway, but the vote has to be an
obvious setback and disappointment for that
group. Thoroughbred breeder Michael Pons
spoke for most horsemen when he told the Baltimore Sun, “For us, everyone feels like they got
kicked in the gut today. This is tough for the
game. It hurts a lot. We’ve been swallowing oxygen for so long, but the slots bill was attached to every county budget in Maryland. There’s going to be a lot of pain all
over the state.”
April 3, 2003
Gov. Ehrlich was livid, and said he “absolutely”
would veto a $260 million package of tax increases the legislature is counting on to balance
next year’s budget. If that happens the legislature hardly can adjourn next Monday night, as
scheduled, and would have to remain for an extended session, which has happened only once
since 1917. The governor promised before the
slots vote that if it did not pass he would cut perhaps as much as $900 million from public school
funding, and he said, “That would really be a
shame. This is very real. The stakes are very
high here. We’re not fooling around.”
The possibility that the slots measure would be
revived in the dying hours of the legislative session are remote, and even senate president Mike
Miller, who supported the governor, called any
hopes “flickering.”
ILLINOIS TRACKS WANT SLOTS
The Chicago Sun-Times reports that Illinois’ five
tracks have joined forces and will present a proposal to the House Gaming Committee today
calling for 5,000 slots at the tracks, saying the
move could pump $400 million into the state’s
treasury. A spokesman for governor Blagojevich
said that while he opposes the idea, he would take
a look at it if the legislature passed something
along those lines.
NORTHLANDS JOINS THE CLUB
HTA member Northlands Park in Edmonton,
Alberta, is the latest to join in linking its Web
site to HTA and our Online Art Gallery that supports the HTA College Scholarship Fund. Standardbred Investigative Services, which polices
the sport, realized the worthiness of that cause
several years ago and has linked HTA to
its site ever since. We thank both for their
cooperation and support.
CHESTER GETS A LICENSE
The Pennsylvania Harness Racing Commission,
in a move that winning owner Joe Lashinger said
“took an incredible amount of courage,” voted
2-1 yesterday to award a license to Chester Downs
to build a harness track in Chester, PA, on the
Delaware River waterfront. Lashinger’s view
came because Pennsylvania’s governor, Ed
Rendell, did not want the commission to act on
the Chester application alone, but rather on the
applications of two other groups as well, one of
them politically powerful Philadelphia Park,
which wants to build in Delaware county, and
the other that proposes building on the site of
the old Philadelphia Naval Shipyard. The commission was angered earlier when its authority
to hold a hearing was interfered with, and one of
the two commissioners who voted for Chester,
Ed Rogers, said “I’m not sure if I will be here
next month.” A spokeswoman denied that the
governor had threatened to remove any commissioner, and said that while he was disappointed
that the commission had moved ahead with its
vote, he “believes Chester Downs is a good
choice.” A court challenge is expected from
Philadelphia Trotters and Pacers, with close ties
to the governor. The group filed emergency petitions yesterday seeking to block the
commission’s vote, and they were supported by
the governor’s general counsel, but the petition
applications were denied. Why a governor who
thinks Chester Downs is a good choice would intervene to disrupt that choice is a question in the
lofty realm of politics, air too rarified to sample
here.
FRANKS FORTIFIED FOR 2003
The Toronto Globe and Mail and Toronto Star
both report today that Frank Stronach,
bossman of Magna Entertainment, had
total income of $58.1 million Canadian last
year.
April 4, 2003
That converts to only $39,472,790 in U.S. dollars,
but should be enough to get by on for the rest of
the calendar year. It was Frank’s best year ever,
the newspapers report, and also a new high for
his daughter Belinda, CEO of Magna. She made
$9.1 million Canadian (up from $2.7 million in
2001) which comes to $6.2 million U.S., so she
shouldn’t have to bother dad for a loan.
THE ILLINOIS SLOTS PROPOSAL
If they get what they want, here is what Illinois
tracks would receive in the way of slot allocation, based on their proposal to the House Gaming Committee yesterday. Arlington would get
1,625 machines, Hawthorne 1,350, Maywood
Park 1,225, and Balmoral Park and Fairmount
Park 400 each.
AND IN MARYLAND.....
Tracks there get nothing this year in the wake of
the disastrous vote in the House this week, and
are in danger of getting the same next year. The
Speaker of the House, who crashed and crushed
the slots bill, says he thinks the House will consider a slots bill again next year, but thinks it
should be open to other locations than racetracks.
His words were ominous for Rosecroft Raceway
in particular, for he said some lawmakers in
Prince George’s county, where Rosecroft is located, would prefer building a casino along the
Potomac River rather than give slots to Rosecroft,
which is nestled in a residential area in Oxon Hill.
WATCH DELAWARE!
HTA has taken a leadership role in the right of
exclusion for tracks for 30 years, and now a major thoroughbred track is likely to test the doctrine. Delaware Park has banned the nation’s
leading thoroughbred owner, Michael Gill, and
other major eastern tracks have denied him
stalls as well. Gill says he plans to file a
lawsuit. HTA’s volumes on exclusion are
available.
April 7, 2003
CHANCES BRIGHTEN IN TEXAS
AND THEN THERES MIGHTY M
Things are looking up for slots at tracks in Texas,
if the state’s newspapers are any indicator. The
state’s comptroller, Carole Keeton Strayhorn,
has endorsed the idea, saying lawmakers should
approve VLTs to create “a new economic engine
to get us additional dollars for education,” and
her statement drew quick attention from the
Dallas Morning News, the state’s biggest newspaper. Ms. Strayhorn said track VLTs could
produce $1 billion annually within five years, and
her statement followed an announcement by governor Rick Perry that he would interfere with a
bill to introduce track slots if it were tied to extension of the state lottery, which faces sunset
legislation. Public opinion, in a recent Scripps
Howard poll, showed 45% of the public in favor,
46% against, and the remaining 9% undecided.
Ms. Strayhorn, commenting on a record high
budget shortfall, said she believed Texas will have
“a historic, unfortunate first with a loss in sales
tax revenue two years in a row,” and she said
serious circumstances call for serious action. Her
plan calls for granting free tuition, fees and books
to recent high school graduates who enroll in a
two-year college, and funding the proposal with
the video slots. She also wants to reduce the
present 10% cap a year on home appraisals to
5%. The governor is concerned that the proposal
might open the door to Indian gaming in Texas,
but said he would not veto a slots bill if assured
lottery extension. A bill -- S. 1244 -- has been
introduced in the Senate.
Well, once mighty M, trying to recover some of
the gloss and shine it has lost over the years.
Monticello Raceway is back in the news -- specifically with a five-column, half-page story in
the New York Times about a new deal being engineered by Robert Berman, chairman of Alpha
Hospitality, to get slots at the rundown Catskill
track. Berman is working on a deal with the
Cayuga Nation, a tribe formerly opposed to gambling, to transfer 30 acres of Monticello property to the tribe, which has no reservation, to
build a hotel and casino on the property. Like
other similar projects in the Catskills, this one
faces multiple hurdles before coming to fruition,
starting with an application to the Bureau of Indian Affairs and then dealing with state and federal regulators and Sullivan county. The county
wants $15 million a year. Berman wants to give
it $5 million, contending such payments are intended to mitigate the impact of a casino, not buy
political support. Cornelius Murray, the lawyer
who awaits an Appeals Court decision on his
challenge to the whole idea of casino gambling
in New York, had the last word in the Times story.
“It’s a quagmire,” he said. “Anything can happen. There are just so many stakeholders.”
MASSACHUSETTS TOO
TWO DANDY MEDIA GUIDES
A state senator who is co-sponsor of a slots at
tracks bill in Massachusetts told a press luncheon
crowd Friday that “We have thousands of people
leaving Massachusetts every day (for
Connecticut casinos) and they leave with
their recreation dollar and come back with
less, most of the time.” He wants the dough
left in state.
THREE NEW HTA LINKS
Buffalo Raceway, Indiana Downs and Windsor
Raceway are the latest HTA members to link to
the HTA Web site, www.harnesstracks.com. Our
thanks to all three.
Two thick and slick media guides have arrived
at HTA. Hoosier Park’s 2003 Media Guide and
Record Book is a beauty, ablaze with color, a map
of the track, and great pictures, and the Meadowlands comprehensive 2003 Harness Media
Guide, all 144 pages of it, is the kind of polished product one has come to expect of the
Meadowlands.
OHIO THE NEXT THRILLER?
With the Maryland legislature having done its
damage, packed up and gone home, Ohio appears
the next ‘sweat it out’ state on the agenda. With
a budget deadline of June 30, state legislators are
working on a November referendum that would
let Buckeye voters decide if they want to have
VLTs at Ohio’s seven tracks, there is talk of
14,000 machines and $140 million in franchise
fees to have them. A full House vote could occur
tomorrow, and regardless of what the House decides Gov. Robert Taft says he will veto the idea
of slots. Senate opponents also say they will defeat any such measure when it reaches that body.
One Republican House member said whatever
the House passes will be on an either-or basis,
either VLTs or higher taxes. Ohio voters have
defeated proposals for both ideas as recently as
1996 on the gambling issue and 1998 on higher
taxes. The governor’s $49 billion budget proposal is expected to create a shortfall of between
$3 billion and $4 billion.
WHY CAYUGAS CHANGED MIND
The news that Alpha Hospitality, which now
owns Monticello Raceway, was able to get the
Cayuga Indian Nation to join it in a casino bid
when the tribe had shown disdain for gambling
earlier, came as something of a surprise. What
happened to make the Indians change their
minds? Their spokesman, Clint Halftown, said
there were a number of reasons, among them
New York’s refusal to pay a $247 million land
claim judgment won in a U.S. District Court three
years ago. Gov. George Pataki is appealing the
decision, and meanwhile the Seneca Nation has
reaped wild rewards with its new casino in
Niagara Falls, NY. “We’ve made a decision,” Halftown said, “to explore and pursue
economic
development.”
Monticello’s leader, Robert Berman, thinks
federal approval will be a smooth matter,
April 8, 2003
since the track had obtained Bureau of Indian Affairs approval three years ago with the St. Regis
Mohawks, who then walked away for a better
proposition with Park Place Entertainment at
nearby Kutshers Country Club. Berman thinks
the new application should go smoothly, but a lawyer for the Mohawks, still waiting for their deal to
develop, said of the Monticello Raceway project,
“If it ever opens, it will be years.”
A HAPPIER STORY IN ARIZONA
While all of this was going on out east, 2,500 delegates gathered at a membership meeting and
trade show in Phoenix and heard of the glowing
success of Indian gaming in Arizona. “This is
Indian Country economics at its finest,” the
chairman of the National Indian Gaming Association, Ernest Stevens Jr., told leaders of Indian
gambling tribes from around the United States
in an opening address. He said Arizona exemplifies the success gambling can generate for Indian tribes and surrounding communities.
Tribal revenue from gaming was estimated at $1
billion last year, and will rise markedly this year
after passage of Proposition 202 at the polls last
November. That measure added more slots and
blackjack and table games to Indian casino fare
in the state, with Arizona now sharing in revenue for the first time. State share this year is
expected to be between $89 million and $102 million. The president of the Fort McDowell
Yavapai Nation, which operates a casino just
outside of Phoenix, spoke of construction of water and sewer systems, roads, homes, schools and
a recreation center and clinic, and told of plans
for a 300-room hotel and 150-to-200 space RV
park. “Prosperity’s going to be with us for many,
many years,” he said of the 23-year term of
Proposition 202.
OCEAN LATEST HTA LINK
Add Ocean Downs to the latest list of member tracks now linked to HTA.
April 9, 2003
CHURCHILL TO PITTSBURGH
HOPES RISE IN MICHIGAN
Churchill Downs, apparently convinced that
chances of slots at tracks are better in Pennsylvania than in Kentucky, has announced it has
agreed to invest in Pittsburgh Palisades Park, a
venture that hopes to include a thoroughbred
racetrack, a hotel, shopping and residential units,
and an entertainment complex. Churchill will
joint venture the operation with developer
Charles Betters, and will develop and manage
the racetrack operations if the project is granted
a license by the Pennsylvania State Horse Racing Commission. The decision puts Churchill in
competition with Magna Entertainment, which
also has plans for a thoroughbred track near
Pittsburgh and also, of course, owns The Meadows, half an hour south of Pittsburgh near the
town of Washington.
The new racing commissioner in Michigan, R.
Robert Geake, who opposed the expansion of
gambling while a legislator, now favors the idea.
A spokesman says that passage of Proposal E,
which allowed three non-tribal casinos in Detroit
in 1996, changed the commissioner’s perspective
on gaming in the state. A spokeswoman for governor Jennifer Granholm, meanwhile, said that
while the governor doesn’t want Michigan to
become a gaming state, she has not made up her
mind on racinos, and would take a look at that
idea and review it, and “certainly hasn’t closed
the door to it. There hasn’t been a decision on it
and it’s under active review.” Both the previous
racing commissioner, Annette Bacola, and previous governor, John Engler, opposed the idea.
Dominic Perrone of the racing commission says,
“It appears there is a good chance for the legislation due to the economic situation the state finds
itself in. It very well may lend itself to expanded
gambling.”
OHIO VOTE EXPECTED TODAY
If approved in an expected vote today in the Ohio
House, voters in the Buckeye state could be asked
next November to choose between an extra 1 cent
on the dollar sales tax or legalizing video lottery
terminals at the state’s seven racetracks. “The
campaign will be either/or,” Rep. Jim Trakas,
fifth ranked Republican in the House, says.
“People will understand their alternative is
higher taxes or allowing people who gamble to
pay for it.” Ohio is looking at a $4 billion to $5
billion budget deficit over the next two years, and
its next door neighbors -- Michigan, West Virginia and Indiana -- already allow casino gaming, and Pennsylvania may soon have slots at its
tracks. MTR Gaming, which operates Mountaineer Race Track and Gaming Resort in Chester,
West Virginia, will become an Ohio player this
summer when it merges with Scioto Downs.
Ohio’s tracks have formed an association
and hired an experienced lobbyist who
once served as a top policy advisor to governor Bob Taft, who opposes VLTs.
WITHOUT SLOTS, END IS NEAR
That’s the belief of some horse owners and trainers at Suffolk Downs in East Boston, according
to the Boston Herald. The paper says it met with
a group representing Suffolk horsemen yesterday and Trish Moseley, chairwoman of the Suffolk board and a member of the New England
HBPA, said that without an infusion of cash from
slots, the track “would be lucky to survive another two or three years, if that.” Ms. Moseley
said that “imminent risk” would be a very good
word to describe the situation.
YES AND NO AT VERNON
According to whom you ask, there is or is not an
agreement between Vernon and its horsemen, essential to the track getting a license. Vernon
says there is, its horsemen says there is not.
A meeting is scheduled for tomorrow to find
out who’s right.
April 10, 2003
INSURANCE WOES? LOOK HERE
HAMBO PURSE TO $1.7 MILLION
If you are encountering insurance problems at your
track, it will pay you to read and heed this.
The Hambletonian Society and Meadowlands
Racetrack have signed a letter of agreement that
will increase the purse of the Hambletonian to
$1.7 million, starting in 2005, and will boost the
value of the Hambletonian Oaks for fillies to
$850,000. Both races are for 3-year-old trotters,
and the new purse places the Hambletonian
among the world’s richest horse races. Yearling
nominations of $25 are due May 15 of this year,
and supplemental entries still will not be allowed
in either race, leaving open the possibility, as in
recent years, that the best 3-year-olds may not
be eligible for the races.
Wagering Insurance NorthAmerica, Ltd., HTA’s
captive insurance program, is back in full action
and offers member tracks an opportunity to control their own insurance destiny. With the insurance market hardening so drastically during the
last two years, the board decided to fully reactivate the track-owned program, and effective April
1 the 25-year-old program has again become fully
operational, with National Union Fire Insurance
Company, an AIG affiliate, acting as the policyissuing carrier, and Gallagher-Bassett handling
claims. Limits of $2 million are available, and the
program is open to all racetracks, regardless of
breed. Obvious benefits of the WIN self-owned
program is the captive’s equitable pricing mechanism. While the traditional insurance market must
increase all premiums to all policyholders to cover
its underwriting losses from other customers, the
captive sets its premiums to cover the losses of its
owner-policyholders only. As a result, the better
the loss experience of the captive’s participants,
the lower the premiums needed to cover those
losses.
Current insured tracks include Beulah Park, Buffalo Raceway, Jackson Raceway, Lebanon Trotting, Lexington Trots Breeders Association,
Hawthorne, Miami Valley Trotting, Northfield
Park, Northville Downs, Northville Racing Corporation, Pompano Park, Saginaw Valley, Sports
Creek, Vernon Downs, and Yonkers Raceway. If
you are interested in sharing ownership in your
own insurance company, or learning more about
the advantages, contact either our underwriter,
Bob Bossert of Marsh USA, at 716-8434545, fax 716-843-4560, or Dan O’Leary,
our insurance legal counsel, at 312-251-1000.
SLOT VOTE IN OHIO?
The Ohio House, with some controversy, voted
last night to give the state’s voters the choice between a one penny per dollar tax increase or
VLTs at the state’s seven racetracks. If the measure were to be approved next November, tracks
would receive between 1,800 and 2,500 machines
and pay a one-time fee of $8,000 a machine. Of
the proceeds, 51.5% would go to the Ohio Lottery Commission to be spent on schools, and the
rest would be split among tracks, purses, the
counties, and problem gambling programs.
THE BATTLE FOR PITTSBURGH
When generals appear in the front lines, you
know the war is serious. The battle for Pittsburgh, or at least a thoroughbred track there,
took on new significance yesterday when John
Long of Churchill Downs and Jim McAlpine of
Magna Entertainment appeared on the scene
presenting their cases. McAlpine spoke in suburban Findlay on behalf of the $70 million track
named Allegheny Downs that Magna wants to
build near the Pittsburgh airport. Long spoke
for Pittsburgh Palisades Park, a complex that
will take up to nine years to develop fully.
The Pennsylvania commission, meanwhile,
set guidelines for hearing applications.
OHIO SLOTS? WELL, MAYBE
As reported here yesterday, the Ohio House voted
this week to let the state’s citizens decide next
November whether they prefer a one-cent sales
tax increase or let racetracks have VLTs. According to the Cincinnati Enquirer, the Senate is
not so sure it’s safe to let voters determine their
destiny, preferring to rely on the wisdom of its
members. The paper says the measure faces an
uncertain future, and quotes Dayton Republican
Sen. Jeff Jacobson, as saying, “I’m not at all in
favor of even putting this on the ballot. I think
we need to start from scratch.” We have never
quite figured it out, but continue to wonder why
politicians fear the judgment of the people who
put them in office. Once anointed, they seem to
think their judgment is far safer than the mentality of their constituents.
CHANGES COMING IN ILLINOIS
It appears that Dennis Bookshester’s reign as
chairman of the Illinois Racing Board may be
brief. Bookshester was named to the post last
July by former Gov. George Ryan, but new governor Rod Blagojevich wants him to resign, reportedly so that he can name former commissioner Lorna Propes as chairwoman. To do that,
one of the 11 board members must resign. If none
does, the Chicago Tribune reports that present
member Leon Shlofrock may be named chairman.
Chicago Sun-Times racing writer Larry Hamel,
meanwhile, has suggestions as to how Chicago
harness racing can become Meadowlands West
if slots at tracks are approved. He thinks Chicago should welcome the best horses and horsemen from everywhere, rather than maintain i t s
provincial closed shop stance its horsemen prefer, and that it should lower takeout to 10% on straight bets, 12% on twohorse bets, and 15% on exotics.
April 11, 2003
Hamel also thinks Balmoral Park should become
harness racing’s first 12-across-the-gate track,
noting that pure odds on superfectas with eighthorse fields are 1,680-to-1; on 10-horse fields
5,040-to-1; and on 12-horse fields 11,880-to-1.
Intriguing food for thought. Hamel concluded
his suggestions with this: “Conventional thinking helped Illinois racing get where it is today:
begging the state for a bailout. If that life raft
comes, perhaps radical thinking will keep it from
needing another in a few years.”
CAREFUL, CHARLIES TOUCHY
Charlie Ruma owns Beulah Park, the thoroughbred track in Columbus, Ohio, and Charlie is a
sensitive guy. An owne-breeder named George
Smith, who owns Woodburn Farm in Centerville,
Ohio, got up in a horsemen’s meeting late last
month and called Beulah’s lower clubhouse “a
miserable, dark dungeon,” and added that “while
I’ve never been on death row, it’s hard to believe
it could be much more bleak.” Ruma wasn’t at
the meeting, but he heard about Smith’s remarks,
and was deeply insulted. So deeply that he has
barred Smith from Beulah Park, saying, “He embarrassed me on a national basis. I think George
Smith is detrimental to my racetrack and I refuse
to talk to him.” We checked all of HTA’s works
on exclusion, the definitive literature on the subject in the sport, and were unable to find any cases
involving miserable, dark dungeons. But the law
evolves, and Charlie has written a new chapter.
In an exclusion case deserving closer attention,
thoroughbred owner Michael Gill has filed separate exclusion lawsuits in U.S. district court in
New Hampshire, where he lives, against Delaware Park and Gulfstream Park.
$200,000 PACE AT HOOSIER
Saturday’s $200,000 Dan Patch pace for older
horses at Hoosier Park is harness racing’s
richest race this weekend. E Dee’s Cam is
favored in the nine-horse field.
April 14, 2003
HOLD UP THE DEATH NOTICE
TWO MASS BILLS UP TUESDAY
If the Baltimore Sun and Baltimore Business Journal have it right, it might be wise to hold up the
death notice on slots at tracks in Maryland. Both
papers report there is a reincarnation ceremony
underway in the legislature which still could give
Rosecroft Raceway slots this year. The scenario
is this: Gov. Ehrlich, in the next week or so, will
veto the $153 million in corporate tax increases
and make some deep budget cuts. Comptroller
William Donald Schaefer will release a dismal
revenue forecast that could lead legislators back
to the state capital at Annapolis. When they get
there, a compromise slots bill could be passed,
partly because the version passed by the Senate
and defeated in the House was never killed, but
sent to ‘summer study.’ The Business Journal
says one idea that’s being floated is to approve
slots temporarily at Rosecroft only, which the
paper says “has the benefits of no ties to racing
giant Magna Entertainment or the politically
unpopular Laurel/Pimlico CEO Joseph A.
DeFrancis.” The paper also points out that
House Speaker Michael Busch, who killed the
slots bill in the House almost single-handedly,
never said the door was closed. His mantra during the debate was, “This bill just isn’t ready.”
The newspaper says part of the reason slots might
be reconsidered is public opinion, which it says
supports slots at tracks. One prominent Republican was quoted by the paper as saying, “There’s
no doubt that Ehrlich is still enjoying a honeymoon, and Busch is perceived by some as an obstructionist who wants to raise taxes. You hear
that on the street.” Pennsylvania’s seemingly
imminent move toward track slots also is a factor, with the president of the Maryland Chamber of Commerce, which supports slots, saying,
“We’re losing our window of opportunity
here.” The Journal’s lead on the story
read, “Get ready for a sequel...call it Slots
II.” And the Sun seemed to agree.
The Massachusetts House is scheduled to discuss
two racing bills tomorrow, one authorizing slots
at the state’s four racetracks and the other providing both slots and casinos. The Boston Globe
reports that consideration of both could mean
the defeat of both, but reports that even that setback does not preclude consideration before the
end of the year. Bob O’Malley, COO of Suffolk
Downs, told the paper, “If the bills are defeated
Tuesday, it won’t be the end of the argument.
The debate could continue into the fall, and if
something is not seen in the spring, it could happen this fall.”
LONG TERM PITTSBURGH PLAN
The joint venture planned by Churchill Downs
for a track in Pittsburgh turns out to have two
conditions: one is that slots are approved for
tracks in Pennsylvania, and the other is that the
project is no short term investment. While
Churchill and its prospective partner, developer
Charles Betters, think a mile track could be ready
for racing in 18 months on Betters’ 634-acre tract
four miles from downtown Pittsburgh, the rest
of the ambitious program could take up to nine
years to complete. The plans call for a $500 million project that would include more than one
million square feet of retail and residential development, hotels, restaurants, and an entertainment complex. First, of course, the venture has
to get a license from Pennsylvania, and three
other groups including Magna Entertainment
also seek that lone license in the Pittsburgh area.
In Philadelphia, meanwhile, Philadelphia Park
has announced that if slots come, it will erect an
elaborate temporary home, 150,000 square feet
of upscale tenting held up by steel beams, with
nightly entertainment, live shows, restaurants
and surrounding gardens and a permanent
grand entrance structure. The track says
it would be “Las Vegas-like.”
April 15, 2003
D-DAY IN MASSACHUSETTS
ORANGE SHIRTS WIN A BIG ONE
The Massachusetts House is debating the fate of
slots at the state’s tracks today, and one key proponent of the measure thinks the vote will be very
close, given the state’s estimated $3 billion budget deficit this year. Others think the tracks face
an uphill battle, despite the outflow of Massachusetts gambling money to neighboring Rhode
Island and Connecticut. If the House votes
against the proposition today, it still could be
included in a Senate version of the bill and then
negotiated between the two legislative bodies.
Two bills are under consideration, one to give
the state’s four tracks slots and another that
would legalize slots, Indian gaming and three
commercial casinos. Both bills received negative recommendations from the Government
Regulations Committee, but Gov. Mitt Romney
endorsed the idea of slots for a test period of five
years. The Speaker of the House, Thomas
Finneran, is opposed to the idea, but scheduled
today’s debate so that the question could be resolved before the full budget debate begans later
this month.
No, not Syracuse’s basketball team. This time
the victory was Orange Shirts of Orange county,
Indiana, who after a 10-year battle won Senate
approval for a bill that could give the famed but
faded resort of French Lick the state’s 11th
riverboat casino license. Some 200 residents have
conducted the decade-long campaign to get state
approval under the leader of the Orange Shirts,
Geneva Street, who bought oranges and candy
bars and leaflets with her monthly social security check. After yesterday’s vote she was emotional, even though House approval still is needed
and Gov. Frank O’Bannon has to sign it. House
leaders think it will pass, and O’Bannon favors
it, so it appears the long grassroots campaign has
paid off. Orange county has a 9.9% unemployment rate, and the Senate action was heralded
there as a savior for the depressed area.
NIGHT RACING BILL IN FLORIDA
A bill backed by Gulfstream Park “to become more
consumer-oriented” has been introduced in both
the House and Senate in Florida. The measure
would allow Florida thoroughbred tracks to race
at night, send and receive their signals within a
25-mile radius without consent of other tracks in
that radius, and receive full card simulcasts after
their live meetings are closed. When Dave Joseph of the Ft. Lauderdale Sun-Sentinel asked
Gulfstream chairman Doug Donn if the Magna
track planned to race at night, Donn told him,
“There are no plans presently.” Donn also s a i d
that if VLTs were approved in Florida,
under present proposals thoroughbred
tracks would not be allowed to simulcast if
they installed VLTs.
NO SMOKING IN DELAWARE
Delaware’s racetracks, casinos and bars, hard
hit by the state’s rigid no smoking ban in public
places, lost their bid to have the severe law modified recently when the state senate voted, 14-7,
to keep the present law in effect intact. Dennis
McGlynn, president and CEO of Dover Downs,
said the state’s three casinos cannot maintain
their present workforce because of the sharp
defection of smokers from the properties, and he
predicted no openings will be filled and job layoffs are in prospect if the ban remains. “We have
not seen any new nonsmoking people come in,”
McGlynn said. “All we have seen is our smoking people go, and they are not coming back.”
The senator who sponsored the original legislation and led the fight to defeat HB 15, which
would have made exceptions, said, “HB 15 says
it is OK to give cancer to someone who works in
or patronizes a casino, but protects someone who works in or patronizes a restaurant. It is illogical.” His argument won.
HOUSE KILLS MASS SLOTS BILL
Massachusetts tracks are putting the best possible face on it, but they lost round one of their
effort to get slots yesterday when the House voted
down the idea, 86-65. A second measure, which
would have given the tracks slots and also put
them at two locations in western Massachusetts,
lost on a 95-59 vote. The measures had been tied
to a predicted $3 billion budget gap in the state,
but one of the chief opponents of the legislation,
Rep. Daniel E. Bosley, co-chairman of the Government Regulations Committee, called it “a
lousy way to make money. Our fiscal situation
should have absolutely nothing to do with this
debate.” The speaker of the House, Thomas M.
Finneran, also strongly opposed the idea, but
both track and Indian leaders called it “disappointing but not surprising.” Gary Piontkowski,
president of HTA member Plainridge Racecourse, said “We were happy for 65 votes, because we were hoping for 60....it bodes well for
the future. The leadership was in opposition, and
it was nice to see the members vote their conscience.” COO Bob O’Malley of Suffolk Downs
said, “I’m disappointed, but it’s not over and we
hope we get another chance,” referring to public
sentiment over the next few months “when people
come to grips with the disaster of the ’04 budget.” Beverly Wright, chairwoman of the
Wampanoag Tribe that hopes to build a casino
in southern Massachusetts, called the vote “the
first in a series of critical fiscal debates,” and said
the defeat “did nothing to dampen the tribe’s optimism or commitment to press forward.”
PENNSYS CHANCES GOOD BET
The Harrisburg, PA, Patriot-News, which should
be in a prime position to know how the political winds of Pennsylvania blow, today said
that “the odds are good that slot machines
will appear at Pennsylvania racetracks in the
near future.”
April 16, 2003
The story appeared this morning after the newspaper conducted a survey of the legislature that
showed, by projection, that slots at tracks are
supported by 103 House members and opposed
by only 64, with 34 undecided. In the Senate, 27
members are in favor, 18 opposed and two undecided. One of three non-respondents to the
poll voted yes on two previous slot issues. Asked
if they would support any gambling expansion
besides slots at tracks, 103 House members said
no and only 42 said yes. Senators also opposed
other gambling, 28-16. A separate poll, conducted by Quinnipiac university, showed that
69% of Pennsylvanians favor the slots at tracks
idea. Since the idea is Gov. Ed Rendell’s, the
chances seem bright. A Democratic bill introduced yesterday would provide up to 3,000 machines for each of the state’s tracks, with 35% of
the profits going to education, 40% to track owners, and 25% to horsemen in purses and pensions. Each track would pay $750,000 for a 20year license and a $500 fee for each slot machine.
A Republican senator quickly called the plan
“unrealistic,” saying it gave too much to horsemen and not enough to tracks. Gov. Rendell did
not endorse the measure, but said it “had some
very good aspects.” The executive director of the
Pennsylvania Thoroughbred Horsemen’s Association called it “landmark legislation” with the
largest split for horsemen in the country.
FIRST STEP IN MINNESOTA
The Ways and Means Committee of the Minnesota House, in a 13-12 vote, sent a bill to the House
floor calling for the first non-Indian casino in
Minnesota at Canterbury Downs. The committee chairman, the speaker of the House, and the
chairman of the Taxes Committee all voted for it
in the Ways and Means committee. A second bill,
calling for a casino in the northern Twin Cities suburbs to be owned by the state and
run by Chippewas was defeated.
April 17, 2003
A LONGSHOT IN DELAWARE
WHAT A PRODUCTION!
Although it has high level support in the legislature, sports betting for Delaware is still a
longshot, according to the Wilmington News
Journal. Dover Downs executive vice president
Ed Sutor made a presentation to the 10-member
Sports Betting Task Force this week outlining
what the project could do for the state (which is
one of four in this country where sports betting
is legal, grandfathered from federal law that prohibits it) but a spokesman for governor Ruth Ann
Minner says she “is not at all in favor” of the
idea, and she doesn’t think that anything the task
force could come up with would change her mind.
The spokesman stopped short of saying Gov.
Minner would veto the idea, most likely because
no bill proposing it exists as of now.
A graphic masterpiece landed on the desk yesterday with the arrival of Prairie Meadows’ 2003
media guide. This is probably the most ambitious undertaking of its kind in racing, given the
magnitude of its 106 pages of solid high impact
color. Large in format in its 12 x 10-inch vertical dimensions, it features superb double-page
action spreads and exceptional photography.
Our congratulations to track president, CEO and
general manager Bob Farinella for authorizing
a project of this scope, and to executive editor
Tom Manning, managing editor Julie Stewart,
senior editor Mary Lou Coady and their staff,
and particularly to track photographer Jack
Coady Jr. and ColorFX printers, for a superb
production. All concerned can be proud of this
triumph.
A SURE THING IN CT
For those states (and tracks) awaiting action on
slots, the March numbers from Connecticut are
instructive. Foxwoods Resort and the Mohegan
Sun casino are racing neck and neck for honors
there, and in March they finished almost in a
dead heat. Mohegan Sun reported a “win” -- the
amount gamblers lost and the casino won -- of
$67.5 million during the month, while Foxwood’s
win was $67.6 million, on a total play of $1.6 billion for the month. Mohegan’s numbers were
more impressive, for it was up almost 10% from
a year ago, while Foxwoods was down some 4%.
Mohegan Sun had 6,125 slots, Foxwoods 6,595,
so Mohegan’s numbers are even more impressive. Under the state’s agreement with the tribes,
Connecticut receives 25% of all slot revenue,
which amounted to $35 million in March. State
officials think the two casinos will contribute as
much as $400 million to the state’s general
fund this year. With budget shortfalls
ranging in the $3 billion to $10 billion
range around the country, the Connecticut
numbers should be food for thought.
CHEMICAL WARFARE IN ITALY
The U.S. is not alone with the problem of illegal
medication. Italian police have named 62 people,
including 58 trainers, reportedly involved in 72
cases following a year-long investigation. The
trainers face possible prosecution on charges involving cocaine metabolites. The Milan prosecutor who is coordinating the investigation -- still
underway -- declined to comment while the police work continues. If the case follows U.S. custom, half of Italy’s lawyers may be called in to
defend those involved in the matter.
MAYWOOD, HOOSIER NOW LINK
Add Hoosier Park and Maywood Park to the list
of new links to HTA’s Web site. The links are
more than academic. As a lead to our online art
gallery, they can stimulate interest in HTA art
that finances our $50,000 a year in college scholarships presented to sons and daughters of harness racing families, or participants themselves. Thanks to all parties concerned.
April 18, 2003
A GOVT. CASINO IN CHICAGO?
NYRA DECLARES NO TRUMP
That’s the speculation in the Chicago Sun-Times
this week after Mayor Daley played cute with the
paper’s city hall reporter, Fran Spielman. The
mayor acknowledged that he and Illinois’ new
governor, Rod Blagojevich, had talked about the
possibility of a government-owned casino in the
city, but beyond that he gave Spielman a skilled
runaround. Asked if he was willing to put his
cards on the table on a report that the governor
was waiting for a proposal from him, Daley said,
“I’m not playing any cards. I have said the taxpayers of Illinois should own every gambling license right now. They should own it all and get
all the profit. Hire someone to manage it. Instead of giving the profit to the private sector,
the state should take it.” When Spielman told
Daley the governor said every time he brings up
the matter Daley changes the subject, the mayor
bristled and said, “I think you’re wrong about
that. What I talked to him about, I’m not going
to tell you. I don’t go around telling everybody
what I said personally to people.” When the
mayor was asked, “Do you want a Chicago casino? Yes or no?”, he answered, “We’ll see.”
And when asked where he would put it, he ended
the interview by saying, “The Sun-Times building.” Now you know.
The Donald doesn’t lose many, but he lost a big
one yesterday when New York Racing
Association’s chairman Barry Schwartz announced that MGM Mirage, and not Trump
Hotels and Casino Resorts, would run the 4,500
VLTs that NYRA will have once New York state
gets around to finally implementing slots legislation it passed two years ago. NYRA also announced that its slots operation will not be a separate facility, but will be located on the second
floor of the Aqueduct grandstand and clubhouse,
and will be built for an estimated $100 million.
Schwartz had announced earlier that NYRA had
narrowed the field of operators down to MGM
Mirage and Trump, and in declaring the former
the winner he called the partnership “a mutually beneficial arrangement that helps NYRA
maximize the benefits to education, horsemen,
breeders and the state of New York.” The NYRA
decision eliminated the ironic possibility of
awarding the contract to a man who fought hard
in Albany to defeat slots legislation. Under revised New York legislation, racing will get 25%
of slots revenue, with 60% going to eduction and
15% to the state lottery. In Pennsylvania, legislation introduced this week would give tracks
40%, horsemen 25% and education 35%.
MAGNA NOW OWNS FLAMBORO
STRANGE DOINGS OUT WEST
With all approvals from appropriate agencies
now in, Magna Entertainment has completed its
acquisition of Flamboro Downs near Hamilton,
Ontario. Necessary clearances from the Ontario
Racing Commission, the Alcohol and Gaming
Commission of Ontario and the Ontario Lottery
and Gaming Corporation have been received,
and Flamboro takes over the year-round meeting at “Canada’s fastest half-mile track.”
Flamboro races 260 days of live harness
racing a year, and is the first Canadian racing operation for Canadian-based Magna.
Blood-Horse Interactive reports that Eric Nelson,
owner of Playfair Race Course in the state of
Washington, has asked the state racing commission to suspend the track’s 2003 live racing season while he operates simulcasting elsewhere to
pay for 2004 racing operations. His move came
in the face of proposed House legislation that
would raise the tax on tracks with less than $50
million in handle from .51% to 1.803%. The tax
increase would provide the state with
$179,000 of the $280,000 it needs to regulate Playfair.
April 21, 2003
QUEBEC FACES UNCERTAINTY
CASH COW SCARES SENATOR
What happens next to harness racing in Quebec
is anyone’s guess, following the victory of the
Liberal party in last week’s provincial election.
Paul Delean, who covers racing for the Montreal
Gazette, wrote today that the election “may eventually be positive for Quebec’s horse racing industry, but in the short term it’s the worst-case
scenario.” Delean based that on the fact that it
extends for weeks, and potentially much longer,
the uncertainty of the situation, in which purse
subsidies were cut off last fall and slots negotiations have been prolonged with the finance minister, Pauline Marois. Nobody, Delean writes,
should expect a new finance minister to rubberstamp something negotiated by a predecessor,
especially one of a very different political stripe.
The new premier of Quebec, Jean Charest, is a
controversial and unpredictable figure. He is the
first Quebec premier, the Toronto Star reports,
whose mother tongue is English and the first not
to have attended a classical college. The paper
ran a long article on him that gave two sharply
contrasting views. The lead of the story read,
“Not only his capacity to win votes in Frenchspeaking Quebec has been questioned, but his
judgment, his intelligence, his fortitude and his
identity.” Then, acknowledging that he had prevailed above all that, it reported, “Jean Charest
may not be an intellectual given to quoting Latin
or dramatist Jean Baptise Racine, but he has a
quick mind and a lawyer’s ability to take a brief
well and soak up a wealth of details. He can be
brutally and mischievously funny, sardonically
self-mocking and does not take himself seriously.
Time with Charest involves a lot of laughter -but he can also be cool and distant, stubborn and
proud.” Sounds like he might be interesting to be
around, but whether HTA’s member Hippodrome de Montreal finds him amusing
or receptive to its problems remains to be
seen.
A Pennsylvania state senator who favors slots at
the state’s racetracks also fears that political
monies being tossed around for the valuable licenses could overwhelm the state’s political system with their new-found wealth, according to a
story in today’s Philadelphia Daily News. The
paper’s Bob Warner quotes Senator Vincent
Fumo as saying, “We’ve never had this kind of
cash cow in Pennsylvania. There is so much
money involved, whoever ultimately gets the various gambling licenses...will be able to exert enormous influence over the Legislature and local
officials as well.” Warner’s story refers to a
group of heavy-hitters led by Republican fund
raiser Manny Stamatakis who are trying to get a
license for a harness track at the old Philadelphia Naval Shipyard, and another in western
Pennsylvania chaired by Ron Rubin, whose partnerships, the paper says, contributed $245,000
to governor Ed Rendell over the past three years.
Fumo said he had received a lot of money himself from people interested in the licenses, “but
this is one issue where I’ll put on a white hat that
will glisten in the sun like a mirror....I want to
make sure that once we pass the law, it will have
really good restrictions and good ethical standards.”
In another Pennsylvania development, state representative Mike Veon is expected to introduce
legislation in the next few weeks that would legalize video keno in bars and restaurants in the
state. The bill reportedly will be co-sponsored
by the chairman of the House Liquor Control
Committee, Republican Ron Raymond.
VERNON LICENSE VOTE TODAY
As the Newsletter goes to press, the New York
Racing and Wagering Board is meeting in
Albany to consider a track racing and simulcasting license for Vernon Downs.
NEW CD FOR HTA TRACK SPOTS
Harness Tracks of America has produced a new
CD containing 17 commercial jingles for harness
racing. There are six separate commercials, five
of them recorded in a 60-second, 30-second and
10-second format, with each containing closing
musical background for recording sound-over local promos for the track using the commercials.
The CDs are being shipped to the action officers
of all member tracks, and additional copies are
being shipped to track advertising agencies. If
you need more CDs, give us a call.
YEAS AND NEAS ALL OVER
Depending who and where you are this week, the
news is either good, bad, or maybe.
If you’re a track operator in Illinois, the news is
good. The president of the Illinois Senate, Emil
Jones, has said legalizing slot machines at the
state’s racetracks could help Illinois dig out of
its budget deficit, and sounded as if he intends to
support the idea.
If you’re a track operator in Massachusetts, the
news is bad. The chairman of the House Government Regulations Committee, Daniel E.
Bosley, says he does not think the state will see
any form of expanded gambling next year.
Bosley said two critical House votes last week
against the idea were critical in setting the tone
of the debate, and he doubts the House will
change its mind. “I’d say the House will stick to
its guns on this,” Bosley told the Berkshire Eagle’s
Erik Arvidson. “It’s just a really difficult budget year and the worst thing we can do is pull
rabbits out of our hats.” Bosley made the situation in Massachusetts sound very much like
Maryland, where the governor and state
senate spoke up for slots at tracks only
to have the House rise up and knock them
down.
April 22, 2003
If you’re a track operator in New York, hold your
hat. While governor George Pataki, senate majority leader Joe Bruno and assembly leader
Sheldon Silver -- the three men who run the state
-- all want to get slots in operation quickly at
tracks, they still haven’t passed amendments that
would make it palatable for tracks to do so. Still
being discussed are amendments to the 2001 enabling law which would allow longer hours of
operation, extend the sunset provision to 10 years,
and change the splits between the tracks, horsemen and the state lottery. The talk is that tracks’
share could be raised 5.25 points from 12.5% to
17.75, but the horsemen’s cut is still up in the
air. The chairman of the Assembly Racing and
Wagering Committee, Alexander Gromack, told
the Albany Times Union’s James Odato, “The
object is to be back in Albany Monday to adopt
a budget and, obviously, this would be an important revenue source for education and to the
tracks.” Gromack said the tracks should have a
deal by Monday. What kind of a deal remains a
matter of speculation.
If you’re a track operator in Kentucky, it may
be good news if you think House speaker Jody
Richards can be elected governor, and less good
news if you don’t. Richards says he would support a constitutional amendment to allow slots
at tracks, and “maybe a couple of other places
that particularly want them.” The rest of the
candidates, Democrats and Republicans, are less
encouraging, or at least less forthcoming, in their
support of the idea.
If you’re hoping to open a casino in Maine, as
the Penobscot and Passamquoddy tribes are, the
news is bad. L. L. Bean, the 91-year-old retailer
based in Freeport, has announced that it will contribute money to fight the proposed $650 million casino in southern Maine, in the interest of preserving what it calls “a positive
and recognizable ‘brand identity.’”
EVERY 40 YEARS OR SO
Thoroughbred Times reports that Keeneland
Race Course is excited about the prospects of a
polytrack artificial racing surface tested successfully in England this year. Track officials flew
to England to see it, and are considering using it
for their year-round training track, provided it
can be manufactured in the U.S. to avoid huge
shipping charges. Realizing fully that technology progresses by huge leaps and bounds, and
that reports from England on the new surface
are absolutely glowing, we cannot help recalling
trudging to Hempt Farms in Mechanicsburg,
Pennsylvania, in the mid 1960s for the first demonstration of a synthetic strip there. It was not
demonstrated by some local rinky-dink outfit,
but by mighty 3-M -- Minnesota Mining and
Manufacturing -- and shortly after the initial test
it was installed on the full five-eighths mile racing strip under battle conditions at The Meadows south of Pittsburgh, with great fanfare. Initial reports were good, and then deterioration began to set in and horsemen began to report problems, with the track and with their horses. The
Tartan track, as it was known because of 3-M’s
tartan plaid, lasted a year or two, and now rests
in a refuse dump in Tartanland or somewhere.
That doesn’t mean that the new track won’t be a
phenomenal success. We hope that it is, and wish
Keeneland well, but that afternoon in Pennsylvania, and subsequent evenings at the Meadows,
sprang to mind with the news.
THE ROCK REINCARNATE
It is now just a month until Rockingham Park in
New Hampshire returns to its roots, with a brand
new harness racing meeting. The Rock hosted
Grand Circuit racing in 1912, and had harness and thoroughbred racing from 1958
until 1980, when the track burned down.
It returns May 24 as an HTA member with a
harness meet until Sept. 1.
April 23, 2003
Rockingham will open its stable area May 5 with
600 horses on the ground and 100 shippers, and
will conduct live racing Wednesday, Saturday
and Sunday afternoons and Friday nights, with
special holiday cards on Memorial Day and Labor Day. Old driving favorites like Bruce
Ranger, Ted Wing, Mark Lancaster, Joe
Schwind and visits by Jim Doherty will brighten
the scene, and with nearby HTA member
Plainridge Racecourse in full bloom the harness
scene will shine it brightest in years this summer
in New England. Rockingham’s mile track
should be a magnet for stables with young horses,
and its feature events have been named for wellremembered heroes and heroines of past action,
including Mountain Skipper, Yankee Bambino
and Belle Action. One of the sport’s top events
for 3-year-old trotters, the Zweig Memorial, is
moving from the state fairgrounds in Syracuse,
NY, to Rockingham on August 9, and will carry
an estimated $325,000 purse.
WALNUT HALL LTD. SUES USTA
The United States Trotting Association is back
in court, or will be soon, after Walnut Hall Ltd. ,
owned by Meg Nickells Leavitt and her husband
Alan, filed suit over the embryo transplant rules
that have stirred much controversy in the sport.
The request is for a declaratory judgment, injunctive relief and money damages over non-registration of declared twin foals from the valuable
broodmare Amour Angus. USTA, after considering the likelihood of legal action, voted at its
March meeting to register only the first foal of a
mare, thus precluding registration of a second
embryo-transferred foal from Amour Angus as
a twin. A May 12 hearing in the common pleas
court of Franklin county, Ohio, will involve
Walnut Hall’s request for a preliminary injunction
to require USTA to register the foals in
question. Money damages will be considered at a later hearing.
April 24, 2003
CREATIVE REBATING
LONG LIFE, SHORT MEMORY
Racing has been faced with a serious rebate problem in recent years, and North Dakota has come
up with one solution: change the law on takeout. When attorney general Wayne Stenehjem
discovered in 2001 that one gambler was betting
$160 million a year at Racing Services in Fargo,
he hired an investigator to audit the bettor, and
found no wrongdoing. So to keep the bettor in
North Dakota after the racing commission said
he might leave, the Senate and House voted to
lower the tax rate on a graduated scale, in effect
rewarding the state’s biggest betting customer
and giving Racing Services greater flexibility to
keep the man who provides North Dakota with
94% of its total betting handle and reportedly is
North America’s biggest bettor. A Senate-House
conference and gubernatorial signature still are
needed to pass the legislation.
Yesterday’s Newsletter item on Keeneland looking into a synthetic track was right on that score,
but it sure wasn’t right about 3-M’s Tartan track
at The Meadows and elsewhere, and the editor
heard about it microseconds after it appeared.
First The Meadows, where the late Delvin Miller
introduced the track, informed us that the original 3-M track is not “in a refuse dump in
Tartanland or somewhere,” as we reported, but
right there at the Meadows, where -- at Miller’s
suggestion years ago -- it was left in place and
used as the highly successful base for the limestone track that now rests on it. The Meadows
will honor it, incidentally, on its 40th anniversary night June 28, reprinting the original past
performance program of that night (35 cents)
with the cover reading, “First in the world with
3M Tartan Brand Surface.” That was followed
quickly by an e-mail from Windsor Racway, reminding us that HTA track used a Tartan surface for 13 years and probably still would be if
there had been adequate knowledge at the time
of proper maintenance. Then Tom Charters,
now president of the Hambletonian Society but
in an earlier incarnation racing secretary at The
Meadows, recalled that Delvin Miller always
maintained the Tartan track would have succeeded if the adhesive hadn’t been damaged by
graders pulling the Tartan away from its asphalt
base in spots. Water got between the rubber and
asphalt and each winter would freeze and thaw,
creating bubbles in the surface. This concludes
the history of the Tartan track in this space, although we have received still other memos and
reminders that the track’s Tartan history was a
lot longer than our memory.
A PALACE REVOLT OF SORTS
It most likely -- and hopefully -- will be shortlived, but 17 racetracks and their OTB facilities,
acting through their simulcasting purchasing cooperative MidAtlantic Cooperative, announced
a palace revolt of sorts yesterday. They informed
Churchill Downs that they rejected Churchill’s
“last and final” offer of terms to receive simulcasts from six Churchill-owned tracks, announced they were blacking out simulcasts from
those tracks, and apologized to their customers
for “any inconvenience that this may cause.” The
Cooperative said a major concern was “unprecedented rates” for the Kentucky Derby if a master agreement could not be reached. Given that
major venues like the Meadowlands, Monmouth
Park, Philadelphia Park, Penn National, Delaware Park, Pimlico and eight HTA harness tracks
are among the Cooperative’s members, it
would seem reasonable to assume that
some compromise will be reached between
now and the Derby, which will be raced a week
from Saturday. Too much appears at stake.
JUST IN FROM WOODBINE
The 2003 Media Guide, harness and thoroughbred combined, as always a huge, slick,
superbly professional compilation.
April 25, 2003
NON-BEIRUT BOMBING RUNS
A BOLD SORTIE IN LOUISVILLE
Things may have quieted down in the air over
Iraq, but not over racing and gaming.
Billy Reed is known more as one of the nation’s
best sports columnists than as a bomber pilot,
but he unloaded a blockbuster that will be heard
around the racing world in a long three-part feature on an online news service called Snitch, edited by Reed’s former Louisville Courier-Journal colleague Richard Des Ruisseaux. The article was headlined, “No one doubts that Alex
Harthill is a veterinary genius; but no one wants
to talk about the other side of....Dr. Fix-It.” Reed,
who wrote for Sports Illustrated between engagements in Louisville, talked about Harthill, at
length without pulling punches, although he
started the story with a punch from Harthill that
knocked Reed down 35 years ago while he was
covering the Dancer’s Image Kentucky Derby
disqualification for the Courier-Journal. Among
other things, Reed called Harthill “a hot-tempered, violent man...arguably one of the most significant characters of American sport. In no
other major professional sport does an owner,
manager, coach, trainer or doctor have the ability, through working with several entrants in the
same event, to directly affect the outcome....If
Harthill has been meddling with the Derby for
more than 50 years, as the evidence strongly suggests, his best protection is the outrageous boldness and audacity of the possibility.”
The first big sortie came in the skies over Illinois, where governor Rod Blagojevich dropped
a megabomb, announcing his legal, budget and
policy teams are “aggressively” exploring the
idea of taking back Illinois’ nine existing casino
licenses and hiring a management company to
operate the riverboats for the state. Casino operators, who were jolted recently by the
governor’s proposals to raise $200 million by increasing the tax on the riverboats to as high as
70%, screamed at the new bomb, calling it “preposterous” and questioning its legality, but stopping short of saying Blagojevich could not do it.
Jan Jones, senior vice president of communications and government affairs for Harrah’s Entertainment, said he didn’t know “if Illinois
would want to be a defining state for coming in
and seizing private property,” but he also said
that “One thing I’ve learned in Illinois is everything is possible.” The president and CEO of
the Will county Center for Economic Development, where a riverboat is located, said, “If this
is intended to get people’s attention, I think he’s
got it. Maybe he still wants to float some other
ideas. I can’t really figure out the intentions of
this guy.” A state legislator called the idea “mind
boggling” and a legal nightmare. The governor
said a $5 billion deficit is forcing him to keep an
open mind about gambling expansion, and he
said adding slot machines at the state’s racetracks
would not necessarily be an expansion of gambling. “You can debate the semantics of whether
that’s expansion or whether that is just providing more positions for existing places where gambling occurs,” he said. The anti-gambling
zealot Rev. Tom Grey, who is based in Illinois, said, “This is not the Land of Lincoln,
it is the land of the deal.”
MORE PLEASANT DERBY NEWS
For the second time in less than two months, a
racing man ceremoniously opened the NASDAQ
stock market today. Thomas H. Meeker, president and chief executive officer of Churchill
Downs Inc., opened the market this morning,
accompanied by other racing partners and associates including New York City OTB president
Raymond Casey. The event marked Churchill’s
10th anniversary on NASDAQ. Bernard
Goldstein, chairman and CEO of Isle of
Capri casinos and HTA member Pompano
Park opened the NASDAQ on March 4.
April 28, 2003
TRACKS, CHURCHILL AGREE
NEW POLICY, AND A GOOD IDEA
The four-day boycott by 17 eastern tracks of simulcasting signals from Churchill Downs tracks
ended Saturday, when Churchill and the
MidAtlantic Cooperative, representing the
tracks, reached accord. No terms were announced, but both sides expressed relief at the
one year agreement. Karl Schmitt, Churchill’s
vice president of simulcasting operations, said the
track was “pleased to have reached an agreement
that allows us to achieve our short-term objectives and look forward to a long-term partnership with the MidAtlantic member tracks.” The
accord clears the way for the megamillion day of
simulcasting this weekend on the Kentucky
Derby.
When the members of the Association of Racing
Commissioners International chose New Jersey’s
Frank Zanzuccki as chairman-elect at their convention in Seattle Saturday, it marked a welcome
turning point in commission policies in this country. Zanzuccki is not a racing commissioner. He
is director of the New Jersey commission, and he
becomes the first non-commissioner ever chosen
to lead the ARCI. The absence of professional
staff directors, as opposed to politically appointed
racing commissioners, was one of the reasons for
the divisive formation of a second organization
of racing commissioners six years ago. That rift,
incidentally, appears to be healing, despite a
flurry of juvenile banter on the issue last week,
when the second organization, the North American Pari-Mutuel Regulators Association announced it had authorized its executive director,
Frank Lamb, to work with RCI in arranging a
joint conference, at a site to be determined, for
the spring of 2004. In another piece of racing
commission news, the executive director of the
Illinois Racing Board, Walter Dudycz, announced his resignation in the face of changes
being implemented by new governor Rod
Blagojevich.
MICHIGAN GETS SLOTS BILL
The Republican speaker pro-tempore of the
Michigan House of Representatives has introduced a bill that would allow each of the state’s
seven racetracks to operate 500 or more video
lottery terminals. The legislator, Larry Julian,
is the second ranking Republican in the House,
and the slots bill is part of a package he proposes
called Agricultural Enhancement. “The primary
mission of this bill,” he told the Michigan Harness Horseman, “is to enhance and help the entire equine industry, meaning all breeds. A horse
is a horse is a horse. I don’t particularly care
whether a horse races with a sulky or a jockey or
pulls a cart. The entire equine industry is suffering and we need to help the entire industry.”
Julian represents 90,000 voters in Shiawasee
county, and has been a friend of the agricultural
industry, including racing, for years. “I was born
and raised on a dairy farm,” he says, “so I understand the challenges that people in agriculture face every day.” The governor of
Michigan, Jennifer Granholm, has not yet
come down on either side of the issue, but
Detroit and its casinos oppose the idea.
THE MAN AND THE COUNTRY
Australia’s richest man, Kerry Packer, is squaring off with his government. Packer wants the
country to change its interactive gaming laws and
allow citizens to bet on sports through their television sets. The minister for racing and gaming
vigorously opposes the idea. Watch this one.
FRIEND LOST, ANOTHER SAVED
Racing has lost Marty Tuczinski, former vice
president of Capital OTB, who died at 70.
Good news, however, that Norman
Woolworth, who suffered a stroke, is being
transferred to a recuperation center.
April 29, 2003
DETENTION FOR BELMONT?
HOW BIG IS BIG? REAL BIG
The New York Racing Association’s announcement that all horses entered in the Belmont
Stakes, third leg of thoroughbred racing’s Triple
Crown, will have to be stabled in one Belmont
barn for a day before the classic race has created a stir among major trainers. This is not
news in harness racing, of course, where North
America’s two largest tracks -- the Meadowlands
and Woodbine -- have a nightly detention barn,
or retention barn as Woodbine calls it, in part
because of the large number of ship-ins in the
sport. All trainers don’t like it, but both tracks
do it. At Belmont, red hot trainer Bobby Frankel
called the idea “stupid” and announced “I’m not
going to do it,” a refrain that brought to mind a
similar crisis in harness racing 37 years ago at
Hollywood Park over a totally different matter.
Western Harness Racing’s biggest race at the
time, the American Pacing Classic, was shaping
up as a terrific contest, with Bret Hanover scheduled to meet the imported New Zealand sensation Cardigan Bay. General manager Pres
Jenuine announced that all sulkies used in the
big race would have to use wheel disks, which
seems hard to believe now because no trainer
today would take a horse to the track without
them. Bret Hanover, a winner of 62 of 68 lifetime starts and Harness Horse of the Year as a
2-year-old, 3-year-old and 4-year-old, something
no other pacer accomplished before or since, was
trained and driven by the great Frank Ervin.
Ervin informed Jenuine he would not put wheel
disks on Bret Hanover’s sulky. Jenuine informed
Ervin that it was Ervin’s call, but that if he didn’t,
he wouldn’t race in the American Classic. The
confrontation of Bret and Cardigan Bay was akin
to the meeting of Seabiscuit and War Admiral, but
Jenuine stuck to his guns. Bret Hanover
used wheel disks, but both he and Cardigan Bay were upset by the 3-year-old True
Duane in the Classic.
When legislatures are considering whether to
allow VLTs at racetracks to help the tracks, their
related agricultural industries, and state treasuries, they might want to glance at some numbers
released by Statistics Canada. For openers, net
revenue from government-run lotteries, video
lottery terminals and casinos, which was $2.7
billion in 1992, was $11.3 billion in 2002, of which
$6 billion was profit. Those numbers came from
8,650 machines at 15 racetracks in Ontario, 5,621
machines at 16 charity casinos in Alberta, and
624 machines at 2 of 7 tracks in Alberta. Employment in the gaming industry rose from
12,000 in 1992 to 42,000 in 2002.
DIRTY TRICKS STILL WITH US
If you were around during the Richard Nixon
years, you’ll remember dirty tricks. Nothing
imaginable was too low to try. They’re still with
us, as those hoping to get slots at tracks in Florida
are finding out. Something called Floridians for
Family Values, formed late last month, has been
circulating anti-gambling literature. The group
was formed, according to the St. Petersburg
Times, by Cory Tilley, a lobbyist who is a former
communications director for Gov. Jeb Bush.
Tilley refused to tell the Times bureau chief in
Tallahassee, the state capital, who paid him to
form the group, who is financing the campaign,
or how much money will be spent. He said “certain people in the business community” were concerned about the pending legislation and wanted
to do something about it. A lobbyist supporting
slots legislation, Ronnie Book, had a different
view on the matter. “Opponents should be forthright enough to put a face on who they are instead of hiding behind a name and a label,” he
said. Two women, who Tilley said he does not
know, were listed as officers of Floridians
for Family Values. One of them said she
has no idea how her name got used.
April 30, 2003
NEW DEAL AT ROSECROFT
AND A POSSIBLE DEAL IN NY
Delaware North’s Sportsystems is poised to become a 75% majority owner of Rosecroft Raceway, under an option deal it has struck with Centaur, which has contracted to buy the track.
Centaur, which still needs state approval from
the racing commission before finalizing its deal,
will amend its application to include Delaware
North, which will finance virtually all of the $55.4
million acquisition cost in exchange for its 75%
interest option. The purchase price from Cloverleaf Enterprises, which owns the track, calls
for $10 million for the track and $45.4 million in
purses over the next ten years. The Washington
Post reported that Centaur has invested $2.5
million in the deal, plus miscellaneous expenses
for lobbyists and legal fees, and will not invest
more in the project. Jeff Smith, president and
CEO of racing for Centaur and former president
of HTA member Hoosier Park, said Centaur always planned to bring in a partner at some point
in time, whether slots legislation passed or not.
Delaware North’s vice president Bill Bissett said,
“We see an opportunity here. We want to be
part of this, and feel we can bring a few things to
the table to make this a better experience for
Rosecroft.” Sportsystems owns seven horse and
dog tracks, and its Wheeling Downs in West Virginia has 1,600 slots and attracted more than two
million customers last year. Bissett said he didn’t
think slots in Maryland were a foregone conclusion, but noted that they had “provided an economic engine” in West Virginia. Sportsystems
will operate Rosecroft, and the deal marks the
return to harness racing of Delaware North’s
chairman, Jeremy Jacobs, whose company once
owned Buffalo Raceway. His father, Lou, built
the empire that now holds contracts to operate concessions in airports, national parks and
sports stadiums around the country.
Jacobs also owns the Boston Bruins of the
National Hockey League.
New York state legislators have reached accord
on what they’re willing to offer on VLTs for the
state’s tracks, but there is no indication whether
Gov. George Pataki will agree with them. Under the proposed plan, tracks will receive 20.25%
of slots revenue for the first three years, horsemen would receive 7.5%, and breeding funds
would get 1.25%. In the fourth and fifth year,
tracks would get 20%, purses 7.75%, and breeding funds would remain at 1.25%. Then, in the
sixth through tenth year, tracks’ share would
drop to 17.5%, horsemen’s share would rise to
10%, and the breeding funds would get 1.5%.
The sunset provision would increase to 10 years
instead of 5, and tracks could operate the VLTs
16 hours a day, consecutively, rather than 12 in
the current law. Still under discussion is whether
New York’s off-track betting parlors would be
allowed to have slots.
MAJOR MOVE IN DRUG TESTS
In what could be a major development in thoroughbred racing, the American Graded Stakes
Committee will begin implementing a drug testing plan for horses participating in major stakes
races. The plan was announced at the Association of Racing Commissioners International
meeting in Seattle by Andy Schweigardt, director of industry relations and development for the
Thoroughbred Owners and Breeders Association. Schweigardt, a former HTA staff member,
told the racing commissioners that performing
the tests would be a requirement of grade eligibility by the stakes committee, and that the committee felt the protocol was necessary to protect
the classification system. “The trustees have an
extreme desire to maintain the breed’s integrity,
and we think it will ensure the integrity of our
graded stakes.”
Harness racing’s
Hambletonian Society imposes its own restrictions on Butazolidin and Lasix in the
Hambletonian and Hambletonian Oaks.
TRANSCRIPTS ON HTA WEBSITE
Four of eight panel discussions at the recent HTA/
Thoroughbred Racing Associations/Racetracks of
Canada joint convention in Florida now are on the
home
page
of
HTA’s
Web
site,
www.harnesstracks.com, in the clear for all who
wish to read or download the discussions. The remaining four, including the convention’s all-star
racing management panel, will be posted next
week. Available currently are:
The Hunt for Red October: Finding the
Undetectables, with Drs. Ken McKeever of
Rutgers, Scot Waterman of the Racing and Medication Testing Consortium, and Dr. Michael Weber, manager of veterinary services for the Canadian Pari-Mutuel Agency.
Television and Simulcasting, with mathematician
and racing fan Tom Graham; Bennett Liebman,
coordinator of the Racing and Wagering Law Program at Albany, NY, Law School; Chip Tuttle, partner in Conover Tuttle Advertising and PR; and
Maury Wolff, racing economist, writer and professional player.
Women as Racing Fans: An Objective or an Afterthought?, with Penny Chenery, thoroughbred
spokeswoman extraordinaire and owner of Secretariat; Mary Midkiff, author of the bestselling
She Flies Without Wings: How Horses Touch a
Woman’s Soul; and David Rovine, director of
marketing at Gulfstream Park.
The Coverage and Non-Coverage of Racing, with
Andrew Beyer, racing columnist of the Washington Post; Bill Christine, racing writer of the Los
Angeles Times; Steven Crist, editor and publisher
of the Daily Racing Form; Bill Finley, racing
writer for the New York Times; Allen Gutterman,
director of marketing at Hollywood Park; Charlie
Leehrsen, executive editor of Sports Illustrated; and Neil Milbert, racing writer for
the Chicago Tribune.
May 1, 2003
LEGISLATE, NOT LITIGATE
The issue of whether a state can mandate disparate and discriminatory tax levies against various
kinds of gambling it offers was heard by the United
States Supreme Court this week, and not too promisingly for Iowa’s tracks. The case involves the
differential that has existed in Iowa between taxes
levied on racetracks and on riverboat casinos, with
the former taxed as high as 36% and the riverboats
20%. A district court ruled the state had the right,
but the Iowa Supreme Court ruled it did not, and
ordered a $112 million rebate to the tracks. The
state turned to the Supreme Court for help, and
seemingly will get it, judging from views expressed
at the hearing. To head off the likelihood, a compromise has been struck in the Iowa House. It
would ensure that Iowa receives no less in the future in gambling revenues than at present; that
any revenue over the current $210 million would
be split evenly between the state and the tracks;
that the tracks will forgive the $112 million tax
refund award; and that they will pay an additional
$36 million, representing the difference between
the 20% they have been paying since the state
Supreme Court decision and the 30% tax being
proposed in the present bill. If casino revenues
continue to grow as they have at 3% a year, the
effective track tax rate would wind up at 20% in
another 12 years. There is a fly in the political
ointment, however. The Senate is due to adjourn
at the end of this week, and its Republican majority leader so far has taken no action to bring the
bill to the floor for a vote.
WOOLWORTH RECOVERING
Owner-breeder Norman Woolworth is recovering
from illness that struck him while driving north
from South Carolina. He currently is at a care center in his native Connecticut. Cards and letters
can be sent to Clearview Stable, P.O. Box 575, New
Canaan, CT 06840-0575.
CASE BURNS ANOTHER BRIDGE
Walter Case wins a lot of races and has a lot of
problems, the biggest being that every time he
takes his foot out of the stirrup he shoots himself
in it. Already persona non grata in the east, he
now has been excluded at his home base, Northfield
Park in Cleveland, after still another suspension
for kicking horses. Case has been a vexing problem for Cliff Nelson, the executive director of the
Ohio Racing Commission, who has fined him tens
of thousands of dollars, to no avail. After Case’s
latest violation of the kicking rule, Nelson upped
the penalty to 35 days, which triggered Northfield
Park’s rule that violators who receive penalties of
more than 30 days are barred, even during the
pendancy of appeals. Northfield COO and executive vice president Tom Aldrich called it “a shame”
that Case is now barred, saying, “Walter controls
his own destiny, and I continue to hope that he finds
within himself the grit and common sense to overcome this problem once and for all.” Case won his
11,000th victory April 23 in a race at Northfield,
and trails only Herve Filion in victories. Filion now
has won 14,890 races and will continue his quest
for 15,000 at Pocono Downs in Pennsylvania.
In other suspension news, the Illinois Racing Board
set down trainer Gerald Hansen for 120 days and
fined him $1,000 for a fourth positive test for
milkshaking. While commendable, the penalty
reveals a discrepancy in racing commission actions
that still are so widely divergent that talk of uniformity is little more than lip service to the idea.
The Hansen suspension for four months for four
milkshaking violations is Illinois’ idea of justice.
In New Jersey trainer Monte Gelrod, who recently
had his fifth positive test, got five years. Overall,
however, attrition is playing a role in the game.
Gelrod is gone, Richard Chansky is gone, Doug
Berkeley is gone, and Justin Abbott is gone,
deported.
May 2, 2003
A WARNING COMING TRUE
At the recent HTA/TRA/Racetracks of Canada
joint meeting in Florida, a number of regulators,
legislators and track executives warned that racing was playing a dangerous game in making demands for larger shares of slots revenue on legislatures, which have the power both to give and take
away. The transcripts of those remarks will appear on the home page of HTA’s Web site next
week, and in an HTA Track Topics editorial at the
same time. They were underscored yesterday in
Pennsylvania when a Maryland investment
banker, testifying before the Pennsylvania Senate Finance Committee, told the legislators they
should not give away gambling licenses, but sell
them to the highest bidder at auction. The investment analyst, Jeffrey C. Hooke, a Wharton school
of finance MBA, said, “To date, the state governments in the United States have given all these
gambling licenses away for free. I think it’s time
to stop it.” He told the senators he thought doing
that could raise as much as $2 billion for the state.
To our knowledge he said nothing -- and perhaps
knows or cares nothing -- about racing as
agribusiness, certainly a major industry in both
Pennsylvania and Maryland, which is where he
hangs his hat.
The message in Florida, particularly from Ontario
regulators and track operators, was the need for
unity in approaching legislatures. That advice, unfortunately, is still remote to smaller minds that
would rather argue over the share for horsemen
and management. While Hooke was endangering slots at tracks in Pennsylvania, elsewhere in
the state Mike Ballezzi, the executive director of
the Pennsylvania Thoroughbred Horsemen’s Association, was accusing track operators of deception. He called the claim that tracks are firmly
behind the preservation, continuation and growth
of live racing “a smokescreen,” and implied
they were working to eliminate such requirements.
MANAGEMENT PANEL ONLINE
“Views of Racing, 2003.” the panel discussion featuring six of the nation’s top racing management
personalities, is now on the home page of HTA’s
Web site, www.harnesstracks.com. The discussion
is one of the eight panels from the first joint annual convention of HTA, the Thoroughbred Racing Associations, and Racetracks of Canada, held
recently at the Westin Diplomat in Hollywood,
Florida, to be carried in full on the HTA site. Panelists in the management discussion were, alphabetically, Bernard Goldstein, chairman/CEO of Isle
of Capri Casinos, and president, Pompano Park;
John Long, executive VP/COO, Churchill Downs;
Jim McAlpine, president, Magna Entertainment;
Chris McErlean, VP/GM The Meadowlands, and
president, HTA; Barry Schwartz, chairman, New
York Racing Association; and David Willmot,
president/CEO, Woodbine Entertainment Group.
The opinions and comments of these leaders of
the industry were well worth hearing in Florida,
and even more compelling in view of changes already evident in the industry since that time. The
transcript is recommended reading.
BIG M, MONMOUTH ON MARKET
George Zoffinger, president of the New Jersey
Sports and Exposition Authority, has announced
that the Authority is hiring an investment banking
firm to appraise the Meadowlands and Monmouth
Park, and on receipt of the appraisals will solicit
offers from interested parties to buy or lease the
tracks. What happens from there will be up to
New Jersey’s governor, James E. McGreevey, but
speculation already is running rampant, with Magna Entertainment, Churchill Downs, and major
harness racing names like Mal Burroughs, Bill
Perretti, and Lou Guida, who surfaced as an associate of McGreevey’s good friend George
Norcross.
May 5, 2003
The timing would appear to be good for the Meadowlands, which on Saturday saw more money bet
at the track than on any day in its 27-year history.
Fueled by Kentucky Derby betting, the on-track
handle totaled $5,935,858.70, breaking the former
record set last year of $5.6 million, also set on
Derby Day. Of the total, $2.1 million was bet on
Churchill Downs, and $1.2 million on the Meadowlands’ harness card.
The Meadowlands has been the anchor of the
Sports Authority’s operations, showing a profit of
as much as $23 million a year. Monmouth Park
earns between $3 and $6 million, and estimates of
the value of the two properties have been bantered
around in the $250 to $300 million range. Zoffinger,
in discussing the possible sale, said, “We would
want to make sure we had protection for our employees, the horsemen and the horse industry in
the state.” He said one possibility would be to sell
Monmouth separately, but acknowledged that
there were numerous options and alternatives, and
added that a condition of sale or lease would include a financial role for the Authority if VLTs were
approved for the tracks.
In a related development, a Superior Court judge
in Bergen county, where the Meadowlands is located, cleared the way for the $1.3 billion redevelopment of the Authority’s Continental Airlines
Arena site, dismissing the request by Hartz Mountain Industries, one of the losing bidders, to stop
the project.
ISLAND OTBS SPREADING OUT
Suffolk and Nassau OTBs are branching out, opening sites in restaurants and watering holes around
Long Island. Newsday reported Anthony Apollaro,
Suffolk’s new president, as saying, “We’re trying
to expand our base.”
May 6, 2003
OTHER VOICES IN JERSEY
PENNSYLVANIA RIVERBOATS?
It remains to be seen if their voices are heard, but
representatives of harness racing and thoroughbred racing responded forcefully at an informational hearing in the state Assembly yesterday after reports that the state is considering selling its
two showplace racetracks. The speakers were
talking about the threats to New Jersey racing
generally, not specifically about the proposed sale,
but they were adamant. Leon Zimmerman, lobbyist for the Standardbred Breeders and Owners
of New Jersey, told the Assembly’s Gaming and
Tourism Committee, “The life of the equine industry is on the line. You’ve got to do something.”
Barbara DeMarco Reiche, speaking for the state’s
Thoroughbred Horsemen’s Association, told the
committee, “Racetracks are our supermarkets. If
they close, we can’t sell our product.” No one has
been talking about closing the tracks, of course,
but it seems Gov. James McGreevey wouldn’t
mind selling them. At yesterday’s informational
session, Sports and Exposition Authority attorney
Arthur Winkler was asked, reportedly in not too
friendly tones, what is taking so long to establish
telephone and off-track betting in the state, approved by voters five years ago and legalized two
years ago. Winkler said that negotiations over
division of revenues have prevented the Authority from getting the system up and running. He
said “conceptual agreements” had been reached,
but said he could not accurately predict how long
it would take to formalize a statewide system. He
said original plans called for the state to work with
two track operators to develop 15 OTB sites, but
disagreements developed and state officials now
are planning nine sites on their own with the remaining six to be built and operated by private operators. Winkler said that plan will require state
AG and racing commission approval, and could
take up to five years to finalize.
As the gambling debate continues in Pennsylvania, the warnings expressed at the joint HTA/TRA/
Racetracks of Canada meeting again come to mind.
Those warnings, which can now be read on HTA’s
Web site, www.harnesstracks.com, made clear that
racing no longer controls or necessarily even sways
legislative and gubernatorial decisions, and needs
to give consideration to less demands and more
conciliation. The message was repeated yesterday when Gov. Ed Rendell of Pennsylvania said
he still supports slots at tracks, but also is open to
the idea of riverboats on the waters of the Keystone state. When he was asked at the Pennsylvania Association of Broadcasters convention in
Hershey if he would consider riverboats, he said,
“I’m always amenable to negotiation. I have no
pride in authorship. I haven’t ruled out anything.”
The slots issue is expected to come up for consideration in the Pennsylvania Senate next week, and
while Rendell said that opponents might try to
“Christmas tree” the bill with other gambling proposals, he was willing -- under certain circumstances -- to talk to House Democratic Whip Mike
Veon about his riverboat gambling proposal.
EXCLUSION UPHELD IN MICH.
With thoroughbred owner Michael Gill rattling the
saber of court action in Delaware over his exclusion from Delaware Park, the right of private establishments, including gambling establishments,
to choose their patrons and participants was upheld again yesterday in Michigan. The Michigan
Gaming Control Board found that the Greektown
Casino had the right to bar nine players last year
even though they did nothing illegal. State law,
the board said, “gives the casino the right to exclude a person deemed necessary by the casino.”
The Third District Court of Appeals also upheld
exclusion -- in Delaware -- as recently as last
year.
PA BREEDERS ROCK THE BOAT
With the lessons of neighboring Maryland unheeded, Pennsylvania’s standardbred breeders
yesterday told the state Senate Finance Commitee
that they could not and would not support slots-attracks legislation in its present form. Apparently
believing they have enough political clout to
change the legislation, or kill it, a defiant Max
Hempt, speaking for the state’s breeders, told the
committee members that breeders needed more
from the bill and that in its present form “that dog
just won’t hunt around here Let’s not pretend we’re
helping the people who actually built this industry
in our state. Why not just drop the fantasy that
the goal here is to boost Pennsylvania’s horseracing
and related agriculture businesses. These bills
simply give away slot machine gambling licenses
to track and gambling interests free and ignore
the needs of the folks who made quality horse racing happen in this state in the last century -- the
horse breeders of Pennsylvania.” His approach,
and that of the breeders, is a bold gambit. It may
work. If it does not, perhaps the breeders can figure out some alternate ingenious way to save
Pennsylvania’s racing industry as New York and
probably Maryland and Ohio in the not too distant
future introduce track slots, and West Virginia adds
more. If the breeders do not have an alternate
plan, or if the legislature listens to them and scraps
the idea rather than bend to their wishes or put up
with more divisiveness in racing, they have another
option. If the tracks do not get slots as a result of
their lobbying, the breeders and their customers
can always go back to racing their horses at the
Reading Fair, or in Ebensburg, or at Bloomsburg.
That’s their heritage too -- and perhaps their future -- along with “building quality horse racing in
the last century.” Tradition and history are not on
the side of horse racing these days. Slots, not
Seabiscuit, might save the sport.
May 7, 2003
Racing is suffering. Despite all the hype and press
releases, Santa Anita just wound up its most dismal season. TV ratings were down 8% for the
Kentucky Derby. The pageantry and lore of racing, revered by all in it, is not bringing people to
the track. Quibbling about percentage points is a
dangerous game to play in a day when legislatures
have options. Even the big casino companies are
not immune. The mayor of Chicago now is talking
about a city-owned and operated casino downtown,
and the governor of Illinois is talking about taking
back nine casino riverboat licenses and turning
them into state-owned operations. George Pataki
is signing a remarkable compact today with the
Mohawk Indians that assures the building of a
super casino at Kutshers in the Catskills. Prairie
Meadows in Iowa, faced with an adverse ruling in
the U. S. Supreme Court, has accepted a 30% tax
rate while riverboats in the state pay 20%. A new
government in Quebec may prove as difficult to
move as the one it replaced as far as help for Quebec harness racing is concerned. This is hardly a
time for heroics, in Pennsylvania or anywhere else
in racing. It is a time to take what you can get,
while you can get it. And it is time for unity, not
division.
MICHIGAN MORE REALISTIC
The picture in Michigan is a little brighter as far
as unity is concerned. Harness and thoroughbred
interests overwhelmingly supported VLT legislation yesterday in front of the House Agricultural
and Resource Management Committee, which is
considering a package of four bills. There were a
few dissenting voices, from Great Lakes Downs
and Indian tribes, but the Teamsters union joined
the tracks and breeders in supporting the package. The outcome is far from certain in Michigan,
however. Unlike Pennsylvania, there is no strong
support from the governor, and casino interests
already are fighting hard, and spending big.
May 8, 2003
A CHICAGO CASINO? BET ON IT
DON’T BET ON TEXAS, THOUGH
If you like sure things, bet on this one: Chicago
will have its own casino. When Richard Daley tells
his aldermen that “those who don’t want it don’t
have to take the money,” it’s time to get your bets
down. The mayor had more to say about his city
council, as quoted in the Chicago Sun-Times.
“Morally, if they object to it, they can stand up
and say, ‘We don’t want this money. I don’t want
the school. I don’t want the park.’ And they won’t
get it, then. Simple as that. You wouldn’t want to
hurt them. It’s like someone who says, ‘I’m against
the pay raise,’ but they’re the first in line to get
the paycheck. I always love those people. Profiles in courage.”
If there are going to be slots at tracks in Texas, it
looks as if the voters of Texas are going to have
to demand them. Governor Rick Perry, who a
month ago was acting like he might go for slots if
they were tied to preserving the state lottery, now
says the only way they will arrive is via the ballot
box, with voters approving them at the polls. The
state controller, Carole Keeton Strayhorn, has
been pushing VLTs to generate $712 million next
year to help close a $10 billion budget shortfall,
but it now looks as if she will have to delay her
plans. One legislator, implying he was speaking
for others as well as himself, said, “I don’t see it
happening. It’s just a personal deep down belief
that it’s wrong, it’s not the right thing to do.” So
we’ll probably have to look deep in the heart of
Texas next November to find out if he’s right.
That’s good old Chicago plain talk, a Daley family
trait, and it was given an added boost by Illinois’
new governor, Rod Blagojevich, who called Chicago “a very compelling place” for a casino and
urged Daley to enter the bidding for the state’s
tenth and final casino license.
In Springfield, the state capital, meanwhile, state
representative Lou Lang, chairman of the House
Select Committee on Gaming, introduced his own
bill -- as he told racing he would if they didn’t get
together -- calling for 3,200 slots to be distributed
among the state’s five tracks. Arlington Park
would get 1,000, Hawthorne 900, Maywood Park
700, and Balmoral Park and Fairmount Park each
300. Lang’s bill also calls for the tenth riverboat
license to go to the city of Chicago. Lang’s proposal calls for 15% to go to purses. In an interesting development in sharp contrast to Pennsylvania and Maryland where breeders and horsemen split and objected to their proposed shares,
the head of the Illinois Thoroughbred Horsemen’s
Association, which had been asking for 20%, said
of Lang’s 15% proposal, “I think we could
live with that.”
PATAKI IN CONTEMPT? C’MON
Joe Dalton, the president of the Saratoga county
Chamber of Commerce, represents the interests
of Saratoga Springs, a town made famous by gambling. He has been bitterly opposing slots in New
York, however, and yesterday his lawyer threatened to move to hold Gov. George Pataki in contempt of court if he signed a deal with the St. Regis
Mohawks. Whether it was the threat or not, an
announced signing scheduled for yesterday of a
landmark $100 million land claim based on a gaming compact was rescheduled, after two of the three
parties to the land claim suit objected and urged
elected chiefs to cancel the ceremony, according
to the Albany Times-Union. Pataki also is negotiating an even bigger land claim settlement, with
the Oneida nation. The Mohawks’ land claim,
which they offered to settle in exchange for the
gambling compact, involves 18,000 acres along the
Canadian border. The Oneidas are laying claim
to 250,000 acres in central New York.
TIME TO RALLY THE TROOPS
The House Judiciary Committee is preparing to
consider the Oxley-Leach Unlawful Internet Gambling Funding Prohibition Act next Wednesday or
thereabouts, and the American Horse Council is
concerned that current language permitting the use
of credit where licensed or authorized by a state
might be stripped from the bill. The Council thinks
it important that racing contact its Representatives on the Judiciary Committee to:
(1) support the current bill and specifically provisions 3(b)(1)(E)(ix) and 3(b)(7) which distinguish
state-licensed wagering, like horseracing, from offshore, unlawful Internet wagering;
(2) oppose any amendments to eliminate or change
those provisions; and
(3) report the bill to the full House for a vote.
Following are members of the Judiciary committee from states with harness tracks, or thoroughbred tracks owned by HTA members, with their
fax numbers, all area code 202. We also are posting on our Web site, www.harnesstracks.com, a
draft letter that you can edit and personalize and
fax to your Representatives on the committee.
California: Republican Elton Gallegly 225-1100;
Democrats Howard L. Berman 225-3196, Zoe
Lofgren 225-3336, Linda T. Sanchez 226-1012,
Adam Schiff 225-5828; Maxine Waters 225-7854.
Florida: Republicans Tom Feeney, 226-6299, Ric
Keller 225-0999; Democrat Robert I. Wexler 2255974.
Indiana: Republicans John N. Hostettler 2253284, Mike Pence 225-3382.
May 9, 2003
Illinois: Republican Henry Hyde 225-1166.
Iowa: Republican Steve King 225-3193.
Massachusetts: Democrats William Delahunt
225-5658, Marty Meehan 226-0771
Michigan: Democrat John Conyers Jr. 225-0072
New York: Democrat Jerrold Nadler 225-6923,
Anthony D. Weiner 226-7253.
Ohio: Republican Steve Chabot 225-3012.
Pennsylvania: Republican Melissa A. Hart 2262274.
Texas: Republicans John R. Carter 225-5886,
Lamar S. Smith 225-8628; Democrat Sheila Jackson Lee 225-3317.
Virginia: Republicans Randy Forbes 226-1170,
Bob Goodlatte 225-9681; Democrats Rick Boucher
225-0442, Bobby Scott 225-8354.
Fax your version of our Web site letter to your
Representatives before Wednesday.
CASINOS HUSTLING IN PA.
Nevada casinos are lobbying legislators in Pennsylvania to include land-based casinos there in
addition to slots at tracks. Boyd Gaming apparently has succeeded with the Speaker of the House,
John Perzel, who is urging such casinos for Philadelphia, his holding, and Pittsburgh. The chief
author of the legislation in the state Senate, however, says he doubts the Perzel bill would survive
in that house. “I just can’t see that much gaming
expansion through the Senate,” Senator Robert
(Tommy) Tomlinson said. Both Perzel and
Tomlinson are Republicans. When asked if he
thought he could get his idea passed, Perzel told
the Philadelphia Inquirer, “I don’t know.”
May 12, 2003
CLARIFICATION ON LEACH BILL
POLICE ARREST NUNZIATA
Last Friday’s issue of this newsletter apparently
created some confusion as to the position or consistency of the editor regarding H.R. 21, the
Oxley-Leach Unlawful Internet Gambling Funding Prohibition Act that is scheduled for consideration at 10 a.m. Wednesday morning by the House
Judiciary Committee. The editor still believes that
regulation of Internet wagering is vastly preferable to prohibition.
Freehold Township police arrested trainer-driver
Anthony Nunziata Saturday after he launched an
unprovoked assault in Freehold Raceway’s drivers’ lounge on three-time HTA Driver of the Year
Mike Lachance that sent the world’s second
money-winning driver to the hospital for 15 stitches
in his head. According to reports from the scene,
Nunziata had words with driver Catello (Cat) Manzi
following a race, and continued the argument in
the paddock area and drivers’ lounge. Lachance,
hearing the ruckus, said to Nunziata, “The race is
over. Why don’t you cool it?” whereupon Nunziata
used his helmet as a weapon and struck Lachance
on the head. Lachance, with blood gushing from a
deep cut, wrestled Nunziata to the ground in a
headlock and held him there until others, including his son Pat, took over, and he was taken for
medical assistance. It is not the first time Nunziata
has been involved in a brawl, and a steward’s inquiry will be held Wednesday morning.
The realities of Washington, however, need to be
considered in matters that threaten racing, and
consequently the preservation of present language
in Oxley-Leach is extremely important. That language, contained in sections 3(b)(1)(E)(ix) and
3(b)(7) distinguishes between legal, state sanctioned racing under which we operate and offshore,
illegal Internet wagering. The American Horse
Council believes, and we agree, that elimination
of the sections mentioned above would not simply
prohibit credit in connection with Internet gambling,
but could effectively restrict day-to-day wagering
activities of the U.S. pari-mutuel horseracing industry by limiting financial clearing transactions
with domestic wagering facilities. If that were to
happen, the AHC foresees it having a catastrophic
effect on the racing and breeding industry, the
states that rely on them for tax revenue and the
jobs they provide.
Accordingly, we recommend that you fax your congressmen and women, using the fax list we provided in last Friday’s newsletter, and ask them to
preserve the present language of the bill in the
provisions mentioned above. That list of members
of the House Judiciary Commitee who are from
states where our member tracks are located appears again today on the home page of HTA’s Web
site, www.harnesstracks.com.
O’DONNELL TO JUG FAME
Another HTA Driver of the Year, Bill O’Donnell,
was in the news this weekend as well, but with less
trauma. Winner of HTA’s highest driving honor in
1982 and 1984 and driver of the Little Brown Jug
winners Nihilator in 1985 and Barberry Spur in
1986, O’Donnell was announced as the Little
Brown Jug’s Wall of Fame honoree for 2003. He
will be honored at the annual Mayor’s Breakfast
at Ohio Wesleyan university in Delaware, Ohio,
on Wednesday morning, Sept. 17, the day before
the Jug.
PA SLOTS ACTION IMMINENT
State senator Robert (Tommy) Tomlinson has completed work on his slots-for-tracks bill in Pennsylvania and plans to present it to Republican and
Democratic caucuses as a trial balloon today, according to the Patriot-News in Harrisburg.
May 13, 2003
SLOTS GET FIRST ILLINOIS OK
PATAKI SIGNS; WHAT’S NEXT?
The gambling committee of the Illinois House
voted 8-2 yesterday to approve slots at the state’s
racetracks, but the president of the Illinois Senate says the bill has a long way to go and “there’s
going to be a lot of negotiations on that.” Opposition to the idea remains at a number of levels, including the distant Deutsche Bank Securities in
New York, where two researchers closely related
to the casino gaming industry, Marc Falcone and
Eric Hausler, recommend more slots at casinos and
none at tracks. How much attention the Illinois
legislature will pay to Falcone and Hausler remains
to be seen -- hopefully none -- but other areas indicate mixed reactions. An example came with a
vote on the issue by the village trustees of Arlington Heights, where Arlington Park is located. The
track stands to get 1,100 slots if the pending legislation is approved, but the trustees voted 5-4 to
suppress any formal action on the issue, either for
or against. A practical stance was taken by the
village’s mayor, Arlene Mulder, who said, “My
father said don’t do anything for money, but you’ve
still got to pay the bills.”
Gov. George Pataki of New York signed an agreement with the St. Regis Mohawks yesterday that
is regarded as clearing the way for a Mohawkowned, Park Place Entertainment-operated casino
at Kutshers Country Club, but don’t expect anything to happen soon.
PENNSYLVANIA NO CINCH
Time is growing short for the Pennsylvania legislature to act on slots at tracks there, and the Associated Press is reporting deep divisions among
state senators in Harrisburg. The chief of staff of
the Senate Republican leader told the AP that
“even if you polled all 50 members, I still don’t
think anybody knows what will happen until the
procedure is complete. There are just too many
variables to make an accurate prediction.” Democrats and Republicans held their own three-hour
meetings yesterday and are meeting again today
and tomorrow, before recessing until June 2. When
they return, they will consider other proposals of
the governor, including a 34% income tax
hike to meet the state’s budget crunch.
Park Place still holds the option to buy the 1,400acre Kutshers property, but after they do get
around to acquiring it and clearing other hurdles
facing the plan, it will take two years to build the
facility.
Complicating the issue, the Mohawks, 10,000
strong and divided, will vote June 7 on ratifying
the deal signed yesterday that provides a framework for settling their 220-year-old land claim
against the state. Another problem is that the New
York legislature, which hasn’t met deadlines on approving a state budget in modern memory, has to
approve the deal. The federal government has to
be heard from, also not a quick-draw prospect; and
the courts still are considering whether the whole
idea is legal. In short, if you want to gamble on
slots in New York at the moment, you had better
head for the Turning Stone near Vernon Downs or
Niagara Falls, or try Connecticut or New Jersey.
FIRST STEP FOR INDY DOWNS
Everything, it seems, takes time to get done, but
HTA’s new member Indiana Downs appeared to
clear its biggest hurdle yesterday in getting an
OTB location across the Ohio river from Churchill
Downs’ Trackside operation in Louisville. The
Clark county council approved, by a 5-2 vote, gambling in the county, and Indiana Downs now needs
only expected racing commission approval to move
ahead with plans for a facility in either
Jeffersonville or Clarksville, both facing Louisville.
GOODBYE TO ALL THAT
As expected, the House Judiciary Committee reported out H.R. 21 -- the Oxley-Leach Unlawful
Internet Gambling Funding Prohibition Act -- this
morning, and also, as expected here, the committee deleted the racing-friendly exclusion of “any
lawful transaction with a business licensed or authorized by a state.” The votes were unexpectedly close, 16-15 on both stripping the racing exemption from the bill, and 16-15 on voting it out of
committee. It will be considered next by the House
Rules Committee.
The American Horse Council advocated support
of the bill. HTA did not agree on supporting the
bill, but did actively respond to the AHC’s request
to urge congressmen to retain the exemptions.
In the editor’s opinion, there now is no way that
racing can do anything but oppose H.R. 21 vigorously in the House, and in whatever version it
reaches the Senate, unless language clearly stating the distinction between unlawful offshore
Internet wagering and legal betting authorized by
states is restored to the measure.
ADIEU TO PA SLOTS, FOR MAY
Not too unlike Maryland, the optimism that swept
over Pennsylvania that slots for tracks were a foregone conclusion has faltered in the stretch drive.
Both Pennsylvania legislative bodies have now
adjourned until June 2 without taking action on the
proposals backed by Gov. Ed Rendell. Principal
sponsor Tommy Tomlinson still predicts quick passage in June, saying “There’s no doubt we’ll get
this done.”
NY PASSAGE PROBLEMS TOO
Gov. George Pataki of New York has until midnight tonight to veto the budget proposal
sent to him by the legislature, and is expected to do so.
May 14, 2003
He’s due to explain his position in prime time this
evening on newscasts between 6 and 6:30, and part
of his plan will be to give 4,500 slots to three New
York City OTB teletheaters, a move he says will
provide $210 million annually for the state. Mayor
Michael Bloomberg and Assembly Speaker
Sheldon Silver don’t agree, setting up an interesting test of power for the governor, who normally
has his way in New York but has been losing public
support in recent polls. Silver called Pataki’s idea
“a waste of time” and asked, “Is there any doubt
now that the governor is out of touch with the
people he was elected to serve?” A poll conducted
by the Marist College Institute for Public Opinion
found that 55% of New Yorkers statewide prefer
the legislature’s budget proposal, which does not
include OTB slots, while only 35% prefers the
governor’s plan. That poll also showed Pataki’s
job approval rating had fallen to an eight-year low
of 37%, down 12 points from last month. Senate
Majority leader Joe Bruno, who usually is front
and center on key issues in New York state, was
quoted by an aide as “taking a look at it.” Strange.
Joe’s a leader in New York, not a follower, and it
will be interesting to see which way he jumps after
“looking at it.”
TIGHTENING SCREWS, A BIT
Lorna Propes returned to the Illinois Racing Board
as chair yesterday, and the board tightened requirements on medication...by an hour or two. Instead
of no medication 24 hours before post for a day’s
first race, it now is 24 hours before post time for
the race in which the horse is entered. Ms. Propes
also called for a task force on backstretch security. If, as reported, she thinks there’s a difference between security and integrity in harness and
thoroughbred racing . she’s off to a shaky start
on her second tour of duty. This fiction has been
perpetuated elsewhere, particularly in New York
racing law, and it is repugnant.
FINAL TRANSCRIPT ONLINE
With the posting today of the eighth and final transcript of the panel discussion sessions of the joint
HTA/TRA/Racetracks of Canada annual meeting
on the home page of HTA’s Web site --www.harnesstracks.com -- the full record of the
proceedings now is available to all interested parties.
Today’s posting is of the session on Off-Track
Betting, in which moderator Dave Johnson discussed the issue with Raymond V. Casey, president of New York City OTB; Michael Connery,
president of Capital District OTB; Mea Knapp,
then president of Suffolk Regional OTB; and Drew
Shubeck, vice president and general manager of
The Meadows.
Other panels and panelists already posted are:
The Hunt for Red October: Finding the
Undetectables, with Stan Bergstein discussing the
issue with Drs. Ken McKeever of Rutgers university; Michael Weber of the Canadian PariMutuel Agency; and Scot Waterman of the Racing Medication and Testing Consortium.
Racing Today and Tomorrow, with Bergstein moderating a panel including Ron Barbaro, chairman/
CEO of the Ontario Lottery and Gaming Corporation; Sandra Lang, deputy minister, Ministry of
Consumer and Business Service, Province of
Ontario; Fred Noe, executive VP, U.S. Trotting
Association; Bill Oberle, Speaker Pro Tem of the
Delaware House of Representatives; and Stanley
Sadinsky, chairman of the Ontario Racing Commission.
The Future of International Simulcasting, moderated by Chris Scherf of TRA, with Lorne Abony,
CEO of Columbia Exchange Systems; Scott
Finley, North American development manager, attheraces, and Bill Hogwood, president of TRNi.
May 15, 2003
Television and Simulcasting, moderated by Scherf
with panelists Tom Graham, mathematician and
racing fan; Bennett Liebman, coordinator, Racing and Wagering Law Program, Albany Law
School; Chip Tuttle, partner, Conover Tuttle Advertising and PR; and Maury Wolff, racing economist, columnist and professional player.
Women as Racing Fans: An objective or an afterthought? Dave Johnson moderating, with Penny
Chenery, thoroughbred spokeswoman
extraordinaire and owner of Secretariat; Mary
Midkiff, author of the bestselling She Flies Without Wings; How Horses Touch a Woman’s Soul;
and David Rovine, director of marketing,
Gulfstream Park.
Views of Racing 2003: Bergstein moderating a
panel including Bernard Goldstein, chairman/CEO,
Isle of Capri Casinos, and president, Pompano
Park Racing; John Long, executive VP and chief
operating officer, Churchill Downs; Jim McAlpine,
president, Magna Entertainment; Chris
McErlean, vice-president/general manager, The
Meadowlands, and president, HTA; Barry
Schwartz, chairman, New York Racing Association;
and David Willmot, president/CEO, Woodbine
Entertainment Group.
Coverage and Non-Coverage of Racing, moderated by Chris Scherf with Andrew Beyer, racing
columnist, Washington Post; Bill Christine, racing writer, Los Angeles Times; Steven Crist, editor-publisher, Daily Racing Form; Bill Finley, racing writer, New York Times; Allen Gutterman, director of marketing, Hollywood Park; Charles
Leehrsen, executive editor, Sports Illustrated; and
Neil Milbert, racing writer, Chicago Tribune.
The presentations can be downloaded from the
HTA Web site or read there. They will remain on the site indefinitely.
NY SLOTS GET LEGISLATIVE OK
In what former times would have been considered
startling, and still is surprising, the New York legislature last night overrode Gov. George Pataki’s
veto of its tax bill. A second veto -- and override - is likely on a second bill that modified several
provisions of the first.
The result is that New York state racetracks now
have what at least some of them have regarded as
a viable platform on which to move forward with
facilities for slots. Here is what last night’s veto,
and the second expected veto, means to tracks:
1) The sunset provisions on slots legislation now
is 10 years instead of 5.
2) Racinos can stay open up to 16 consecutive
hours instead of 12, but cannot be open after 2
a.m.
3) The split of revenues from slots becomes 61%
to education, 10% to the state lottery, and 29% to
the racing industry, instead of the previous split of
60% to education, 15% to the lottery, and 25% to
racing.
4) The split of the 29% for the first three years
will be 1.247% to breeders, between 10.242% and
20.503% to tracks, and between 7.25% and
7.511% to horsemen. In years four and five, breeders will get 1.2437%, tracks beween 20.01% and
20.503%, and horsemen between 7.25% and
7.743%.
5) The horsemen’s share at the moment cannot
go lower than 7.25%, and they can make a deal
with the tracks to lower their split to help make
the physical introduction of slots viable. If the
second amendment is passed over veto, as
expected, the horsemen’s share could drop
as low as zero.
May 16, 2003
6) There is nothing in the bill that gives VLTs to
OTBs, but that does not mean that as New York
gropes for added tax revenues to balance its budget, that eventuality could not happen.
7) There no longer will be minimum balances for
phone account wagering, and -- in a change that
can vitally affect harness racing -- there will be
unlimited out-of-state simulcasting, removing the
prohibition on thoroughbred tracks taking nighttime thoroughbred signals. Some hold harmless
language is in the bill to protect harness tracks
from evening thoroughbred simulcasting by OTBs.
8) The bill places a .39% levy on all bets to help
fund the Racing and Wagering Board budget, which
will significantly increase taxes harness tracks
have to pay.
9) Tracks are given the ability to fix their own takeout rates within a range stipulated by statute, but
the procedure is cumbersome and could result in
higher takeout at harness tracks and lower takeout at NYRA.
All of the changes desribed here are part of the
tax package vetoed by Pataki. It is not the New
York state budget, another matter entirely, but
changes affecting racing in the budget are minimal and not likely to be affected by legislative
changes to the budget.
Still at issue, of course, is pending litigation in New
York state. There is no indication when that matter may be resolved, and no apparent legal hurry
in the courts to address it. One motion has been
pending for six months without action. It is likely
that last night’s veto overrides will start the wheels
rolling on VLT facility construction. Three tracks
-- Saratoga, Yonkers and Vernon -- have indicated
as much, and VLTs now could be in operation
this year.
BUSCH SEES SLOTS FOR MD
The man who almost single-handedly stopped slots
at tracks in Maryland this year now says he thinks
they might be passed next year, and he knows how
he wants to see them run.
House speaker Michael Busch says he wants the
Ontario model for Maryland, with the state owning the machines, a third party running them, and
the state retaining a lion’s share of the profits.
The realization by states that they have valuable
properties in slots at tracks, and will be less generous in doling them out, was predicted with total
accuracy last December at the Tucson racing symposium by racing economist Bill Eadington of the
University of Nevada Reno. It is reflected in
Busch’s outlook and likely to become more pronounced, and tracks in New York (and hopefully
Pennsylvania and Illinois) should consider themselves lucky at this point.
There were interesting developments elsewhere
on the gambling scene.
In Illinois, Gov. Rod Blagojevich told the Associated Press that we would veto any gambling legislation calling for video poker at bars and restaurants. He called it “a dangerous, onerous form of
gaming that would hurt families and undermine
society,” and called the idea “kind of slimy and
kind of sleazy.” Chicago Sun-Times columnist
Mark Brown, commenting on that development,
wrote, “Now that Gov. Blagojevich has told us what
he’s against in the world of gambling, maybe he’ll
start giving us a few hints about what he’s for.”
Brown wrote, “Try as I might, I couldn’t get
Blagojevich to offer even a hint of what he thinks
about any of the other major items still on the
table,” including slots at tracks.
May 19, 2003
Whatever happens, it will need to happen quickly.
The Illinois legislature is scheduled to adjourn in
less than two weeks.
In Florida, although the legislature passed a bill
allowing thoroughbred tracks to operate card
rooms with table limits of $200, there is no rush by
anyone to do so. Dave Joseph, writing in the Ft.
Lauderdale Sun-Sentinel, says Gov. Jeb Bush is
not expected to veto the new legislation, but the
way the law is written poses problems for the
tracks. They can operate only during their live
meetings unless they joint venture with another
track, in which case 50% of the money bet would
go to purses. Doug Donn, Gulfstream CEO, told
Joseph “It would be difficult for Gulfstream to have
a successful card room if you had to shut down for
eight months.” Ken Dunn, Calder president, said
he wasn’t sure the law makes it worthwhile.
In Michigan, where a VLT bill is pending in the
legislature, the mayor of Northville said he isn’t
sure he wants slots at Northville Downs, and talked
about a possible local referendum. Lou Carlo,
Northville’s director of operations, said the town
would clearly benefit from slots, and said that in
those states that have them “everyone has moved
forward with investment, higher purses, and tax
revenues. That’s why there’s so much focus on it,
because it works.”
In California, the CEO of Youbet.com, Chuck
Champion, said that if the Leach bill makes it
through the House and Senate, his company is
confident the legislation will include the exemption for racing that was stripped from the bill by
the House Judiciary Committee last week.
In Maryland, Frank Stronach said he’s thinking
about building a thoroughbred track in Ontario,
near Flamboro Downs.
May 20, 2003
ILLINOIS SLOTS STILL ALIVE
GOOD NEWS IN WASHINGTON
With the legislative clock ticking away, the possibility of slots still are on-track, literally and figuratively, in Illinoid. State senator Denny Jacobs,
an author of the casino law in the state, told the
Chicago Tribune that he interpreted governor Rod
Blagojevich’s somewhat cryptic remarks on gambling as meaning that track slots are “still in the
ballgame.” Jacobs has introduced new legislation
that proposes two new Illinois casino licenses, one
in Waugegan in the north and one in a southern
Chicago suburb, but none in Chicago itself. That
does not preclude a Chicago casino, however, for
the Jacobs’ legislation does not deal with the existing and deeply disputed tenth license, which belonged to the Emerald casino. That license still is
an unresolved issue that could wind up in Chicago.
Jacobs said, “In this business sometimes you have
to read between the lines,” referring to
Blagojevich’s statements and non-statements.
Steve Brown, a spokesman for House speaker
Michael Madigan, had his own views on one issue
of discussion in Springfield this week: the idea of
slots at bars and taverns. Blagojevich flatly said
no to that, calling it “slimy and sleazy,” and Brown
said, “People don’t vote for controversial bills that
a governor says he’ll veto, just as a matter of practice.”
The American Horse Council reports that the
House Financial Services Committee marked up
and reported favorably to the House of Representatives on a voice vote H.R. 2143, which had been
introduced by Mike Oxley, co-author of the OxleyLeach bill, and two colleagues. The bill reportedly included two provisions of the original OxleyLeach bill that were stripped from the bill by the
House Judiciary committee last week, one being
the provision that excluded from the definition of
a bet or wager the words “any lawful transaction
with a business licensed or authorized by a state,”
and the second being the provision that prohibits
the use of credit only in connection with unlawful
Internet wagering. The Horse Council says that
since H.R. 2143 does not include several sections
that were in the original Oxley-Leach bill, H.R.
21, it is unlikely that the Judiciary Committee will
have jurisdiction over this bill. If not, the bill does
not have to go to Judiciary and is ready for floor
action, pending approval by the House leadership.
NO SLOTS IN BOSTON BUDGET
The Massachusetts Senate will unveil its budget
tomorrow, and the Boston Globe reports that it will
not include revenue from slots at tracks, even
though “many senators are privately saying” that
expanded gambling will be approved later this year.
The paper said the vice chairman of the Ways and
Means committee thinks a majority of senators
support gambling expansion in some form, but it is
not yet clear what that form will be. That senator,
Steven C. Panagiotakos, said $200 to $300
million was at stake, and “we’re crazy to
be leaving money on the table, frankly.”
TRO ON NY TRIBAL COMPACTS
A state Supreme Court judge granted a temporary
restraining order yesterday barring New York from
issuing tribal casino compacts. The TRO followed
an agreement last week between Gov. George
Pataki and the St. Regis Mohawks that gave the
Mohawks slots in return for settling long disputed
land claims. Yesterday’s TRO set Friday for arguments on an injunction until the Court of Appeals rules on the legality of gambling in New York.
That court has shown no inclination to tackle the
matter, bringing to mind the story of the jury foreman who, when asked if the jury had reached a
verdict, said, “Your honor, we have listened carefully to your charge and to both attorneys, and
weighed the evidence at length, and we have decided we just don’t want to get mixed up in this
damn thing.”
NO TRACK SLOTS IN ILLINOIS
At least for the moment. The governor of Illinois,
accused by the media of coyness on the issue of
expanded gambling in the state, made it clear yesterday where he stood. Gov. Rod Blagojevich told
a crowd at the Chicago Civic Federation that there
will be no slots at Illinois racetracks, no new casinos, and no anything related to gambling until the
legislature learns how to curb its spending habits.
He told legislators he’d wait for the end of the current session in ten days, and then, if they don’t
come around, he’ll keep them in Springfield, about
as pleasant as spending the summer in the desert
in Arizona. “If it means we’re in session all summer long, so be it,” Blagojevich said. The governor wants the legislature to pass his $52 billion
budget intact. One senator who had proposed gambling legislation, Denny Jacobs, said, “There’s no
doubt, in my estimation, that the governor is trying to come out of this whole thing wearing the
white hat and we’re wearing black hats.” Whatever happens, Blagojevich has not lost his sense
of humor. He did not rule out the tenth Illinois
casino license, now in dispute, going to Chicago.
Just as he announced his plans against expanded
gambling, a reporter’s cell phone rang.
Blagojevich, quick on the trigger, said, “They’re
calling from Las Vegas. They just heard the news.”
OHIO SLOTS MAY GO TO POLLS
The Cleveland Plain Dealer reports that under a
plan in the Ohio Senate, voters may be given the
opportunity to vote on track slots next November,
with a provision that part of revenues be used for
Ohio college scholarships for top-performing Ohio
high school students. The newspaper quoted Senate president Doug White as saying he was “90%
certain” that the slots issue would be pulled from
the current budget bill and sent to voters as a proposed amendment to the state constitution.
May 21, 2003
MICHIGAN CHANCES INCREASE
Prospects for tracks were a little brighter in Michigan, where a four-bill package of legislation including slots for tracks passed the House Agriculture
and Resource Management committee yesterday
on a 9-2 vote. The speaker pro tem of the House
and sponsor of one of the bills, Larry Julian, said
he was confident the slots measure would pass and
be considered by the Senate, as early as next week.
Detroit Democrats are screaming loudly, however,
and there also is opposition from anti-gambling
Republicans in western Michigan. The Detroit
opponents claim slots at Michigan’s seven racetracks would cost the city as much as $20 million a
year in casino gaming tax revenue from its casinos. That estimate, it should be noted, was prepared in an economic impact study commissioned
by Greektown Casino, which could affect its credibility.
GIVE EADINGTON AN A+
Professor Bill Eadington of the University of Nevada Reno is a renowned expert on gambling. He
doesn’t get high grades on his views of racing’s
future, but he gets an A+ on his prediction, at last
December’s racing symposium here in Tucson, that
governments will increasingly shy away from giving tracks slots (see today’s first item) and gravitate toward keeping them for themselves. That
prediction is being borne out in Maryland, where
the man who killed track slots this year, speaker
of the House Michael Busch, now says they might
be a good idea next year if they are government
owned, third party operated, and heavily slanted
profitwise to the state. Good handicapping, Bill.
INTERNET BILL ONLINE
H.R. 2143, Rep. Mike Oxley’s new bill on Internet
gambling credit that preserves racing’s exemptions, is available online on HTA’s Web site,
www.harnesstracks.com.
WOODBINE GETS NEW TRACK
Harness racing returns to Woodbine from
Mohawk Raceway tonight, and the trotters and
pacers will find a new racetrack awaiting them. In
the two months they have been gone, Chuck Coon
and sons have reconfigured the seven-eighths mile
Woodbine harness track, raising both the first and
last turns from four and six degrees, respectively,
to 12 degrees. Woodbine’s VP of racing, Hugh
Mitchell, says management is optimistic that the
$500,000 upgrade will make Woodbine’s races
“very favorable to the horses and even more competitive.” Mitchell says the changes should create more lead changes and drivers should be able
to go two and three wide on the last turn without
losing speed.
May 22, 2003
Other legislators and staff members, and political
analysts, said it could do just that and more. It
could, they said, put slots in Pittsburgh and Philadelphia, and perhaps elsewhere in the state. New
York Newsday, reporting the development, quoted
A. J. Marsico, a lobbyist for MTR Gaming, which
has a license to build a thoroughbred track near
Erie and is in the process of buying Scioto Downs,
as saying, “It certainly is a threat. It could stall
the process or derail the whole thing.” The paper
reported HTA executive committee member Mike
Jeannot, vice president of Magna Entertainment’s
The Meadows, as saying, “We’re going to fight
this battle. It’s just too important to the racing
industry.”
TWO HEAVY HITTERS IN PHILLY
TROUBLE IN PENNSYLVANIA
In my column in Daily Racing Form this week,
reprinted with permission on the HTA Web site, I
wrote about University of Nevada Reno’s professor Bill Eadington and his Tucson symposium predictions of last December. Eadington warned track
operators that growing state deficits would lead to
increasing troubles for track operators seeking
slots, and yesterday, for the second time this week,
the Eadington prediction was hammered home.
Earlier in the week Maryland’s speaker of the
house, Michael Busch, said he might relent on his
opposition that killed slots there this year if Maryland copied the Ontario model, where the province owns, operates and reaps the majority of profits from slots. Yesterday in Pennsylvania state
senator Gibson Armstrong, a Lancaster Republican, sponsored an amendment proposing that the
state be required to auction off slot machine licenses to the highest bidder rather than issuing
them directly to tracks. The sponsor of the slotsat-tracks legislation, senator Tommy Tomlinson,
also a Republican, called the move “a ploy
to kill the bill.”
Two of the major sports figures in the east have
announced they are investing in the quest for a
harness racetrack at the Philadelphia Navy Yards.
Ed Snider, chairman of Comcast-Spectacor, owner
of the Philadelphia Flyers and 76ers, and Lew
Katz, owner of the New Jersey Nets, said they
are joining Philadelphia lawyer Manuel Stamatakis
in the project. The Philadelphia Inquirer reports
that Stamatakis “hopes the two high-profile entrepreneurs -- both major political contributors to
Gov. Rendell -- ante up a combined $400,000 for
his project, according to a private-placement
memorandum sent to a small group of potential
investors last month.” The paper said that memo
indicated Snider and Katz each would buy 500,000
units in Stamatakis’ limited partnership, the units
selling for 40 cents. Snider told the Inquirer, “It
was presented as an investment opportunity and I
decided to invest.” Katz told the paper he was not
personally going to invest but that there had been
discussions about an investment through a charitable foundation in which he is involved. The investors’ letter indicated that any profits realized
by either would go to charity causes.
May 23, 2003
HOUSE OKS MICHIGAN SLOTS
TURF WAR IN NEW MEXICO
The operators of Detroit’s three casinos waved
their arms and shouted loudly, but the Michigan
House voted 61-42 yesterday, over the casino’s
objections, to allow video lottery terminals at the
state’s seven racetracks. The House also approved phone and Internet betting and OTBs. The
Detroit Free Press reports the bill faces tough opposition in the Republcan-controlled senate, as well
as a potential lawsuit from the casinos. Michigan’s
governor, Jennifer Granholm, played it coy, saying, “This has to be very carefully thought through
and I’m willing to look at what comes out of the
legislature.” She added, however, “But what we
don’t want is a huge proliferation of casinos at racetracks.” The bill does not call for a “huge proliferation.” It would provide for at least 500 terminals for each track, and that number could be increased up to 2,000 with permission of the Bureau
of State Lottery, which would regulate the machines. In a separate vote, the House passed, 5819, a measure legalizing telephone and Internet
betting, up to 15 OTBs, and increasing the age of
bettors allowed at tracks from 18 to 21. The House
passage represents the biggest success to date in
the cooperative legislative efforts of Michigan
horsemen and tracks.
If you like gunfights at Black Rock, you’d love
trying for a racing license in New Mexico. The
racing commission there is refereeing a shootout
between four applicants for a license, and has decided for the moment not to decide anything. The
four are R. D. Hubbard, boss of Ruidoso Downs
and formerly Hollywood Park; Ken Newton, the
former owner of The Downs in Santa Fe; Gerald
Peters, who owns restaurants and cattle and deals
in art in Santa Fe; and the peripatetic Shawn Scott
of Las Vegas, who sold Delta Downs in Louisiana,
owns Vernon Downs in New York, and is trying to
get a casino at Bangor Raceway in Maine, where
he also bought control. The New Mexico racing
commission deferred action on the applications to
build a $28 million to $37 million track in Hobbs,
on the Texas border, “indefinitely.” The commission chairman, Jack Cole, was frank about the
delay. “You’ve scared us,” the Associated Press
reported him telling lawyers for the four applicants.
“There’s veiled threats that if we don’t do it a certain way, there will be lawsuits.”
ANOTHER LOSS IN CONGRESS
Racing lost another round in Washington yesterday, when a Senate-House conference, at the insistence of House conferees, refused to abolish
the 30% withholding tax on nonresident aliens who
bet into U.S. pools. Racing supporters in Congress,
including senators Jim Bunning of Kentucky and
Blanche Lincoln of Arkansas, and representatives
Jim McCrery of Louisiana and Ron Lewis of Kentucky, both Republicans, did not have enough clout
to save the bill. The American Horse Council reports those four have pledged to continue
their efforts to get the measure passed.
Speaking of lawsuits, Scott is embroiled in another
controversy in Maine. The Maine Racing Commission is to consider his license at Bangor next
month, two weeks after the meeting gets underway tomorrow. The state attorney general now
has petitioned the commission not to grant the license, saying Scott did not comply with requests
for releases needed to obtain investigative records
from Nevada, Louisiana and New York. Scott’s
attorneys say he did comply, simply not in the form
requested by the AG. A local referendum on slots
at the track will be held in Bangor June 10 and
Scott’s lawyers said the attorney general’s action
was timed to influence that vote. Scott’s representatives also announced his plan to turn Bangor
into a five-eighths mile track from a half-miler have
been scrapped.
IS ANYBODY HAPPY ON SLOTS?
Other than those who already have them, we mean.
A quick informal poll shows Louisiana and Arizona,
but other than that there seems either pessimism
or doubt.
Louisiana is happy because gamblers were standing in line waiting to get in when Louisiana Downs
opened a temporary facility last week in Bossier
City with 903 machines under its new owner,
Harrah’s Entertainment and five local investors,
who paid $73.5 million for the track last year.
Racing doesn’t start there until June 27, but
Harrah’s rushed the slots operation to get underway in Shreveport and became the second Louisiana track with slots, following Delta Downs in
Vinton. Purses at Delta Downs have zoomed from
$40,000 a day to $240,000 a day with slots.
Harrah’s is building a 150,000-square foot permanent casino at the track site with 1,500 machines,
but that won’t open for a year. The Fair Grounds,
meanwhile, could become the state’s third racino,
if the full House agrees to legislation approved
last week by a House committee. Already passed
by the state senate, it would allow Orleans Parish
voters to decide the issue of bringing 700 slots to
the New Orleans track. A fourth Louisiana racino
is under construction in St. Landry Parish, where
a new Evangeline Downs is being built, with an
opening scheduled for February, 2004.
In Arizona, the Yavapai-Prescott Indian tribe became the fifteenth and final gaming tribe in the
state to sign a 23-year compact with governor Janet
Napolitano. The first signed last December with
governor Napolitano’s predecessor, Jane Hull, and
with the Yavapai signing all gaming tribes now are
covered under the provisions of Proposition 202,
which passed last November. The Yavapais operate two casinos in Prescott.
May 27, 2003
There is no joy in Pennsylvania, where amendments
and bills from opponents of slots at tracks are lighting up that proposal like a Christmas tree. Things
have gotten so bad that state senator Tommy
Tomlinson, the Republican who proposed the original legislation, now has thoughts about withdrawing it if another proposal to sell the licenses to the
highest bidder gains favor in Harrisburg. “I might
withdraw my bill or just let it die,” Tomlinson was
quoted in the Burlington County Times. The only
happy support came from distant Oklahoma, where
the Delaware Indian Nation wants to pursue what
it calls its native right to operate a casino on 315
acres in the Lehigh Valley. The tribe says it has
no problem with slots at tracks as well.
In Delaware, a study committee has called sports
betting feasible. Delaware is one of four states
grandfathered for sports betting, and it is being
pushed by the speaker pro tem of the House, Bill
Oberle, a harness breeder and owner who played
a major role in getting slots at tracks in Delaware.
The draft report by the study committee cast a
favorable 5-1 vote, with three abstentions, but the
one no vote was ominous, since it came from Gov.
Ruth Ann Minner’s finance secretary.
In New England, big name horses performed over
the holiday weekend. At Rockingham Park, which
reopened with solid reviews for its newly rebuilt
mile track, harness racing returned after an absence of 23 years with the richest pacer of all time
and 2000 Harness Horse of the Year, Gallo Blue
Chip, winning for driver Walter Case Jr., now back
in his native New England. Gallo Blue Chip set a
new track record of 1:53 on a rain-sodden surface
to add to his earnings of more than $4 million. At
nearby Plainridge Racecourse, the 2001 Horse of
the Year, Bunny Lake, won the holiday card feature to close in on $2 million in earnings.
May 28, 2003
A CASE OF MORE TROUBLE
ILLINOIS - DARK AND DARKER
Walter Case, run out of Ohio, has surfaced, surprisingly, in New Hampshire, but his departure
gave racing a journalistic black eye today in the
state he left behind. Bob Roberts is the racing
writer for Ohio’s biggest newspaper, the Cleveland
Plain Dealer, and the lead of his story in the paper today reads, “It could be the deal that was cut
and approved last week is the way business is done
these days in Ohio horse racing. But it stinks.
And it won’t help the sport prosper or heal some
of its more troubled participants.”
It appears that governor Rod Blagojevich has put
out the last embers of the fire for slots at tracks in
Illinois. A gaming committee couldn’t even assemble a quorum to do business yesterday in
Springfield, and even the introducer of the legislation, state senator Lou Lang, apparently has given
up. “I would say the odds are against us in being
able to pass any gaming legislation,” he told Paddock Publications’ Daily Herald, a major Chicago
area newspaper, and the paper pronounced the
efforts dead.
Roberts was writing about the Ohio racing commission, which last week forgave Case the 178
days of suspension time he owed for his restless
foot brushing against horses, in return for him giving up his Ohio license, waiving his rights to a hearing, and getting out of town. Roberts said of the
action, “What we have here is the Ohio State Racing Commission members all starring in the role
of Pontius Pilate Goes to the Races. They erased
Case’s sins by washing their hands of them.” Roberts was upset because with simulcasting Case still
is a presence in Ohio, and Roberts, who obviously
feels strongly about that, concluded his piece by
writing, “Bettors don’t need Pontius Pilates. They
need stand-up racing commissioners. So do horsemen who play by the rules.”
There were highly interesting developments,
hoever, in the never-ending Emerald Casino case,
which threatens to break Cats record for the longest-run play ever. The casino filed a motion in
bankruptcy court yesterday, seeking to delay and
perhaps permanently preempt a state hearing to
revoke its gaming license, an action that would
force it to sell, with disposition of any profits to
the investors highly unlikely. Attorney General
Lisa Madigan has different ideas, however. She
says a bankruptcy judge can delay the hearing but
not cancel it, and she told the Chicago Sun-Times
that if a settlement is reached with Emerald the
revocation proceedings will not go forward, but that
if there is no settlement they will. The Chicago
Tribune, meanwhile, reported that Madigan has
asked governor Blagojevich and the legislature to
enact a law providing for an eleventh casino license
in the state, which would bypass the Emerald issue and ease the pain of losing some $350 million
Blagojevich is counting on from sale of the Emerald license.
SENATE OK, BUT NOT HOUSE
That seems to be the story in Massachusetts,
where the state senate is finalizing a proposal for
slots in the state to help close an expected $3 billion budget shortfall next year. The proposal is
not certain to bring slots to tracks, even if it were
to pass, and the powerful House co-chairman of
the Government Regulations Committee, Daniel
Bosley, is determined to see that it doesn’t. “I
can’t see the House position changing,” he
says, and he should know.
NO SLOTS IN TEXAS, EITHER
Chances for VLTs and Indian gaming in Texas
appeared to go up in smoke yesterday too, when
the House voted to extend the state lottery for
12 more years, most likely killing VLT legislation for the session ending Monday.
Paul J. Estok, Editor
May 29, 2003
JUDGE WON’T STOP PATAKI
ROMNEY SAYS NO TO SLOTS
A New York State Supreme Court judge yesterday
decided not to block Gov. George Pataki from signing a compact with the St. Regis Mohawk tribe of
Indians that will permit the tribe to build a $500
million casino resort in Monticello, NY, about 90
miles north of New York City. In his decision, Judge
Joseph Teresi said the anti-gambling group that
sought the preliminary injunction failed to show
that irreparable harm would result from the
governor’s approval of the pact. The lower court’s
decision was a big victory for Pataki. The agreement with the tribe also would give the St. Regis
Mohawks $100 million over more than 30 years
to settle their claims that the state stole their ancestral land. The St. Regis Mohawks have chosen Las Vegas-based Park Place Entertainment
to build the new resort at the old Kutsher’s resort
on Monticello. Cornelius Murray, the Albany lawyer who represents an anti-gaming group that includes the Saratoga County Chamber of Commerce, told Reuters news service he had already
appealed Judge Teresi’s decision. As a result,
Appellate Court Judge Anthony Carpinello has
ordered Pataki to show cause on Friday why a new
preliminary injunction should not be granted, according to Murray. Teresi is currently hearing the
lawsuit brought by Murray that argues the state
constitution bars all gambling except for some wagering on horses, lotteries and not-for-profit bingo.
The talk of slot machines at Massachusetts racetracks as a way to help close that state’s budget
deficit ground to a near halt yesterday when Gov.
Mitt Romney announced he isn’t ready to take a
chance on gaming. While Massachusetts Senate
leaders are trying to negotiate a gaming proposal,
Romney said he has cooled to the idea. The reason: The governor said increased aid from the
federal government has decreased the state’s
need. “The need for gambling has been reduced
by virtue of the federal relief package which has
been provided,” Romney said. “And therefore the
issue of gaming is not something we have to address immediately.” Raynham greyhound track
owner George Carney said the extra money from
Washington, about $550 million, won’t be enough
to spur the economy. “One thing about that $550
million, it doesn’t create the jobs that the people
really need,” Carney said. “So his backing off on
the machines might be fine in his mind, but in the
eyes of the people looking to get a job and come
to work, that’s not too favorable.” Needless to
say, anti-gaming groups said they were happy with
the governor’s change of heart. Romney said that
while he no longer supports the immediate installation of slot machines, they might become necessary at some time in the future. “Bottom line, I’m
not looking at this year to do something on a gaming basis,” Romney said. “Long-term, I think it’s
something we should evaluate.”
ZITO FILES SUIT OVER POSITIVE
Thoroughbred trainer and bobblehead Nick Zito
has not given up his three-year battle to overturn
an August 2000 decision by the New York State
Racing and Wagering Board fining him $2,000 and
suspending him for 15 days for a medication positive. In May, the New York’s highest state court
declined to hear Zito’s appeal, so now the
trainer has filed a complaint in federal
court “for violation of his civil rights and
seeking a stay of the suspension.”
CAESARS WANTS 24 HOURS
Caesars Indiana has made a request to state gaming regulators to be allowed to remain open 24
hours a day, instead of the currently permitted 21
hours of daily operation, saying it would be more
“convenient for hotel customers and shift workers wanting to gamble after work,” according to
the Louisville Courier-Journal. The Indiana
Gaming Commission is expected to address
the proposal at a July 11 meeting.
FL INITIATIVE TO SUPREME CT.
The attorney general for the State of Florida yesterday submitted to the state Supreme Court a
proposed constitutional amendment to allow slot
machines only at pari-mutuel facilities in Broward
and Miami-Dade counties. The initiative is sponsored by the Floridians for a Level Playing Field,
an organization that includes Pompano Park Harness Track, Hollywood Greyhound Track and
Flagler Greyhound Track. The new proposal, if
approved by the Supreme Court, would be on the
statewide ballot in November 2004. Voters would
be asked to support allowing Broward and MiamiDade to hold local referendums that could legalize
slot machine gaming at pari-mutuel facilities in the
two counties. The state legislature would tax the
machines, and that revenue would supplement existing funding for statewide public education. The
Florida Supreme Court will now have to decide
whether the language of the proposed state constitutional amendment is acceptable. In addition
to the members of the coalition, other pari-mutuel
racetracks in the Broward and Miami-Dade counties are Gulfstream Park, Calder Racecourse,
Dania Jai-Alai and Miami Jai-Alai. It’s the second time since 2001 that the coalition has bid to
ask Florida voters to decide if they could install
slot machines at their facilities. The coalition’s
first proposal was struck down 14 months ago by
the state Supreme Court due to flaws the court
found in the wording of the proposal.
FIRST EQUINE CLONE A MULE
The first member of the horse family to be cloned
is a mule named Idaho Gem, the genetic brother
of a champion racing mule, according to the Associated Press. Researchers say two other mule
clones are expected to be born this summer. The
May 4 birth of Idaho Gem adds mules to the list of
cloned animals that includes sheep, cows,
pigs, cats and rodents. University of Idaho
researchers cloned the mule using a cell from
May 30, 2003
a mule fetus and an egg from a horse. Idaho Gem
is the genetic brother of Taz, a champion racing
mule, and researchers said the cloned mule will
also be trained to race. Cloning a mule is particularly unusual because such animals, hybrids from
a donkey and a horse, are almost always sterile.
“A mule can’t do it himself, so we thought we would
give it a hand,” said Gordon Woods of the University of Idaho, leader of the mule cloning team and
author of a report appearing today in the journal
Science. Now, Woods said, he plans to use the
same techniques that worked on Idaho Gem to
clone horses. Mules are bred by mating a male
donkey with a female horse. The breeding success is about the same as among horses alone.
Mating a male horse with a female donkey produces an animal called a hinnie. Both mules and
hinnies can be male or female, but they are almost
invariably sterile. To clone Idaho Gem, researchers bred Taz’s parents, a jack donkey and a mare,
and allowed the resulting fetus to grow for 45 days.
This provided the DNA needed for the clone.
Donald Jacklin, a businessman from Rathdrum,
ID, paid $400,000 to finance the four-year cloning
project. “Our first goal was to clone an equine,
but I have a special interest in mules,” said Jacklin,
who is president of the American Mule Racing
Association.
PA OPERATORS ASK CAUTION
Owners of Pennsylvania’s four horse racetracks
on Thursday warned lawmakers that the amount
of money demanded in license fees to operate slot
machines taken out of gross revenues would mean
less for them to invest in building facilities for gaming patrons. “Whatever you do in terms of upfront licensing fees takes away from the amount
of money you can invest in the business,” said
Kevin DeSanctis, president and COO of Penn National Gaming. DeSanctis appeared with executives of The Meadows and Philadelphia Park
to argue the tracks’ case.
H.R. 2143 UP TOMORROW
The most recent version of the Unlawful Internet
Gambling Funding Prohibition Act (H.R. 2143) is
scheduled to be considered by the House of Representatives tomorrow, on the Suspension Calendar, according to information provided by the
American Horse Council. Any bill considered under suspension of the rules must receive a twothirds vote of the House to pass. No amendments
are allowed to be offered in this process. The
Horse Council supports this legislation in its current form. Although this bill takes a different approach than earlier bills to prohibit Internet gambling, the Horse Council feels the legislation “effectively reaches the same result, a prohibition on
the use of credit in connection with unlawful
Internet wagering.” Importantly, the legislation
includes the two provisions supported by the racing industry. First, the bill excludes from the definition of “bet or wager” “any lawful transaction
with a business licensed or authorized by a State.”
Second, the bill applies only to the use of credit
for “unlawful Internet gambling.” In the view of
the Horse Council, “these provisions clarify the
distinction between lawful, state-regulated parimutuel wagering and illegal, off-shore Internet
wagering and therefore the prohibitions should not
impact horseracing’s activities.” The Horse Council is asking that individuals and organizations contact legislators in support of H.R. 2143. For more
information or for a copy of the legislation, contact the American Horse Council at 202-296-4031.
AG SUBPOENAED IN ILLINOIS
Illinois Attorney General Lisa Madigan was subpoenaed last Friday to produce documents and
potentially be deposed regarding her role in the
legal mess surrounding the proposed sale of that
state’s 10th casino license. The subpoena
came after the bankruptcy judge in the
case gave Emerald Casinos, Inc., which
holds the license, the opportunity to prove that
June 2, 2003
Illinois’ efforts to revoke the license are motivated
by the potential for revenue rather than the state’s
police power to regulate gaming. If Emerald can
prove its case, the judge could stop the Illinois
Gaming Board from resuming revocation proceedings against Emerald. Emerald had entered into a
settlement that would have seen its share proceeds
from the auction of the license with the state.
Gaming board members supported the deal, but
Madigan’s concerns stopped it, prompting the
board to push to resume a revocation hearing.
According to a report in the Chicago Sun-Times,
Madigan in recent weeks has been concerned
about a $51 million payment to Rosemont the proposed settlement includes. It would pay for a $45
million parking garage that Rosemont built for the
casino and cover clean-up costs for the site where
the casino’s frame sits.
WOODBINE FIRE WAS ARSON
A fire that killed 34 horses at Woodbine Racetrack
in Toronto last August was arson, the Ontario fire
marshal’s office has reported. No one has been
charged with setting the fire, but police are continuing their investigation. “It was set by design,”
said William Hiscott, investigations supervisor
with the fire marshal’s office. The fire raced
through a barn that housed 120 horses at the track
in the early morning hours. Total damage was estimated at $3.2 million. The specific cause of the
blaze was not identified. “The fire was a tragedy
in and of itself, but to think that a human was responsible for setting the fire and causing the deaths
of that many animals is almost beyond comment,”
David Willmot, president of Woodbine Entertainment Group and chairman of the board of HTA,
told the Toronto Globe and Mail, “Except that I
think I know what I’d do with him if I could get my
hands on him. Whatever one’s motivation might
be, I just can’t understand hurting innocent animals who do nothing under those circumstances but panic.”
H.R. 2143 OFF CALENDAR
The most recent version of the Unlawful Internet
Gambling Funding Prohibition Act, (H.R. 2143) was
removed from the Suspension Calendar late last
night and will not be considered by the House of
Representatives today. According to the American Horse Council (AHC), the bill as well as the
method for bringing it to the House Floor, generated some controversy and raised questions as to
whether it could get the sufficient two-thirds vote
needed for passage under suspension of the rules.
BROADWAY HALL RETIRED
Broadway Hall, the 2002 Nova Award winner in
the 2-year-old trotting colt category and the preseason favorite for the 2003 Hambletonian on
August 2 at the Meadowlands, has been retired
due to a pulled suspensory behind, according to
trainer Jim Campbell. The son of Conway Hall
will stand at stud at owners Arlene & Jules Siegel’s
Fashion Farms in New Hope, Pennsylvania. “He
just wasn’t himself the last two times we trained
him,” Campbell said on Monday. “We found the
problem after he trained at the Meadowlands last
Wednesday. We got a couple of different opinions
and felt it was in the best interest of the horse to
stop with him.” Broadway Hall retires undefeated,
a perfect nine for nine in his freshman season, with
earnings of $436,790. He took a 1:56.4 record at
Lexington’s Red Mile and capped his career with
a victory in the Breeders Crown in what turned
out to be his final start.
BUNNY VS. BEAUTY MATCH SET
Bunny Lake and Worldly Beauty, two of the most
formidable pacing mares in training, will engage
in one of racing’s greatest spectacles -- a match
race -- on Friday, June 6, at the Meadowlands.
Bunny Lake, the 2001 Horse of the Year
and Nova Award winner, and Worldly
Beauty, who won the 2002 Nova Award for
3-year-old filly, will meet in a one-mile dash
June 3, 2003
for a purse of $50,000. Win wagering will be offered on the confrontation. The winner will receive
70 percent of the purse, and the connections of
both mares have pledged that the winner will donate at least $10,000 to charity. Benefitting will
be the Standardbred Retirement Foundation (SRF)
and the Harness Horse Youth Foundation (HHYF),
who will split the donation. “These are two great
mares who will get to settle who’s the best in a
head-to-head contest on the track,” said Meadowlands Vice President and General Manager and
HTA President Chris McErlean.
HOOSIER MEET ENDS UP
HTA member Hoosier Park concluded its 10th season of harness racing on Friday, May 30. The
meet, which began March 22, offered 50 days of
action. Hoosier experienced a significant increase
in average daily handle, with $632,840 wagered
nightly on Hoosier’s card, an increase of 34.8 percent over 2002. An average of 9.4 starters went
to the gate in 2003, compared with 9.3 in 2002.
Average daily purses fell when compared to 2002.
Total purses distributed in 2003 amounted to
$5,137,300, a decrease of 61.8 percent from 2002.
Purses were markedly lower in 2003 due to the
Indiana Horse Racing Commission’s decision to
split the riverboat admissions subsidy between
Hoosier Park and Indiana Downs.
MAGNA CLOSES OFFERING
Magna Entertainment Corp. (MEC), owner of HTA
members Flamboro Downs and The Meadows,
announced that it has completed its previously announced sale of $100 million aggregate principal
amount of 8.55% Convertible Subordinated Notes
due June 15, 2010. The net proceeds from the
offering, after deducting the initial purchaser’s
commission and expenses, are approximately
$96.5 million. MEC has said it intends to use
the net proceeds for general corporate purposes and capital expenditures.
H.R. 2143 ON FOR TOMORROW
The U.S. House of Representatives is scheduled
to vote on the Unlawful Internet Gambling Funding Prohibition Act (H.R. 2143) tomorrow. A release from the American Horse Council (AHC) today notes that “the horse racing and breeding industry supports this bill in its present form. The
current bill distinguishes between unlawful, offshore Internet wagering and state-licensed and
state-regulated wagering. This distinction is important to the pari-mutuel racing industry. The
racing industry supports this bill.” The Horse
Council is anticipating that amendments to the legislation will be permitted, but the House Rules
Committee has not yet met to issue the rules that
will dictate what amendments will be made and in
what order. The message to Representatives concerning this bill is to oppose any hostile amendments to the bill such as an amendment to eliminate the exclusion for domestic wagering involving “any transaction with a business licensed or
authorized by a state.” The AHC, in its release to
the industry says, “Please contact your Representatives asking them to support this legislation as
it is and oppose any amendments.” Fax numbers
can be found by visiting the Web site of the House
of Representatives at http://www.house.gov and
following the instructions or by calling the AHC at
202-296-4031. For additional information or a copy
of a suggested letter to members of the House
contact HTA by phone at 520-529-2525 or by email at info@harnesstracks.com.
CHURCHILL IN WITH BETTERS
Churchill Downs Inc. (CDI) and developer Charles
J. Betters today announced they have entered into
a definitive agreement whereby CDI will have an
opportunity to become a partner and investor with
Betters in the construction and development o f
Pittsburgh Palisades Park, a proposed
thoroughbred racetrack for the Hays area
of Pittsburgh’s south side. Under the agree-
June 4, 2003
ment, CDI would assist in the development of the
racetrack, manage the track operations and have
the opportunity to become an investor in the facility. CDI and Betters said that there are no assurances that the project will be granted a thoroughbred racetrack license. Development of the prospective site moved one step closer as the City of
Pittsburgh’s Planning Commission approved a conditional use permit to begin initial work on the site.
MORE CASINOS FOR IOWA?
More than a dozen Iowa communities are now seriously exploring the idea of adding a floating casino. They include Des Moines, Cedar Rapids,
Emmetsburg, Hampton, Mason City, Northwood
and the Iowa Great Lakes region, according to the
Associated Press. State regulators could decide
as early as this summer whether to lift a five-year
moratorium on new casino licenses. Michael
Mahaffey, the chairman of the Iowa Racing and
Gaming Commission, said he’s open to hearing
people explain why the ban should be lifted but
he’s skeptical about adding casinos. Commission
administrator Jack Ketterer said he doesn’t expect the board to review the moratorium until elections are held in several counties. Voters will decide whether to permit riverboat gambling on June
17 in Palo Alto County, June 24 in Worth County
and July 8 in Dickinson County.
MD. TO STUDY STATE-RUN SLOTS
Michael Busch, speaker of the Maryland House,
said lawmakers will explore this summer a new
twist in the debate over gaming: Letting the State
of Maryland, rather than private racetracks, build
and own slot machine operations. Busch yesterday instructed the House Ways and Means Committee to study the various gambling options, holding public hearings across the state. The committee will also consider proposals to raise revenue
from other sources.
June 5, 2003
NO VOTE TODAY ON INTERNET
The House of Representatives, which was scheduled to consider H.R. 2143, the Unlawful Internet
Gambling Funding Prohibition Act, today, deferred
consideration of the matter. The American Horse
Council says various reasons, including other legislation on the floor, the fact that the Rules Committee did not issue a rule for the bill’s consideration, and the general flux surrounding the bill, led
to the decision to defer a vote until probably next
week. The bill has been highly controversial in
the House since Rep. Chris Cannon, a Utah Republican, was able to win a 16-15 vote in the Judiciary Committee to strip racing exemptions from
the bill. A new bill quickly was drafted and passed
out of the House Financial Services Committee
on a voice vote May 20. By omitting any mention of criminal penalties the new measure skirted
the Judiciary Committee. It was scheduled for a
vote Tuesday of this week under suspension of the
rules, but haggling between the Judiciary and Financial Services committee leaders led to the measure being pulled from the suspension calendar
Monday night and rescheduled for today. Cannon
said the bill’s supporters did not have enough votes
to pass it, which led to Monday’s postponement,
but House leaders apparently thought they had
enough votes for a floor vote today. Whether they
did or did not remains a question. The National
Governors’ Association, meanwhile, has taken a
position that the states’ authority to regulate online
gambling should not be interfered with by the federal government, and told Cannon so. What happens next, and when, is anyone’s guess.
WANT A VLT LICENSE?
ABOUT $50 MILLION?
HOW
That’s the latest idea floated in Pennsylvania, to
assure the state gets the lion’s share of revenues from slots if they come.
Ominously, the proponent of slots at tracks seems
inclined to accept the idea. A spokesman for state
senator Robert M. Tomlinson, the Bucks county
Republican who wrote the legislation, said that although agreement hasn’t been reached as yet on
a model of how the fee should be structured, “the
idea of a sensible method of licensing is one we’re
discussing.” The negotiations got underway after
state senator Vincent Fumo, a Philadelphia Democrat, began pushing for a state auction of licenses
rather than giving them to tracks. A spokesman
for Fumo said he is amenable to the idea of a set
fee instead, “as long as the state is getting value
up front.”
Another challenge to track slots arose, however,
in the Pennsylvania House. Democrats there said
that while they approve the idea, they would withhold votes unless companies that have filed lawsuits against licenses in Chester and Erie drop
them. The Erie site got a license last year and
Chester got one from the harness racing commission in April. The House minority leader and whip,
both Democrats, said that unless the lawsuits were
withdrawn it could take years to see any money
from track slots. In Pittsburgh, meanwhile, the
mayor, Tom Murphy, met with C. J. Betters, one
of the applicants for the last thoroughbred license
in Pennsylvania, and supported his application. He
asked the city planning commission to support
Betters application. Churchill Downs announced
that it has finalized plans announced earlier to
partner with Betters on the project.
OHIO: IT WON’T BE QUICK
With bilateral support to raise the state sales tax
by a penny on the dollar, it now seems likely that
slots for tracks in Ohio will not be happening soon.
The House wants to allow voters to kill the tax
and replace it with track slots in November, but
the Senate wants the tax to run for two years.
June 6, 2003
IT’S XMAS TIME IN CONGRESS
MGM OUT OF ISLE OF MAN
The ban on funding for Internet betting has caught
the attention of Congress with an intensity displayed rarely since Monica left the scene. Everyone, it seems, wants in the pool, and the amendments being offered to the H.R. 2143, the Unlawful Internet Gambling Funding Prohibition Act, are
lighting up the act like a Christmas tree. A vote
on the bill now has been twice postponed, and with
American Indians wanting in and Frank
Fahrenkopf doing his usual Las Vegas war dance,
it remains to be seen what happens next week.
Fahrenkopf, who has to do his routine on the head
of a pin with some of his major clients wanting
Internet betting, says the amendments would give
the tribes an unfair advantage. The general counsel of the National Indian Gaming Commission
thinks otherwise, saying it would treat them on a
par with state governments, which would be authorized to regulate Internet gambling if the bill
passes in its present form. The big danger for racing comes from Rep. James Sensenbrenner, Republican of Wisconsin, who wants to strip all exemptions -- including those that protect racing -from the bill. The Indians, a big constituency for
Sensenbrenner, will support that position, but
Fahrenkopf will not. He says a blanket prohibition would interfere with states’ rights. Originally
the bill was to have been considered under suspension of the rules, which would have required a
two-thirds vote. Majority leader Tom Delay rescheduled it for yesterday under rules requiring a
simple majority, and then postponed it until next
week, where the vote again is expected to require
a simple majority. Interactive Gaming News quoted
one unidentified Washington source as saying,
“Even if they manage to get this thing through,
three months ago this was an unstoppable bill, now
it’s a quagmire at best, a disaster at worst.” And
one big, bright and shiny Christmas tree.
Congress may be waiting around for something to
happen on Internet betting, but MGM Mirage is
not. Just one day after the vote on H.R. 2143 was
postponed for the second time, the company said
it had enough of the “unclear political and legal
climate” in Washington and was shutting down its
online Internet casino on the Isle of Man at the
end of this month. Regulations on the Isle of Man
prohibit Internet licensees there to accept bets from
gamblers in countries where Internet betting is illegal. MGM Mirage said it will take a loss of
some $5 million on the experiment. MGM boss
Terry Lanni was quoted as saying the experiment
proved that an online casino could be operated with
proper controls and regulations, and he hoped the
U.S. government would clarify its position on the
issue favorably in the future.
APPROVAL NO DETERRENT
The Cayuga Indians of New York are hoping to
build a casino at Monticello Raceway. They do
not yet have a compact with Gov. Pataki or an
agreement with the Bureau of Indian Affairs, but
that has not deterred them in pushing forward with
their Empire Resorts partners in acting like they
do. Twenty of them showed up at the track the
other day “to introduce ourselves to the people of
Sullivan county” and to inspect site work on the
project, tabbed as a $500 million venture. The
Cayugas have another hurdle to clear. Sullivan
county wants them to pay $15 million a year to
mitigate services the county will face, as the St.
Regis Mohawks do for their casino, but the Cayugas say they will pay only $5 million. Jim Law of
the Sullivan Chamber of Commerce told Victor
Whitman of the Times Herald-Record that he
thought it was great that site work already is going on at Monticello, despite lack of necessary approvals. Looking at drawings of the projected casino, he said, “It’s a pretty drawing, anyway.”
TOSS A COIN IN PENNSYLVANIA
What seemed like a sure bet in Pennsylvania when
the year got underway -- slots at the state’s four
tracks -- now is a 50-50 proposition at best. The
state senate may or may not vote on the issue this
week, depending on how negotiations currently
underway develop. A spokesman for senator
Vincent J. Fumo, the ranking Democrat in the
House Appropriations Committee, told the Pittsburgh Post-Gazette that “there are some very
sticky issues, and right now you’ve got people
locked into some positions.” The chief counsel to
the Senate Republicans told the paper, “There
were readily a couple of dozen items big and small
under discussion. Whether there are any that are
unresolvable, I don’t know.” The newspaper reported that one of the major issues was an up front
fee acceptable to both tracks and the state, a towering number expected to be somewhere between
$50 million and $300 million a track. As reported
last week, Democratic leaders who are crucial to
any vote said they will withhold approval unless
current track lawsuits against Presque Isle Downs
in Erie and Chester Downs near Philadelphia are
dropped. The speaker of the house, John Perzel,
now wants to install slots at the Pennsylvania Convention Center in Philadelphia, but a spokeswoman for Gov. Ed Rendell says as of now the
governor only supports slots at tracks. One voice
of reason in the debate came from Ron Battoni,
executive director of the Pennsylvania Harness
Horsemen’s Association, who called the demand
by breeders for a higher share of the revenue “a
campaign of misinformation.” Battoni pointed out
the ambivalence of the breeders’ stance, saying
they claim the horsemen’s 15% share of total
revenue is too low, while “in the same breath” they
praise the Ontario program where the percentage
is 5.8% and purses are sky high. Battoni says,
correctly, that the infighting endangers
passage of the legislation.
June 9, 2003
PROBLEMS IN RHODE ISLAND
Greyhound racing and jai alai, two longtime staples
on the pari-mutuel menu in Rhode Island, face big
problems. The governor, Donald L. Carcieri, calls
the greyhound industry’s share of slots revenue
“total nonsense and out of all proportion,” and
wants to eliminate it. If he does, greyhound racing’s
share, which the governor calls a subsidy and Lincoln Park calls a business partnership, could drop
precipitously and end the track’s reign as one of
greyhound racing’s brightest jewels. Greyhound
owners, who received $1.1 million 10 years ago,
now get almost $15 million. The state’s taxes have
gone from $10 million a decade ago to $2 million
in each of the last three years. Jai alai is in even
more perilous shape. The Newport Grand Jai Alai
fronton will lose nearly $2.5 million this year, and
wants the state to remove the requirement that it
operate five games a day 100 days a year. That
was the condition imposed when video slots were
granted 11 years ago, and Diane Hurley, general
manager of the fronton, told the Providence Journal that the fronton now draws 50 people or so a
night to its 3,000-seat stadium, and “that doesn’t
make sense.” She is talking about converting the
40,000-square-foot arena into a major performance
center to compete with Foxwoods and Mohegan
Sun in adjacent Connecticut.
INTERNET VOTE ON CALENDAR
The American Horse Council reports that H.R.
4123, the Internet funding prohibition bill, is back
on the House calendar for tomorrow, June 10. It
is expected that represenatives Cannon,
Sensenbrenner and Conyers again will attempt to
strip the ‘state-licensed’ racing protection from the
bill, so once again it is important to reach out to
any House contacts you may have and ask your
representatives and let them know the racing industry supports the bill as is and opposes amendments to delete the state-licensed exemptions.
June 10, 2003
BIG RACING NEWS IN COURTS
PERZEL IN A PRESS PRETZEL
Two major court decisions yesterday left Prairie
Meadows and trainer Bob Baffert unhappy. The
U.S. Supreme Court ruled, unanimously, that the
state of Iowa was within its constitutional rights in
levying a differential tax rate on racetracks and
casinos, and that doing so was neither arbitrary
nor irrational. The Iowa Supreme Court had ruled
that both tracks and riverboats should pay the
same tax - it said 20% -- rather than 20% for
riverboats and up to 36% for tracks. The Supreme
Court said no, and thus allows Iowa to keep more
than $100 million dollars that the state court would
have had rebated to racetracks. Legislators called
the decision a victory for states’ rights and for flexibility in tax policy. The case has been remanded
to the Iowa Supreme Court for further consideration, so the matter still is not concluded. That
court earlier had ruled the discriminatory tax was
a violation of the Equal Protection Clause of the
Constitution.
John Perzel, the speaker of the house in Pennsylvania, found himself lampooned in the state’s largest newspaper today, after suggesting slots be
placed in the Pennsylvania Convention Center in
Philadelphia. The Philadelphia Inquirer made
light of the idea and made fun of Perzel, one of it’s
stories starting, “Uh-oh. Pennsylvania House
Speaker John Perzel (R., Phila) has been thinking
again.” It said sarcastically of his suggestion,
“Great idea, Mr. Speaker. But why stop there.
Money is short to complete the landscape plan for
Independence Mall. No problem. That new National Constitution Center looks big enough to have
room for a few roulette tables. And upkeep at Independence Hall is always a problem; why not
slip a few one-armed bandits in there?” Another
article asked, “Why stop at the convention center? Why not install them in schools, right next to
the Coke machines, and let the kids pay for their
own education? We could put slots in the local
pharmacies and forget about having to come up
with a Medicare prescription drug benefit. Instead
of a surcharge on doctors’ visits to pay the exorbitant medical malpractice rates, as the Rendell administration is considering, why not just set up a
row of machines in every medical building?” All
of which reinforces racing’s view that slots belong
at tracks, where gambling already is established
as a legal activity.
In California, the U.S. Court of Appeals for the
ninth circuit reversed a federal court ruling and
reinstated a 60-day suspension of trainer Bob
Baffert for a morphine positive on the horse Nautical Look in his stable. The case involved the
destruction of blood samples from that horse at
the state lab, but the Court of Appeals said since
Baffert’s constitutional rights were not abridged,
the federal court should not have heard the case.
Neil Papiano, Baffert’s widely known lawyer,
claimed the decision had nothing to do with Baffert
and racing and was only a technical situation, a
claim that laymen -- and even Baffert -- might find
hard to understand. He not only still faces the 60day penalty, but loses an award of more than
$100,000 for Mr. Papiano’s and other legal fees.
The race in question took place more than three
years ago, in May of 2000, and has been
rattling through the legal system since that
time.
A HO-CHUNK OF DOUGH
The Ho-Chunk Nation of Indians in Wisconsin want
Illinois to let them build a massive 6,000-slot casino, water park, Native American museum and
800-room hotel on 125 acres along ultra-busy route
90 in the northwest Chicago suburb of Hoffman
Estates. The Ho-Chunks have an option on the
land but need state and federal approval. They’re
suggesting sharing revenues with the state.
H.R. 2143 PASSES IN THE HOUSE
The U.S. House of Representatives on Tuesday
passed by a vote of 319-104 the Unlawful Internet
Gambling Funding Prohibition Act with the racing
provision intact. Debate on the bill, introduced and
sponsored by Rep. Spencer Bachus of Alabama
and Mike Oxley of Ohio, was postponed twice in
the past week as House leaders tried to reconcile
amendments sought by powerful committee leaders. The key vote Tuesday came on an amendment by Rep. James Sensenbrenner to delete an
exemption in the bill supported by the racing industry that excludes from the definition of a “bet
or wager” “any transaction with a business licensed or authorized by a state.” According to
the American Horse Council, the “provision is a
Congressional expression of the important distinction the bill makes between domestic, lawful, stateregulated and authorized wagering and illegal, offshore Internet wagering.” Sensenbrenner said the
exemptions would enable gamblers to continue
using credit cards online. Bill sponsor Bachus
warned that Sensenbrenner’s amendment would
kill the bill in the Senate. Perhaps the scariest
part of the entire H.R. 2143 drama was that the
man the Las Vegas Review-Journal called “the
most persuasive critic of the amendment” was
none other than Rep. Frank Wolf of Virginia, the
man regarded as the leading shrieker in Congress
against all forms of gambling. Wolf dismissed
Sensenbrenner’s amendment as a “poison pill that
looks good” but would lessen the likelihood of the
bill’s passage. Then, during the vote on the amendment, Wolf reportedly “worked feverishly on the
House floor, handing out fliers to lawmakers and
urging them to vote no.” No word on whether the
fanatical Wolf was wearing a sign proclaiming the
coming of the end of the world as he spread the
word like a street-corner preacher, but his efforts
apparently paid off as the amendment was
defeated 186-237. The bill now moves to
the Senate, where ’Net gambling ban propo-
June 11, 2003
nent Sen. Jon Kyl waits. After passage of H.R.
2143 yesterday, Kyl said, “We are moving closer
than ever to banning Internet gambling, an activity that preys on children and addicts and facilitates money-laundering and organized crime. I am
optimistic that both houses of Congress will pass
a ban sometime this year.”
PA SLOTS ON HOLD AGAIN
Senate talks over legislation to authorize 3,000 slot
machines at each of as many as eight racetracks
in Pennsylvania ended Tuesday without immediate plans to sit down again, Senate aides told the
Associated Press. “There are a lot of issues that
still remain on the table,” said Jim Cawler, the chief
of staff for Sen. Robert M. Tomlinson. Less than
three weeks remain before legislators’ traditional
summer break -- and the beginning of the new fiscal year in which Gov. Ed Rendell is counting on
slots to generate hundreds of millions of dollars in
tax revenue to help increase education funding and
lower property taxes. Republican Tomlinson wrote
a slots bill that Rendell’s fellow Democrats in the
Legislature refused to support last month. Democrats have since begun working off Tomlinson’s
bill to create legislation that addresses their concerns and gives more revenue to the state, the
horsemen, and state horse breeders. Among the
concerns are that Tomlinson’s bill favored track
owners too heavily and does not adequately address things like state control over licenses, slot
machines and revenue flow.
NUNZIATA SUSPENDED IN NJ
Harness driver Anthony Nunziata was suspended
for seven months and fined $2,500 for fighting with
driver Mike Lachance at Freehold Raceway last
month. Nunziata’s suspension starts June 12 and
runs through Jan. 7, 2004. Stewards determined
that Nunziata struck Lachance in the paddock
after the second race on May 10, causing a
cut that required 15 stitches.
BANGOR APPROVES SLOTS
Voters in Bangor, Maine, approved a referendum
Tuesday to allow slot machines at its harness
racetrack, a move that will advance a proposal by
Las Vegas-based gaming gadabout Shawn Scott
to develop a gaming and entertainment complex
at Bangor’s Bass Park. With eight of nine
precincts reporting, 57 percent of the voters
favored a measure to allow slot machines at the
track, while 43 percent opposed it. The $30 million
racino project would involve improvements to Bass
Park, along with a new hotel and a casino with as
many as 1,500 slot machines. In order to move
forward, Scott’s company, Capital Seven LLC,
needs to receive a state racing license and strike
a development deal with the City of Bangor. Focus
now shifts to the fall, when voters statewide have
to approve a referendum in order for the project
to become a reality.
TENNESSEE GETS A LOTTERY
Tennesseans are just months away from playing
the lottery without having to sneak into another
state to do it. Gov. Phil Bredesen signed two bills
into law -- one setting up the games in Tennessee
and another detailing how lottery-funded
scholarships will be distributed. That means that
as early as January, Tennessee will join 38 states
and the District of Columbia in selling lottery
tickets. The bill signings came two weeks after
the General Assembly concluded five months of
divisive debate over the bills.
LA. PANEL WANTS POKER OUT
Two Louisiana racetracks would have three years
to phase out video poker under a bill approved
this week by a state senate committee. Delta
Downs and Louisiana Downs, which have explicit
approval for slot machines, have been able to offer
video poker even though a 1997 law
specifically banned the game through a
legal loophole. The loophole was created in
June 12, 2003
2001 when a gaming bill changed the definition of
slot machines in a way that allowed tracks to have
multigame machines that offer video poker. A bill
approved by the Louisiana house in April calls for
an immediate ban on video poker machines at
tracks. The senate judiciary committee
unanimously passed the bill Tuesday, and it goes
to the senate floor for debate. The sponsor of the
legislation said lawmakers were fooled into
thinking the 2001 amendment was a technical
change and they didn’t realize they were changing
the intent of the original law.
NO ‘MO’ FOR SPORTS BET BAN
U.S. Rep. Tom Osborne of Nebraska, who coached
three national championship football teams at the
University of Nebraska, said he does not expect
his bill to prohibit Nevada sports books from taking
bets on college games to gain momentum from this
week’s big win in the House for H.R. 2143, the
Unlawful Internet Gambling Funding Prohibition
Act. As of Wednesday, the bill had 36 co-sponsors
and had yet to receive a date for a committee
hearing. “Frankly, I haven’t pushed this real hard,”
Osborne said. “I’ve been working on a couple of
other things.” For example, Osborne co-sponsored
a bill prohibiting agents from recruiting studentathletes by giving false or misleading information.
The House passed that bill by a voice vote on June
4. Presumably, when Osborne gets through writing
legislation to protect vulnerable greedy athletes
from big, bad unscrupulous agents, Osborne will
turn his attention back to his bill to prohibit
gambling that is currently legal. Nevada
lawmakers have criticized Osborne’s effort
because the legislation does not address illegal
bookmakers.
Osborne does not accept the
assertion by Nevada regulators that its sports
books can actually help detect point-shaving
schemes. One can only assume that La Cosa
Nostra’s legendary five families favor
Osborne’s legislation.
MAINE GOV PROMISES VETO
June 13, 2003
Maine Gov. John Baldacci will veto legislation to
allow slot machines at the state’s five off-track
betting facilities and will lobby lawmakers to sustain his veto. Lawmakers approved the bill late
Wednesday night by an overwhelming margin, 11229 and the senate followed with a 24-6 vote. Those
margins would be enough to override a veto, so
the governor will need to lobby legislators to
change their votes if the veto is to be sustained.
Baldacci sees slot machines as an impediment to
what he considers real economic development in
the state.
Las Vegas Review Journal. Only 17 percent of
visitors surveyed said they planned to gamble
while in Vegas, far behind sight-seeing, spending
time by a pool and shopping. Gambling also
squeaked by seeing a show and fine dining as things
to do. Of course, once they get there, the bulk of
visitors spend some time gambling. MGM Mirage spokesman Alan Feldman noted that development of a diversified visitor product “has been
a clear strategy direction for Las Vegas for 12 to
14 years, to create the environment we now have
and focus on activities other than gambling to attract a healthy component for visitors.”
NJ LICENSES BORGATA
TRACKS DROP CHESTER APPEALS
New Jersey casino regulators have granted a license to the Borgata, Atlantic City’s first new casino in 13 years. The last casino to open there
was the Trump Taj Mahal in 1990. Borgata, a joint
venture between MGM Mirage and Boyd Gaming, features a 2,000-plus room hotel with a 480foot tower and a 40-acre footprint. Licensing a
casino in New Jersey is never a sure bet; in the
1980s Playboy founder Hugh Hefner and Hilton
Hotels were found unsuitable to hold casino licenses and forced to sell their interests as a result. No opening date has been set for the Borgata,
although a company spokesman estimated the facility would begin operations between July 1 and
July 11.
Penn National Gaming and Philadelphia Park have
dropped their appeals of the harness racing license
issued to Chester Downs, which plans to build a
racetrack, 50-slip marina and 2,500-seat concert
hall on the site of a defunct shipyard in Chester,
Pennsylvania. State senators with nearby districts
had said that the outstanding appeals would complicate their decision on whether to support a bill
authorizing slot machines at the state’s racetracks.
Appeals by Penn National Gaming and MEC Pennsylvania, which runs HTA member The Meadows
near Pittsburgh, are still pending over a thoroughbred racing license issued last year to MTR Gaming Group Inc. to build a track near Erie.
IN VEGAS, GAMING’S LURE SLIDES
Sight-seeing, hanging out at the pool and shopping
all rank above gambling in drawing visitors to Las
Vegas, according to a new report. “The primary
purpose of a trip isn’t gambling any more. It’s
entertainment and just to get away, to have fun in
Las Vegas. That’s a big change. Even if you’re
coming back, the entertainment mix luring
you doesn’t change,” Jim Medick, CEO
of the MRC Group, Nevada’s largest market research and public polling firm, told the
Meanwhile, the Erie Times-News is reporting that
MTR Gaming is willing to pay $50 million for a
state slot machine license but that “anything more
would be a gamble for its shareholders.” The Pennsylvania senate is debating licensing fees that
would be part of legislation authorizing slot machines at the state’s racetracks. The fee range
discussed has been as wide as $50 million to $300
million per track. Ted Arneault, CEO of MTR
Gaming Group, told the Times-News, “If they
say we could pay $300 million over 300 years,
we could probably do something.”
June 16, 2003
JUDGES TOSS BACK THE BALL
WEST VIRGINIA MAY NOT WAIT
The seven judges on New York’s highest court, the
Court of Appeals, can’t agree on Indian gaming in
the state, and have in effect told the legislature
that it can solve the problem. In a 4-3 vote, the
justices declared that a Mohawk Indian casino
near Hogansburg is illegal because it never was
ratified by the legislature. They said the legislature can make it legal at any time it chooses.
Cornelius Murray, the lawyer whose argument
prevailed, said he understands reality and is not
trying to close the three Indian casinos already
operating in the state, but merely wants to stop
any more from being opened. He acknowledged
that the three currently operating -- the Mohawk
casino, the Oneida’s Turning Stone near Vernon
Downs, and the Seneca’s Niagara Falls casino,
have “spent a ton of money and have a lot of people
employed. You just can’t rewrite history.” While
three of the judges dissented from the opinion,
saying the federal Indian Gaming Regulatory Act
supercedes the state constitution, one of the concurring judges, George Bundy Smith, thought otherwise. “The people of the state of New York have
decided in New York’s constitution to prohibit commercial gambling. If the elected representatives
of the people want to change the policy, they should
begin the process of amending the constitution.”
While Pennsylvania legislators agonize over what
to do about slots, competitors in West Virginia are
not sitting around with their hands folded. Ted
Arneault, CEO of Mountaineer Race Track and
Gaming Resort and soon-to-be head man of Scioto
Downs, has lobbyists seeking blackjack and
baccarat to supplement the slots already driving
his West Virginia operation. He thinks table games
could boost revenues by 20%, and he says, “If
you’ve established a position as number one in the
market, you certainly want to keep that.” According to an MTR spokeswoman, 95% of
Mountaineer’s customers come from out of state,
with more than 50% coming from Pennsylvania
and Ohio.
GREASED PIGS IN PENNSY
Trying to solve the slots-at-tracks issue in Pennsylvania is like wrestling with greased pigs. The
senate has reached a virtual standstill in negotiations, and the speaker of the house is writing his
own version of the legislation, which would strip
tracks of exclusivity and provide for slots elsewhere in the state. One possible site is the posh
Nemacolin Woodlands Spa and Resort near the
Meadows, owned by former major harness horse
owner and lumber baron Joe Hardy.
GOING, GOING, GONE
It appears that another small racetrack is history,
the victim of inability to reach accord with its horsemen. The Maritime Harness Racing Commission
in Atlantic Canada has revoked the license of Tartan Downs in Sydney, Nova Scotia, after owner
Jack MacNeil and the Cape Breton Horsemen’s
Association were unable to reach agreement. A
commission deadline of accord by May 4 was extended for 14 days, but nothing happened and the
commission revoked the track’s license for live
racing. An offer of 4% of revenues, instead of
the 6 1/2% wanted by horsemen, was rejected by
horsemen on a 34-2 vote, and owner MacNeil says
he is moving forward with plans to build apartment
buildings on the track property.
LOVEMAN HITS SCARE TACTICS
In an opinion piece in USA Today, Harrah’s president/CEO Gary Loveman deplored what he called
the “scare tactics” of anti-gambling activists.
Loveman said “seventy percent of Americans
gamble, and do so responsibly.”
June 17, 2003
BATTLE OF THE BOARDWALK
A DOG-GONE DEAL IN MASS.
It’s hot in Trenton, NJ, these days, and not just
the weather. Democrats and Republicans are
mustering the troops for a battle over a sacred
New Jersey cow, the casinos of Atlantic City. The
Democrats are determined to get more state revenue from the boardwalk boys, and have a hardhitting tax increase all laid out in the Assembly,
which they control. The Senate, which is evenly
divided, is preparing for a fight. Under the Assembly plan, there is a five-part package worth
$90 million, of which $58 million would come from
casino profits after salaries, insurance and certain
other expenses are deducted. According to the
Philadelphia Inquirer, the rest of the money would
come from parking fees ($7 million a year); progressive slots ($10 million); increased state inspection fees ($5 million); and annual fees on slot
machines ($10 million). Critics of the plan, led by
Atlantic county Republican William Gormley, claim
the tax is a sweetheart deal for Donald Trump,
since the plan is weighted on profits and two of
three of Trump’s casinos are losing money.
Gormley calls the Democratic plan “a mean-spirited proposal,” but a spokesman for governor Jim
McGreevey says it is sound tax policy to base the
plan on net profits and the ability to pay. The chairman of the Assembly Budget committee, Democrat Louis Greenwald, says that because the proposal is a four-year plan rather than a permanent
one, and reduces total tax demands from $135 million to $90 million, “it is a huge win for the casino
industry.” The casinos hardly see it that way, and
have launched a series of bitter radio commercials
attacking the governor. Trump threatened to withdraw from the Casino Association of New Jersey
unless the ads are suspended. A spokesman for
governor McGreevey called the casino’s charges
of favoritism “ludicrous.” The name-calling goes
on, as the legislative session moves toward
a June 30 deadline.
Charley Sarkis, the owner of Wonderland Greyhound Park in Massachusetts, does not like to give
ground to anyone. He and two investors own 86%
of Wonderland stock, but smelling slots in the air,
he proposed a reverse stock split last year that
would cash out 400 of his 428 shareholders at $4 a
share. The shareholders were not happy, and the
matter wound up in the hands of the secretary of
state William Galvin, who blocked the buyback
plan, saying it would cheat investors. Yesterday
an agreement was reached that former stockholders whose shares were purchased would be given
an additional premium if slots are approved for
Massachusetts tracks. Sarkis originally had called
Galvin’s actions “outrageous.” He contended as
late as yesterday that his original buyback plan
was legal, but said his board had concluded that it
was in the best interests of shareholders to resolve
the issue.
PROBABLY WILL BE A PICK-SEX
Bill Heller reported in Thoroughbred Times yesterday that Home Box Office is getting close to
completing a script on last fall’s Breeders’ Cup
Ultra Pick Six scandal. We can imagine this one,
and will give even money that in addition to Chris
Harn, Glen DaSilva and Derrick Davis, all now in
jail, there will be a nude love scene somewhere in
the flick, probably discussing placing a bet at
Catskill OTB.
DIGGING DEEP IN THE DELTA
Maryland said no and Pennsylvania is haggling,
but to get an idea of what slots can mean for racetracks, check out numbers just in from Louisiana
Downs. The track got slots last month, and in the
first 11 days of operation recorded $2.6 million in
win. Delta Downs won $11.4 million in May, up
from $10.3 million in April and slightly ahead of
the $11.3 million won in May a year ago.
EXPLOSION OF GAMING NEWS
There were slot developments everywhere yesterday, in a sudden riot of activity.
In Maryland, the House of Delegates Ways and
Means committee began “an exhaustive schedule to study the slots issue” over the next few
months, and the pronouncements of House
Speaker Michael Busch did not augur well for racing. “I don’t see why the state can’t have maximum control,” Busch said. “For argument’s sake,
the state could build the facilities and lease out
the operations.” Busch said slots should not be in
the middle of communities, and suggested minor
league baseball parks in Aberdeen, Bowie,
Frederick and the Eastern Shore as good locations
that could accommodate crowds without impacting neighborhoods. He said nothing about racetracks being ideal sites since they already offered
gambling. Delegate Sheila Hixson, the Democratic
chairwoman of the Ways and Means committee,
would not predict the results of the summer sessions, saying only, “It could be expanded gaming.
It could be slots at the tracks. It could be nothing.”
In Delaware, plans were announced by a state representative for an 80,000-square foot casino and
240-room hotel along the Christina River in
Wilmington, with 2,000 slot machines. The representative, Republican Joseph G. DePinto, called
the legislation a win-win idea, but the governor of
Delaware, Ruth Ann Minner, does not agree with
him. She opposes expansion of gambling beyond
Delaware Park, Harrington Raceway and Dover
Downs. Sal DiMario, executive director of the
Delaware Standardbred Owners Association,
strongly objected to the idea, saying, “We absolutely oppose it. It can cause serious harm to the
horse racing industry.” Denis McGlynn,
president and CEO of Dover, said the casino could cut Delaware Park’s business
in half.
June 18, 2003
In Ohio, the state senate was expected to act today on a November vote on amending the constitution to provide for slots at the state’s seven racetracks. The Ohio state auditor, Betty Montgomery, opposes the idea, and the vote has been delayed in the senate by a debate over how the state
revenue from 2,500 machines at each track would
be spent. Republicans control the Senate, 22-11,
and Republican senator Louis Blessing, the sponsor of the legislation, said he needed six Democratic votes to put the issue on the ballot. The
proposal calls for using 50% of the state’s share
for prescription drug price relief and 30% for scholarships for the top 5% of Ohio high school students. One Democratic state senator, Robert
Hagan, said of the measure, “I must say I’m not
willing to sell my soul on this issue, but I’m open
to renting out parts of it.”
In Kentucky, a legislative subcommittee studying
Kentucky racing and breeding was to hold its inaugural meeting today, but the co-chairman of the
committee, Republican Damon Thayer, said “This
will not become a forum for slots.”
In Louisiana, Gov. Mike Foster said he would not
sign legislation authorizing slots at tracks, but
would allow the measure to become law without
his signature. The bill before him calls for voters
in New Orleans to decide whether the Fair
Grounds can have 700 slot machines.
TAKTER, ZITO TAKE PENALTIES
Two of the nation’s top trainers, thoroughbred conditioner Nick Zito and harness racing trainer
Jimmy Takter, have decided to accept penalties
against them. Zito has given up his two-year fight
against a 10-day suspension and $2,000 fine for a
medication violation, and Takter will not contest a
five-day suspension and $10,000 fine for empty
syringes and hypodermic needles found in a van
hauling his horses to races in Ontario. A vet
had prescribed medication for the horses.
THE MIAMI HERALD AGAIN?
One would think, after the Miami Herald wound
up looking foolish on the Jose Santos non-story,
that the paper might exercise some discretion,
checking, and editorial judgment on what it prints.
The paper’s lead on an incident in Florida, written
by one Daniel deVise, indicates otherwise. The
story began, “State regulators are investigating
whether an employee used computer records at
Pompano Park harness track to counterfeit and
cash a bettor’s unpaid winning ticket -- another
blow to the tarnished parimutuel industry.”
Given events at the New York Times and the bungling by the Herald of its Santos coverage, the
question might be asked, concerning tarnish, if this
isn’t a case of the pot calling the kettle black. Any
reader of the Herald story, and particularly the
lead, might conclude the story involved wagering
at Pompano Park. One paragraph read, “The
employee is suspected of tapping into the computer
system at Pompano Park, a harness track that also
accepts bets on closed-circuit TV races at other
tracks, in late March to create a counterfeit of a
winning greyhound ticket that had not been paid.”
The story was picked up by Thoroughbred Times,
which ran it on its Web site under a headline reading, “Pompano employee suspected of ticket
fraud.” Its lead read, “An employee at Pompano
Park harness track is under investigation by state
regulators on the suspicion that he used computer
records to counterfeit and cash a bettor’s unpaid
greyhound winning ticket.”
Dick Feinberg, general manager of Pompano Park,
says that statement is false and inaccurate. “The
incident in no way involves Pompano Park Racing. We loan space to United Tote so they can hub
Florida operations from one site. The al-
June 19, 2003
leged incident did not take place at Pompano Park,
did not involve a United Tote employee who
worked at Pompano Park, did not involve a Pompano Park employee, and did not involve a parimutuel ticket that could be bet or cashed at Pompano, since we do not accept wagers on or simulcast greyhounds.”
Vic Harrison, director of North American sales for
United Tote, wrote Feinberg “Re: Erroneous Press
Account Concerning Pompano Park. United Tote
Company has seen a recent press account that
states that a Pompano Park employee used computer records to counterfeit and cash a bettor’s
unpaid winning ticket, or so-called “outs” ticket.
The press allegations concerning Pompano Park
are false and United Tote is hereby reporting this
to the Division with a copy of this letter.
“Additionally, United Tote can report to Pompano
Park and the Florida Division of Pari-Mutuel Wagering (“Division”) that it is not aware of any
fraudulent activity by any United Tote employee
or ex-employee concerning any outs tickets or any
tickets whatsoever at Pompano Park. United Tote
is not aware of any Pompano Park employee that
has used any computer records or anything generated by the totalisator system at the racetrack to
counterfeit and/or fraudulently cash any outs ticket
or, indeed, any pari-mutuel ticket.”
BIG M PITCHES BREEDERS’ CUP
Team Meadowlands -- a group of top executives
of the track and New Jersey Sports and Exposition Authority including former and present HTA
presidents Bruce Garland and Chris McErlean -is enroute to Lexington, KY, today to make a formal presentation for the Breeders’ Cup. They
hope to convince Cup officials that the track and
its metropolitan New York setting would make an
ideal venue for the event.
June 20, 2003
SARATOGA RACEWAY AGAIN
CAMPBELL BACK IN ACTION
Joe Gerrity Jr., chairman of HTA’s longtime member in Saratoga Springs, NY, has with his son
Daniel acquired majority control of the Saratoga
Equine Sports Center in a $1.68 million stock purchase. The senior Gerrity will retain his chairmanship and son Daniel will serve as president of the
track. One of the father-son team’s first acts is to
change the name of the track back to Saratoga
Raceway. The elder Gerrity has controlled onethird of the voting shares of the track for years,
and his son recently added the shares held by
Frank Fernandez, formerly an executive of the
track and now executive vice president of Home
Depot in Atlanta. In addition, the shares of the
late Frank Fitzgerald were sold to the track corporation. The Albany Times-Union reported that
court records show a Saratoga voting share cost
$135,195 and a non-voting share $70,774.79, giving the overall value of the 282 shares a value of
$21.5 million. The track was sold by former owner
David Morris for $8.6 million in 1987. While the
name has been changed back to Saratoga Raceway, Daniel Gerrity said it could be changed again
to reflect gaming operations once VLTs pass legal
challenges and are operational at the track. He
told the Times-Union that the track anticipates investing about $13 million to install 1,300 video lottery terminals, and that while Saratoga has spoken to several gaming companies about managing
of the slot operation, those firms would not have
any equity interest in the track. The Gerritys plan
a first class, state-of-the-art slots facility for the
property. Equally significant, the Raceway plans
to begin work in October on converting Saratoga’s
half-mile track to a five-eighths, which would give
it the only five-eighths mile harness track in New
York state. That development could have a significantly positive impact on the horse population
at the popular and picturesque plant.
Harness racing’s leading driver, John Campbell,
returned to limited action last night at the Meadowlands, his first drive since he suffered a broken
elbow in a racing accident there March 23. He
finished second in his only start and said that while
it “felt really good” he would be accepting only a
few mounts a night for the present.
ANYONE’S GUESS IN OHIO
We know what happened in Ohio’s General Assembly, but we’re not sure what it means, and
we’re not the only ones.
A House-Senate conference committee yesterday
agreed on a $49 billion budget that resolves the
tax bill debate and includes a one-cent increase in
sales tax. The committee also scrapped a House
plan to put video slots at tracks on the Nov. 4 ballot. A Senate finance committee may or may not
meet next Tuesday, depending on whether its members are around to vote, and if they are despite
the summer recess they may approve a separate
resolution to amend the state constitution to provide for slots, with 50% of the proceeds to go to
relief on prescriptions for senior citizens and the
other 50% to be used for Ohio college scholarships for worthy Ohio high school graduates, or
school construction, or some combination of both.
If that evolves, either next week or when the session resumes in August following the break, it is
not likely any action could or would be taken in
November, but more likely the issue could be considered in the March, 2004 primary elections.
USTA ALTERS CANADIAN RATE
The United States Trotting Association, responding to a 15% increase in the value of Canadian
currency, has changed its record-keeping benchmark from 64 cents to 74 cents on the dollar on
winnings earned in Canada.
June 23, 2003
PITT POOL GETTING CROWDED
GOV HITS ILLINOIS CASINOS
Another hopeful has dived into the crowded pool
seeking to obtain Pennsylvania’s final thoroughbred racing license for a track near Pittsburgh. The
latest aspirant is Ted Arneault, president and CEO
of MTR Gaming, which operates Mountaineer
Park in West Virginia, is taking over Scioto Downs
in Columbus, Ohio, and has a license to build a
track in Erie, Pennsylvania. Arneault announced
that MTR has optioned some 350 acres near
Harmar in northeastern Allegheny county, where
the Pennsylvania Turnpike crosses state route 28.
He joins four other applicants who want to build
near Pittsburgh and two who hope to build near
Philadelphia. Arneault said MTR hopes to build a
$100 million track and casino there as a 30% majority owner, with a group of investors owning the
rest, but he told the Pittsburgh Post-Gazette MTR
planned to build whether or not slots at tracks are
legalized. Already in the Pittsburgh pool are
Magna Entertainment, developer Charles J. Betters, the Biros family, and Pittsburgh-based Oxford Development company. The Pennsylvania
Horse Racing Commission is waiting for the legislature to act on slots before it awards the final thoroughbred license.
Illinois governor Rod Blagojevich made good on
his threat to riverboat casinos last Friday, signing
a bill that raises the tax on their adjusted gross
receipts over $250 million to 70%, up from 50%.
The 50% rate now will apply to receipts over $100
million, instead of over $200 million, as previously,
and both new rates will take effect next Tuesday,
July 1. Argosy Gaming said the move could decrease its per share earnings by 25 to 30 cents.
The move also affects Penn National Gaming, Boyd
Gaming, Harrah’s Entertainment and Mandalay
Resort Group, all of whom have riverboat interests in Illinois.
AN EX-GOV TOUTS THEM
While Blagojevich was putting the pressure on Illinois riverboats, former Kentucky governor
Brereton C. Jones was espousing them for tracks
in the Bluegrass. Speaking at the Thoroughbred
International Exposition and Conference in Lexington, he called for a constitutional amendment
to set forth specifics of how proceeds should be
spent, and where. Jones said locating slots at
tracks would limit the proliferation of gambling,
and shift the cost of building and running them to
the tracks.
MAGNA BUILDS OTHER THINGS
Magna Entertainment may have to wait for the
Pennsylvania legislature and commission to act
concerning Pittsburgh, but it is busy building elsewhere. It held a groundbreaking today for a new
plant it built in Lumberton, North Carolina, where
it will manufacture bedding for horse stalls. The
product is STREUfex, an environmentally friendly
horse beddng made of shredded grain straw and
trace amounts of natural oils, and Magna says it
expects to produce 5,000 tons of the material in
the first year of plant operation. The material will
be sold initially to tracks and farms in the
east.
USE THEM TO HELP HORSES
That’s what the Louisiana Senate proposes to do
with slots revenues, or at least a portion of them.
A bill passed by that body would dedicate $750,000
from track slots revenues to Louisiana State university and the same to Southern University for
equine health studies at the two schools. The
House still must approve the bill and the governor
must sign it before it becomes law.
VERNON THINKS BIG
Vernon Downs says it expects to bring in $54
million a year once slots get court approval
in New York state.
June 24, 2003
SENATE HOMESTRETCH IN PA
ELSEWHERE IN SLOTS.....
It appears that the Senate, which has debated slots
at tracks down to the last nickel, is ready to vote
on the issue in Pennsylvania. Track operators
close to the debate say the Senate may approve a
deal under which track operators will buy slot licenses for $50 million each and pay 36% in taxes
on the revenue from up to 3,000 machines. If the
tax is increased in the first ten years, the tracks
would be able to write off the license fees up to
$50 million. The tracks will pay 18% to purses
and guarantee existing racing agreements as to
number of days of live racing. In a move opposed
by the tracks but apparently agreed upon by senators, if the tracks are sold the new owner also would
have to pay the $50 million license fee again.
The Kansas Senate has narrowly defeated a bill
that would have permitted slots in any county where
local officials and voters approved them. The
Woodlands, which had been counting on the bill to
get slots, called the vote “very frustrating,” but
said it probably would try one more time. “It
makes you wonder why you can’t get the message
to the right people,” attorney Larry Seckington of
The Woodlands said. “We really thought we had
a very good chance for it to pass this time.” Kansas faces a $254 million budget shortfall by the
end of the budget year that starts next week, and
the slots bill had passed the House easily. It failed
in the Senate 21-18.
HTA director Mike Jeannot of Magna Entertainment says “We appear to be getting some legislation.” But even if the Senate does pass the legislation, perhaps as early as today, it still faces a
test in the House, where the majority leader and
others want wider gambling.
In related events reported by the Pittsburgh PostGazette, Ted Arneault of MTR Gaming has proposed that if he receives the state’s sixth and final
thoroughbred license for a Pittsburgh area track,
he would devote 2% or perhaps 3% of annual slots
profits to help fund a new $270 million arena for
the Pittsburgh Penguins hockey team in downtown
Pittsburgh. Nineteen amusement parks in Pennsylvania, meanwhile, are lobbying state legislators
to allow bingo at their facilities, claiming that slots
at tracks would divert their customers to the tracks.
The executive director for the Pennsylvania Horse
Racing Assn. says this is not so, claiming “those
dollars are already being spent, because what
Pennsylvanians are doing is crossing the state line
to spend them.”
In Colorado, the state treasurer says he will oppose a potential November ballot issue to put hundreds of VLTs in horse and dog tracks there. He
said “Colorado has enough gambling already.”
Supporters of the idea have gathered 30,000 petition signatures so far, but need 67,829 to get on
the ballot.
EEK! ANOTHER DONALD TRUMP
As if one monumental ego isn’t enough in gaming,
we now have another. Steve Wynn, who had opted
for La Reve (The Dream) from a Picasso painting
he owns for the name of his new Vegas casino,
now has decided -- reluctantly he says -- to name
the place Wynn Las Vegas. He also will reluctantly name his new casino in Macau the Wynn
Macau. It’s a Wynn-Wynn deal.
MOHAWKS BALK AT $15 MIL
A newly elected chief of the St. Regis Mohawks
says the tribe wants to renegotiate the $15 million
it agreed to pay Sullivan county for a Catskill casino. Chief Barbara Lazore says she wants to go
back to the $5 million number the tribe once agreed
on. The Sullivan county attorney says, “We
have binding contract.”
THE PENNSYLVANIA PACKET
The Pennsylvania Senate is expected to vote today on the slots-at-tracks bill, and the Harrisburg
Patriot-News published what it says the bill provides. According to the paper, the measure calls
for:
June 25, 2003
* If the tax is raised in the first 10 years, track
operators would receive a tax credit allowing them
to write off the license fees
* Any individual track must conduct at least 100
days of live racing
CENTAUR CHANGES ITS MIND
* A $50 million fee for each license
* 20 hours a day permissible operation, with permission to petition for 24 hours if warranted to meet
demand or competition
* Ability to apply for full liquor licenses, with an
exemption on the number in any given municipality
* A minimum age requirement of 21
* Fingerprints of all job applicants to be sent to
the FBI for checking against its databases, and a
felony conviction most likely disqualifying an applicant
* A prohibition against political contributions to
state candidates or parties, and a prohibition
against any state official having any financial interest larger than 2% in any gaming company involved
* 3,000 machines allowed per track, with a requirement to have at least 1,500 up and running in
the first year. Tracks could request more, up to
5,000
* Proceeds to be split 46% to track operators,
36% to the state, 18% to owners, breeders and
purses
* If legal gambling is expanded beyond
eight racetracks, current owners are entitled to a refund of their $50 million fee
Centaur Inc., which two months ago said it was
selling 75% of its Rosecroft Raceway deal to Delaware North, says--without giving any reasons -that it is terminating that agreement. Delaware
North says the move came as “a huge surprise”
and that it considers the agreement intact and
would continue efforts to close on the track.
WOODBINE COULD SEEK BIG M
Standardbred Canada reports today that David
Willmot, Woodbine Entertainment Group chairman
and CEO and current chairman of the board of
HTA, has announced that Woodbine is interested
in the Meadowlands, which New Jersey has announced it wants to sell or lease. Willmot said,
“The Meadowlands is so material to the Standardbred business. It’s not yet clear as to what New
Jersey wants to do. They’ve said they’re interested in selling or leasing it. If that’s the case,
then we’re certainly interested. We’re not interested in most U.S. acquisitions....but New Jersey
is a very important market to us. We’re each
other’s best customers on the harness side, so we
have a vested interest in what happens there. We
have had discussions with a possible partner and
they have been talking to the Authority. When
considering an acquisition of this nature, you’re
talking about a huge amount of capital, especially
if New Jersey decides they want to sell the track
instead of just lease it. We would have to look
very deeply into the financials, but we have been
talking with a potential partner.” Meadowlands
boss George Zoffinger told the Newark Star-Ledger, “We’re in no rush. It’s more important
for us to do it right.”
June 26, 2003
PA SENATE PASSES SLOTS BILL
BUT SLOTS BILL DIES IN OHIO
So it’s on to the House in Pennsylvania. The state
senate last night after midnight, and after three
and one-half hours of debate, passed a slots-attracks bill by a vote of 27-22, providing 46% of
gross revenue to tracks, 36% to the state, and
18% to purses and breeders. Each track will have
to purchase a license for $50 million, and will get
at least 1,500 slots, more likely 3,000, and possibly as many as 5,000, providing the House approves the legislation and the governor signs it.
The former is questionable, the latter a seeming
sure thing since he has pushed the measure as
candidate and governor. The vote marked the first
time in more than 30 years that a state gambling
initiative won approval, and marked a unique bipartisan effort. The tally indicates the opposition
encountered in passing the bill, but the view of
senator Jim Ferlo, a Lawrenceville Democrat, ultimately prevailed. “My constituents have voted
with their feet,” he said. “Why in God’s name we
would let all of this revenue, all of this money, leave
our state makes no sense to me.” Proponents of
the measure think it might provide as much as $600
million in property tax relief and as much as $300
million annually in state revenue. The bill provides $1.5 million a year for gambling addiction
programs and $25 million a year to volunteer fire
companies. It also limits the use of credit cards
and automatic teller machines at the facilities, and
establishes a central monitoring system that will
operate in real time by remote control. Slot manufacturers will pay $50,000 for a license to sell equipment in the state, plus $20,000 a year for renewal.
Suppliers will need a $25,000 license and a $10,000
annual renewal fee. Before the bill was signed, an
eighth applicant -- the Shick family of Hillsville,
PA, applied for the state’s last thoroughbred license for property they own 15 miles east of Youngstown, Ohio. If you have an empty lot, apply and join the fun.
If Ohio is to get slots at tracks, it will have to be
because voters demand it. The state senate, torn
between using proceeds for education or prescription drugs for low-income families and seniors, let
the matter die yesterday, so there will be no slotsat-tracks legislation on the November ballot.
Democrats supposedly were willing to give up their
idea for prescription drugs, but the chairman of
the Senate State and Local Government committee, Republican Kevin Coughlin, halted hearings
yesterday. The ranking Democrat on the committee quickly charged that Coughlin never asked for
Democratic votes. The chairman’s response was,
“We could not get a guarantee from the minority
caucus that we would have votes from their caucus on the floor with a scholarship-only program,
so we’re pulling the plug. At a certain point as
chairman, you get tired of getting jerked around.”
So maybe next year, but not this.
SADINSKY LEAVING RACING
Stanley Sadinsky, recognized by his colleagues on
the Association of Racing Commissioners as one
of their finest, is leaving his post as chairman of
the Ontario Racing Commission to become chair
of the Ontario Lottery and Gaming Corporation,
which controls all slot operations in the province.
Sadinsky has headed the Ontario racing commission since 1994, and said he would miss racing.
The news was reported by www.harnessracing.com,
the new Web site operated jointly by Canadian
Sportsman and Horseman and Fair World magazines, and was the second impressive scoop by that
site in recent days. Over the weekend it was the
first to report Woodbine Entertainment’s interest
in acquiring the Meadowlands and Monmouth
Park in New Jersey. Credit for that story was mistakenly attributed to Standardbred Canada in
yesterday’s Executive Newsletter.
$420 MIL FROM SLOTS IN W.VA.
West Virginia’s four pari-mutuel racetracks are
expected to pocket nearly $420 million in slot machine commissions for the 12 months ending next
week, according to the Associated Press. Mountaineer Race Track and Gaming Resort, Charles
Town Races & Slots, Wheeling Island and Tri-State
Racetrack & Gaming are expected to end the fiscal year with gross terminal revenue of approximately $713 million. The tracks set a new record
in May with $72 million in gross terminal revenue,
an increase of 68 percent over May 2002. John
Finamore, senior vice president of regional operations for Penn National Gaming, Charles Town’s
parent company, said the tracks are seeing growth
because of multi-million dollar expansion projects
that have added hundreds of machines. On
Wednesday, the commission renewed the licenses
of all four tracks. During the past 12 months, the
number of slots at all four tracks has increased by
about 300 machines to 9,049 as of May 31. The
added machines helped push sales for the fiscal
year ending June 30 above the $1.1 billion mark
on Tuesday, a 27 percent increase over the previous year. The end-of-year total marks the 14th
consecutive year the lottery (slot machines and
traditional lottery games) has posted double-digit
increases.
MGM MIRAGE SELLS NUGGETS
MGM Mirage said Thursday it plans to sell its
Golden Nugget Las Vegas and Golden Nugget
Laughlin resort-casinos for $215 million to the Las
Vegas-based Poster Financial Group, Inc., subject
to certain conditions including regulatory and governmental approvals. Poster Financial Group is
owned by Timothy Poster and Thomas Breitling,
founders of the Travelscape Web site, which they
subsequently sold to Expedia. The sale is expected to be completed by the end of the
year. The Golden Nugget in Las Vegas is
the largest hotel-casino in downtown Las Ve-
June 27, 2003
gas. It opened as a gambling hall in 1946 and now
has 1,907 guest rooms. The Golden Nugget in
Laughlin has 300 rooms.
BATTLE NOW IN PENN. HOUSE
Now that the Pennsylvania Senate has finished its
work by passing a bill authorizing slot machines at
up to eight state racetracks, the more difficult task
of getting legislation through the House begins, a
task many predict will be much more difficult. It’s
already apparent that some House lawmakers
have ideas about slot machines different from
those of their Senate counterparts. In addition,
those who follow the Pennsylvania political scene
say that bipartisan support will be needed to circumvent conservative House opposition, and if
that’s not enough, a Pennsylvania state court issued a decision on Thursday vacating the license
granted seven months ago to MTR Racing and
Gaming to build a thoroughbred racetrack in Erie.
The court decision stunned the plaintiffs in the case,
MEC Pennsylvania Gaming Inc., since both they
and the Erie group had reached a settlement to
ensure that Erie-area lawmakers would vote in
favor of the slot machine bill. The parties thought
their settlement would preclude the court from
deciding the case. “We never ever expected this,”
MEC Vice President Mike Jeannot said. “We just
didn’t see this coming, but we’ll get it worked out
because we don’t want it to be a problem for legislation.” MEC had filed the suit as an appeal of
the granting of the license by the state horse racing commission. The slots bill passed the Senate
early Thursday morning. Now it seems House
members are lining up to amend the bill, some to
restrict gambling and others to expand it. To become law, the bill needs to pass the House in an
identical form as in the Senate and get the
governor’s signature. Proponents are in a rush to
get the bill passed by the middle of next week,
when legislators hope to begin their traditional two-month summer vacation.
June 30, 2003
POLITICAL POSTURING IN NJ
NEW CHAIRMAN FOR OHRIA
The boys and girls in Trenton were having a ball
last night and today, blaming one another for the
New Jersey budgetary impasse and threatening
to shut down the state except for police, fire, nursing and prisons. No one doubted all the political
posturing would be settled by midnight tonight, the
constitutional deadline for a balanced budget. The
Philadelphia Inquirer, looking at Jersey from
across the Delaware River, said, “New Jersey’s
political brain trust again snatched stalemate from
the jaws of compromise yesterday, pushing the
state to the brink of a shutdown.” Democrats
blamed Republicans and vice versa, which of
course is not news. Republicans said they will
move to replace the Democrats’ proposal for an
increase in casino taxes with the plan presented
by Sen. William Gormley, which includes an increase in the parking fee, from $2 to $5, and a $5
daily room fee.
The Board of Directors of the Ontario Horse Racing Industry Association (OHRIA) have announced the appointment of Thomas Deacon, Q.C.,
as the Association’s new chairman. Deacon’s election took place at the OHRIA Annual General
Meeting on June 20, 2003. Deacon formerly
served as a member of the Ontario Racing Commission for six years, with his term of office ending last April. In 2000, Deacon, retired after 39
years of practicing law. In addition, the following
members were elected to the 2003 OHRIA board:
LINING UP IN PENNSYLVANIA
Building a new home for the Pittsburgh Penguins
hockey team won’t help the plan for a new track
submitted by Ted Arneault, president and CEO of
Mountaineer Race Track and Gaming Resort,
according to Ben Nolt, executive secretary of the
Pennsylvania Horse Racing Commission. But
Arneault is predicting a groundswell of support will
show the commission that assisting the NHL team
is in the best interests of taxpayers. Arneault
agreed that there isn’t any specific criteria that
would give his proposed Keystone Downs plan favorable consideration in exchange for giving the
Penguins $60 million over a 20-year period to provide needed private funding to build a new arena,
but he is hopeful. “The [racing commission] can
rule on what effect it has on an area. A lot has to
do with the support from the local area,”
Arneault said. If there is groundswell (in
favor of Keystone Downs), I think that will
give some more credence to our application.”
*Glenn Sikura, President, representing the Canadian Thoroughbred Horse Society;
*Bill Carter of Windsor Raceway, representing forprofit racetracks;
*Dr. Moira Gunn, representing the Standardbred
Owners and Breeders of Ontario;
*Paul Lindsey, representing the Ontario Harness
Horse Association;
*Hugh Mitchell, representing Woodbine Entertainment Group;
*Larry Regan, representing the Horsemen’s Benevolent & Protective Association; and
*Rob Wilding, representing not-for-profit racetracks.
OHRIA is the umbrella association that represents
all segments of the horse racing industry in
Ontario. It was formed in 1994 to address the
unique challenges facing the industry in a dynamic
gaming and entertainment market, with the mission of making the Ontario racing industry a worldclass leader in horse racing and breeding.
CALIF. TRAINERS MAY BOYCOTT
Facing huge increases in workers’ compensation
premiums that will go into effect July 1, thoroughbred trainers in California may meet to consider
a possible boycott to get the attention of
tracks and the state legislature.
NEW JERSEY STILL THERE
With the dawn’s early light, the state was intact,
the Senate having gone through its political peregrinations and come to agreement on a $24.1 billion budget as the deadline was reached and passed
at midnight, mean Greenwich time. Early this
morning the two political parties reached a sort of
accord, which now goes to the Assembly and once
passed there to Gov. McGreevey. It will -- if it
remains intact -- mean that casinos, their gamblers, smokers, billboard owners and hotel guests
all will pay more to underwrite the budget. As for
the casinos, the bill marks the first time in 25 years
that sacred New Jersey cow has been disturbed,
and it is mooing loudly. The clock had to be stopped
to get the job done last night, but all is well this
morning and the Democrats and Republicans can
go on blaming each other for whatever follows. The
problem arose because the New Jersey Senate is
evenly divided, 20-20. The Assembly, on the other
hand, is controlled by Democrats, but not comfortably, 42-37. All members of the legislature are up
for reelection next November, so what went on
yesterday is part of an early campaign strategy.
You obviously have to be in position to tell the voters “it wasn’t us, it was the other guys,” when November rolls around.
THE SPORTSMAN’S CENTER
Jim O’Donnell, writing in the Chicago Sun-Times,
says sources have told him the land and facility of
Sportsman’s Park, better known lately as the Chicago Motor Speedway, have been purchased by
the town of Cicero, where the track is located, for
assignment to a commercial developer. O’Donnell
quotes “one insider” as saying, “The deal has been
finalized, and the Bidwills have until the end of July
to vacate the premises.” Demolition work on the
track should begin sometime later this year. According to O’Donnell, the Bidwills had been
hoping to get between $16 and $20 million
for the property, against a $5 million earlier offer from Cicero.
July 1, 2003
Cicero reportedly is turning over the property to
the DiMucci Groups, a real estate development
firm headquartered in the Chicago suburb of Palatine. O’Donnell says state election board records
show that the company contributed at least $25,000
to the re-election campaign of Cicero town board
president Ramiro Gonzalez earlier this year.
DiMucci, which has overseen development of a
shopping complex including a Sam’s Club, Target
and Home Depot just north of Sportsman’s on
Cicero Avenue, which borders the Sportsman’s
property on the east, supposedly wants to build a
500,000-square foot convention center and 400room hotel on the track site.
TIME FOR SUMMER SEEDING
The Ohio Racing Commission is considering punishing River Downs for allowing the wrong horse
to race as a $2.70 favorite by making it “seed”
the pari-mutuel pool by $136,364, the amount bet
on the race. The commission will discuss the matter at its July 17 meeting. The case was ruled an
accident rather than fraud, but commissioners
Norm Barron and Scott Borgemenke are not
happy about a misidentified horse racing twice
before anyone discovered the mistake. Anybody
working in the paddock at River Downs these
days?
PARENTI A BIT PREMATURE
As reported here earlier, Illinois Gaming Board’s
Phil Parenti resigned to take a job with Harrah’s
Entertainment “for substantially more money.” He
blew part of it by making the announcement a bit
too early. Parenti planned to stay on until the end
of July, which would have meant $18,000 in June
and July salary. Governor Rod Blagojevich, who
thinks Parenti “raised red flags about potential
conflicts of interest,” had other ideas, and fired
him, effective immediately. Parenti was making
$160,000 a year at the board, so he blows
$18,000 with his early announcement.
DELAWARE REVENUES DROP
Delaware’s gambling revenues fell for the fiscal
year that ended June 30, the first such drop since
the state legalized slot machines in 1995. To date,
the State of Delaware has harvested $988 million
from slot machine revenue at Delaware Park,
Dover Downs and Harrington Raceway, but this
year slots revenues dropped by $12.5 million or
6.5 percent from the previous year, according to a
report in the Wilmington News Journal. The news
must be sobering for Delaware state officials, particularly with the prospect of slot machines at racetracks in Pennsylvania and Maryland. It is estimated that a full 54 percent of the gamblers at
Delaware’s casinos come from those two states.
Officials at Delaware’s racinos attribute at least
part of the revenue slump to a casino smoking ban,
which went into effect Nov. 27, and to the still-sluggish economy. While racetracks lobbied for relief
from the smoking ban, a bill to exempt sections of
casinos and other businesses failed. Meanwhile,
the Delaware legislature did make some changes
to gaming legislation in order to boost revenues
and “the competitive position of the casinos.” The
changes include taking a bigger share of casino
revenue for the state’s general fund, increasing
the maximum number of slot machines at each
racino by 500 machines, allowing casinos to open
for up to 15 more hours a week, and allowing the
casinos to extend credit to customers.
Meanwhile, the effort to approve sports betting in
Delaware have stalled. Delaware is one of only
four states in the U.S. where betting on professional and college sports is legal, and supporters
of the drive to enact sports betting legislation
hoped that sports betting would help the state retain its customers and boost slots play as well. A
blue-ribbon task force projected in May that sports
betting could put an additional $13 million
into the state’s coffers, and bring casinos
an extra $19.3 million a year. Rep. Bill
July 2, 2003
Oberle, who had been a backer of the sports betting proposal, said he plans to submit a bill in January that would allow sports betting. “I still think
it’s a viable option that needs to be pursued,”
Oberle told the News Journal. “It makes our casinos destination-type facilities. We’ll need to compete with Maryland and Pennsylvania when they
come online.”
IGT TO ACQUIRE ACRES
Reno, Nevada-based slot machine giant International Game Technology on Monday announced
plans to acquire Acres Gaming Inc. for $130 million. Wall Street analysts said the proposed
merger fits with IGT’s established policy of buying complementary businesses, technology and
intellectual property rights. IGT now controls 65
percent of the slot machine market worldwide,
which the merger should not affect. However, it
controls less than 20 percent of the systems market, as does Acres Gaming. Currently, Alliance
Gaming controls 45 percent of that market, and
Aristocrat Gaming controls another 25 percent.
Acres specializes in development of gaming systems technology that enables casino operators to
increase patron loyalty. Acres has provided
“bonusing” technologies to companies such as Station Casinos and MGM Mirage.
GAME OVER IN NEWPORT
Dozens of jai alai players and workers said their
jobs at Newport Grand Jai Alai were cut on Sunday after officials complained the game was costing them money. Players are upset because fronton
officials are seeking legislative permission to end
27 years of the game. State law has required the
fronton to operate live jai alai at least 100 days a
year. But the budget bill approved by the Rhode
Island House includes a measure that ends live jai
alai. In 2002, jai alai generated $495,664 in
revenue against nearly $2.5 million in direct
expenses.
ANOTHER PROPOSAL IN PENN.
The Pennsylvania Horsemen’s Benevolent and
Protective Association submitted an application on
Tuesday to the state horse racing commission for
one of the two remaining thoroughbred racing licenses in the Keystone State. The proposed onemile track on 435 acres would mean up to 1,000
new jobs, thousands of slot machines and millions
in local revenue. Joe Santana, president of the
subsidiary formed by the HBPA, 100% Purses
Inc., said the group reached an agreement with
The Charles Chrin Companies to purchase the land
contingent upon receiving racetrack and slots licenses and rezoning the property. Santana told
Daily Racing Form that all profits from slot machines would be directed toward purses, with an
estimated total of $100 million in purses a year.
Phase one, or the “racing entertainment center,”
would total about 235 acres and include the track,
grandstand, slot machine area, barns and stalls for
horses, a 2,500-seat theater, arena and parking,
Santana said. Developers plan a 500-room hotel
and conference center for the initial phase that is
expected to cost between $75 million to $100 million to construct. After the track is up and running, construction would begin on the hotel. The
remaining 250 acres in phase two would include
restaurants and upscale shopping. Organizers want
to break ground on “Freedom Park” in a year and
run the track’s first races in the fall of 2005. In its
first full year, the track would host 100 days of
live racing. Ben Nolt, executive secretary of the
Pennsylvania thoroughbred racing commission,
said Wednesday nine applicants are vying for two
licenses.
TRUMP’S ANTI-RACINO ATTACK
Real estate and casino mogul Donald Trump paid
for full-page newspaper ads Tuesday featuring
a beaming Al Capone and the idea that “he
would have loved” putting slot machines
at New York Racing Association-run race-
July 3, 2003
tracks. Trump, showing his colors as a self-interested moralist, said he wanted New Yorkers to
know about the “breathtaking” findings of the recent report from New York Attorney General Eliot
Spitzer that criticized NYRA’s operation of
Belmont, Saratoga and Aqueduct racetracks. “The
report is unbelievable,” Trump said in an interview
with WROW radio. “I don’t think it’s something
that can be refuted. All I’m doing in this ad is bringing out the points of Eliot Spitzer’s report.” In the
ad, which appeared in the Albany Times Union and
in the New York City dailies, Trump urges New
Yorkers to “say NO to slots at the racetrack.” But
there could be some sour grapes involved in
Trump’s actions. He was reportedly one of the
losing bidders for the management contract to run
the VLT operation for NYRA. Trump also figures
to lose business at his three Atlantic City casinos
if VLTs are established at racetracks in New York.
Bill Nader, NYRA’s senior vice president, said of
Trump’s criticism, “One, they are not slot machines. They are VLTs regulated by the New York
State Lottery Division. And two, they were never
authorized for Belmont or Saratoga race courses,
like it says in his ad.” New York Gov. George
Pataki, asked about the ad at a new conference,
said he had seen it and that “everyone’s entitled
to advocate for their position.”
NEW CFO FOR MAGNA
Magna Entertainment, owner of HTA members
The Meadows and Flamboro Downs, today announced the appointment of Blake Tohana as an
executive vice president and its new chief financial officer, effective July 28, 2003. Tohana joins
MEC from Fireworks Entertainment Inc. MEC
also announced that Graham Orr will be leaving
the company in order to re-join Magna International Inc. Jim McAlpine, MEC president and
CEO thanked Orr and welcomed Tohana into
his new role as part of MEC’s management
team.
PENN. BAR BILL NEXT?
State Rep. John Pallone wants to legalize slot machines not just at Pennsylvania racetracks, but in
every bar in the state. Pallone plans to introduce
an amendment to the slots-at-racetracks legislation set to arrive in the Keystone State’s house of
representatives this month that would allow two
slot machines in every establishment with a liquor
license. “It allows them to do legally what unfortunately they’ve been doing already illegally,”
Pallone told the Valley News Dispatch, referring
to the illegal video poker machines found in some
bars and clubs around the state. According to
Pallone, his bill would bring the illicit video poker
network into legitimacy and potentially provide
millions for public education. Reactions from other
legislators were mixed. Rep. Guy Travaglio said
he understood the appeal of Pallone’s proposal,
but prefers to add slots at racetracks first, then
expand them if it works well. “You’ve got to take
things a little at a time,” he said. Travaglio’s concern is that a flood of amendments like Pallone’s
could sink the slots proposal in the house, where it
is already expected to meet with stiff opposition.
Pallone shares Travaglio’s concern and doesn’t
expect the amendment to succeed, though he
thinks he may be able to reintroduce the plan as a
stand-alone bill. Republican leaders in the house
are likely to draft a bill based on negotiations with
their state senate counterparts and Gov. Ed
Rendell’s office. And they surely won’t want
amendments to whatever fragile compromise they
are able to reach. One Republican representative, Daryl Metcalfe, has already stated his intention of trying to stop the slots legislation by introducing deal-breaking amendments. He has “dozens ready to go, including one requiring an economic analysis of the slots proposal.” His other
amendments would increase the track license fee
from $50 million to as much as $120 million and/or require an annual renewal fee
ranging from five percent of the initial fee to
July 7, 2003
100 percent. The Pennsylvania house is expected
to tackle the slots bill sometime in the next few
weeks.
NORMAN WOOLWORTH DEAD
Norman Woolworth, 76, noted breeder, owner and
the master of Stoner Creek Stud in Kentucky, died
on July 3 after an extended illness. Woolworth
was the breeder and owner of scores of notable
horses, including 1983 Hambletonian winner
Duenna. Stoner Creek also bred Triple Crown
winners Most Happy Fella and Super Bowl.
Woolworth was a Hambletonian Society director
and Harness Racing Museum and Hall of Fame
trustee. He was enshrined in the sport’s Living
Hall of Fame in 1981. In addition, Woolworth was
the inaugural winner of HTA’s Messenger Award
(now known as the Stanley F. Bergstein Messenger Award) in 1981. Woolworth was a resident of
New Canaan, Conn.
DELAWARE HIRING
The Delaware Harness Racing Commission is accepting employment applications for racing officials. In addition to any minimum qualifications
promulgated by the Commission, applicants for the
position of race judge must be certified by a national organization approved by the Commission.
An applicant for race judge must also have been
previously employed as a steward, patrol judge or
other racing official at a harness racing meet for a
period of not less than 45 days during three of the
past five years. Experienced licensed drivers or
trainers may qualify for exemption from some of
the previous employment requirements. Salary
and benefit packages are competitive with those
in other Mid Atlantic region states. Interested parties should direct questions or resumes to: John F.
Wayne, Administrator of Racing, Delaware Department of Agriculture, Delaware Harness Racing Commission, 2320 South Dupont Highway, Dover, Delaware 19901.
THE BOYS OF SUMMER
In case anyone wonders what the Pennsylvania
House of Representatives thinks of racing as a
major industry in the state, they need only refer to
current goings-on in that august body. First, they
have expressed the view that $400 million for the
state isn’t enough, and that $1 billion makes more
sense. So, according to the Harrisburg PatriotNews, they are thinking in terms of 11 racing licenses instead of 6, which would give them $550
million at the current $50 million licensing fee that
the Senate proposed. Ah, but that’s not enough
either. To either get the state out of debt, or to kill
the slots bill, or both, Republican Daryl Metcalfe
of Cranberry now proposes raising the license fee
from $50 million to $150 million. Another House
member, Katie True, a Republican from Lancaster,
was candid: “We are going to try to amend this
any we can in order to defeat it,” she said of the
slots bill. Still another voice, Senate Minority
Leader Robert J. Mellow, also was straightforward.
Raising more from gambling and less from income
taxes or sales taxes, he said, “may not be morally
idealistic, but it’s politically acceptable.” Who ever
said politics had anything to do with morality?
Minority whip Mike Veon wants land and riverboat
casinos and slots in bars, and says a bipartisan
consensus is building to do just that. Since the bill
passed narrowly in the Senate, which is controlled
by Republicans, Democratic support is going to
be needed when the measure returns to the Senate after whatever the House does to it. G. Terry
Madonna, a political science professor at
Millersville university in Lancaster county says
turning the slots bill into a Christmas tree with
dozens of House amendments could “doom the bill
to defeat.” With all due respect to professor Madonna, one doesn’t need a degree in political science to come to that conclusion. The once surething may not be recognizable after House
action.
July 8, 2003
MAGNA HAS SOME BIGGG IDEAS
Magna International, concerned that “the value
of Magna’s real estate business and investment
in Magna Entertainment are not fully reflected in
Magna’s share price,” is proposing a new publicly
traded company called MI Developments Inc., or
MID. The new company, Magna feels, would “unlock the unrecognized value of these assets and
place it directly into the hands of Magna shareholders.” Those shareholders will get a chance to
vote on the idea of tossing Magna’s racetrack,
Internet, phone betting and television business,
as well as its real estate business, under one umbrella along with its core automotive business
when they meet Aug. 19 in Toronto. The proposal
would have to receive approval of a two-thirds
majority of Magna shareholders. Magna also revised its stock outlook for the second quarter, saying it expected to reach the high end or beyond of
the $1.70 a share earnings figure projected on May
8. If the proposal passes, Magna shareholders
would receive one MID Class A subordinate voting share for every two Magna Class A subordinate voting shares, and one MID Class B share
for every two Magna Class B shares held as of
the close of business on the record date of the distributions, tentatively set for Aug. 29.
PATAKI PULLS OUT THE STOPS
New York governor George Pataki, unhappy over
the June ruling by New York’s highest court, the
Court of Appeals, that said Mario Cuomo’s compact with the Mohawk Indians ten years ago was
invalid because the state legislature never ratified it, plans to ask the U.S. Supreme Court to rule
on the issue. In the interim, Pataki’s office is asking the Court of Appeals to stay its opinion and
allow the state to regulate gaming at the Indian
casinos. Cornelius Murray, the lawyer handling
the suit against the state, says the issue is purely
about state law, and he does not think the Supreme Court will consider it.
July 9, 2003
ONTARIO LEADS WAY AGAIN
DON’T MESS WITH CICERO
The Ontario Racing Commission, which has shown
courage and positive action rather than rhetoric in
addressing wrongdoing and violations in the province, is leading the way once again. Starting Nov.
1, the commission plans to test horses racing in
Ontario for EPO antibodies, and any horse testing
positive will be put on the Vet’s List and not allowed to race for an extended period of time. The
commission has been working with the New York
Racing and Wagering Board to develop common
protocols for racing, and last year it established
rules prohibiting the possession or use of EPO and
darbepoetin. The test to be implemented in November will be used to identify a horse that has
been administered EPO. It will not identify the individual who administered EPO, but the commission feels the rule is in the best interest of racing
that such horses not be allowed to continue to race
if it has been administered EPO, which the current
test reveals through the antibodies that are developed. The commission says it will work closely with
New York in the months ahead and will closely follow ongoing research to develop a test for EPO.
When such a test is developed, the commission
plans to work with the Canadian Pari-Mutuel
Agency to make certain it is adopted in Ontario.
That’s always been good advice, and proved to be
again yesterday when the contents of Sportsman’s
Park, coming to the end of its 70- year existence,
were auctioned off in what was to have been a public
auction. It didn’t last long. The town of Cicero, which
is buying Sportsman’s to turn over to developers,
stepped in and bought everything — furniture,
seats, artwork, and thousands of other items —
for $330,000. The town called the action “imperative” so that demolition can begin, although rules
of the auction stipulated that everything had to be
removed by July 24. Some 70 people showed up
for the auction and weren’t happy about the turn
of events, and more had visited the track Monday
to see what was on sale. The owner of the Illiana
Motor Speedway was one of the unhappy ones,
saying, “Everybody’s a little frustrated because
we spent all this time here,” but a consultant for
Cicero dismissed the inconvenience. “We figured
it was a lot easier and safer for us to take it all,”
David Donahue said. “It was imperative for the
town to come in.” He said Cicero would sell most
of the stuff, including television sets, a Persian rug
from the clubhouse, fire extinguishers and equipment from the jock’s room, saying “We don’t want
to hang on to it,” but he added Cicero might keep
a few “historic items,” including perhaps the finish line pole which was included in the auction. The
auction company that conducted the sale said it
was surprised at the one lot sale.
“LET’S WAIT” AT BELMONT
Daily Racing Form’s Matt Hegarty reports that
stewards at Belmont Park have decided not to take
any action at the moment against two horsemen
and a vet who were arrested by Nassau county
police and charged with tampering with a sports
contest. The three allegedly were milkshaking a
horse and have a court date for July 17, but the
stewards opted to wait for court action and then
would “consider” action they may take after the
case is concluded. The horsemen, meanwhile, continue their work at Belmont Park.
CORRECTION
A story in yesterday’s Executive Newsletter on
Magna’s spinoff of its real estate and entertainment holdings, including racetracks, was incorrect.
Those holdings, to be known as MI Developments,
or MID, will create Canada’s fourth largest publicly traded real estate company by capitalization,
with a book value of U.S. $1.1 billion, if approved
by shareholders Aug. 19.
WE KNOW WHAT YOU MEAN
The Associated Press reports this morning that
American Indian leaders urged the federal government yesterday to set policies on tribal gambling agreements to prevent cash-strapped states
from trying to balance their budgets on the backs
of Indian casinos.
May we second the motion? And while at it, agree
with Jacob Viarrial, governor of the Pojoaque
Pueblo in Santa Fe, New Mexico, who told the Indian Affairs Committee that “Compact negotiations have become a smokescreen for extortion.”
So have legislative actions on slots at tracks, which
overlook the economic contributions of racing as
agricultural and employment industries in the various states. A clear warning on what is now happening was issued at the University of Arizona racing symposium last December by professor Bill
Eadington of the University of Nevada Reno, who
predicted exactly what has occurred. The federal
government, of course, is not about to tell states
what to do on either Indian compacts or racing slots
legislation, but the Indians are directly on target
with their complaints.
WATCH WHAT HAPPENS IN PA
The governor of Pennsylvania, Ed Rendell, smelling the smoke of dissent in the House, has begun
waffling on his advocacy of slots for tracks. While
he still says he prefers slots at tracks, he now says
off-track locations are a possibility. “Look,” the
governor was quoted in the Pittsburgh TribuneReview, “I want to make sure that any expansion
of gambling be kept under control. I want it to
only include slot machines at tracks. But if there
are proposals that would add slot machine activity
in Philadelphia and Pittsburgh and add to the total
revenue produced, I think that’s only to the benefit if the citizens.”
July 10, 2003
Pennsylvania’s lawmakers quit working in the heat
this week, the Senate setting no time for reconvening and the House talking about a session next
Tuesday to see if it can work out compromise on
the slots bill and other legislation. The chances of
compromise are far from certain, for as one legislator noted, “One day you think you’re close to an
agreement, and then the other side comes in with
pages of new language and you have to start all
over again.” The House has neither debated nor
voted on key issues, and Gov. Rendell said, “Everything is on the table.”
A BACKSTRETCH SCHOOL
Every so often, but not often enough, someone
comes up with a great idea in racing. The Klein
Family Learning Center and WinStar Library and
Classrooms have announced a library and career
academy will be opened in the stable area at
Churchill Downs in November. The learning center will include a library and a school facility where
Hispanic backstretch workers can learn English.
Richard Klein, a member of the Kentucky Racing
Commission whose family funds the Learning Center, said the move will provide backstretch workers with an opportunity to advance themselves, and
WinStar Farm co-founder Bill Casner added that
he had spent 15 years on the backstretch and understood the challenges present there. WinStar
also launched a national scholarship program, similar to HTA’s, for children of backstretch and farm
workers last year. Blood-Horse reports that the
Klein Family Learning Center is an initiative of
the Kentucky Derby Museum, and its director,
Lynn Ashton, said Churchill Downs has donated
the use of its old racing office to house the facility,
which will cost nearly $200,000. Volunteers will
help staff the program, which hopes to bridge cultural gaps for Hispanic workers. Congratulations
to all concerned with this progressive and most
worthwhile project.
July 11, 2003
HOW GOES PENNSYLVANIA?
MAGNA SPINOFF PAYS OFF
Who knows? Wheeling and dealing are the order
of the day, as state politicos try to figure out a way
to reach $1 billion in new revenue, rather than the
$400 million projected from current track license
holders. Under heavy discussion is a plan to increase the number of racing licenses to 11, with
each carrying a $50 million license fee. But state
senator Robert Tomlinson, the Bucks county Republican who wrote the original Senate racing legislation, says he’s amenable to that solution but is
not certain other Republican senators would be.
One of them, senator Jane Earll, an Erie Republican, already has said she is not in favor of increasing the number of track licenses, and the six Republicans who voted for Tomlinson’s bill will be
needed to supplement the 21 Democratic votes
when the measure returns to the Senate. The fate
of the measure rests in the House, where amendments could kill the entire package. Gov. Ed
Rendell endorsed a House compromise yesterday
that would use gambling revenues and new local
taxes to provide some $1.5 billion in property tax
relief. The governor and the House majority
leader, Republican Samuel H. Smith, both indicated
they hope for a compromise solution by Monday.
The stock market led the cheering for Frank
Stronach’s decision to spin off his Magna racing
and entertainment enterprises from his core auto
business this week. On Tuesday, the day following his announcement, Magna’s A shares rose
$6.02, adding more than $500 million to the
company’s capitalization. The stock rose to $98.31
a share on the Toronto Stock Exchange and analysts were predicting it would rise another 15% or
more as a result of the spinoff. Morgan Stanley
analysts said that “part of the reason why Magna
has historically traded at a discount to its peers
has been driven by investors’ concerns over its
decision in 1998 to purchase non-automotive assets.” The Toronto Globe and Mail reports that
under the new structure Magna International will
pay $110 million a year to lease factories from MI
Developments, the newly formed company. That
cash will go to the new company which will be parent to the race tracks, gambling and pay-TV operations that currently make up Magna Entertainment.
NY TO TEST FOR EPO THIS FALL
The New York State Racing and Wagering Board,
which has been working closely with the Ontario
Racing Commission, has announced it will join
Ontario in testing for EPO antibodies this fall. Any
horse that tests positive for the antibodies will be
presumed to have been administered EPO or
darbepoetin, and will not be allowed to race until it
is free of the antibodies. The test was developed
by Drs. George Maylin of Cornell university and
Dr. Ken McKeever of Rutgers university, and was
reported on at the joint HTA/TRA meeting in
Florida in March.
MONTICELLO CASINO NEWS
Empire Resorts Inc., a New York company, is taking control of the quest for an Indian casino at
Monticello Raceway in the Catskills. The company announced yesterday that its activities will
be focused entirely on the installation of up to 1,800
VLTs and development of a $500 million Native
American casino in partnership with the Cayuga
Nation. Empire says the New York Lottery has
approved the raceway as a slots venue, but the
Bureau of Indian Affairs in Washington still must
authorize transfer of some 30 acres of land at the
track site to the Cayugas. Morad Tahbaz plans to
serve as president of the companies involved during the transition, and the deal is expected to close
in October. Nasdaq shares of Empire traded recently at $9.72, up 22 cents, with average daily
volume of 5,420 shares.
July 14, 2003
PENNSYLVANIA: TOUGH GOING
SHY SUITORS IN NEW MEXICO
Racing’s slots fate in Pennsylvania could or could
not be hammered out this week, depending on who
you ask. Gov. Ed Rendell’s press secretary, Kate
Phillips, says, “Negotiations are ongoing and are
going well.” Senate leader David Brightbill’s chief
of staff, Erik Arneson, says, “Expecting a complete resolution this week is extremely optimistic.
I suppose it could happen, but there are just too
many points of contention. There are serious issues that need to be decided.” One of those issues is the price to play, which one report says is
rising steeply, with the possibility of non-track slots
licenses being sold for $70 million each. Mike
Manzo, chief of staff for minority leader H. William DeWeese, says various pieces of the puzzle
were taking shape, but that “it gets kind of tough
at this point.” The Senate, which has adjourned,
can be called back when needed to consider whatever action the House takes. The House resumes
its deliberations tomorrow and hopes for voting to
begin as early as Thursday night. The quest for
new Pennsylvania licenses, thoroughbred and harness, continues, with nine applicants seeking thoroughbred approval and five looking for a harness
license. The thoroughbred commission faces a July
29 deadline in making its decision.
Guess who’s coming to dinner? K. D. Hubbard,
Shawn Scott and Ken Newton all are back in the
news in New Mexico, where they are vying for
what they obviously think is a gold mining license
in Hobbs, on the Texas border near El Paso. They
all want to build a track there, but do not want to
sign legal releases for a state agency to do background checks and share the details. Scott, who is
represented by former governor Toney Anaya, is
facing the same problem he faced in New York and
Maine, where in both states he balked at the nature of state investigative requests. Anaya says
of New Mexico, “What they want is a blanket release. We’ll give them everything. There’s nothing to hide. But how can they protect my client?”
The problem is not so much what the Gaming Control Board is seeking, since their records are confidential, but the fact that they plan sharing their
findings with the state racing commission, whose
records are public. One of four applicants, Santa
Fe art dealer Gerald Peters, agreed to sign the
release. Scott, Hubbard and Newton will not, Newton saying the reason is the publicizing of personal
tax returns. According to the Albuquerque Journal, the successful applicant for the track license
-- a racing commission process now in its third year
-- will have to submit to the Gaming Control Board
request before getting a slots license.
TURMOIL IN MARYLAND
There is no joy for track owners in Maryland, either, only more problems. An FBI investigation
into political contributions and ample press embellishment of it is not helping the situation, and
the press, hungry for flesh, is even giving major
play to a 31-year-old story, that of the Emprise
case of 1972. That dead cat was dragged in as the
reason for Centaur dumping Delaware North as a
partner. Delaware North outlived that old problem long ago, and now has liquor and gambling licenses in 31 states.
ROUND THE CLOCK IN INDIANA
As of today, if you have a burning desire to gamble
in Indiana you can do it 24 hours a day, without
break for sleep, food or anything else. The Indiana Gaming Commission put the official seal on a
legislative decision to allow the state’s 10
riverboats to operate round the clock. Seven of
the 10 are opting for the 24/7 privilege, with three
staying open all night only on weekends.
Indiana’s action makes it the eighth state to allow 24-hour gaming.
July 15, 2003
AMBITIOUS PLANS AT MOHAWK
NEW COMMISSIONERS IN MD
Woodbine Entertainment is considering building
a 400-room hotel and golf course on 400 acres of
property it owns near the pleasant little town of
Campbellville, home of its Mohawk Raceway. No
plans have been finalized, but WEG has approached the town of Milton to discuss planning
issues, according to vice president of marketing
and business development Nick Eaves. “We’re
determined to keep evolving the business model
both at Mohawk and Woodbine,” Eaves said in
making the announcement. “With the facilities
there at the moment, we estimate we have 20,000
people a week coming to Mohawk for racing and
slots. Like everyone else, we are looking at options to get more people and give them more options.” WEG also would like to add more slots to
handle demand at both its Mohawk and Woodbine
plants, but so far the Ontario Lottery and Gaming
Corporation has declined to grant the requests.
Mohawk currently has 750 slots, Woodbine 1,700.
The governor of Maryland, Robert L. Ehrlich Jr.,
has appointed two new racing commissioners, and
named one of them chairman to replace the current chairman. Thomas F. McDonough, a 55-yearold Baltimore county attorney and thoroughbred
horse owner for the last six years, is the new chairman, replacing Louis Ullman, who will remain on
the commission as a member. Alvin Akman, a union
executive and head of a marketing consulting firm,
is the other new appointee. He has been involved
in thoroughbred racing for 30 years. McDonough
gave no encouragement to racetracks in his intial
remarks as chairman. “Slots would be nice,” he
said, “but I think we can generate an interest in
racing in other ways.”
GOING, GOING, BUT NOT GONE
The hopes for exclusivity of slots at tracks in Pennsylvania appear to be fading day by day. Governor Ed Rendell and House speaker John Perzel
appear to be reaching a compromise that would
grant Perzel’s wishes for slots at non-track locations in his constituency, Philadelphia, and Pittsburgh, which he has lightly termed the state’s “sin
cities.” What appears to be in the works is amalgamation of the dual licenses of Philadelphia Park,
Penn National and The Meadows into one license
at each track, thus freeing up three additional
track licenses, making a total of 11 for the state.
Each of those would get slots for a $50 million license fee, and two additional non-track licenses
would be issued for the sin cities. Both cities currently have tracks in or near them, but the legislators like the idea of additional venues they
can control.
BUFFALO CRACKS DOWN HARD
Simon Crawford, general manager of Buffalo
Raceway, has announced that the track plans to
bar four bettors who held multiple tickets on winning exotic pool combinations in a questionable
race June 28. In addition, presiding judge Art Gray
issued a 90-day suspension and $2,500 fine on
Louis Russo, the owner-trainer of BJ’s Piccolo, a
horse involved in the race. The pacer finished
seventh as the 9-to-10 favorite in the race in question after winning by open lengths in a higher class
a week earlier. Gray’s suspension order says
Russo “knowingly raced your horse in an unfit
condition. And you exacerbated the situation by
letting it be known that the horse was unfit, resulting in irregular betting patterns. Your conduct in
this matter was deterimental to the best interest
of racing.”
“BEST ART SHOW EVER”
That’s the verdict as entries closed today for HTA’s
2003, art show and auction, scheduled for the Red
Mile in Lexington the week of Sept. 22, with the
auction set for Sunday morning, Sept. 28.
PROUD TO BE FROM PENNSY
As a native Pennsylvanian, I’m proud to be from
Pennsylvania today....as far from it as I can get.
It’s a dangerous place for those in racing today, as
the House and Senate continue mulling what to
do, and who to do it to, on the slots issue. The
discussion has gotten so far out of hand that some
silliness has entered the scene. Consider these
developments:
**One state senator, Robert Thompson of West
Chester, lightened things up by suggesting, jokingly, that slots be installed on SEPTA trolleys with
the cash used to help fund public transportation.
The Philadelphia Daily News said the kidding
could spell big trouble for plans to expand a convention center there with proceeds from a city center slots parlor, since Thompson also said he would
vote no to the present plan as proposed. Daily
News columnist Jill Porter ridiculed the slots
muddle, suggesting new machines with novel payoffs. Pictures of three relatives of powerful politicians would get all your parking tickets fixed. One
$ would get you a city job; two $$ would get you a
no-bid city contract. Three $$$ would give you a
prime piece of real estate to develop. You get the
idea.
**The chief legislative opponent of slots, Rep.
Paul Clymer of Bucks county, said that the present
proposal could result in 55,000 slots in the state,
which would give Pennsylvania more than Atlantic City. Last time we looked, Atlantic City’s population was 38,063 and Pennsylvania’s 11,882,842.
**That argument, however, fueled immediate protests from anti-gambling forces across the state.
**City and county officials in Pittsburgh greeted
the proposal for slots in that city with caution and muted enthusiasm.
July 16, 2003
With all of that going on, the standardbred breeders of Pennsylvania sent legislators a letter saying they were worried about the split of slots revenues, and asking more for their share.
HBPA MAY TRY OFFSHORE HUB
In an interesting story by Tom LaMarra in BloodHorse Interactive, the National Horsemen’s Benevolent and Protective Association is reported to
be considering operating its own offshore wagering hub. LaMarra says the topic will be “the focus of a strategic planning session during its executive committee meeting in late September in
Las Vegas,” in response to piracy of signals and
subsequent loss of revenue from offshore sites in
the Caribbean and elsewhere. Recently reelected
national HBPA president John Roark was quoted
saying, “The future of the industry lies offshore
from a horsemen’s standpoint. We’ve saturated
the market in this country, and some in this country that take signals aren’t paying horsemen. What
are we going to do about it? We’re going to go
after them.” LaMarra also quoted a National
HBPA memo saying that “up to 24 betting shops
in Juarez, Mexico, have been taking bets on races
from the United States, facilitated by the ‘potentially unauthorized’ use of TV Games Network signals.”
HTA, USTA ON TESTING BOARD
The Racing Medication and Drug Testing Consortium met in Dallas yesterday, and among its
actions were approval of board memberships for
Harness Tracks of America and the United States
Trotting Association. Both organizations were invited to name representatives to the testing board.
The organization reached unanimous agreement
on portions of its drug testing model, including Salix
or Lasix, and will approach state and provincial
racing commissions with those proposals in the
months ahead, seeking approval at the regulatory and enforcement level.
JUDGE OKS NEW YORK SLOTS
New York Supreme Court judge Joseph Teresi
handed down his long-awaited decision on the constitutionality of VLTs in the state this morning, and
he gave the green light, saying they “are indeed
true video lotteries and therefore are a constitutionally permissible lottery game.” The decision
faces further scrutiny, however, for Cornelius
Murray, representing various groups opposing
slots, said immediately that he will appeal to New
York’s higher court, the Court of Appeals. Tracks
that wish to move ahead with VLT preparations
on the strength of the Teresi decision obviously
will do so at their own risk.
THE WOODS OF PENNSYLVANIA
The Pennsylvania Turnpike between Harrisburg
and Pittsburgh is a scenic drive through mountains
and forests. A traveler wandering off the beaten
path can find himself lost, and slots for tracks appear to be deep in those woods right now. The
House delayed a vote yesterday, and thinks it can
reach compromise today on a plan to give out 11
slots licenses -- 9 to racetracks and 1 each to Philadelphia and Pittsburgh -- but Senate leaders say
that plan will never get their approval when it returns to them. The House majority leader, Sam
Smith, says the bickering between House and Senate could be a poker game of bluffing, but he also
says that “if the Senate rejects what the House
sends over, I think the whole gambling issue is on
life support and almost dead. If it blows up now, it
blows up for a long time.” In other Keystone state
developments, the state thoroughbred racing commission was expected to restore Presque Isle
Downs’ Erie county license today. It was revoked
June 26 by a Commonwealth court, but the two
entities that had opposed the granting of the license -- The Meadows and Penn National
-- withdrew their objections.
July 17, 2003
They made that decision in hopes the dispute would
not affect legislative approval of slots. In Pittsburgh, meanwhile, more than 200 residents of an
area proposed for mining and a track turned up at
a borough meeting, concerned with a number of
problems, including a lack of limitations on blasting at the 630-acre site. They fear mining will lower
property values, create traffic problems, and damage the environment. The Pittsburgh city council,
which must give approval to the proposal, has
scheduled a public hearing next Thursday.
Resodemts asked about blasting, and an engineer
told them, “It will rattle some windows when closed.
You don’t hear a boom because it’s all underground.
There’s no rock flying in the air.” That didn’t quite
make them joyful, and they were even less so when
a homemaker asked “what guarantee do we have
that our water supply will be safe,” and the chief
of the permits and technical services of the local
mining office told her, “There are no guarantees
in life.” Groans and catcalls followed.
OFFSHORE GAMING FOR HBPA?
Tom LaMarra, writing in Blood-Horse Interactive
on the national Horsemen’s and Benevolent and
Protective Association’s board of directors meeting in Cleveland, reports that the HBPA is considering the possibility of operating its own offshore
wagering hub in response to the serious impact of
piracy of signals and subsequent loss of revenue.
LaMarra quoted newly reelected HBPA president
John Roark as saying, “The future of our industry
lies offshore from a horsemen’s standpoint. We’ve
saturated the market in this country, and some in
this country that take signals aren’t paying horsemen.” Asked what he planned to do about that,
Roark replied,”We’re going to go after them. We
need to tell them they’re going to be in the courthouse if they don’t pay us what they owe us.”
July 18, 2003
‘SIGNS OF DECAY’ ON PA SLOTS
‘MICROSCOPIC REVIEW’ IN MD
A long meeting between the governor of Pennsylvania and key legislative leaders of both parties
apparently produced little progress yesterday on
slots legislation, and the House adjourned last
night after failure to complete its proposed legislative package. They are trying again today, but
if no agreement is reached it will be at least a week
away, since many members of the legislature are
headed to the National Conference of State Legislatures in San Francisco next week. Even after
they return, there is the issue of the Senate concurring with what they propose, and that seems
unlikely given present pronouncements. So it appears the slots issue will not be resolved until August at the earliest. Philly.com, the Internet voice
of the Inquirer and Daily News, reported that
“Signs of decay in support of the legislation became evident earlier in the day (Thursday) after
Rendell sat down with leaders of both parties in
the House and Senate for the first time since budget wrangling began in Harrisburg. All sides left
that meeting far apart on how to reduce property
taxes and legalize slot machines.” Opposition from
key Republicans who had supported the Senate
bill on slots for tracks, and from the House Black
Caucus, which is unhappy with the current proposals, raised questions of whether the Senate will
have enough votes to carry its governor’s legislation. The speaker of the House, John Perzel, said,
“If the Senate Democrats are in a mood to deny
the governor the opportunity of lowering property
taxes because they have a couple of petty differences with the House, then let them kill it.” In
another Pennsylvania development, the state’s
thoroughbred racing commission restored the Erie
county license of MTR Gaming Group to build
Presque Isle Downs. The vote was 3-0, and the
commission rejected an objection of Pittsburgh
Palisades Park LLC to issuance of the license. PPP said it might appeal.
The Maryland House of Delegates, which killed
Gov. Robert Ehrlich’s bid for slots at tracks earlier this year, now is undertaking a “microscopic
review” of the issue. The study plans to include
whether tracks should be the only slots sites, how
communities might be affected, whether other
forms of gambling should be considered, and how
it would be regulated. The chairman of the Ways
and Means Committee said, “Everything is on the
table.”
BIG M, RUNNERS, TALKING
Negotiations continue in New Jersey between the
Sports and Exposition Authority and the New Jersey Thoroughbred Horsemen’s Association after
the horsemen’s board voted this week to reject a
proposed reduction in racing dates. The issue is
whether to reduce the number of days of racing in
order to sustain purses at a high level, or race more
dates with lower purses, since the Authority has a
finite amount to pay out. The NJSEA guaranteed
$300,000 a day for its Monmouth Park prime meeting this summer, but projects $150,000 a day for
the extended dates beyond Labor Day and for the
Meadowlands thoroughbred meeting scheduled
from Oct. 1 to Nov. 8. The thoroughbred group
wants to shift the entire Meadowlands thoroughbred meeting to Monmouth Park, contending the
savings from track conversion from standardbred
to thoroughbred and the elimination of cost of shipping horses from Monmouth to the Meadowlands
and back would be eliminated, enabling the NJSEA
to sustain higher purse levels.
USTA, WALNUT HALL DISPUTE
The United States Trotting Association is opposing a move by legal counsel for Walnut Hall Ltd.
to delay a July 29 hearing on the issue of licensing
two foals that resulted from embryo transplants
as twins.
PA HOUSE PASSES SLOTS BILL
The chances of slots coming to the State of Pennsylvania increased last Saturday as the state House
of Representatives passed a bill that would allow
slot machines at 11 sites around the Keystone
State. The House approved the bill on a 120-81
vote. The Senate passed its version of the gambling legislation bill last month, calling for eight
casinos at racetracks. The House passed two
other key bills as well -- a tax reform plan that
would use about $1 billion in slots proceeds to lower
school property taxes by 20 percent statewide and
a scaled-back version of Gov. Ed Rendell’s education plan. House lawmakers approved the three
bills in a marathon voting session that stretched
from Friday afternoon into the early hours of Saturday morning. But the House vote is not the final stamp of approval. Legislative and Rendell
administration staffers now must try to reconcile
the House and Senate versions of the legislation.
TRIBAL GAMING ROLLS ON
Betting at tribal casinos grew 13 percent last year,
four times faster than gambling in Las Vegas or
on Mississippi riverboats. Tribal casinos raked in
$14.5 billion in 2002, according to data from the
National Indian Gaming Commission, compared
with $12.8 billion in 2001. Nearly all the growth
came as tribal casinos expanded because only one
Indian casino was added last year. Meanwhile,
commercial casinos and racetracks nationwide -including Las Vegas, Atlantic City, and boats on
the Mississippi and Ohio rivers -- saw revenue rise
only three percent last year, to $26.5 billion. Casino handle in Las Vegas and Reno dropped last
year. Indian gaming is growing quickly, partly because most gamblers live closer to tribal casinos
than Las Vegas or Atlantic City, said Alan Meister,
an economist at the Analysis Group consulting firm in Los Angeles. Some of the
larger tribal casinos have been building
July 23, 2003
larger resorts with arenas, big hotels and beautiful golf courses to bring in more customers. Another change nationally: Tribes are building casinos off their reservations like the one in Niagara
Falls, NY. Commission data does not break down
revenue from individual tribes or states. But they
do show that the number of Indian gaming operations making more than $100 million a year has
nearly doubled in five years to 41 in 2002.
28 ENTERED FOR HAMBO
A record 28 colts are now in pursuit of the $1.2
million Hambletonian, harness racing’s ultimate
prize for 3-year-old trotters. The 28 colts were
divided among three $70,000 eliminations, slated
as races five, six and seven on Saturday’s twilight
card at the Big M. The top three finishers in each
of the eliminations, plus the fourth place finisher
with the highest career earnings, advance to the
Hambletonian Final on Saturday, August 2. Post
time is 4:30 p.m. for this Saturday’s card, which
also features three eliminations for the companion filly event, the $500,000 Hambletonian Oaks.
In other Hambo and Meadowlands news, New
Jersey’s great weekend of racing -- August 2-3 -introduces a new wrinkle in 2003 with the
Hambletonian-Haskell Double. The dual breed
wager requires picking the winner of the $1 million Hambletonian on August 2 and the $1 million
Haskell Invitational, showcasing the best 3-yearold thoroughbreds on August 3 at Monmouth Park.
“This is New Jersey’s championship horse racing
weekend,” said New Jersey Sports and Exposition Authority Senior Vice President Bruce Garland. “It has always been a great weekend for the
two tracks and the Sports Authority...now we have
a way to link the two races with this unique wagering opportunity.” The takeout for the
Hambletonian-Haskell Double will be 12 percent,
seven percent less than the traditional daily
double rate of 19 percent.
MORE TROUBLE IN PENN.
Apparently angry at the members of the Pennsylvania House for making broad changes in proposed
slot machine legislation, two top Democratic senators say the gambling issue may just sit without
action until the fall, according to the Pittsburgh
Post-Gazette. Senate Democratic leader Robert
Mellow accused House leaders of making “reckless concessions to gaming interests.” Mellow,
joined by Sen. Vincent Fumo, said the slots bill
passed by the Pennsylvania House early Saturday “might not be considered in the Senate any
earlier than the fall.” Some insiders had expected
the House bill to be discussed in the Senate as
early as next week. The Senate legislation would
have permitted slot machines at up to eight horse
racing tracks. The House bill, written in large part
by House Speaker John Perzel, expanded gaming
to 11 locations -- the state’s four existing racetracks, five new racetrack locations, and two nonracetrack locations, one in the Pittsburgh area and
one in Philadelphia. Perzel’s House legislation also
removed other provisions Sen. Fumo had inserted
into the Senate bill, including a ban on political
donations by racetrack and gambling company officials. While Democrats don’t control the Senate
calendar, the Republican Senate Majority Leader
said that if Democrats want to put the gambling
issue on hold, it would be okay with the GOP.
RED MILE DATES CHANGE?
HTA member The Red Mile is exploring the idea
of doing away with its spring meet while transferring the dates to the fall. Maryjean Wall reports
in today’s Lexington Herald-Leader that the plan
would see racing begin in early August and end in
early October, eliminating the track’s May-June
meet. “Instead of two small meets, we’ll have one
larger meet,” said HTA Director and Red Mile
President and CEO Joe Costa. Costa attributed the move to an attempt to create better marketing opportunities for the Red
July 24, 2003
Mile’s signal as a simulcast product. “One of the
complaints we’ve heard (from simulcast signal
importers) is that our meets are too short, and the
players don’t have time to get familiar with the
horses,” Costa told Wall. Horsemen have already agreed to the plan. Costa will seek approval
from the Kentucky Racing Commission when it
applies for its 2004 dates, which are usually
awarded sometime during the fall.
BURROUGHS RECOVERING
Mal Burroughs, who drove Malabar Man to victory in the 1997 Hambletonian, is recovering from
a heart attack and is expected to be released
shortly from Hackensack University Medical Center in Hackensack, New Jersey, according to a
release from The Meadowlands. “I had it last
Thursday,” Burroughs said. “I was down at the
[Jersey] shore, and I first went to Brick Hospital.
They stabilized me there. I was moved here, to
Hackensack Medical. This is my third [heart attack]. My first was in 1996, then I had another
last December. I’m doing okay. The first thing I
told the doctor was that I had to be well for the
Hambletonian. He looked at me kind of like I was
crazy. But I have to take it easier, watch my diet
and exercise.” Burroughs, only the second amateur driver to win the Hambletonian, also owned
and bred Malabar Man. This year, he is hoping to
return to the Hambletonian winner’s circle with
Malabar Millenium, who drew post two in the first
of three eliminations to determine the 10 finalists
for the $1 million Hambletonian on August 2. “My
colt is improving,” he said. “Davis Miller will drive.
I hate to say this, but I think my driving career is
now over. So I’ll be rooting for all the sons of
Malabar Man in the race.” Burroughs was originally scheduled to be the grand marshal for the
inaugural Hambletonian Festival Parade this Saturday in Rutherford, New Jersey, but his recovery schedule will likely preclude him from fulfilling that duty.
July 25, 2003
TROUBLE IN RIVER CITY
MARYLAND TO OWN SLOTS?
The River City in this case being Harrisburg, Pa.
on the Susquehanna, state capital of the troubled
commonwealth of Pennsylvania. The Philadelphia
Inquirer’s John Sullivan started his Harrisburg
story this morning this way: “The move to legalize slot machines in Pennsylvania is dead - for now.”
The story is that the Senate yesterday procedurally killed the slots legislation passed by the House
last week by referring it to the Senate Rules Committee, with no plans for the committee to act on
it. The Senate majority leader, David (Chip)
Brightbill, a Republican from Lebanon, who opposes slots legislation, met with governor Ed
Rendell for 50 minutes, and announced after the
meeting, “This bill is not going to see any more
legislative action.” Even one of the staunchest
Senate foes of the measure passed by the House,
however -- Senator Vincent Fumo -- said, “If I were
a betting person, I’ll bet the governor will get gambling, property tax reform and some of his education agenda.” When is another matter. The Senate plans to meet next week, but then will adjourn
until September. Senator minority leader Robert
J. Mellow, a Lackawanna Democrat, said, “When
we have a bill that we feel is acceptable to consumers and taxpayers, then we’ll pressure Senator Brightbill to allow a vote on the floor.” Brightbill
said the Senate will not meet in August, and his
office says that the slots issue “probably will not
be considered until September at the earliest.”
It will if the speaker of the house, Michael Busch,
gets his way. And since he got his way in defeating governor Robert L. Ehrlich’s proposal for slots
at tracks earlier this year, his chances of prevailing again would seem substantial. The proposal is
certain to raise a new storm of controversy in a
state where the issue already is controversial, but
Busch is quoted in the Baltimore Sun as saying,
“I don’t think there’s any reason we couldn’t do
it.” The newspaper pointed out that it already is
done in Canada, and presumably Maryland track
operators would be happy if the state built the facilities at racetracks and followed the Ontario example, which was designed to help racing, rather
than take over slots altogether. In the original
Ehrlich proposal, tracks would have received 44%
of revenues. Under the Senate and House bills in
Pennsylvania, tracks would receive 46%. What
happens in both states is still very much in question.
MEANWHILE, IN OHIO
Shareholders of HTA member Scioto Downs have
approved the acquisition of the track by MTR
Gaming Group of West Virginia. And the Dayton
Daily News quotes Keith Nixon, general manager
of HTA member Lebanon Raceway, as saying the
track could move to a location along the Interstate
75 corridor if Ohio legalizes slots at tracks.
NEW % ON WITHHOLDING TAX
The American Horse Council reports that the presidential signing of the Jobs and Growth Tax Relief
Reconciliation Act of 2003 effectively reduces the
withholding tax on gambling winnings to 25%.
Since withholding rates are tied to individual income tax rates, the AHC says, the reduction in
the individual rates also reduced the pari-mutuel
withholding tax rate. The reduction is effective
retroactively on transactions on or after Jan. 1,
2003. Withholding affects any winning payoffs over
$5,000 with odds of 300-1 or greater. The withholding rate has been 27% for this year, and the
AHC says any individual taxpayer who has been
‘overwithheld’ at the previous rate on winnings
during the first half of the year should file for a
refund from the Internal Revenue Service when
he or she files a tax return for 2004. Good luck.
Tracks are not responsible to refund money
withheld at the 27% rate.
July 28, 2003
JUDGE TELLS CENTAUR “NO”
PA SENATE BACK, LESS SLOTS
A federal judge has told Centaur Inc., which is in
the process of buying Rosecroft Raceway, that it
cannot sign up any new partners after dumping
Delaware North. Centaur announced in April that
it had taken on the Buffalo, NY, concession giant
as a 75% partner after Delaware North agreed to
finance the $55 million purchase, but last month
Centaur announced it was rescinding that agreement. Delaware North sued, and late Friday U.S.
District court judge William Skretny of the western district of New York issued a preliminary injunction that forbids Centaur to even talk to other
potential investors and requires it to carry through
with its contract with Delaware North. If contested,
the decision could make it virtually impossible for
Centaur to get Maryland Racing Commission approval for the purchase of Rosecroft, and in that
case it could be forced to forfeit a $2.5 million deposit it had to put up as security in the event it did
not get licensed by November 1. In its breach of
contract suit, Delaware North contended Centaur
had used old problems of Delaware North’s predecessor, Emprise, as a pretext to end its agreement because it wanted to negotiate a deal with
another partner. The judge ended that possibility,
ruling that Centaur was prohibited from “directly
or indirectly initiating, soliciting, encouraging or
responding to any inquires from, or making any
proposals, offers or commitments to any person
or entity” other than Delaware North, or from
bringing in new investors. He also rejected
Centaur’s argument that it had an unequivocal right
to terminate its preliminary agreement with Delaware North, saying the agreement was “a comprehensive, seven-page document containing detailed terms that was entered into by sophisticated
partners.” Centaur was studying the decision.
Delaware North said, “A deal is a deal, and you
can’t just make up an excuse to walk
away.”
The Pennsylvania Senate returned to business today, but the business did not include slots for
tracks, and apparently will not for the immediate
future. Majority leader David J. Brightbill said,
speaking of his fellow members and House leaders, “Clearly, these people are very far apart....it’s
a question of how much greed is enough.” The
minority leader, Robert J. Mellow, said, “Too
many things have been removed from the proposal
that we are in favor of.” A spokesman for governor Ed Rendell remained hopeful, or at least gave
that impression, when he said, “We’re reasonably
optimistic.” The general counsel for the Senate
Republican majority, Steve MacNett, was not. “I
think it’s going to be a hard, tedious process,” he
said. “There are a lot of differences between the
chambers.”
HEY PAL, THAT’S UNPATRIOTIC
PayPal, the online payment service owned by eBay,
has agreed to pay the federal government $10
million to settle violations of the USA Patriot Act
and the Wire Wager Act. According to the U.S.
attorney for the eastern district of Missouri,
Raymond Gruender, PayPal provided services to
offshore gambling sites in violation of the federal
code, and the $10 million represented a compromise on revenue that PayPal received from processing those offshore gaming transactions. The
government contended that the gambling revenue
amounted to some 6% of PayPal’s revenue last
year.
SENECAS SURROUND WAGONS
Flush with the success of its Niagara Falls casino,
the Seneca Nation hopes to open four more in coming years, near the Buffalo airport, on Indian land
in western New York, near Pittsburgh, PA, and in
the Catskill mountains. Nation president Rickey
L. Armstrong says he feels obstacles can be
overcome.
CENTAUR APPEALS DECISION
Centaur Inc., ordered by a federal judge to honor
a commitment to Delaware North and not deal with
any other prospective partner, has filed motions
in federal court in New York seeking to reverse
that decision. Centaur asked for an expedited
hearing, since it faces a November 1 deadline with
the Maryland Racing Commission, which if not met
could terminate its purchase of Rosecroft Raceway and result in its losing a $2.5 million deposit
on the track. Delaware North still wants to consummate the deal which would give it a 75% interest in Rosecroft, and Wendy Watkins, a vice president for corporate communications at Delaware
North, says, “We remain confident that an agreement can be reached.” Centaur filed yesterday
with both the U.S. Court of Appeals for the 2d circuit in New York and the U.S. District court in Buffalo, and has retained former independent counsel Kenneth W. Starr of Monica Lewinsky fame
and his Washington law practice to help respresent
it in the dispute.
Rosecroft, meanwhile, is feeling the impact of the
threat to its sale, and CEO Tom Chuckas said that
not having the sale close during the first six months
of the year, as expected, would result in cutting
both purses and racing dates. “Obviously,”
Chuckas told the Baltimore Sun, “we can’t maintain a $57,500 a day purse schedule moving forward. We have to reduce the purse amounts or
the number of racing dates. We’re going to make
modifications in our operations here. At this juncture, we’re reviewing all our options. We’re waiting to hear from Centaur and are basically in a
holding pattern.” Rosecroft has been racing three
days a week, and the Centaur-Delaware North dispute is the second blow it has received this year.
The track had hoped to have 3,500 slots this year
before that measure was killed.
July 29, 2003
WHAT HAPPENS IS NEWS, BILL
William Bennett, who as Nancy Reagan’s morals
czar forgot to heed her advice to “Just Say No,”
now is thinking about suing Las Vegas casinos because they didn’t keep their slogan promise of
“What Happens Here Stays Here.” Bennett told
TV interviewer Tim Russert that in his case, the
casinos didn’t adhere to that policy, but “were trying to do me great harm.” The fuss arose because
of publicity about Bennett’s multimillion dollar
gambling losses at Bellagio and Caesars Atlantic
City, and he says the publicity resulted because
documents were selectively leaked to create a false
impression that he had a gambling problem. He
says such leaking was not legal and violated his
privacy rights. We’re not sure what constitutes a
gambling problem, but when it gets into the
multimillions it would seem that characterization
might be accurate.
WELCOME TO THE CLUB
Horsemen crossing the line into track management
discover problems quickly enough. Lloyd Arnold
learned that in California when he went from
Horseman of the Year to owner of Los Alamitos,
and Cloverleaf has experienced it, as indicated in
column one. Now the HBPA of Pennsylvania is
finding that running a racing operation is not all
sweetness and light. Their proposal to establish a
thoroughbred track in Pennsylvania to be called
Freedom Park, with 100% of revenue to be dedicated to purses, is encountering local opposition
and potential problems even before a license is
granted. A borough planning commission and council have formally opposed the project, and the state
highway department said plans for a highway interchange to provide access to the property were
“very ambitious.” The parade of applications for
Pennsylvania’s last thoroughbred license ends today, incidentally, the cutoff date imposed by the
state racing commission.
July 30, 2003
JERSEY OTBS AT LONG LAST?
ON THE KY-INDIANA FRONT
Sid Dorfman, writing in this morning’s Newark StarLedger, says New Jersey Sports and Exposition
Authority president and CEO George Zoffinger will
announce today that a deal has been struck to help
clear the way for off-track betting parlors in the
state. The OTBs were legalized three years ago,
but until now the various track interests involved
had not reached any agreement on implementing
them. According to Dorfman, the Sports Authority will get up to nine OTBs in the northern part of
the state; Pennwood Racing, the Penn National Greenwood Racing partnership that owns Freehold, will get up to four; and Greenwood Racing
will get two.
The Indiana Horse Racing Commission voted 3-2
yesterday to deny a petition to ban Kentucky
tracks from simulcasting to Indiana betting outlets unless it sends the signal to all of them. The
decision, called “the lesser of two evils” by one
commissioner, means that Kentucky horsemen who
banned signals to an Evansville OTB parlor under
provisions of the Interstate Horseracing Act won
a round in their efforts to protect beleaguered Ellis
Park from competition. Indiana commissioner Clay
Smith said, “I’m a little resentful of the Kentucky
HBPA putting a gun to our head, but we just can’t
afford to shut out the whole Kentucky signal.”
Indiana Downs had asked the commission to require Kentucky tracks to make their signals available to all Indiana betting outlets or none, but three
of the five commission members felt that would be
too dangerous to revenue. According to Bill Diener, attorney for Hoosier Park, which supported
the decision, some $14 million is bet annually at
Indiana tracks and OTBs on Kentucky racing. He
said a ban would have cost Hoosier Park $1 million a year. The decision forces Indiana Downs to
decide whether to ask a judge to declare Kentucky
horsemen’s actions anti-competitive, but general
manager Jon Schuster said the track has not decided whether to pursue that course.
The Sports Authority’s nine can be located in
Bergen, Hudson, Essex, Passaic, Morris,
Somerset, Hunterdon, Warren, Sussex North
Middlesex and North Ocean counties, although
four of those counties -- Bergen, Essex, Passaic
and Hudson -- may be considered too close to the
Meadowlands to be prudent OTB sites.
Pennwood, according to the report, will get
Camden, Burlington, Mercer, Gloucester, South
Middlesex and South Ocean counties, surrounding Philadelphia, and Greenwood would wind up
with Cumberland, Cape May, Salem and Atlantic
county, excluding Atlantic City and its casinos.
Monmouth county, home to both Monmouth Park
and Freehold Raceway, will not get OTBs.
Dorfman wondered in his story why phone betting
doesn’t have a higher priority, saying it doesn’t
require further sanctioning and could produce
more revenue than OTBs. He also thinks Atlantic
City casinos are making a serious mistake in not
partnering with the tracks on slots, rather than
opposing them, saying the casinos will suffer when
New York slots get underway. The casinos’ attitude, he says, still is “over my dead body.”
USTA WINS WALNUT HALL CASE
The last of Walnut Hall Ltd.’s four claims against
the United States Trotting Association on the issue of multiple birth registrations from embryo
transplants has been dismissed, but the Kentucky
nursery retains the right to take up the matter
again in the future.
KYL BILL UP TOMORROW
The Senate Banking Committee plans to consider
the Unlawful Interstate Gambling Prohibition (Kyl)
Act tomorrow.
July 31, 2003
INTERNET BILL ADVANCES
FINGERPRINTING IN NEW YORK
The Senate Banking Committee unanimously reported out the Unlawful Internet Gambling Funding Prohibition Act (S. 627) this morning, on a 21-0
vote including some proxies. The bill as approved
differs from the legislation proposed by Senators
Jon Kyl of Arizona and Diane Feinstein of California. It contains new language that excludes interstate wagers on pari-mutuel horseracing from the
credit prohibition, the American Horse Council
reports, provided they are (1) authorized and regulated by the state receiving the bet; (2) placed on
a closed-loop system; (3) between states with
horseracing; and (4) made in accordance with provisions of the Interstate Horse Racing Act. The
bill still prohibits the use of credit in connection
with unlawful Internet wagering and credit is
broadly defined. A provision backed by racing that
excluded from the definition of “bet” or “wager”
any lawful transaction with a business licensed or
authorized by a state was deleted from the bill prior
to mark-up, some members of the committee and
their staffs feeling the bill could not be passed out
of committee with the “state licensed” language
included. New language, however, added with significant bipartisan efforts of Republican senators
Jim Bunning of Kentucky and committee chairman
Richard Shelby of Alabama and ranking Democrat Paul Sarbanes of Maryland, deals specifically
with horseracing. Similar language has been provided in the revised bill covering Indian gaming
on Indian lands, and dog racing. The Horse Council feels further action on the measure will be difficult, since it expects it to be opposed by other gaming interests including the casino industry and state
lotteries, which strongly sought the “state-licensed” language. The AHC also thinks Native
Americans will want their exclusion broadened beyond the language that emerged from the committee today.
Under a new law in New York, signed by Gov.
George Pataki on July 22, horse trainers, drivers
and jockeys can be fingerprinted as a requirement
for licensing. The law eliminates legal obstacles
to conducting background checks, according to
Newsday, and covers a wide range of professions
other than the horse industry. The legislator who
sponsored the legislation, Assemblyman Joseph
Lentol, chairman of the Assembly Code Committee, said the FBI and the New York Division of
Criminal Justice Services had asked for the revision in the state code. “This isn’t Big Brother,”
Lentol said, but rather a measure needed to ensure the state would continue to have access to
national criminal records. A spokeswoman for governor Pataki said the bill brings New York law into
line with federal statutes, but one state senator,
Thomas Duane of New York City, thought the measure was “far too sweeping” and would be “revisited”.
HARNESS KIDS AT THE BIG M
Harness Horse Youth Foundation executive director Ellen Taylor has selected the six HTA-HHYF
Youth Camp drivers who will get to drive in the
“championship” race on Hambletonian Day at the
Meadowlands. All range from 11 to 13 in age -the parameters of the 2003 competition --and were
selected by Ms. Taylor on the basis of exceptional
accomplishment, attitude and achievement at the
six camps held at HTA tracks. The six finalists
are Tannor Spittler of Kansas, Illinois, who raced
at the Red Mile camp; Emily Wilson of Avella,
Pennsylvania, The Meadows; Elizabeth Steward
of Harrington, Delaware, Harrington Raceway;
Heather Kinard of Painscourt, Ontario, Mohawk
Raceway; Grace Nebzydoski of Honesdale, Pennsylvania, Pocono Downs; and Jonathon Fisher of
Oakenfield, New York, who raced at Batavia
Downs.
HAMBLETONIAN TOMORROW
August 1, 2003
FUTURE NEWSHAWKS ON HAND
Harness racing’s greatest trotting race, the million dollar Hambletonian, features an all-star $2.9
million card at the Meadowlands tomorrow, and
the 78th edition of the classic will be seen on 183
CBS television outlets nationwide -- 99.8% of the
network -- as the entire CBS Sports Spectacular,
from 2 to 3 p.m. eastern time. Supporting the
Hambletonian will be two $500,000 events -- the
Hambletonian Oaks for 3-year-old trotting fillies
and the Nat Ray for older trotters -- along with
the $400,000 U.S. Pacing Championship for older
pacers, the $350,000 Mistletoe Shalee for 3-yearold pacing fillies, and the $300,000 Oliver Wendell
Holmes for 3-year-old pacing colts. New York’s
WFAN will be on the air from the Meadowlands
from 10 a.m. to 1 p.m. eastern time, with Jody
MacDonald as host, and racing gets underway at
11:30 a.m. Tonight’s Meadowlands card is a $1.3
million program, with the $650,000 Woodrow Wilson for 2-year-old pacing colts and the $400,000
Sweetheart Pace for 2-year-old pacing fillies as the
features. The Hambletonian favorite is Power to
Charm, trained by Trond Smedshammer and to be
driven by John Campbell, seeking his sixth
Hambletonian victory. Bebop, trained and owned
by Jimmy Takter, is given the best chance of derailing the favorite. While the Hambletonian has
captured wide media attention, a new trotting sensation appears to have arrived in Tom Ridge, not
the Secretary of Homeland Security but a two-yearold colt named for him by Pittsburgh auto dealer
Kenneth Ross, a friend of Ridge’s who shares
ownership in the colt. After winning the $450,000
Peter Haughton Memorial Thursday night at the
Meadowlands the equine Tom Ridge is undefeated
in five starts. He is a son of Muscles Yankee,
whose daughter Ladylind won the $250,000 Merrie
Annabelle Thursday night, making Muscles
trotting’s hottest stallion.
A spate of solid feature stories on the
Hambletonian on a wide front is one highly encouraging development of the week. Another is the
presence of 11 journalism students from seven different colleges at the Meadowlands this week,
participating in the first Clyde Hirt Sports Journalism Workshop. The event is co-sponsored by
the U.S. Harness Writers Association, its New York
chapter, the Meadowlands, the United States Trotting Association and the Harness Horse Youth
Foundation. Presenters at the sessions include
Bruce Beck, WNBC-TV sportscaster in New York;
Neal Baker of NBA-TV; Ray Brienza, veteran
harness writer of the Newark Star-Ledger; John
Quinn, sports editor of the Asbury Park, NJ, Press;
Adam Berkowitz of the New York City Daily News;
Tom Cosentino of O’Leary and Cosentino Associates public relations; CTV’s Sharon Caddy;
Eclipse award winning racing writer Bill Heller;
and CBS producer Chris Svendsen and director
Bob Fishman, who will be on hand for the
Hambletonian telecast. Moira Fanning, USHWA
national president, said the workshop evolved from
the scholarship named in memory of the late Clyde
Hirt, the New York sportswriter whose columns in
Sports Eye were a feature of the sport. Anne
Doolin, publicity director of the Red Mile, is coordinating the workshop with assistance from Curby
Stillings of the Meadows and USTA director Chris
Tully. The students, mostly upperclassmen, from
the University of Kentucky, Ohio University, California State in Pennsylvania, Bethany college, St.
John Fisher college, Wagner college and The College of New Jersey, will assist with operational
and media relations tasks tomorrow. Combined
with the finals of the HTA/Harness Horse Youth
Foundation championship race tomorrow for 1113-year-olds, the workshop is a welcome addition
to the sport’s emphasis on youth.
August 4, 2003
NO PENNSYLVANIA PROGRESS
RACING SERVICES FEEL HEAT
When a major politician says, “This is bald, unadulterated politics at its dizzying zenith,” you know
things are tough. That was the most recent assessment of H. William DeWeese, the Democratic
minority leader of the Pennsylvania House, on the
slots-at-tracks situation in the Keystone state. It
is going nowhere, and it now appears the Senate,
which has effectively killed the bill by putting it in
cold storage, will not meet again until late September. A frustrated governor, Ed Rendell, continues to work for a compromise, saying he is prepared to cancel his vacation if necessary, but Senate leaders have shown no inclination to listen or
talk. Kathleen Hall Jamieson, the director of the
Annenberg Public Policy Center at the University
of Pennsylvania, told the Pittsburgh Post-Gazette
that “the public hasn’t gotten the message yet that,
essentially, the state has stopped. The question is
when do they start feeling pressure.”
Susan Bala’s Racing Services, which reportedly
has grown from taking $9 million in bets in 1998 to
more than $214 million last year, now is under investigation by state and federal authorities, according to press reports. In-forum, an online news
service, says state racing commission records show
the company owes North Dakota at least $5.5 million in back taxes, and a long story on the Web
site says rebates have built the success of the operation. That success has reached the attention
of Roger Licht, the chairman of the California
Horse Racing Board, whose reaction is that California should change its laws to allow rebating to
compete with firms like Racing Services. “They
provide a significant amount of handle -- RSI in
particular -- and I’d like to see us compete with
them.” Racing Services is the only licensed simulcast operator in North Dakota. Operating from
a small building in Fargo, it supplies the satellite
linkup for horse and dog racing in North Dakota,
South Dakota, Idaho and Oregon, and also operates in Mexico under the name International Wagering and Entertainment Systems. Through an
“incentive program,” a small group of bettors bet
a huge amount of money, amounting to some 45%
of RSI handle, or some $68 million in 2000, when
Ms. Bala gave that report to Daily Racing Form.
The Form said the incentives amount to rebates
of 7 to 10 percent. Major tracks nationwide sell
their signals to Racing Services, and visits by security personnel have found no violations in RSI’s
highly sophisticated computer operation.
California’s Licht says, “Susan Bala is known to
be very smart, very knowledgeable about the
game, and found a niche where she’s been able to
attract very large players through her system. She
was very forthright in discussing her business. It’s
her position that she’s providing incremental
handle through people who otherwise would not
be drawn to horse races.”
NYRA OFFERS TO PAY FINE
The Albany Times Union, in a widely copied story,
reports that the New York Racing Association, “in
an intense behind-the-scenes battle to avoid a
criminal indictment, is offering to pay a fine in a
civil settlement that would ‘achieve the federal
government’s goal of deterrence, punishment and
rehabilitation.’”
The newspaper claims it obtained a confidential
NYRA report maintaining that a criminal indictment on tax fraud charges “would cause the
troubled corporation to collapse, cost the state
hundreds of millions of dollars in revenues and
destroy the economy of Saratoga Springs,” where
the annual NYRA classic summer meeting is in
progress. NYRA says state laws are the source
of its financial woes, and the Times Union says
talks between NYRA and prosecutors is
scheduled for tomorrow.
ADIOS, ZWEIG NEXT BIG ONES
The Hambletonian has come and gone, but major
action continues on the harness racing front at HTA
tracks this week. The Meadows presents its annual classic, the $442,360 Coors Delvin Miller
Adios for 3-year-old pacing colts, and Rockingham
Park stages its first presentation of the $300,000
estimated Dr. Harry Zweig Memorial for 3-yearold colt trotters. Both rich races have filly divisions that also will be raced this week.
At The Meadows, 19 colts and geldings dropped
in the entry box, resulting in three $58,981 eliminations, which will be raced as the ninth, tenth and
eleventh races Saturday afternoon, with the
$265,416 final scheduled as the fourteenth race.
Tarpaulin Hanover is the morning line favorite in
the first elimination, but a Jules and Arlene Siegel
stable entry of Nvincbl Artist and Artist’s Icon,
trained by Jim Campbell and driven by Brian Sears
and John Campbell, are likely to give him serious
competition. The Siegel stable has three other
colts in the Adios, Oragami Artist and Whatanartist
in the second elimination, and Armbo Animate in
the third. The Globe, to be driven by Luc Ouellette,
is morning line favorite in the second elim, and the
early season sensation Jr. Mint, returning to action after being sidelined for more than a month,
is morning line choice in the third.
Entrants for the Zweig at Rockingham will be taken
at noon tomorrow.
August 5, 2003
A SHORTAGE OF HIGH ROLLERS
Las Vegas’ experiment with private casinos for
high rollers -- whales in the Vegas vernacular -are proving a failure. The Las Vegas Review-Journal, quoting Nevada Gaming Control statistics,
reports that the upscale private salons have attracted “only a handful of gamblers and have won
a relative pittance.” The rooms were introduced
six months ago, but through April 30 they had attracted only five visits to the three rooms opened
at the MGM Grand, Caesars Palace and
Mandalay Bay, with wins of only $3.5 million.
University of Nevada Las Vegas gambling expert
Professor Bill Thompson says that’s “L-O-W -low, low, low.” The results leave a lot of unanswered questions about private gambling, and one
hotel exec said the SARS epidemic in Asia hurt
the play, which is limited to players with a $500,000
line of credit and with $500 minimum bets and
machines. One gaming executive said, “The level
of play will be dictated by the number of Asians
who come over here and request it.” Thompson
said the rules are an administrative nightmare, and
added that “for the players, it’s not worth the effort. A player gets more anonymity playing in the
main casino.”
High rollers or not, gambling stocks are doing well
on Wall Street. Joe Greff, a gaming analyst at
Fulcrum Global Partners, an independent investment research firm, says, “The gaming stocks we
follow are outperforming the S&P 500 by 2-to-1,
and have for the past month.”
AMERICAN IDOL AT BATAVIA
Western New York talent get their big chance at
Batavia Downs next Monday and Tuesday, when
the HTA track hosts trials for the American Idol
competition. Winners qualify for an Aug. 20th
regional final and a New York City audition for the
big one.
ESTOK ON STAGE IN ALBANY
HTA general counsel Paul Estok is in Albany, NY,
today, making a presentation at the racing law symposium of the Albany Law School. He is reporting
on the massive August HTA study of legislative
changes and developments in racing and simulcasting law around the nation.
EVERYBODY IN THE POOL
Everyone, it seems, wants a piece of Chicago, at
least that part of it dealing with the vacant license
of the ill-fated Emerald Casino. Six suitors, including Isle of Capri Casinos, which owns HTA
member Pompano Park, have indicated interest in
buying the license. The others are Park Place
Entertainment, which owns Caesars Palace;
Harrah’s Entertainment; a group backed by Steve
Wynn; Hyatt and the Mandalay Resort Group;
and the Keystone Gaming Group. The furor surrounding the Emerald simply will not die. No
sooner had the bankrupt company announced the
six suitors, the chief administrator of the Illinois
Gaming Board, which has to approve any sale, said,
“We’re rather surprised that they have moved forward with this.” The board’s surprise was triggered by the fact that after it had signed off on an
agreement allowing Emerald’s license to be sold,
the attorney general of Illinois, Lisa Madigan,
stepped in and stopped the deal, saying it would
have allowed Emerald officials accused of wrongdoing to recoup their investments. Madigan currently is trying to strip the license from Emerald,
and if successful Emerald would have no license
to sell.
SPORT LOSES TWO GOOD MEN
Harness racing has lost two good friends. Marvin
Sugarman, veteran TV producer whose credits included Captain Kangaroo, the CBS Sports Spectacular and Racing from Roosevelt and Yonkers,
died at 87 at his home in Roslyn Heights, NY. In
Grosse Pointe Farms, Michigan, Bruce
MacFarlane, son of Harness Tracks of America
founder Don MacFarlane, died of lung cancer at
49. A lawyer like his father, Bruce also was a renowned sailor. HTA extends heartfelt sympathy
to his mother Jane and sister Marilyn, who is married to former HTA executive assistant
Greg Magreta.
August 6, 2003
RCI BANS HYPOXIC TREATMENT
The Association of Racing Commissioners, which
has been taking more positive stands on questionable practices in the sport recently under Lonny
Powell’s guidance, has added intermittent hypoxic
treatment by external devices to its list of prohibited practices at tracks. The hypoxic devices involve head hoods and the introduction of gases to
enhance aerobic metabolism, and the RCI believes
that until further study is done the practice could
endanger the health of horses, drivers and riders.
The prohibition does not apply to hyperbaric oxygen therapy chambers, now in use in California
and elsewhere to treat wounds, infections, tying
up, colic and other problems by the infusion of huge
concentrations of pure oxygen.
SEEMS I HEARD THAT BEFORE
Michael Hess of Giuliani Partners stirred things
up a bit at the Institute on Racing and Wagering
Law in Saratoga Springs yesterday when he said
antiquated technology was a big problem for racing and suggested creation of a national office of
wagering security. He cited lack of control and
failure of racing to work together as a whole. The
report of his talk rang a quick bell, for it sounded
remarkably like the report four years ago at the
University of Arizona Racing Symposium delivered
by Mark Elliot, general manager of IBM Global
Services. Elliot said then, “You need to have a
technology foundation....across the industry. So I
think you will need a technology organization
owned by the industry -- the NTRA? -- not just to
solve pure technology problems because frankly
the technology itself that’s required is not breakthrough, it’s not rocket science, it’s straightforward,
but rather to create and get the value out of this
virtual enterprise behavior that you all have all
begun to demonstrate.” We’re not sure what’s left
for Hess’s boss Rudy to say at the Round Table in
two weeks, but he must have Elliott’s report.
August 7, 2003
ROCK SPLITS ZWEIG IN TWO
MAGNA NEW YORK RACING?
Seventeen top 3-year-old trotting colts have been
entered for Saturday’s 29th edition of the Dr.
Harry Zweig Memorial Trot, to be raced for the
first time over the sweeping mile track at HTA
member Rockingham Park in Salem, New Hampshire. The race, honoring the New York vet and
former USTA director who was instrumental in the
creation of the New York Sire Stakes program,
formerly was raced at the New York state fairgrounds at Syracuse but was moved this year with
the return of harness racing to Rockingham Park.
Favored in the $131,037 first division is Muscle
King, to be driven by Gates Brunet, with Incredible Hulk and Mr. Eero close behind. The $133,538
second division, stronger race on paper, has Mutineer, with George Brennan driving, as favorite,
but he faces a strong Carl and Rod Allen stable
entry in Holy Guacamole and Vrahos, and seemingly overlooked in the morning line is Mac’s
Crown K, third in the Hambletonian and with redhot Ron Pierce driving, listed at 5-1. If you can
get that at post time, be our guest.
That was the word swirling around Saratoga yesterday, after the Associated Press reported that
Magna Entertainment is making a move to replace
the troubled New York Racing Association as operator of Belmont, Aqueduct and Saratoga. The
AP reported that “a source in state government
and another in the racing industry who spoke on
the condition of anonymity say the huge Ontario
horse racing organization has begun talking about
replacing NYRA, which is under investigation amid
accusations of widespread mismanagement.”
FILION NEARING 15,000 WINS
It may have taken him a few months to return to
form after a six-year layoff, but Herve Filion is
storming back, looking like the Herve Filion of old,
at HTA’s The Downs at Pocono in Pennsylvania.
The all-time leading race-winning driver (or jockey)
has won 13 races in the last seven racing days at
Pocono Downs, and now stands just 59 victories
short of 15,000 wins in his career. Herve, now 63,
won both pacing and trotting features at Pocono
last week, and says, “I’ve been getting some good
stock to drive and in the right classes. It feels
good to be winning. I always loved getting my picture taken after a horse race.” Filion hopes to
reach the 15,000 plateau this year. He moves to
HTA’s Dover Downs after Pocono closes
Oct. 19.
Those sources may have spoken, but the pronouncements of governor George Pataki and
NYRA chairman Barry Schwartz make it clear that
NYRA does not intend to walk away from its racetracks. As far as that goes, Magna itself has said
nothing about such a move, and president Jim
McAlpine certainly had the opportunity when he
addressed the law symposium held by Albany Law
School at Saratoga on Tuesday. As for others, New
Jersey already has announced that even an indictment, if one were to be handed down, would not
affect that state’s simulcasting arrangements with
NYRA, since Jersey deals in convictions and not
indictments.
A CLONED HORSE ARRIVES
Italian scientists have created the world’s first
cloned horse, beating out Texas A & M which is
expecting its horse clone to be born in the fall. The
Italian clone, born at the Laboratory of Reproductive Technology in Cremona, Italy, is named
Prometea, from the Greek mythological character that stole fire from the gods and gave it to humans. Unlike the mule cloned this spring at the
University of Idaho, Prometea was cloned from his
mother’s skin cells rather than eggs, and that DNA
makes the mare and her foal identical twins.
NYRA PUTS VLTS ON HOLD
Having become what Newsday columnist Paul
Moran calls appropriately “a convenient political
pinata,” the New York Racing Association has
called a temporary halt on construction of its VLT
casino. Started only two and one-half weeks ago,
the site was to be home to up to 5,000 VLT terminals, expected to produce as much as $395 million
for education in New York state in the first year of
operation. With gubernatorial hopefuls and the
feds hacking away at NYRA, chairman Barry
Schwartz called a halt until matters are resolved.
“Obviously I am disappointed,” Schwartz said in a
NYRA release, “that recent developments have
put hundreds of millions of dollars for education,
purses and breeders awards in serious jeopardy.
Nevertheless, I remain optimistic that the legal
matters will be sorted out and the VLT project will
get back on track. It’s just too important to too
many people to turn out any other way.” In another development in the story, it was revealed
that U.S. attorney Roslynn Mauskopf had recused
herself from the politically sensitive case and the
Justice Department had approved the recusal.
Chief assistant U.S. attorney Andrew C. Hruska
now is in charge of the case.
RENDELL OUTPACING POLS
State legislators who are stonewalling slots legislation in Pennsylvania are losing support of their
constituents. That was the finding of a poll conducted by Quinnipiac university, which found that
51% of respondents said they approve the way
new governor Ed Rendell is doing his job, but only
41% approve how legislators are doing theirs.
Twenty-nine percent disapproved of Rendell’s performance, but 39% were disappointed with the
actions of legislators. The Senate, meanwhile,
basks in sunshine and fishing, or whatever senators do when they’re not stonewalling,
while racing and state revenue suffers.
August 8, 2003
150TH OPENING FOR FREEHOLD
It should be old hat by now, but Freehold Raceway
opened yesterday.....for the 150th time. The
nation’s oldest and only exclusively daytime parimutuel harness track got underway with something
new, the introduction of a Pick 8, the first ever in
New Jersey, with a $1 base wager and 75%
carryover. Also new is the ability of New York City
OTB patrons to watch and bet on Freehold racing.
The opening was strong, with a handle of $775,000
on a 10-race card as opposed to $551,000 on a 13race Friday opening a year ago. The track already has begun gearing up for its 150th anniversary celebration, which will be held on September
20. Between now and mid-November, Freehold
will offer almost 100 stakes worth some $5 million, headlined by the $350,000 Cane Pace, first
jewel of pacing’s Triple Crown, which will be raced
over the half-mile track Sept. 1. The $275,000
James B. Dancer Memorial, also for 3-year-old
pacers, will close the stakes schedule Nov. 15.
C’MON, NOT AGAIN!
Guess who’s been suspended again? Bill
Robinson, this time set down for six months and
fined $5,000 for not reporting details of the death
of a horse in his care. Robinson also was fined
$2,000 for failing to observe Ontario rules on having a written contract with the owner of horses
trained by him. The suspension is to run from Sept.
1 until Feb. 29, 2004, but undoubtedly will be appealed. A 10-month, $50,000 fine that Robinson
currently is fighting is in divisional court and
Robinson is training horses on a stay of that suspension. The Ontario commission, a leader in
meaningful penalties, is cracking down on unreported deaths of horses. In addition to Robinson,
three other trainers and a veterinarian were
handed suspensions and fines for the same infraction. Post mortems would be an interesting follow-up.
August 11, 2003
FIRST STEPS ON BIG M FUTURE
CALLAHAN HONORED AT ROCK
Ray Brienza, writing in the Newark Star-Ledger,
reports that the New Jersey Sports and Exposition Authority has taken the first step toward eventual sale or lease of the Meadowlands and
Monmouth Park. Brienza reported that NJSEA
president and CEO George Zoffinger said Lehman
Brothers has been selected to prepare a Request
for Bid, which would invite interested parties to
make offers on the two tracks, currently state
owned. Lehman Brothers was chosen after two
rounds of interviews with six investment banking
firms, but Zoffinger said it was unlikely a Request
for Bid would be made before the November elections. “We’ll debate the proposal among all concerned,” Zoffinger said. “We’ve just come off a
good week with the big crowds for the Haskell at
Monmouth and the Hambletonian at the Meadowlands.” Good week is right. The Meadowlands
drew 29,120 for the Hambletonian and wagering
totaled $8,038,687 for the day. At Monmouth a
record crowd of 53,638 bet a record $3,965,735 on
the Haskell.
When Rockingham Park presented its inaugural
racing of the Zweig Memorial Trot for 3-year-olds
Saturday, won by Mutineer, the New England Harness Writers were on hand to honor the man responsible for the harness meeting and the race.
The writers’ veteran president, Jack Ginetti Jr.,
presented vice president and general manager Ed
Callahan with the chapter’s Milestone Award. “Ed
has played a major role in New England racing for
more than a quarter of a century,” Ginetti said,
“and he played a major role in bringing the prestigious Zweig Memorial Trot to Rockingham.”
Callahan, who worked at old Foxboro when in high
school in that town, worked at Rockingham for
years during its thoroughbred days, and then ran
Audubon Raceway in Henderson, KY, for
Rockingham’s owners. He returned there in 1982
as VP and general manager and has been there in
that capacity since. When management and the
track’s thoroughbred horsemen could not reach
agreement contractually earlier this year, Callahan
returned to his early roots and reintroduced harness racing. He told HTA a month ago that he
planned to hold harness meetings in 2004 and 2005
as well.
GOOD START FOR A MOVE
One more illustration of what slots can do for racetracks is the move of Evangeline Downs in Louisiana, which is relocating its racetrack to a new $96
million facility and plans to open its slot casino
portion of the operation next March. The track
announced it would take job applications last Monday. Twelve hundred people applied. The track
will not open until 2005, but Evangeline announced
it will hire 600 for the casino opening and another
600 later. There will be no shortage of space for
the new operation, which will have 1,600 slots in
its casino, parking for 2,000 cars, a mile dirt track
with an inner seven-eighths turf course, stables
for 1,000 horses, and most realistic of all, seating
for just 1,450 patrons with an apron that
can handle another 3,000. The complex
has 625 acres.
ON THE ROAD TO MANDALAY
Two top executives of Mandalay Resort Group,
chairman Mike Ensign and vice chairman Bill
Richardson, have sold a staggering 6.4 million
shares of the company stock since mid-June, according to Securities and Exchange Commission
records reported by the Las Vegas Review-Journal. Each of the executives sold 3.2 million shares,
Ensign for $103 million and Richardson for $106
million. They still have a healthy share left, however, with both holding 2.5 million shares. Over
the last 90 days, Deutsche Bank data says major
gaming stocks have improved 14%, compared
to a 4% gain for the Standard and Poors 500
over the same period.
INSURANCE TOUGH? TRY THIS
Five new tracks have joined the ranks of insureds
at Wagering Insurance NorthAmerica, HTA’s captive program that has provided general liability,
workers comp and auto coverage to member
tracks for 25 years. Others may flail around talking of forming their own captives, forming committees, doing studies, but WIN Insurance is a living, ongoing and successful racetrack venture that
has protected its members against the swings of
the insurance industry for a quarter of a century.
The five new insureds in recent months are Pompano Park, Mid-State Raceway, Northfield Park,
Scioto Downs and Monticello Raceway. WIN is
not an exclusive harness operation, and it welcomes other breeds. Shareholders in the company
include Arlington Park, Beulah Park, Ellis Park,
Hawthorne and Wheeling Downs Racing. To learn
more about WIN, a track-owned captive with a
proven track record and with underwriting profits
and investment income accruing to its tracks, contact Bob Bossert (robert.c.bossert.jr@marsh.com)
or Eric G. Fischer (Eric.G.Fischer@marsh.com) or
Daniel V. O’Leary, the company’s counsel in Chicago, at 312-251-1000. Bossert and Fischer work
out of Marsh’s Buffalo office, 716-843-4600.
ANOTHER WORD TO THE WISE
Don’t take inquiries or requests for information
from the U.S. Environmental Protection Agency
lightly. The former operators of Portland Meadows have just been fined $500,000 for allowing
stormwater tainted with horse manure to reach the
Columbia Slough, near the track. The civil penalty was issued July 29 by U.S. District Judge Garr
M. King after a three-day trial. Gene Ferryman,
owner of the New Portland Meadows Inc., which
operated the track from 1991 to 2001, said the
penalty would bankrupt the company, which spent
$500,000 on environmental studies and a
special manure detention barn.
August 12, 2003
“We don’t think (the penalty) is justified,” Ferryman told the Associated Press. “We’re not bandits. We did what we could do, and when they told
us to jump, we jumped.” The judge acknowledged
that the discharge from the track’s operations
didn’t substantially increase contamination in the
slough, but that water samples indicated the risk
was significant. He said Ferryman’s company
never was in compliance during the ten years it
had operated Portland Meadows, and ruled the
owners had not been diligent in following through
with possible solutions. The current owners of the
track, Magna Entertainment, resolved its Clean
Water Act claims last year through a federal court
consent decree which provided for a $100,000 civil
penalty and $1 million in wastewater improvements.
A $46.5 MILLION PAYBACK
It took six years to round up the assets, but a bankruptcy trustee has assembled $46.5 million in assets of Robert E. Brennan to repay debts incurred
by the former owner of First Jersey Securities and
Garden State Park. The bankruptcy judge, Donald
F. Conway, was quoted in the New York Times as
saying he felt “like I’ve played a game of international chess” trying to unravel the very complex
financial structure built by Brennan during his highflying years in the 1980s and 90s. The $46.5 million was assembled from assets in some 100 entities, and included $20 million from the sale of
Brennan’s golf course in New Jersey; $12 million
from the sale of a casino boat in Florida; $8 million in cash from two overseas trusts; $5 million
from a family trust; and $3.3 million from sale of a
house in Juno Beach, Florida. The money won’t
reach, however, on Brennan’s debts, with valid
creditor claims currently at $131 million and possibly increasing to as much as $165 million. The
helicopter promise of “Come Grow With Us” has
flown.
August 13, 2003
CANADIAN PACING DERBY SET
BATTLE FOR DETROIT AIRPORT
Ten of the sport’s best older pacers were entered
this morning for Saturday’s $824,000 Canadian
Pacing Derby at Woodbine. And if anyone knows
how to draw an inside post position, please contact Chris Ryder, trainer of McArdle. The pacer
has won $2.3 million, but who knows what he might
have won if he could draw inside. In the $275,000
Graduate Series, he drew post 8; in the $150,000
Battle of Lake Erie at Northfield, he drew 7; in
the $650,000 William Haughton Memorial at the
Meadowlands, he drew 10; in last year’s million
dollar North America Cup he drew 9; and in the
million dollar Meadowlands Pace last year he drew
8. At the draw for Saturday’s Derby trainer Ryder
said, before the pills were drawn, “I’m sure he’ll
draw 9 or 10,” and he was right. He drew 10. From
the rail out, the field for the 61st edition of Canada’s
oldest harness stakes race, with drivers, is:
1. World Harvest (Eric Ledford) 30-1
2. Peruvian Hanover (Mike Vanderkemp) 15-1
3. Corona Grande (Chris Christoforou) 15-1
4. McDylan (Trevor Ritchie) 20-1
5. Art Major (John Campbell) 4-5
6. Dreamfair Vogel (Luc Ouellette) 30-1
7. Admirals Express (Paul McDonnell) 15-1
8. Mini Me (David Miller) 10-1
9. Four Starzzz Shark (Jim Morrill Jr.) 5-1
10.McArdle (Mike Lachance) 9-2
It turns out that Magna Entertainment is not the
only suitor that wants to build a thoroughbred racetrack near Detroit Metropolitan Airport. A second group headed by businessman San Danou also
would like to build a track there, but Michigan racing commissioner Bob Geake says he is in no hurry
to license either applicant. Geake says that despite denials he thinks the applications are contingent on slot legislation being passed in the state,
and that he probably will wait until the legislature
decides what it wants to do about that development. Magna currently operates the only thoroughbred track in Michigan, at Great Lakes
Downs in Muskegon, and would likely close that
operation if it gets approval to build a new track
near the Detroit airport. Danou, the new suitor,
says he has two pieces of property suitable for a
track, and says he could have a track standing on
one of them by late 2004, costing about $110 million, with future development pushing the cost as
high as $250 million. Magna’s plans call for a combination thoroughbred and harness track, with a
phase II including retail development of the project.
Commissioner Geake says part of his job is to
make sure any new track is viable, and he doesn’t
think anyone wants to spend $250 million for a
racetrack alone. Both applicants say they are willing and ready to do so, without slots conditions.
12 FOR CLEVELAND CLASSIC
With 12 3-year-old pacers dropping in the box for
the $190,000 Miller Lite Cleveland Classic on
Saturday, the race has been split into two $95,000
divisions. Dr. Drew, with Dale Hiteman driving,
has been installed as 5/2 favorite in the first division, with Tarpaulin Hanover second choice at 7/
2. Jr. Mint, on the comeback trail after a phenomenal early season campaign, is the 2-1 choice in
the second division with Brett Miller in the
bike.
DOWN AND DIRTY IN MARYLAND
Politics can get mean, nasty, and petty. Look at
the slots situation in Pennsylvania. Or look at
Maryland. First there were allegations that Senate president Mike Miller had used his office improperly to raise money for a national committee.
Then the Maryland Tax Education Foundation and
Maryland Public Policy Institute announced they
were holding a slots information meeting in Miller’s
office. He kicked them out, saying he never approved the meeting.
August 14, 2003
PHONY FIGURES IN MARYLAND
“WE’RE IN A NEW BUSINESS”
We’re always bemused, but not amused, when outfits with impressive sounding names issue reports
that have holes as big as culverts in them. Extracts of another such report, from something
called the Maryland Tax Education Foundation and
Maryland Public Policy Institute, have crossed our
desk, and politicians and the press are eating it
up. The ‘study,’ complete with an investment
banker and someone from the Cato Institute to
decorate it, claims that giving slots to racetracks
in Maryland is the worst possible scenario, and
proposes instead that having corporations compete
for the right to build casinos would be the best way
to go. Nowhere in reports of the study that we
have read have the Foundation or Institute taken
the time to balance their ‘accounting’ numbers with
the demise of the racing industry and its agricultural component in Maryland, a state with a rich
racing tradition and some of the best farms in racing. It would be interesting to see a balanced study
that takes into account what will happen to horses
and the agricultural industry surrounding horses
in Maryland as the state is surrounded with slots,
unless a significant share of slots revenue is diverted to keep Maryland racing competitive. Does
anyone think private casino companies would
make such a diversion without legislation mandating it? Do politicians in Maryland care enough
about the horse industry in Maryland to enact such
legislation? No study is needed to answer those
questions.
That was the reaction of John Asher, vice president of racing communications for Churchill Downs,
as the track unveiled the first phase of its $121
million renovation. The “new business” involves
luxurious amenities for year-round community utilization of the track for social purposes. A 5,230
square-foot ballroom that will seat 400, with 25foot high glass windows, will offer nightly use for
fund raising events and other gatherings including
wedding receptions, starts at $2,500, but is only
part of the plan. Nineteen executive suites, to be
available for daily rental Sept. 8, will accommodate up to 24 people, and two larger ones will
handle 50 to 56. Those range in price from $1,360
to $2,300 depending on date of function and size
of the group, but those figures include bar service,
a customized menu, concierge service, a personal
attendant and of course television with an adjoining balcony with vistas of the track. A Grand Foyer
on the fourth floor will provide a 3,600-square-foot
reception corridor overlooking the paddock, at a
minimum rental of $1,000. Churchill’s director of
group marketing and sales, Catherine Miller
Delaney, calls the project “the greatest real estate in racing.” No one is likely to dispute her
claim.
BIG M, RUNNERS OK ON PURSES
New Jersey Sports and Exposition Authority senior VP Bruce Garland and thoroughbred
horsemen’s counsel Dennis Drazin have reached
an agreement on purses for the fall running meet
at Monmouth Park. The track would race five days
a week, with daily purses of $250,000 subject to ratification by the horsemen’s board.
A $1 MILLION PARLOR
Shiny new HTA member Indiana Downs, seeking
to expand its off-track holdings, hopes to convert
the Drug Emporium, an old drug store in Clarksville
near Louisville, into a 22,500 square-foot sports
book, complete with a wall of big screen TVs, a
bar in the center of the facility, and betting carrels. The $1 million renovation, welcomed by the
town, needs approval of the Indiana Horse Racing Commission, and executive director Joe
Gorajec says that could take 45 to 60 days. Downs
general manager Jon Schuster says the new facility would employ some 70 workers, full and
part time.
SPEAKING UP EVERYWHERE
People everywhere are speaking their minds these
days, which is refreshing in racing. In Saratoga
Springs, NY, Blood-Horse editor Ray Paulick reports that thoroughbred trainer John Ward received a surprise phone call from New York attorney general Eliot Spitzer, telling Ward that his attacks on NYRA were not political. Spitzer is running for governor of New York, of course, so his
protestation can be weighed in whatever light one
chooses. The call was triggered by Ward speaking up earlier, saying New York racing was mired
in politics, and Spitzer’s call did not change his
mind. He told Spitzer, “I’m from Kentucky, I know
what politics looks like.” Ward said Spitzer “obviously is very sensitive to any kind of criticism,
and I voiced my stance that we still were in
America, that there is a policy of free speech, and
that I would continue to go by that policy. After
that was said, we got to be on much better terms.
We had a fairly pleasant conversation on what his
investigation was about, and I said NYRA may
have its problems, but I would lean toward fixing
the problems, not starting over with someone new.
The problems he found at NYRA probably exist at
other tracks. Because there are a few problems
you shouldn’t shoot the horse. He told me, ‘I
wouldn’t do that.’ I said that’s what it looks like is
happening.”
In Illinois, the man who spoke out was the new
governor of the state, who also isn’t shy about
expressing his views. Rod Blagojevich has let his
constituents know just how he feels on a number
of subjects, and this time he let them know how he
feels about the state’s riverboat casinos laying off
workers and reducing operating hours as a reaction to Illinois raising casino taxes to 70%. “It
seems to me,” the governor said, “that they’re
using the working people as leverage to put
pressure on the legislature to roll back
their taxes.”
August 15, 2003
In Ontario, oft-suspended Bill Robinson spoke his
mind on his latest, a $5,000 fine and six-month
suspension to go along with a $50,000 fine and 10month suspension issued earlier. Robinson thinks
the new fine and suspension is “a crock,” but of
course he thinks all of his many suspensions were
a crock as well. As with the larger fine and suspension, he is appealing the latest, which involves
a horse that died while in his barn and was not
reported as procedures require. Robinson said,
“The owners told me to send him for meat, because he wasn’t insured.” Robinson also used the
oft-heard excuse for rule infractions: “Anytime
you do good,” he said, “you run foul with everybody. Everybody’s out to nail your ass.” The
$50,000 fine and 10-month suspension was handed
down a year ago next month. The wheels of justice roll slowly.
ANSWERS ARE EXPENSIVE
Consultants, some believe, are experts who pick
other people’s brains and then offer profound solutions to vexing problems. Whatever they are,
they are well paid for their work, as two current
examples in racing and gaming illustrate. In Missouri, the Kansas City Port Authority is paying
Harvard university researchers $297,000 to study
a problem. The problem? In Missouri, since 1996,
problem gamblers can ban themselves from casinos in the state. More than 5,700 people have
used the program in those seven years. Missouri
officials, however, have never studied whether the
ban really works for those thousands who have
banned themselves. So, what to do? Hire Harvard
to study the ban for two years, at $148,500 a year,
to find out. In New Mexico, the state racing commission isn’t sure enough of its own capabilities to
decide which of four applicants should get a license
to build a racino in Hobbs. What to do? Hire
WhiteSand Consulting, with offices in Atlantic City
and Las Vegas, to tell them. The cost? A mere
$42,000.
HARMONY? HORSEMEN SAY NO
One might think, with slot-fueled purses that have
increased from $10,000 a night to $124,000 a night,
that peace and quiet and harmony might have
settled over HTA’s member Harrington Raceway
in Delaware. You would be wrong. Under their
leader, Salvatore DeMario, the Delaware horsemen -- upset that outside horsemen, with better
stock, are drawn to the state and keeping Delaware-owned and bred stock from getting racing
opportunities -- are threatening to cut off
Harrington’s simulcasting. Harmony to hell,
DeMario has notified general manager Jim Boese
that his board voted, 10 to 0, with two absentees,
to withdraw approval of simulcasting under provisions of the Interstate Horse Racing Act of 1978.
The editor sat in on negotiations that led to the
passage of that act, and it never was intended to
be used as a tool between horsemen disgruntled
over getting horses raced and management, but
the Delaware horsemen have decided to use it that
way as a bargaining club. Boese told them that if
they succeed in stopping simulcasting, it would cost
the horsemen and the track some $200,000 each
during the meeting, which started yesterday and
runs until October 30. Lawyers for both sides met
today to discuss the situation and seek common
ground. DeMario claims that Harrington needs
only 1,100 horses to fill its five-night-a-week, 15race programs, but they accepted over 1,400 during the spring meeting. The irony is that when
the race office drew Friday for next Wednesday’s
entries, it had to send people to the stable area to
recruit entries, and the 9 a.m. entry box didn’t close
until 11 a.m. Delaware horsemen, with largely
modest stock, want protectionism, but their health
insurance and administrative monies come from
simulcasting, and they are jeopardizing that income
with their threat. If they lose markets currently
taking their signal, they may never recover them, and if that happens the horsemen will be major losers.
August 18, 2003
FAIR GROUNDS CHAPTER 11
The Fair Grounds in New Orleans, facing a courtordered judgment that could cost the track $100
million in a purse dispute with horsemen, filed for
Chapter 11 reorganization in U.S. Bankruptcy court
Friday. Track president Bryan Krantz, whose family owns controlling interest in the track, said the
move would not affect track operation and the Fair
Grounds plans to open Thanksgiving Day as scheduled. Krantz told the New Orleans Times-Picayune that he had to file now to give people confidence to plan to ship to Louisiana in November.
“Other than the judgment,” he said, “the track is
financially sound. We would have preferred things
to be different. This is the solution we have been
cast in.”
The problem stems from a Louisiana Supreme
Court decision in April in a case dating back to a
Horsemen’s Benevolent and Protective Assn. action nine years ago. That 1994 suit against the
Fair Grounds and three other Louisiana tracks
claimed the tracks were making unauthorized deductions that illegally reduced the 50% of video
poker revenue that was supposed to go to purses.
A district court ruled in favor of the horsemen, but
the decision was overturned by the state appeals
court. Then, in April, the state Supreme Court, in
a 7-0 ruling, agreed with the HBPA that the formula used by the tracks violated the agreement.
The Supreme Court remanded the matter of damages to the district court, which has not yet determined what is owed to the HBPA. The other three
tracks involved -- Louisiana Downs, Evangeline
Downs and Delta Downs -- reached settlements
with the horsemen, so the Fair Grounds is the only
track affected by the Supreme Court ruling. The
amount owed is some $65 and $75 million, but with
interest could run well over $100 million.
August 19, 2003
NEW SLOTS HOPE IN INDIANA
OFFICIAL: MTR OWNS SCIOTO
The prospects for slots at Indiana racetracks
brightened yesterday when the Speaker of the
House, D. Patrick Bauer, told the Anderson Herald Bulletin that he would not dictate what happens if legislation is introduced next year. “If a
bill is introduced,” Bauer said, “I will assign it to
the appropriate committee. The case for passage
would have to be made in committee and on the
House floor.” While that certainly does not spell
success, it at least removes one obstacle, for the
House speaker and president of the Senate can
control whether a bill gets past them or not. Last
year Bauer effectively killed slots legislation by
assigning it to the Rules committee rather than
the Ways and Means committee. He did not elaborate yesterday on what he considers
“the appropriate committee,” so there is no reason for jubilation, but at least there is hope. Hoosier Park in Anderson, where Bauer spoke, has
been campaigning hard for slot-like pull tabs for
years. The House Public Policy committee had
approved 750 electronic pull-tab machines at HTA
members Hoosier Park and Indiana Downs last
year, and 1,500 at OTB locations in Indianapolis
and Fort Wayne, before Bauer’s move killed it.
With the formal approval of the Ohio Racing Commission yesterday, MTR Gaming became the official owner of Scioto Downs. Although the sale
was not conditional on approval of slots in Ohio,
that prospect still is a possibility when the Ohio
legislature meets again next year, or perhaps more
realistically when voters get to speak out on the
subject in November of 2004.
MEXICO MAY GET CASINO OK
The former governor of Nevada, just back from a
fact-finding and consulting tour of Mexico, told the
Las Vegas Review Journal that a recent development could open the way for legalized casino operation in that country. Gov. Bob Miller said the
resignation of the former minister of tourism was
followed by the “stunning” appointment of president Vincente Fox’s press secretary, Rudolfo
Elizando, to that position. “This is the first time,”
Miller said, “that Mexico has ever had a tourism
secretary who is an open advocate of casino gambling.” Mexico’s Congress could act as
early as next month, when it reconvenes.
Closer at hand, not for Ohio tracks but for those
in Colorado, is a November 4, 2003, vote on the
issue of video gaming at tracks there. The Colorado secretary of state, Donetta Davidson, reports
that enough valid signatures have been gathered
to put the issue to public vote there. Proponents
of the idea needed to submit 67,829 signatures,
and delivered 115,936 that Ms. Davidson’s office
found valid. Opponents of the idea said the total
was not surprising in view of its claim that signature gatherers were paid $2.50 for each signature.
A group called Support Colorado’s Economy and
Environment gathered the signatures. It is funded
largely, according to the Denver Post, by Wembley
USA, a British-owned company that owns four of
Colorado’s five racetracks.
JUST WHAT VEGAS NEEDS
Las Vegas has almost everything a major zoo
needs, but in February it will add another major
attraction. The Palms Casino Resort, after brainstorming by owner George Maloof, motorcross
rider Carey Hart and nightclub promoter John
Huntington, has announced it will open a tattoo
parlor in house in February. It will, of course, be
upscale tattoo, with three stations, a private guest
salon, antique ‘leathered’ walls, a custom sound
system, and “some of the country’s premier tattoo artists.” Tattoo parlor merchandise, whatever
that is, also will be sold. Juiced up patrons may
live to regret this.
BID FOR SLOTS, EVERYWHERE
Everyone, everywhere, it seems, is fighting for
slots.
In Maryland, track operators and the chairman of
the state racing commission joined in what the
Washington Post called “an impassioned plea” to
the legislative committee studying who will get slots
in Maryland. The commission chairman, Thomas
F. McDonough, called racing “an industry that
does not deserve to die,” but the track cause was
not helped by a second economist who claimed that
the state would receive more money if it owned
the slots, instead of letting the tracks have them.
Also testifying before the committee was Frank
Fahrenkopf Jr., president and CEO of the American Gaming Association, who told the committee
that private ownership should operate the slots,
with oversight and regulation by the state.
In Connecticut, Autotote prepared to go before the
state’s Division of Special Revenue tomorrow to
argue for the right to show racing on a special cable
access system and accept telephone bets in the
state. It already has the latter ability, but is arguing that a moratorium on additional OTB facilities
does not apply to a TV show. Autotote president
John L. Ponzio called racing “a beautiful thing to
watch,” while the program director for the Connecticut Council on Problem Gambling told the
committee “It sends a chill down my spine.” The
state attorney general, Richard Blumenthal, argued that gambling is not constitutionally protected
commercial speech, and said the show would violate the state moratorium. Illinois antigambling
preacher Tom Grey was on hand for the proceedings, and told the committee members, “You are a
pathological gambling state as it is.” He said it
was the committee’s duty to protect citizens against
“an addictive product.”
August 20, 2003
In California, a Sonoma county Indian tribe
dropped plans to build a gambling resort on environmentally sensitive lands near San Pablo Bay
in the San Francisco area, and instead worked on
finalizing a deal to transfer 320 acres of land it
owns and 1,700 acres on which it has an option to
the county and then work with the county and environmental groups to restore wetlands and open
spaces to their aboriginal state, while building a
casino on a portion of the land. The town of
Rohnert Park, where the area is located, and environmentalists who opposed the San Pablo Bay
site, applauded the new idea.
In California, where the Pala Indians operate tribal
casinos in the San Diego area that the Las Vegas
Review Journal claims make more money than either Foxwoods or Mohegan Sun in Connecticut,
the tribe opened a $105 million expansion of its
hotel and spa yesterday. Vegas interests are concerned of the impact the new facilities will have on
Nevada gaming. A California assembly bill, meanwhile, that would have given the state racing commission more power to approve satellite wagering
expansion, was killed by organized Indian gaming
opposition.
In Wyoming, where the little Wind River Indian
Reservation casino made $300,000 last year and
another $424,000 for tribal improvements from
bingo, the tribe announced plans for a new $7.2
million, 30,000-square foot casino that will enable
it “to really market, which we haven’t been able
to do because our current building and facilities
are inadequate,” according to the GM of the tribe’s
bingo operation.
In Maine, Scarborough Downs obtained enough
petition signatures to force a November vote on
overturning a local ordinance that prohibits slot
machines and video gaming at the track. The
ordinance in question was passed in April,
2002.
August 21, 2003
DEADLINE ON 0 CANCEL DELAY
NO INDY FOR INDIANA DOWNS
The deadline for eliminating cancel delays if tracks
are to participate in Canadian simulcasting now is
less than two weeks away. The Canadian PariMutuel Agency has mandated that everyone participating in Canadian pools, including Australia
and Hong Kong if those signals are hosted, must
eliminate their cancel delay as of Tuesday, Sept.
2. As of that date, HTA members Woodbine,
Mohawk, Windsor, Hippodrome de Montreal,
Flamboro Downs and Northlands Park cannot accept any track with a cancel delay greater than 0
seconds, and are notifying simulcast partners of
the deadline. HTA’s board passed a resolution at
our annual meeting recommending this move in
the interest of improving public perception of parimutuel operation and in the hope of displaying
pools faster, and TRA is expected to announce a
similar recommendation today or tomorrow. The
CPMA’s announcement of the ban, issued earlier
this month, read: “The Canadian Pari-Mutuel
Agency has reviewed with industry participants
both inside and outside of Canada the policy of
allowing the cancellation of wagers after betting
has stopped. We have concluded that it is both
desirable and practical to prohibit late cancellation of wagers. There are two objectives: first, to
be in compliance with the intent of existing regulations and second, to expedite the transfer of pools,
reducing the time necessary for such requirements
as public display of final odds.....all associations
and their simulcast partners are hereby instructed
to have in place a zero seconds ticket cancellation
policy no later than September 2, 2003, as well as
procedures for monitoring compliance with this requirement. The Agency commended Woodbine for
its initiative in implementing the policy, and Sean
Pinsonneault, director of wagering operations at
Woodbine Entertainment, is reminding all partners
that the deadline is almost at hand.
The Indiana Racing Commission, on a 3-2 vote,
rejected Indiana Downs’ application for an OTB
parlor in Indianapolis yesterday, and a track executive, Tom McCauley, told the Indianapolis Star
that the denial puts the survival of the new track
in jeopardy. “It will be necessary to have a 50-50
allocation (of slot subsidy monies) if they expect
us to survive,” McCauley said. “There’s no disputing that. It’s the pure economics of it.” The
rationale of the denial, according to commission
chairman Richard Darko, was that there aren’t
enough bettors to support a second OTB in Indianapolis. Hoosier Park already has one there, which
produced $66.3 million in revenue last year, more
than parlors in Anderson, Fort Wayne and
Merrillville combined, according to the Star. The
slots subsidy, worth $11 million from riverboat admissions last year, is currently divided evenly between Indiana Downs and Hoosier, but is scheduled to be allocated next year on the basis of how
much is handled at each track. Commissioner
Alan Armstrong told the paper dividing the money
equally “is going to be the only way to help Indiana Downs get a fighting chance.” Hoosier Park
president Rick Moore said the vote supported his
contention that there is room for only one track in
the state.
THE HEAT’S ON IN KENTUCKY
Racing commission chairman Frank Shoop and
executive director Bernard J. Hettel are under fire
in Kentucky, where dear friends and relatives of
Shoop and the governor have held high paying
commission jobs. The commission’s so-called Backside Improvement Commission has been closed
and its duties absorbed into the commission itself,
and its $66,000 a year director, Kim Morgeson
Stewart, who listed Shoop as a reference when
hired, has resigned. Shoop’s daughter-in-law and
governor Patton’s stepdaughter remain on the
job.
August 22, 2003
SIMULCAST AWARD DEADLINE
STATE TAKEOVER IN N.DAKOTA
If your track is interested in competing for the
annual simulcast award presented at the International Simulcast Conference co-sponsored by TRA,
HTA and the AQHRA, you had better have someone in your simulcasting department work over the
weekend preparing your entry. The entry deadline is next Tuesday, Aug. 26. Entries must be no
longer than 30 minutes in length and contain one
complete race presentation, including pre-race features and graphics, the race itself, and any postrace replays and/or wrap-ups. Entries must have
been part of a normal simulcast program and not a
collection of highlights or features and must have
aired after Sept. 15, 2002. Six copies in VHS format should be sent to TRA, 420 Fair Hill Drive,
Suite 1, Elkton, MD 21921, along with a letter of
entry detailing the contact name for the entry and
the date the program aired. All entries must be
received by 5 p.m. next Tuesday. The award honors the best simulcast telecast by a host site, is
open to all pari-mutuel breeds, and will be judged
on technical merit, quality, and timeliness of racing and wagering information, as well as overall
appeal. Entries highlighting a major race or event
are NOT given any special consideration. The winner will be announced and presented the award
during the next Simulcast Conference Sept. 29 Oct. 1 in San Francisco.
The state of North Dakota has taken over Susan
Bala’s Racing Services and barred Ms. Bala from
playing any role in the management of the company. Wayne Drewes, a Fargo accountant, was
appointed to manage the company in a receivership agreement arrived at in a dispute involving
$6.58 million in overdue betting taxes owed the
state. Ms. Bala agreed to the arrangement after
North Dakota’s attorney general, Wayne
Stenehjem, met with her and told her she could
either agree voluntarily to have her company
taken over by the state or he would seek an involuntary receivership. She signed and issued a three
paragraph statement which, the Fargo Forum reported, did not mention the receivership but said
she was “working cooperatively with the attorney
general’s office to resolve our tax payment issue
by restoring public confidence, providing openness
and transparency to this process while continuing
to provide good jobs and tax revenues for the
people of North Dakota.” The attorney general,
for his part, said the receivership, which he called
“not permanent, but indefinite,” was the best possible solution to what he called “a serious situation.” He also said he suspected the money was
not there to pay the tax liability, and the issue had
another ramification. The major bettor who until
last month was wagering millions a month through
Racing Services, and reportedly was the man who
triggered the Gulfstream Park betting squabble a
few years ago, quit betting at Racing Services a
month or so ago, along with other big bettors. The
attorney general said he understood the man was
owed money by Racing Services, and he was trying to get him to come back to Fargo. Earlier this
week Racing Services paid the North Dakota
Racing Commission $1.5 million it owed the commission in back taxes, and a U.S. attorney reported
that a federal criminal investigation, involving both
FBI and IRS, is underway.
ECUMENICAL PROGRESS IN KY
The 111th Kentucky Futurity, third leg of trotting’s
Triple Crown and one of the sport’s great classics,
will be sponsored this year by Keeneland Racecourse. The $400,000 race, set for Sept. 27, the
day before HTA’s 26th annual art auction, was
hailed by Red Mile president Joe Costa as one
more indication of cooperation between the two
Lexington tracks. Coming on the heels of the first
HTA/TRA joint convention, it is heartening.
August 25, 2003
WHO OWNS NYRA’S TRACKS?
SECRECY AND DIRTY POOL
That question became an issue over the weekend
after New York Racing Association chairman Barry
Schwartz reportedly said in a CNBC interview that
if NYRA did not operate Belmont, Aqueduct and
Saratoga, no one would unless they built their own
tracks. “No one is using this land besides NYRA,”
Schwartz was quoted, saying NYRA owned the
land and the buildings at all three tracks. Gov.
George Pataki apparently disagreed, telling the
Albany Times Union that while the ownership issue is “a very complicated legal question...in my
view, very simply, these are state assets that need
to be used to the benefit of the people of the state
to the maximum extent possible.” NYRA’s
troubles with the state and federal government
continue, but Saratoga had its biggest Travers Day
ever Saturday, breaking both attendance and
handle records without either Funny Cide or Empire Maker. Seabiscuit was not the likely cause,
either. The explanation would seem to be that
Travers Day at Saratoga, with good weather -which was exceptional Saturday -- is as important
a day there, regardless of who runs in the race, as
the Derby is to Churchill Downs, the Preakness to
Pimlico, the Belmont to that track, or the Breeders’ Cup to whoever presents it. It is an Annual
Happening.
They often go together, and they are raising the
question of ethics and integrity in Florida, where
the state Elections Committee is investigating a
mysterious committee opposing slots at tracks.
Given the fancy title of Floridians for Family Values, the committee was formed by Cory Tilley, a
PR executive who is a former communications director for Gov. Jeb Bush. As chairman of the mystery group, he refuses to say who put up the money
for the group or who paid for anti-slots ads mailed
to thousands of Floridians in April. The
organization’s charter, according to the St. Petersburg Times, was filed by Scott Keller, a lobbyist
with Greenberg Traurig, one of Florida’s largest
law firms, but Keller also has refused to answer
questions about the origin of the group. VLTs for
tracks have been opposed by Bush and the
speaker of the House, Johnnie Byrd, but supported
by Senate president Jim King. Last month, after
the secret work was done aiming to defeat a bill
that would have allowed VLTs, Tilley filed a letter
with the state Division of Elections, asking that
the committee be dissolved, claiming that the paperwork creating it as a political action committee
was filed in error. This month Daniel K. Adkins,
president of Hollywood Greyhound Track, filed a
formal complaint against the committee, charging
it violated campaign finance laws that require PACs
to report all contributions and expenditures. Elections Commission director Barbara Linthicum now
says the commission will investigate.
WARNING SIGNS IN KENTUCKY
Like a computer virus, opposition to granting slots
to tracks is spreading. The latest outbreak is in
Kentucky, where the speaker pro tem of the House
has caught the Maryland bug and is saying that
the state can do better with casinos than with slots
at tracks. As in Maryland, this is strange talk for
a state with the racing tradition of Kentucky, and
not only the tradition but the economic impact and
importance of its Bluegrass farms. The outbreak
of casino talk is not a healthy sign.
MAGNA BUYS INTO AMTOTE
Magna Entertainment, which now owns or operates 14 tracks, online wagering and a cable racing
network, has announced that it is paying $3.82
million for a 30% interest in AmTote International.
President Jim McAlpine says racing “will be increasingly dependent on introducing and adapting
new technology.”
PUBLIC SPEAKS ON MD SLOTS
We’ve heard from the posturing pols, now let’s hear
from the public polls. The Baltimore Sun reports
today that a survey of 829 registered voters conducted by an outfit called Gonzales Research and
Marketing Strategies found that 57 percent support the idea of slots at tracks, while 31% oppose
the plan. Those numbers, the Sun says, “represent a marked shift in public opinion in a short
time.” When Gonzales polled last March, during
the height of the General Assembly’s debate, only
47% favored slots and 45% opposed them.
Gonzales called the shift “statistically significant,
and striking.” Whether it is enough to overcome
the political battle going on in Maryland remains
to be seen.
AND THEN THERE’S COLORADO
Slots at tracks suddenly have become a major issue in Colorado, too, where a November referendum would legalize VLTs at the state’s five horse
and dog tracks. If statewide voters approve the
measure, tracks in Aurora, Colorado Springs, Commerce City, Loveland and Pueblo each would get
500 VLTs. The Denver Post reports what it calls
“a mounting list of opponents,” including most recently the Colorado Municipal League and Colorado Counties, both complaining about lack of local jurisdictional power. The executive director of
Colorado Counties, an organization that represents
61 of Colorado’s 64 counties, says, “There’s no
provision (in the ballot measure) for local governments to be able to ask their citizens whether or
not they want these terminals in their counties.”
Colorado’s mountain casinos are vigorously opposing the move, but the county organization cannot legally join them in funding support. The Municipal League, representing 264 of Colorado’s 270
cities and towns, also opposes the move, its objection being a lack of taxing and fees power
in the proposal.
August 26, 2003
SECURITY DIRECTORS TO MEET
Standardbred Investigative Services is organizing
a working conference of harness track security
directors for Oct. 13-15, and is asking tracks to
authorize their directors to attend. The sessions
will be held at The Meadows racetrack in Meadow
Lands, PA, and at the Hilton Garden Inn/
Southpointe in Canonsburg, PA, near the tracks.
The hotel is located just off I-79, 20 miles from the
Pittsburgh airport and conveniently available by
major highways. Opening and closing sessions on
Monday and Wednesday will be held at the hotel,
all of Tuesday’s session at the track, and SIS will
host a group dinner Tuesday evening at The Meadows. Subjects will include video surveillance equipment and operations, multiple ways of organizing
and managing racino security, the international
casino surveillance network, security controls in
money transfers and handling, increased liability
risks and prevention, updates on pari-mutuel security matters, detention barn operation, and other
security-related items. The registration cost of
$30 an attendee covers an opening reception, two
meal events on Tuesday, and all beverages during
breakouts. The hotel is offering a special room
rate of $89 a day single or double, $99 a day for a
suite. The reservation deadline is October 3, and
based on the informational success of past SIS
security meetings, HTA strongly recommends that
tracks make their security directors available for
this one. They can benefit greatly.
GOING TO THE DOGS
Looking for new promotions? Batavia Downs tried
its first ever Weiner Dog race Saturday night, with
14 Dachshunds running in two heats for a grand
prize of a weekend trip for two to Toronto. The
races were held between the 5th and 6th races,
added a new twist to the card and were well received. For details, contact John Clifford at 585343-3750.
August 27, 2003
INTERNET CHALLENGE TO U.S.
60% FAVOR SLOTS IN PA
The government of the Caribbean island of Antigua
and Barbuda have gone to the World Trade Organization with a complaint that the U.S. policy on
barring Internet wagering violates the General
Agreement on Trade in Services, also known as
GATS. The island’s High Commissioner, Sir
Ronald Sanders, told the Antigua and Barbuda
Chamber of Commerce and Industry that the U.S.
position has cost the island millions of dollars.
Internet gambling is big business in Antigua and
Barbuda, where it contributed between 8 and 10%
of the island’s gross domestic product until the U.S.
crackdown. Wages and salaries from Internet
betting in 2000 totaled $12.9 million U.S. dollars,
but employment has dropped from 3,000 to less
than 500.
On the heels of yesterday’s 57% favorable poll in
Maryland, a Pennsylvania poll conducted by the
Pittsburgh Post-Gazette indicates that 60% of voters in Allegheny county favor the legalization of
slots. Answering the question, “To raise revenue
for the state, some officials are proposing to legalize slot machines at racetracks, and, possibly
some other locations. Do you support or oppose
legalization of slot machines?” Overall, 60% responded they favored slots, 32% opposed the idea
and 8% were undecided. The reaction of men was
more pronounced: 66% were in favor and 29%
opposed, with 5% undecided. Independents favored them 56% to 31%, with 13% undecided.
Republicans weren’t sure, with 48% in favor and
47% opposed, and 13% undecided. Every group
surveyed produced at least a plurality in favor of
it.
OFF THE RESERVATIONS
Although Indian casinos in California currently are
confined to reservations, the Los Angeles Times
reports that at least 26 tribes are seeking to take
advantage of provisions in state and federal law
that would enable them to establish casinos beyond reservation boundaries. The paper says that
even tribes without reservations theoretically
might open casinos, and two such landless tribes
hope to build gambling halls in Los Angeles county
and near San Francisco. To do that would require
approval from local, state and federal government
agencies, and the tribes in question would have to
take the land in trust as sovereign Indian territory, which could take as long as a decade for approval. No tribe has taken this route yet, but the
Times’ Louis Sahagun, who wrote the story, sees
off-reservation casinos as the next phase in the
evolution of an industry that began less than two
decades ago as a handful of bingo parlors and now
has 54 Las Vegas-style gambling palaces
scattered around the state, many with first
class upscale facilities.
DOES THIS SOUND FAMILIAR?
“There was a time when a gambling den used to
be just that; a smoke-filled emporium of nervous
chatter, hopeful flutters and the odd whoop of the
rejoicing winner. The run-of-the-mill punters’ paradise where the only common language was that of
profit and loss. But no longer.” The quote is not
from the Brooklyn Daily Challenge . It is from
the South China Morning Post, and it is talking
about the Hong Kong Jockey Club unveiling its
latest, state-of-the-art off-track betting branch,
complete with floor-to-ceiling glass windows, showcase displays and “a stylish feel that blends well
with the surrounding premises.” The displays feature a series of pictures depicting horse racing.
We should note that interested parties can obtain
terrific racing art at next month’s HTA art auction
in Lexington.
FREEMAN PARKER HURT
One of New England’s best known drivers, Freeman Parker, has been hospitalized in serious
condition after a Saturday accident at
Scarborough Raceway.
August 28, 2003
POLITICAL PALAVER
MILLION ON LINE AT N’FIELD
We realize it is the beginning of the political hunting season, where shots can be fired right or left
at any moving target with impunity, and speeches
delivered without any thought behind them. Racing, during this time, needs to wear a bright red
jacket, for it looks like a deer to many candidates,
who blast away without thought. Kentucky is a
prime example, where the Democratic candidate
for governor, Ben Chandler, decided in Owensboro
that the racetracks and the racing industry are two
different animals, and he would support help for
one but not necessarily the other. Owensboro, it
should be noted, has a convention center but no
racetrack, and wants slots if they come to the Bluegrass. Mr. Chandler, mindful of this, and mindful
that horse breeding is big business in Kentucky,
said in a speech quoted by Thoroughbred Times
that “It is my goal to protect the horse industry,
not necessarily the horse tracks.” Someone in Lexington or elsewhere should notify Chandler, when
he speaks there, that if horse tracks go down the
tube the “horse industry” goes with them. They
are not two different animals. Of course his
speech in Lexington, where both Keeneland and
the Red Mile are located, may sound far different
than the one in Owensboro. That’s been known to
happen in politics.
Northfield Park will look like a million Saturday
night, when it presents Ohio Super Night, with eight
$100,000 Ohio Sires Stakes Championships and
the $200,000 Scarlet and Gray finals for Ohio breds
on its 15-race card. In addition to the sterling race
card, Northfield preferred patrons get to redeem
mystery vouchers received in the mail earlier this
month, with top prize in the promotion $10,000 and
every voucher worth $2. The number of vouchers
worth $5 also has been increased by 500% for
Saturday’s program. Since Ohio State kicks off
defense of its national championship Saturday
night, anyone wearing Scarlet and Gray Buckeye
gear gets free admission to Northfield.
BROWN IN CANADIAN HALL
Murray Brown, a native of Quebec who became a
fixture and authority on the North American harness racing scene as vice president of publicity
and public relations for Hanover Shoe Farms in
Pennsylvania, will be inducted into Canada’s Horse
Racing Hall of Fame tonight in Toronto. Other
honorees include the late Toronto Star sports columnist and racing writer Jim Proudfoot, and the
pacing stallion Camluck. Former jockey Chris
McCarron will be guest speaker at the
ceremonies.
USTA AIDS HARNESS YOUTH
Using its annual charity golf outing for a most worthy cause, the United States Trotting Assn. has
provided the Harness Horse Youth Foundation’s
Harness Youth League Camps with a check for
$3,653.72. This year’s camps, run by HHYF executive director Ellen Taylor, wound up, as last
year, with a championship final at the Meadowlands on Hambletonian Day morning. The event
was won by 11-year-old Grace Nebzydoski of
Honesdale, PA, driving the HHYF’s pony Black
Monday, with trainer Chuck Connor Jr. also
aboard the two-seat jog cart. HTA introduced the
youth camp idea for kids 11 through 13 after ownerbreeder-Hambletonian winner Mal Burroughs suggested it while speaking at the University of Arizona Race Track Industry Program several years
ago. Ms. Taylor made it possible, organizing and
operating the schedule at HTA tracks, with heavy
financial support from Burroughs. This year’s
camps included The Red Mile, The Meadows,
Harrington Raceway, Woodbine-Mohawk, Pocono
Downs, and Batavia Downs prior to the championship event at the Meadowlands.
August 29, 2003
CANE PACE FINAL ON MONDAY
CROWN PACE SATURDAY
David Scharf, A&G Stables and Jerry Silva’s
Allamerican Native drew the coveted number one
post position yesterday and was immediately installed as the 7-5 morning line favorite for the
$331,000 race. The Cane Pace Final, the first jewel
of the Pacing Triple Crown for 3-year-olds, will be
contested at HTA member Freehold Raceway on
Labor Day. Racing in a division of last week’s
Cane Pace Eliminations, Allamerican Native set
all the fractions and recorded an easy 1:53.2 victory with Hall of Fame driver John Campbell at
the reins. All told, the son of Presidential Ball has
won four of six starts this year and banked
$288,917 in purse money. Trainer Mark Capone
has been pleased with Allamerican Native’s
progress since last Saturday’s elimination. “He
came out of the race really good,” Capone said.
“Not just soundness-wise, but also attitude-wise.”
The 5-2 second choice on the line is Peter Pan
Stables’ No Pan Intended, winner of the other Cane
Pace Elimination last week. The field for the Cane
Pace Final, in post position order, with drivers in
parentheses, includes: Allamerican Native (J.
Campbell), Tidal Search (C. Manzi), Dream Wave
(J. Morrill), Coasttocoastyankee (M. Wilder), No
Pan Intended (D. Miller), Nvincbl Artist (B. Sears),
Lifetime Man (R. Pierce), and Armbro Animate
(J. Campbell).
In the 20-year history of the Breeders Crown series of races, five winners of the Breeders Crown
Pace for older horses have gone on to be named
Horse of the Year. And it could just be that Art
Major is in line to join that illustrious list of champions. Trained by Bill Robinson and driven by John
Campbell, Art Major is currently the number one
ranked horse in the Hambletonian Society/Breeders Crown Top 10 poll. Owned by Blue Chip Bloodstock, Jim Simpson and the Art Major Stable of
Deena Frost, Jerry Silva, Thomas and Louis
Pontone’s TLP Stable and Lou and Deborah
Domiano’s Sampson Street Stable, Art Major has
been dominant in the older horse pacing division.
So it’s little wonder that Art Major is the 3-5 morning line favorite in Saturday night’s $540,000
Breeders Crown Pace. In 10 starts against the
top free-for-all pacers in North America this year,
Art Major has won seven times and finished second in the other three races. There have been
five older pacers to win Horse of the Year honors
in the past 20 years: Forest Skipper (1986),
Matt’s Scooter (1989), Artsplace (1992), Staying
Together (1993), and Real Desire (2002). All five
have also won the Breeders Crown Pace. In addition, each of those pacers captured the U.S. Pacing Derby, and the last three, Artsplace, Staying
Together and Real Desire, were victorious in the
Canadian Pacing Derby. In his last two stakes
appearances, July 26 at The Meadowlands and
August 16 at Woodbine, Art Major captured the
U.S. Pacing Championship in 1:48.4 and the Canadian Pacing Derby in 1:49.1.
FREEMAN RESTING
Freeman Parker, one of New England’s most wellknown harness drivers, is resting at home and on
the road to what is expected to be a complete recovery following injuries he sustained in a collision during a race last Saturday night at
Scarborough Downs.
In Quebec, Marcel Lacaille announced his resignation from the board of SONACC, the
organization that runs Quebec’s four racetracks.
Three other stakes races will highlight the rich
Saturday night card at Woodbine, the Breeders
Crown Open Mare Pace, featuring rivals Bunny
Lake and Worldly Beauty, the Breeders Crown
Open Trot, and the Metro Pace for 2-year-olds.
More than (CN)$3.3 million in purse money
will be up for grabs on the night.
September 2, 2003
ZOFFINGER ON PRIVITIZATION
HTA ART CATALOG ONLINE
In a story that received wide coverage in New Jersey, the president and CEO of the New Jersey
Sports and Exposition Authority said he felt a private company would have a better chance to win
legislative approval of slots at the Meadowlands
than the Authority. George Zoffinger told the editorial board of the Asbury Park Press that a private company brought in to run the track on a lease
basis could make contributions to legislators -which the Sports Authority cannot do -- and that
the difference could spell whether the track gets
slots or not, which he calls critical to its success.
“Let’s get right down to it,” Zoffinger was quoted,
“it’s campaign contributions. I think we are in such
bad shape politically in New Jersey, to get (approval for slots) accomplished, I think we’re better off having a private operator run the racetracks.” Zoffinger quickly added, however, that
“We’ve not made a determination to sell the
tracks. If we do something, it will be a lease -- not
a direct sale -- we don’t want to turn Monmouth
Park into a housing development.”
Harness Tracks of America’s largest and most significant art auction ever -- all 212 oil paintings,
watercolors, bronzes, woodcarvings, papercuts and
treasured Currier & Ives and other prints -- can
be seen later today on the HTA Web site,
www.harnesstracks.com. In addition to 151 works
of harness racing art, the 2003 collection includes
thoroughbred, saddlebred, fox hunting and polo
pieces, including rare oils and watercolors from
the 19th century.
Reaction to the president’s remarks was quick.
State senator Joseph Suliga, a Democrat from
Union county who has proposed 3,000 slots at the
Meadowlands, Monmouth Park and Freehold
tracks, said it would be “shortsighted” for the state
to share profits from video terminals with someone else.
The Asbury Park Press, editorializing on the development, said its reaction was “astonishment,
followed by nausea.” The paper seemed surprised
“that you can’t get the ear of state lawmakers until
they hear the sound of campaign cash jingling in
your pocket.” It said it was “downright stunning
....that lawmakers are more interested in collecting campaign cash than in upholding their
sworn duty to serve the public trust.”
Among the harness racing items is a superb 1880
oil painting of the then world champion trotter
Maud S, driven to wagon by her owner, Commodore William Vanderbilt. Vanderbilt commissioned
the painting from Scott Leighton, one of the best
known of the Currier & Ives artists, and the provenance of the work includes exhibition at the Portland, Maine, Museum of Art. Other oils by Scott
Leighton also are in the show and auction, and so
are two large harness racing works by LeRoy
Neiman, Saratoga and Trotters. A collection of Currier & Ives trotting prints includes two of the most
prized and difficult to find, the large folios Trotting Cracks on the Snow, a rare stone lithograph
done in 1858, and the 1870 print Fast Trotters on
Harlem Lane, NY. Another item certain to command serious attention is a portfolio of photographs of the great trotting horses of the last half
of the 19th century, with 48 plates of immortals
including Hambletonian, Goldsmith Maid, Flora
Temple and other stars of that golden age of trotting. A saddlebred treasure in the sale is the 1914
portfolio of the early photography and drawings of
the nation’s best saddle horses by the renowned
George Ford Morris, and also offered will be seven
watercolors done in the 1820s by two of the famed
Alkens of England. All net proceeds of the sale go
to HTA’s College Scholarship Fund for children of
participants in the sport or participants themselves.
September 3, 2003
QUARTER HORSE AT RED MILE?
A FULL HOUSE AT POMPANO
Maybe. The track told the Kentucky Racing Commission yesterday that it would like to run two 10race quarter horse cards next July 16-17, but there
is a long way to go before that becomes a reality.
Since the homestretch is 850 feet long from the
last turn to the wire, a chute presumably would
have to be built to accommodate any 870-yard
races that are usually on quarter horse menus. The
famed Red Mile surface might have to be scarified to handle the runners. The quarter horse association would have to approve the idea, and although no formal approach apparently has been
made to them, their representatives yesterday said
the Red Mile would be “an ideal place to race.”
Keeneland and Churchill Downs presumably would
have to be amenable to the proposal. And the
Kentucky Racing Commission would have to give
its blessings. Outside of that, the idea might have
a shot. The Louisville Courier-Journal quoted
Red Mile director of mutuels and simulcasting
Julie Sorrell as saying the track wants to establish minimal live racing so that it can add quarter
horse signals to its simulcasting menu. To do that
in Kentucky, at least one live breed race must be
raced each year to permit taking incoming signals
of that breed. At yesterday’s meeting, the commission told three quarter horse representatives
in attendance that they would need to complete
full applications by Oct. 1 to apply for 2004 dates.
The quarter horsemen also want to race two races
at Kentucky Downs in Franklin next year. The
Red Mile also asked the commission yesterday
for permission to drop its spring meeting and instead race from July 30 to October 9, thus taking
advantage of horses that might be available with
the closing of the Meadowlands in August.
Kentucky’s harness horsemen have given that idea
their blessing, and Bluegrass Downs in Paducah
said it would pick up the Red Mile’s 18
spring dates.
Not necessarily a capacity crowd, but at least a
winning poker hand. The track announced yesterday that it will reopen its Poker Room with the
start of the 40th season of harness racing on Friday, Oct. 10. Pompano was both the first Florida
track to open a poker room and the first to close
one, starting the experiment with a pot maximum
of $10 a hand back on Jan. 1, 1997, and dropping
it because the maximum was too low on Jan. 12,
2001. With the passage of Florida HB 1059 last
month, however, the cap is off the pot, with $1 - $2
raises per card, and Pompano will swing back into
poker action with Texas Hold’Em, Omaha and 5and 7-card stud. The new law permits poker operation on live race days only, from 12 noon to 12
midnight. GM Dick Feinberg says he’s disappointed poker can’t be played on simulcasting days
as well, but he still plans to offer poker players a
great facility despite the limitations.
GETTING HOT IN COLORADO
Proponents and opponents are lining up for the
coming battle over slots at tracks in Colorado.
Supporters of the idea, mainly Wembly USA, which
owns four of the five tracks in Colorado, has raised
$3.4 million for the fight, and the opposition, centered around a group called Don’t Turn Racetracks
Into Casinos that is getting funding mainly from
the state’s existing mountain casinos, now has a
war chest of $2 million. The ballot issue is expected to break fund-raising and spending efforts
for ballot initiatives in Colorado.
SARATOGA PUSHES AHEAD
Saratoga Raceway, not waiting for delays, has
closed its grandstand, completed about 70% of
gutting it for a casino, and is operating out of its
clubhouse. GM Skip Carlson says you won’t recognize the new racino.
THE PENNSYLVANIA TURNPIKE
Until now, that’s been the longest thing in Pennsylvania, but it is in danger of losing its record.
The state is beginning to go over the nine applications received for the one thoroughbred racing license available in the state, and the word on when
a decision may be made already is out. The official version is, “It will probably be a little while,”
which translated into ‘commissionspeak’ means,
“You must be kidding.” Waiting for racing commissions to make decisions is liking watch grass
grow, only vastly slower, and given the size of some
of the nine applications there may be a valid excuse this time around. The applications were, to
put it mildly, bulky. MTR Gaming submitted one
consisting of 1,500 pages. Freedom Park’s application ran 420. Before anything else takes place,
the nine applications will be scrutinized for “deficiencies,” and if any are found the applicants will
have 30 days to correct them. If they don’t, they’re
out. Then the racing commission will look at each
one “on its merits.” The nine applicants, six of
them seeking a site in western Pennsylvania, are:
Allegheny Thoroughbred Racing Assn., Bedford
Downs, Freedom Park, Isle of Capri Casinos, MTR
Gaming, Pittsburgh Palisades Park, Seaport Park,
Western Pennsylvania Racing Associates, and
something called 1935 Inc. The Pittsburgh PostGazette’s coverage of the story started with “The
race is on, but the finish line is nowhere in sight.”
“DO LIKE THE CASINOS DO”
We’re always amused when critics of the sport’s
marketing and promotional efforts say, “Do like
the casinos do.” We’re reminded of it by the announcement yesterday that Caesars Palace, now
37 years old and suffering from newer competition, plans a three-year, multimillion advertising
campaign to return it to former glory. It also has
built a $95 million theater called the Colosseum for Celine Dion’s
September 4, 2003
“A New Day” show, is spending $30 million for
producing it, and a total of some $250 million to
bring Ms. Dion and other stars like Elton John,
Jerry Seinfeld and Mariah Carey to perform there.
The ad campaign, incidentally, will be themed “Live
Famously,” and will, Caesars’ owner Park Place
Entertainment says, “deliver a simple and compelling message: Caesars Palace once again is
the most exciting place to experience all that Las
Vegas has to offer.” Now you know how to do it.
GEORGIA ON MY MIND
Autotote Systems is consolidating all of its racing
and lottery operations under one roof in Georgia,
leaving its Newark, Delaware home behind. A company spokesperson says that 79 workers will be
laid off by October, many of them because they
were offered jobs and said no thanks to moving to
Georgia. Autotote had 137 workers at Newark at
the beginning of the year, but did not reveal how
many are taking up the offer to head south.
PRESSURE MOUNTS IN MD
Democratic leaders in Maryland now say they will
reconsider Gov. Robert Ehrlich’s proposal for slots
at state tracks, but said they would not do so unless the governor includes tax increases and spending cuts in his new budget. Big money interests,
meanwhile, are being asked to make proposals to
the committee studying the slots issue, the latest
being developers of National Harbor, a complex
being built on the Potomac near the Washington
Beltway, being considered as a casino location. A
spokesman for Gov. Ehrlich, however, reiterated
the governor’s opposition to that idea, saying, “We
don’t support full-fledged casinos. The governor
supports a slot machine program in Maryland, and
he believes that slots are best (situated) at racetracks.”
September 5, 2003
A WYNN-WIN DEAL IN MD?
THE MASKED MAN UNMASKED
Edward O. Wayson is a lobbyist in Annapolis, the
state capital of Maryland. He represents some
heavy hitters, including Steve Wynn’s Wynn Resorts out of Las Vegas and Delaware North, out
of Buffalo. Wayson says he was thinking about
Maryland’s slots dilemma when -- without prompting from either client -- he came up with an idea
for a legislative proposal that might solve the
Maryland mess. His idea has taken the form of a
65-page proposal, now in the hands of the Baltimore Sun, which suggests the answer is to build
consensus by allowing up to nine gambling establishments in the state, including 3,000 slots at
Rosecroft Raceway, Pimlico Race Course and
Laurel Park; 1,500 at Ocean Downs; some at
Timonium fairgrounds; and up to 3,500 slots and
250 table games at four other non-track “destination resorts” that would include 600-room hotels
and convention facilities. Oh, Wayson also would
allow the tracks to apply for up to 50 table games
after two years if they added an “entertainment
facility” including a full-service hotel. One of the
casino licenses would be in the city of Baltimore
and one in Prince George’s county, and the Rocky
Gap resort in Allegany county would get 1,750 slots
and 50 table games. Each entity would pay a onetime franchise fee of $50,000 to $250,000, based
on the class of its license, and 25 to 34% of gross
gambling revenue to the state. Local governments,
purses, and breed organizations would share in
profits, along with a program for problem gamblers
and a marketing and improvement fund for the
Preakness at Pimlico. Since Wayson said he did
this on his own, we can only surmise that Steve
Wynn and Delaware North would approve, but
House speaker Michael Busch, who killed slots
earlier this year, does not. His take: “While it
might be a great venue in Atlantic City or Vegas, I
don’t think Maryland is quite ready for
that yet.”
In a fallout from the state takeover of Susan
Bala’s Racing Services in Fargo, North Dakota,
the identity of her BIG bettor has become public.
He supposedly bet $130 million a year of the $140
million bet in North Dakota at Bala’s salon, and
he now is living -- and presumably betting -- in Las
Vegas. His name is Peter Wagner, and he told
North Dakota racing commissioners back in 2001
that he was betting there and asked them to undo
damage he said was caused by publicity creating
“a strong impression that our operations were illegal and a serious threat to racing.” Wagner said
in that letter, uncovered by the Fargo Forum’s
capitol correspondent Janet Cole, who used the
open records law to discover the letter and his
name, that “The fact is that I opened my personal
history and tax records to your office two years
ago before I even started betting. For approximately two years...I have wagered substantial
monies which have generated significant contributions in taxes to the state of North Dakota, to
the horsemen and the racing industry and to the
charity (Team Makers).” A legislator who wondered earlier this year who the mystery man was
finally walked down the hall from his office to the
attorney general’s office and asked his name, and
was told it was Peter Wagner. Reporter Cole called
him in Vegas and Wagner answered the phone, but
politely and firmly told Cole he would answer no
questions. She said she was writing a story about
him, and he told her -- as she put it, in a fitting
response from a professional gambler -- “Good
luck.”
HERVE FILION TOO LATE
Herve Filion still is pursuing his goal of 15,000
driving victories, and seems certain of reaching it,
but he won’t be the first to do it. Germany’s champion, 53-year-old Hans Wewering, reached the
15,000-win plateau yesterday at
Gelsenkirchen.
September 8, 2003
DO OR DIE NEXT YEAR IN MD
NO SLOTS FOR HAZEL PARK
That’s the word on slots from House Speaker
Michael Busch, the man who knows about life or
death of slots in Maryland since he was the one
who killed VLTs this year. Speaking to newspaper editors and publishers last Friday, he said he
did think there will be some kind of resolution, but
did not forecast what it would be on what he called
“a highly volatile and contentious issue.” Busch
doesn’t like slots, but he told the editors, “I’m not
naive enough to think Marylanders are not going
to gamble.” He indicated, however, that he thought
the state could do better than having slots at racetracks.
Michigan still doesn’t have a law permitting slots
at its tracks -- a bill passed the House but is in
committee in the Senate -- but even if it passes
one Hazel Park Harness will not be included unless it can reverse a county commissioners’ vote
late last week. The Oakland County Board of Commissioners deadlocked 12-12 on the issue, and under its rules proposals fail on tie votes. Despite
the failed vote, Hazel Park vice president Dan
Adkins still put a favorable spin on it, saying he
still had confidence that the track could get some
additional gaming options. Business at Hazel
dropped 35% when Casino Windsor opened, and
another 20% when Detroit’s three casinos began
operations. One commissioner who introduced the
slots resolution noted that Hazel Park paid
$600,000 in taxes to the city of Hazel Park and
$250,000 in property taxes, and said that without
help “there’s a real danger the race horse industry will disappear.”
With or without slots, Rosecroft Raceway faces a
serious November 1 deadline, and so do its potential purchasers, Centaur and Delaware North.
The U.S. Circuit Court of Appeals for the 2nd circuit in New York is deciding whether Centaur will
have to honor its agreement to partner with Delaware North in buying the track, and while it is deliberating rumors are flying that the two suitors
are trying to resolve the issue out of court. Delaware North still says it wants to put up the money
for the track, and Centaur’s CEO for gaming, John
J. McLaughlin, says that if Centaur can’t raise
$30 million before the end of the year to go along
with the $43 million it has in current net worth, it
“is at risk of failure and could be forced to go out
of business.”
MEANWHILE, IN PENNSYLVANIA
The 253 members of the House and Senate return
to work tomorrow in Harrisburg, and there is no
indication of any kind that the House and Senate
are any closer to settling their differences over
slots at tracks than when they adjourned. Governor Ed Rendell still is determined to get the measure passed to provide the state with up to
$1 billion annually for reduction of property taxes, a campaign promise he made
last year.
A SLIGHT DIFFERENCE OF VIEW
Kentuckians -- even old line Kentuckians -- do not
always agree, and right now they’re split wide open
on the issue of slots at tracks. Arthur Hancock
III, who owns Stone Farm and is an opponent of
both medication abuses and slots, said last week
that racing should not “get in bed with something
that has nothing to do with racing,” according to
Thoroughbred Times. John T. L. Jones, owner of
Walmac International in Lexington, disagrees,
saying Hancock is “just in a fog on that issue,”
given the situation across the Ohio river in Indiana and West Virginia. Bill Casner, who won the
Thoroughbred Owners and Breeders Award for
service to the industry last week, also is a big believer in slots help at tracks. Hancock is adamant,
however. In an interview with the New Orleans
Times -Picayune, he said, “Why don’t we just legalize a hashish parlor and a whorehouse and
put those at the racetrack too?”
September 9, 2003
TWO TRACKS IN JEOPARDY
FREEHOLD CELEBRATES PAST
The future of one operating thoroughbred track
appears sealed, and another historic venue is in
serious danger of extinction. The announcement
by Magna Entertainment that it plans to break
ground on a multimillion dollar racing and entertainment complex near Detroit’s Metropolitan airport next spring spells the beginning of the end for
Great Lakes Downs in Muskegon. The Muskegon
Chronicle reports that next year will probably be
the last full season for the track, which either will
race a reduced schedule or become a training facility. The new Magna track will include dirt and
turf surfaces for thoroughbred racing and a seveneighths mile harness track, and could be ready for
racing as early as late fall of 2004. Bills currently
pending in the Michigan legislature would enable
one company to operate more than one track,
which currently is not allowed, so Magna could
continue to race a Great Lakes season dramatically shortened from its current 118 days if that
measure passes.
HTA member Freehold Raceway celebrates its
150th anniversary this year, and as part of the celebration will reenact a scene common to the days
of its creation. A live harness race will be held on
the main street of Freehold on Saturday morning,
Sept. 20, as the opening ceremony of the celebration.
In Florida, meanwhile, it appears that Hialeah Park
may be nearing the end of its storied existence.
Dave Joseph, writing in the Fort Lauderdale SunSentinel, quotes owner John Brunetti as saying
that he is going ahead with rezoning and development plans for the property, after battling for 10
years for dates. “If nothing happens during the
next legislative session,” Brunetti told Joseph,
“that’s the end of it.”
YOUBET, TVG IN DISCORD
Youbet.com announced today it will “vigorously
contest” a lawsuit filed by ODS Technologies,
which does business as TVG Network. The two
are battling over Youbet policies and board control. Youbet’s general counsel said that TVG’s
$4,000 investment in the company was
now worth over $12 million, with stock
price appreciation of 493%.
ANOTHER LOAN FOR VERNON
The Las Vegas Sun reports that a Vegas mortgage
company, Vestin Mortgage, has agreed to arrange
a $23 million loan for Vernon Downs, with $2.7
million of the loan initially reserved for construction of the track’s slot machine casino at 11% interest. The newspaper said the company declined
to comment on why it made the loan, and said neither Vernon owner Shawn Scott nor president and
CEO Hoolae Paoa could be reached for comment.
A portion of the proceeds of the loan will be used
to satisfy the obligation of the track to Scott’s All
Capital LLC, which loaned Vernon at least $8.5
million to meet its financial obligations some time
ago. Another portion of the Vestin loan will be
used to create a reserve to satisfy interest obligations during the term of the loan through Feb. 28,
2004.
PLANS FOR NJSEA ARENA
The Continental Airlines Arena adjacent to the
Meadowlands Racetrack will be converted into an
entertainment and office complex, at a cost as high
as $100 million. New luxury suites, bringing the
total to 60, and 1,900 premium seats, are planned,
but the New Jersey Sports and Exposition Authority says it would not invest any taxpayer money in
the two-year project unless it was assured of recouping the money. Current leases with the New
Jersey Nets and Devils expire in 2007, and the
NJSEA hopes the new expansion will change the
teams’ owner -- the YankeeNets -- to abandon
plans for a new arena in downtown Newark.
MAGNA GETS KUDOS IN MD
Magna Entertainment president Jim McAlpine
outlined $2.8 million in improvements made at
Pimlico, Laurel and the Bowie training center yesterday in an appearance before seven Maryland
racing commissioners, and came away with smiles
of approval and commendation. The largest expenditure of the total was $681,925 for 137 new
bins for horse manure and dirty straw, and the balance was for paving, repairing water lines, upgrading electrical connections for air conditioning of
grooms’ quarters, refurbishing bathrooms, upgrading kitchen and laundry facilities, and rehabilitating and replacing barns. Magna was under the
gun with the commission, committed to spending
$5 million in improvements to its tracks by the end
of the year, and McAlpine told the commissioners
that Magna had deposited $2.2 million in an escrow account for further improvements. The commission was pleased at the developments.
It was less pleased, it appears, with an ongoing
dispute between Penn National Gaming and the
Maryland Jockey Club over account wagering
rules, and moved to resolve that disagreement.
In another significant Magna development, Cox
Communications announced its Cleveland outlet
was now carrying Magna’s HorseRacing TV racing network, which will enable Thistledowns and
Northfield Park patrons to use the 15-hour-a-day
service in the Cleveland area.
BUCCI INDICTED AT LINCOLN
Dan Bucci, CEO of Lincoln Park greyhound track
in Rhode Island, was named yesterday in a federal indictment for allegedly trying to bribe a
former House Speaker in the state to add more
slots at the track and prevent approval of a
Narragansett Indian casino proposal.
September 10, 2003
The 22-count indictment involves a proposed $4.5
million payment over a six-year span to a
Pawtucket, RI, law firm in which the former
speaker, John Harwood, is a partner. The indictment did not allege that the firm or Harwood ever
accepted the arrangement, nor were either charged
in the indictment. Bucci allegedly faxed officials
of Wembley PLC, Lincoln Park’s parent, in England in March, 2001, telling them the law firm,
McKinnon & Harwood, had rejected a multiyear
payment a year before but might accept a oneyear deal, according to the Providence Day. Daniel
McKinnon of the firm represented Lincoln Park
for some 10 years, but Harwood said that “throughout that time, I have scrupulously avoided being
involved in that representation in any way.” He
also said that as Speaker and as a current Democratic state representative, he had also avoided
involvement in legislation affecting the track or
racing or gaming industry. The track called the
charges “totally baseless and without merit whatsoever” and said the payment under consideration
was a legal fee that was never authorized or paid.
Nigel Potter, the CEO of Wembley, also is charged
in the federal indictment, which has wide implications for Wembley, whose U.S. division is seeking
slots at five tracks it owns in Colorado. The issue
is highly controversial in that state, and opponents
were quick to run with the indictment news.
AMERITAB CHASING PIRATES
Paul Berube, president of both the Thoroughbred
Racing Protective Bureau and Standardbred Investigative Services, has long warned that simulcasting piracy was draining millions off U.S. track
handle. Now Charlie Ruma, president of Beulah
Park in Columbus, Ohio, and his GM Mike Weiss,
are pursuing legal action after discovering piracy
of its signals by a Caribbean rebate outfit with no
identifiable principals.
COURT SIDES WITH CENTAUR
The 2d U.S. Circuit Court of Appeals in New York
yesterday ruled for Centaur Gaming Inc., in its
contract dispute with Delaware North. The court
lifted a restraining order issued in July that prevented Centaur from dealing with any new potential partners in its search for financial backing to
complete its purchase of Rosecroft Raceway. If
Centaur and Delaware North do not reach a settlement, or if Centaur does not find new money, the
Indiana company stands to forfeit a $2.5 million
deposit. More important, to both Centaur and
Rosecroft, is the possibility that if the company
cannot complete financing and application requirements in the next six weeks, the sale will collapse
and the fiscal soundness of both operations will be
in jeopardy. The Baltimore Sun reports today that
Centaur and Delaware North, “engaged in intense
talks in recent days,” are discussing bringing in a
third partner, Prince George’s county contractor
Carl Jones. All sides to the negotiations have
tossed a cloak of confidentiality over the proceedings, and obviously are battling to meet the November 1 deadline for completion of the sale set
by the Maryland commission.
UNITED TOTE IN BUYOUT
The changing scene in totalisator company management took another interesting turn today with
the announcement that an investor group including senior management of United Tote has completed a management-led buyout of the company
from International Game Technology. Joe Tracy,
CEO of United Tote who is involved in the buyout,
said the acquisition of a financial partner in
Kinderhook Industries was “exciting,” and a
Kinderhook executive used the same word in describing the new partnership, saying the parimutuel industry is on the cusp of change and United
Tote’s proprietary research and development would enable it to remain a major
player.
September 11, 2003
Kinderhook is a middle-market private equity investment firm based in New York City, specializing in the acquisition of non-core divisions of large
public companies. The company says it’s philosophy is to combine senior management and operating experience in a variety of industries with the
financial and investment know-how of private equity professionals.
HOPE FOR CALIFORNIA COMP
September 11 may turn out to be a day of celebration rather than sadness for California horse racing, as the State Assembly is expected to vote today on an increase in exotic takeout to help offset
increases in workers compensation costs that
threaten to erode the base of training and racing
in the state. The Senate approved legislation Tuesday to increase takeout on exotics by half of onepercent, raising it from 20.18 to 20.68. If the Assembly follows the Senate’s 31-3 approval, it could
lower trainers’ insurance by $20 per $100 of payroll and $50 per jockey’s mount, according to Daily
Racing Form. Trainers currently pay $35 to $65
on payroll and $105 to $173 per jockey’s mount,
the paper says.
NOT QUITE THE WHOLE STORY
A Canadian Press story in yesterday’s Toronto
Globe and Mail gave interesting details on the
latest Bill Robinson brush with regulators, but
omitted some significant details. The story told of
Robinson’s appeal of his latest penalty, a sixmonth suspension and $5,000 fine for failing to
notify the Ontario Racing Commission of the death
of a horse in his care. The rule also calls for a
mandatory post mortem at the University of
Guelph on any horse that dies within 14 days of
being entered in a race. The story told of major
victories of many Robinson-trained horses. It did
not mention the fact that Robinson also is training under appeal from a 10-month, $50,000
fine for drug infractions.
WHAT’S BLOOD WORTH TODAY?
The question seems appropriate in view of events
in Maryland, where politicians and others suddenly
are talking about the National Harbor resort in
Prince George’s county, where Rosecroft Raceway is located, as a casino site instead of putting
slots at Rosecroft, Pimlico and Laurel.
Two years ago, the man who developed the National Harbor resort, Milton V. Peterson, told the
Washington Post, when asked about the possibility of gambling there, “This guy ain’t now or ever
will be in gambling. I don’t know if I have to put it
in blood.”
That was then. This is now. And while Mr. Peterson
may or may not have forgotten making the remark,
the Post did not. It reminded Peterson and everyone else of his comment this morning, pointing out
that the opinion now is “far less clear” in view of
statements by a senior vice president of the
Peterson companies. That’s understandable, since
the senior VP, Thomas R. Maskey Jr., when asked
about his boss’s comment in 2001 and the current
talk about a casino at National Harbor, replied,
“At this point, it’s not something we have an opinion on one way or another.” Those ringing slots,
it seems, can thin one’s blood pretty quickly.
MORE DISCORD IN MARYLAND
As if the political turmoil over slots isn’t enough
of a problem in Maryland, TVG now has filed a
countersuit against Magna Entertainment in their
squabble over simulcasting of signals from Pimlico
and Laurel. Magna, which has its own racing network, wants to end TVG’s exclusive contract with
those tracks, in which it now owns majority interest, and claims TVG has breached its contract.
TVG disagrees, saying Joe DeFrancis had
waived a contentious provision.
September 12, 2003
TROTTING DERBY DRAWS HEAT
When southern Illinois lost the Hambletonian to
the Meadowlands in 1981, the state of Illinois
stepped in and created the $500,000 World Trotting Derby for 3-year-old trotters to replace it. The
race is held at the former site of the Hambletonian,
the mile track known as the DuQuoin State Fairgrounds, although the Illinois State Fair is held in
Springfield. It is a big and spacious site, built with
Coca Cola money by the Hayes family, long a power
in Illinois harness racing, but now long gone from
the sport. The track itself is built of clay, and it
tolerates no rain. Hambletonians there were delayed on occasion when drastic measures had to
be taken to dry the track, but this year the World
Trotting Derby ran into serious trouble. Heavy
rain on the Saturday of the DuQuoin meeting -closing day -- forced cancellation of the half-million dollar race, and the seven entrants split the
entry monies, each receiving around $37,000. When
that happened, Larry Hamel, the Chicago SunTimes columnist who won HTA’s Dan Patch award
for racing coverage four years ago and is highly
knowledgeable on harness racing, wrote a strong
condemnation of DuQuoin, saying among other
things that the Hambletonian Society had the right
idea when it deserted DuQuoin for the Meadowlands, and saying it was now time to move the World
Trotting Derby to Balmoral Park, Springfield, or
leave it at DuQuoin but race it on a Friday, thus
leaving a backup day. The DuQuoin Evening Call
took great exception to this, saying, “DuQuoin just
needs to draw a line in the sand quickly and with
both six-shooters tell the gold-diggers to back off
before this goes any farther. DuQuoin is quickly
passing the Illinois State Fair as the venue of
choice for camping, horse show events and by late
next year indoor conferences and motorsports.....(it
is) where EVERYBODY wants to be. There will
be no place like it in the midwest.”
September 15, 2003
NO COMP HELP IN CALIFORNIA
NOV. DATE FOR NEW MEXICO
The bill that California racing hoped would raise
$10.6 million to help with zooming trainers’ workers compensation costs failed to reach a vote in
the state Assembly Friday. The failure, after passage in the Senate and by an Assembly committee, dooms the measure at least until January, as
the Assembly concluded its working session Friday. Since the bill was not defeated, but merely
failed to reach the floor, it will be carried over in
an unfinished business file until the Assembly returns to work after the first of the year. The bill
proposes to lower workers’ comp premiums by
raising the takeout on exotic bets from 20.18% to
20.68%. Supporters of the bill think it will pass in
the first week of the 2004 legislative session. The
legislature did pass workers’ compensation laws
that will save employers as much as $5 billion a
year by reducing payments to doctors and hospitals 5%, putting a fee schedule on a number of
procedures and medications, and limiting number
of claims.
At long last, the New Mexico racing commission
is biting the bullet and making a decision on who
gets the license for a track at Hobbs, on the Texas
border near El Paso. Well, not quite, but almost.
The commission still needs another couple of
months in the marathon proceedings, and by the
time it announces its decision on Nov. 19 the matter will have stretched into its third year. The
applicants include heavy hitters R. D. Hubbard,
who owns Ruidoso Downs, and Shawn Scott of
Las Vegas and Delta Downs and Vernon Downs
and Bangor Raceway fame; Ken Newton, former
owner of The Downs at Santa Fe; and Santa Fe
art dealer Gerald Peters.
BIG INDIAN CASE IN WISCONSIN
The Wisconsin Supreme Court has agreed to hear
two lawsuits that the Speaker of the Assembly says
could be “the most important on American Indian
gaming for years to come.” The cases involve the
governor’s authority to sign gaming compacts with
Indian tribes and renewal contracts with 11 tribes
that operate 17 casinos in the state. The constitutionality suit was filed by a group of Republican
lawmakers, the renewal suit by Dairyland Greyhound Park in Kenosha. The Potawatomi Indian
community responded by saying the legislators’
suit was “rolling the dice with the livings of 35,000
Wisconsin citizens....it also rolls the dice with the
pocketbooks of Wisconsin taxpayers who will replace the $400 million biennally that now comes
as a result of Indian gaming.” Gov. Jim
Doyle signed a broad compact with the tribe
earlier this year.
GLOBE SAYS OUTLOOK DIM
The Boston Globe, assessing chances of slot legislation in Massachusetts, says that “even an overwhelming vote in the Senate is unlikely to bring
slot machines and casinos in Massachusetts any
closer to reality. Twice this year, the House voted
against slots at tracks, and Governor Mitt Romney is skeptical about the types of proposals the
Senate is discussing. The future of gambling in
the state is just one of the divisive issues on the
State House agenda for the fall as legislative sessions begin this week. The full plate promises to
complicate the relationship between the generally
liberal Senate, the more cautious House, and a stillnew governor finding his way on Beacon Hill.”
POWER STRUGGLE IN NJ
The governor of New Jersey is reported planning
a takeover of the state agency that oversees $1
billion in casino redevelopment money. The Philadelphia Inquirer says Gov. McGreevey hopes to
oust an associate of powerful Republican state
senator William Gormley and replace him with a
close confidant of former U.S. senator Robert
Torricelli.
September 26, 2003
LAST CHANCE TO BID ON ART
350 FOR SIMULCAST SESSION
HTA’s 26th art auction gets underway Sunday
morning at 8:30 in the Tattersalls Sales Arena in
Lexington, KY, after months of preparation and a
week of display at the Red Mile. It is the largest
and most significant art auction ever presented by
HTA, and perhaps the largest mixed breed equine
art auction ever, anywhere. It includes 220 works
on harness racing, thoroughbred racing,
saddlebred and Morgan horses, foxhunting and
polo, and has two spectacular headline items: an
1880 oil painting of Maud S. that was commissioned
by her owner, Commodore William Vanderbilt,
showing him driving the world champion trotting
mare on the road, and a 1903 oil of the great Dan
Patch, commissioned and originally owned by Dan
Patch’s owner Marion W. Savage, and consigned
to the HTA sale by his great granddaughter. There
are 12 works by Zenon Aniszewski of Poland,
HTA’s most successful artist in recent years, and
a spectacular oil Best of Show of three trotters at
the Gros Bois training center in Paris by the American artist Joan MacIntyre. All work can be seen
on the HTA Web site, www.harnesstracks.com, and
telephone bidding is available Sunday. Call 520241-8121 to make arrangements for live bidding;
an HTA representative will call you shortly before
the piece you are interested in comes up for sale.
There are six superbly framed Currier & Ives
stone lithographs, and what may be the last of the
remarkable woodcarvings of world class cowboy
carver John Kittelson. Two huge and colorful
LeRoy Neiman serigraphs -- Saratoga, depicting
Stanley Dancer setting the world record at
Saratoga Raceway with Nevele Pride in 1976, and
Nieman’s spectacular The Trotters, are included
in the sale, and there are works by Frederick
Remington, Salvador Dali, George Ford Morris,
and the Schreiber portfolio of 1872-3 photographs
of the great trotting horses of America. All
net proceeds go to the HTA Scholarship
Fund.
The 11th annual International Simulcast Conference co-sponsored by the Thoroughbred Racing
Associations, Harness Tracks of America, and the
American Quarter Horse Association in conjunction with the American Greyhound Track Operators Association gets underway in San Francisco
Monday, with at least 350 industry professionals
from around the world registered. General sessions
are scheduled for Monday and Tuesday covering
account wagering and funding, computerized wagering, utilization of wireless technology, and the
impact of negative settlement shifts. The conference winds up Wednesday with a panel exploring
the various roles segments of the industry should
have in how simulcasting is conducted. Simulcasting 101, a special course convering the basics of
simulcasting for first and second year simulcast
personnel will include discussisson on the more
common and practical problems encountered daily
by simulcasting personnel.
NEW SLOTS EFFORT IN INDIANA
Indiana, hoping to avoid the legislative fate of slots
in Maryland and Pennsylvania, is making another
major push for slots three months before its legislature reconvenes. A coalition including officials
of both Hoosier Park and Indiana Downs and the
state racing commission have met with Rep. Bill
Crawford, chairman of the House Ways and Means
committee, to discuss a bill that would legalize slots
at the tracks and their OTB facilities. Crawford
said, "We don’t want to lose sight of what this is
about. It’s about economic stimulation."
In Texas, meanwhile, the state attorney general
has ruled that the state legislature cannot authorize VLTs without approval of the state’s voters.
And this newsletter, suspended during the art auction, will resume its daily circulation next Tuesday.
WE’RE BACK, AND HAPPY
Sorry for the interruption in service, but the entire
HTA staff was busy -- and that word is used advisedly -- in Lexington, bringing off the 2003 edition
of the HTA College Scholarship Art Show and Auction. It turns out all the work and effort was worth
it: the auction obliterated the previous record high
by grossing some $325,000. We don’t know the
net for the scholarship yet, but will let directors
know just as soon as all expenses are in.
MEYOCKS RESIGNS AT NYRA
The unrelenting pressure on the New York Racing
Association has claimed its first victim, with the
resignation of Terry Meyocks from his $375,000
job as president and COO of NYRA. In a statement issued last night, Meyocks said, “I wholeheartedly support the changes that are taking place
at NYRA. It is in my best interest, and the best
interests of NYRA, for me to take my leave of
NYRA to pursue other business and personal opportunities.” Meyocks has been under fire from
the moment New York attorney general Eliot
Spitzer began his assault on the management of
NYRA, but Spitzer greeted Meyocks’ resignation
with short shrift, saying, “There’s a reorganization and there’s increased oversight. Those are
very positive steps....But we’re not prepared to
say the process of reform is complete. There has
to be sustained and consistent accountability.” To
install that accountability, NYRA has chosen for
the present to approach the problem from within,
naming two of its trustees as co-chief operating
officers, without pay. The two are C. Steven
Duncker, formerly a top executive with Goldman
Sachs, and Peter Karches, former president of
Morgan Stanley Dean Witter Institutional Securities Group. Longtime security chief John P.
Tierney is being replaced, and a new chief financial officer has been hired.
September 30, 2003
NYRA chairman and CEO Barry Schwartz called
Meyocks resignation “sad and leaving a tremendous void,” and earlier had said, “There are no
words that can overstate the esteem with which
NYRA, its board of trustees, and the entire racing
industry holds...Terry Meyocks. No one who has
ever taken the time to know Terry has ever come
away with the impression he is anything other than
a person of impeccable character and integrity.”
Where the next shoe falls in the ongoing assault
on NYRA remains to be seen.
SECURITY IN SAN FRANCISCO
That was the word of the day yesterday as the 11th
Simulcasting Conference co-sponsored by TRA,
HTA and the American Quarter Horse Association got underway. TRPB and SIS president Paul
Berube told the 350 or so attendees that smart
people would continue to take advantage of loopholes in tote system security, and urged tracks to
learn more about the people they do business with
in simulcasting. Berube said there was “too much
secrecy and not enough transparency” in present
business dealings with offshore and other questionable simulcasting outlets. America TAB’s general manager of account wagering Todd Bowker
told those on hand that in five years every jurisdiction with pari-mutuels would have account wagering, and that technology would profoundly
change how the racing business was conducted, a
message delivered a year and a half ago at the
racing congress in Las Vegas by Microsoft’s Al
Bergstein. The question of how many experts are
needed to screw in a security lightbulb arose with
the announcement that the TRA had hired Curtis
Linnell, former pari-mutuels manager at Hastings
Park, as a security analyst, and the NTRA authorized hiring of a national wagering security officer.
Save the Homeland!
POMPANO DROPS SHOW BETS
When Pompano Park opens its 40th season of
racing a week from Friday, it will blaze another
new pari-mutuel trail. Track management has
announced the elimination of show betting, which
accounted for only 1.45% of the track’s handle
last season but resulted in $425,000 in minus
pools. Track general manager Dick Feinberg, announcing the end of show betting, said, “We realize that show wagering is a tradition in horse
racing, but we think it’s a sucker bet for our patrons. It’s not worth risking $2 for an insignificant payoff that is the norm. Tradition is great
when it is working, but with pari-mutuels in decline generally we need to shake the tree a little.
We also see the elimination of show wagering as
a way to boost bets in our win and place pools,
which have much higher payoffs. With an average of eight starters a race, there just isn’t enough
value in the show pool after the wagers on the
top three finishers are pulled out. At tracks that
can average 10 or more starters a race, show
wagering still has value. Once the field size diminishes, that value is lost. The elimination of
show betting also will make our signal more attractive to out-of-state venues wary of minus
pools. The Florida regulations place the burden
on minus pool payouts on the out-of-state venues.” Pompano’s neighboring thoroughbred
track, Calder Park, said it had no intention of
following Pompano’s show bet experiment. In
another development, higher stakes poker legislation passed this summer in Florida now enables
Pompano Park to feature poker play with $1 or
$2 tables, three raises per card, and unlimited
pots. As a result, the track is reopening its poker
room, closed several years ago because of lower
limits, and will offer that attraction from noon to
midnight every live racing day. Feinberg also
announced purses will be raised 20% for
the upcoming meeting.
October 1, 2003
Pompano’s parent, Isle of Capri Casinos, was active on another front. Bidding to become an expanded St. Louis power, it offered to buy the
struggling President Casino riverboat on the Mississippi just off downtown St. Louis for $50 million. Isle also could wind up operating a new St.
Louis riverboat north of the President location.
DOVER VOTED “BEST RACINO”
Dover Downs Raceway and Slots has been named
Best Racino in the country in the October issue
of Strictly Slots magazine. Dover recently received
permission to expand its hours of operation and
add 500 new VLTs, which it plans to do by early
next year.
REBATE SHOPS GET ATTENTION
Rebate shops, which escape the expense of operating tracks but increasingly lure tracks’ biggest
bettors, were discussed at length in yesterday’s
sessions of the 11th annual Simulcasting Conference in Burlingame, California. Curtis Linnel,
the new security analyst for TRA, warned that
tracks are seriously underestimating the negative impact that rebate shops have on handle at
other outlets, and urged that tracks add at least
five percentage points to their simulcast fees to
rebate shops. Paul Berube, head of TRPB and
SIS, with whom Linnell will be working, said
bookmakers can use the rebate shops to layoff
bets and collect rebates at the same time. Discussing the issue of late odds changes after the
start of races, United Tote’s John Carey said that
tracks need to eliminate cancellation delays. The
problem is not transmission delay, Carey told the
350 attendees, but is a sit-on-your-thumbs delay
that produces serious consequences. So-called
“double hops” in Florida, California, Illinois and
Colorado were discussed and cited as the cause
of many of the longest current delays.
October 2, 2003
ROSECROFT DEAL IN PRESS
NEW SLOTS BILL IN MASS.
Both the Baltimore Sun and Washington Post zeroed in on developments on the sale of Rosecroft
today, but from different viewpoints. During this
journal’s art auction hiatus, Delaware North
dropped out of the Rosecroft purchase deal, and
a new suitor, businessman Carl D. Jones, entered
the picture. The Post reported today that Jones
had agreed to pay $15 million to become a 52%
majority owner of the track, and that Centaur
Inc. also had agreed to put up $15 million, less $5
million for credit that it already has spent on the
transaction, and would retain 48% ownership for
that investment. The Sun’s coverage featured
that aspect, reporting that Indiana-based Centaur had created a separate management company, Centaur Maryland LLC, that would be
paid $1.5 million a year, plus 5% of cash flow
and performance bonuses, from “gaming activities” at Rosecroft other than harness racing. The
“gaming activities” were itemized as “table games
such as blackjack, baccarat, roulette, caps, minibaccarat, pai gow poker and coin-operated gaming machines and other casino-type authorized
games.” Jones’ company, The Palace at Rosecroft
LLC, and Centaur would split proceeds, whether
from slots or harness racing, until recouping their
money. The companies would pool their $30 million to buy letters of credit -- essentially bonds,
the newspaper said -- to guarantee commitments
involved in buying Rosecroft. These developments brought a skeptical response from John
Franzone, a member of the Maryland Racing
Commission that must approve any sale. He was
quoted as saying, “I don’t think anybody has
demonstrated that these guys have the money
lined up for this deal.” Jeff Smith, former president of Hoosier Park now with Centaur, said the
deal with Jones is not contingent on the track
getting slots, and indicated revenue sharing with thoroughbred interests was out.
A state senator in Massachusetts is drafting new
legislation that would include slots at tracks and
two state-owned-and-leased casinos, with bidding
among interested parties for the casino licenses
at sites either on public land or acquired from
private owners by eminent domain powers. As
proposed, one of the state’s four racetracks would
be left out in the cold, for the proposed legislation at the moment calls for only three track licenses. While the legislators worked on the bill
behind closed doors, a group of track employees
from Suffolk Downs were due to rally today on
the steps of the state house to make their concern known about the future of the East Boston
track.
SETBACK FOR AUTOTOTE
Autotote’s hopes to establish a live racing channel in Connecticut has received a temporary setback, with the issuance of a “declaratory ruling”
against the idea by the legislative liaison for the
Connecticut Division of Special Revenue, Paul
Bernstein. Bernstein said comments of the state’s
anti-gambling attorney general, Richard
Blumenthal, weighed heavily on his ruling, which
now goes to the Gaming Policy Board of the Division of Special Revenue for Oct. 9 consideration. Autotote Enterprises president John
Ponzio said Bernstein decided that Autotote’s
evidence on the issue didn’t matter, that he expects the Gaming Policy Board will concur with
Bernstein’s ruling, and that once it does that
Autotote “can finally get it out of the political
arena and into the courts.”
A HUGE BOOST FOR SCHOLARS
HTA directors should know of the latest big boost
for our scholarship program, a second major 2003
contribution from David and Harold Snyder and
International Sound, the strongest supporters
of the program. Our deep thanks for their
most generous help.
October 3, 2003
SILKY SULLIVAN OF TESTING
MORE INNOVATION IN ONTARIO
In a move reminiscent of the memorable last-to first charges of Silky Sullivan in California, the
chairman of the Kentucky Racing Commission
has announced plans to take the state from a
hundred lengths back to the head of the pack in
drug testing. Frank Shoop, faced with the possible loss of his job following the November elections, apparently would like his legacy as chairman of the Kentucky commission to be one of
pioneering progress. Shoop announced he will
hold hearings on his proposed changes, and that
“barring nothing coming from these hearings
that will change my mind” he plans to move to
change Kentucky’s drug testing laws. Whether
rabid opposition from the Kentucky HBPA will
be enough to change his mind remains to be seen,
but it is certain that group will oppose some of
Shoop’s proposals. Janet Patton, writing in the
Lexington Herald-Leader, said Shoop’s plans
would make Kentucky equine drug testing rules
“go from among the most permissive to among
the most restrictive” in the nation. Shoop, acknowledging that he may not be around after
November if a Republican governor is elected,
said, “I want to load the cannon. If I’m not the
chairman, I want somebody else to be able to pull
the trigger.” Shoop hopes to have Kentucky
adopt the Racing and Medication Testing Consortium, on which HTA is represented, by adopting a Salix-only policy on race day. Currently
Kentucky permits a cocktail of up to five race
day medications, and Shoop says he wants Kentucky to “step up and be the first and show major leadership” in the effort, adding that “everybody keeps saying Kentucky is a major stumbling block to national uniformity.” Keeneland
Race Course, meanwhile, was due to began an
experimental testing program today, proposed by
the Thoroughbred Owners and Breeders
Association, which hopes to test for 140
prohibited drugs instead of 30.
The Ontario Racing Commission is seeking comment on a proposal from the Ontario Harness
Horse Association to allow the deduction of 1%
of any purse payable to an owner as a payment
to the groom of the winning horse involved.
Under the plan, which would be voluntary and
has been labeled, “Linking Grooms to Prosperity,” logistics would be worked out, but the commission, which says it is “very supportive of the
objectives of the program,” is hoping for a January, 2004, launch. The commission has asked all
racing groups and tracks in Ontario to respond
by Oct. 27 to the proposal, including any issues
with respect to access and release of personal information of the grooms, such as addresses, and
any income tax issues. In another Ontario development, the commission announced that VitaTech has been chosen as the laboratory to manage and conduct its new pioneering EPO antibodies testing program. Starting Nov. 1, the commission can test any horse entered to race in
Ontario for antibodies of erythropoetin or
darbepoetin, and all claimed horses will be tested
with the new owner having the right to revoke
the claim if a positive results. The commission is
working with the New York State Racing and
Wagering Board to develop common protocols
for the test.
LONG LEAVING CHURCHILL
John Long, chief operating officer of Churchill
Downs and one of the most articulate spokesmen
in racing, is leaving Churchill after four years to
accept “an irresistable opportunity to lead an organization whose mission melds perfectly with
my own personal passion for equestrian sports.”
The organization is the newly formed U.S. Equestrian Federation, which combines the U.S. Equestrian Team and USA Equestrian. Before
Churchill, Long ran North American operations for Ladbroke/USA, posting six straight
years of increased profit.
October 6, 2003
FAIR GROUNDS SLOTS OK’D
RENDELL WILL DEAL FOR SLOTS
At least by voters in New Orleans. They gave the
venerable Fair Grounds their blessings to install
slots, but the track still has to get state police approval and an okay from the New Orleans city planning commission. Even then, because of a prior
agreement with Harrah’s New Orleans casino, Fair
Grounds can install a maximum of 300 machines
through June 30 of next year, then another 100 from
July 1, 2004 to June 30, 2005, and 500 after that,
unless Harrah’s annual revenue goes past $350
million in any year. In that case, the Fair Grounds
could operate 700 machines. The split on revenue
approved earlier by the legislature calls for 15% to
purses, 3% to breeders, 4% to New Orleans, 18.5%
to Louisiana, and 49.5% to the track. Track president Bryan Krantz spent at least $100,000 in a
media campaign to get Saturday’s referendum
passed, and the slots can’t come too soon for his
track. It faces an impending judgment that could
be as high as $100 million following a lawsuit with
thoroughbred horsemen over their share of the
track’s video poker revenue. Fair Grounds filed
for Chapter 11 bankruptcy protection two months
ago after it lost the case filed by the horsemen. The
legislation covering slots also calls for removal of
80 video poker machines from the track, but it can
continue to operate the poker machines at its satellite OTB locations.
Pennsylvania Gov. Ed Rendell would accept a compromise on a bill to permit slot machines in the
Keystone State so it could pass both the state house
and senate, but the administration is sending mixed
signals on what exactly it would support, state Sen.
Jane Earll told the Erie Times-News. Earll supported last summer’s senate bill that would have
allowed slot machines at eight horse tracks. But
the house passed a more expansive bill that would
have authorized slots at 11 sites, including nontrack
betting parlors in Philadelphia and southwestern
Pennsylvania. Kate Philips, Rendell’s press secretary, said that while the governor would prefer the
11 sites because the state would get $1 billion in
annual revenue, but he’s willing to accept eight slot
sites at tracks to get the bill passed. Philips said
that’s not a new position for Rendell, and that negotiations are ongoing with legislative leaders to get
a deal done.
CORWIN NIXON HOSPITALIZED
Former USTA President Corwin Nixon is currently
hospitalized and undergoing dialysis for a kidney
ailment, according to a report by Hoof Beats Editor Dean Hoffman posted on the USTA’s Web site.
Nixon, who is 90, attended the Little Brown Jug in
September but was hospitalized in the weeks that
followed for what Hoffman phrased as “concerns
unrelated to his current kidney problem.” Nixon
served as USTA president from 1988 until earlier
this year, longer than any of his predecessors.
BREEDERS’ CUP SUES OVER ADS
According to a report on bloodhorse.com, Breeders’ Cup Limited filed a complaint in Los Angeles
County Superior Court on Oct. 3 seeking to restrain
Jockeys International Management Group (JMG)
from entering agreements for the display of advertising on jockeys’ clothing for the Breeders’ Cup
races on Oct. 25 at Santa Anita. The suit also seeks
to enjoin JMG from copyright infringement of
Breeders’ Cup marks. Breeders’ Cup contends that
JMG has engaged in the unauthorized use of its
copyright-protected property to solicit advertising
for jockeys it represents. The Breeders’ Cup contends that the sales materials of JMG indicate that
the jockey advertising would be worn and displayed
as part of the nationally televised event in violation
of regulations promulgated by the California Horse
Racing Board. Advertising on jockeys’ clothing is
generally permitted in California, but the rule was
suspended in April specifically for the Breeders’
Cup.
October 7, 2003
SOMETHING NEW FOR SPITZER
RELUCTANT BUT WILLING
Eliot Spitzer, attorney general of New York, has
spent much of his time recently making pronouncements about the New York Racing Association. Now something new in racing has caught
his attention. It would have been surprising if it
hadn’t, for it is plastered over the sides of 250
New York Metropolitan Transportation Agency
buses. The development is an ad campaign by
BetonSports.com, which according to Online Casino News has paid the MTA $300,000 for the bus
campaign. Spitzer was quoted as saying “it was
a fair conclusion” that his office and the MTA
were in disagreement over the ad campaign,
which offers “Sports action you can bet on”
through BetonSports, which is based in Costa
Rico. Beton’s CEO, David Carruthers, says the
ads don’t break the law, adding that “They (the
MTA) took my check. There is the First Amendment in the United States. I have the right to
advertise our product.” The MTA, for its part,
said through spokesman Tom Kelly, “Unless they
have broken the law, they are entitled to advertise.” We’ll hear next what Mr. Spitzer says.
That’s a tough position for any lady, and particularly one who is the chief budget writer of a
major state. It describes the position of Therese
Murray, however. Ms. Murray is the Democratic
chairman of the Senate Ways and Means Committee in Massachusetts, and she told the Berkshire Eagle’s statehouse bureau reporter that she
is reluctant to embrace expanded gambling in the
Bay State, but despite her philosophical objections she would consider a bill that would provide racetrack slots when it comes up for expected
debate in the next two weeks. “If it’s something
that can bring in money and it has the right structure and the right oversight,” Ms. Murray said,
“I have on open mind to that.” We love those
open-minded women.
DISPUTE IN W. VIRGINIA, TOO
The West Virginia Supreme Court is being asked
this week to consider issues involving big money
and public policy concerning the state’s lucrative video slots. At issue are 48 projects in 27
counties that were approved for $225 million in
grants by the West Virginia Economic Development Authority Grant Committee last year, using monies raised from VLT gambling. The cities of Charleston and Huntington want the Authority to issue bonds that will fund the grants,
but a Charleston minister and Huntington business owner contend the grants are unconstitutional. The challenge, according to the Charleston Daily Mail, threatens budget accounts
that include $261.5 million to the state
from racetrack VLTs last year.
BIG DOUGH IN COLORADO
“Big dough” is a very relative term, of course,
but when it gets to be $2.9 million in racing it
would seem to qualify. That’s what 44 casinos in
Cripple Creek, Black Hawk and Central City in
Colorado have put together to fight Wembley/
USA in its bid to get slots at tracks in Colorado.
Wembly has not been helped in its Amendment
33 campaign by indictments at its Lincoln Downs
greyhound operation in Rhode Island, and the
casinos presumably have very deep pockets. This
fiscal year the 44 made about $707.2 million before $97.4 million in taxes, according to The Rocky
Mountain News.
NIXON IN CRITICAL CONDITION
Corwin Nixon, past president of the USTA and a
longtime HTA director as president of Miami
Valley Trotting and executive manager of Lebanon Raceway, is hospitalized in critical condition
with kidney failure. Now 90, Mr. Nixon was a
legendary power in Ohio politics and a dominant force in the Ohio legislature for decades.
PREAKNESS HANGS ON SLOTS
That basically was the message delivered to the
Maryland House of Delegates Ways and Means
committee yesterday by Magna Entertainment
president Jim McAlpine. Telling the committee
that Maryland racing was endangered by slots
or prospective slots in surrounding states,
McAlpine said, “The life of the Preakness will
depend on the economic viability of horse racing
in Maryland....You have to make a decision. Is
the Preakness important? And if it’s important,
can you do it without slots?” McAlpine told the
legislators that Magna’s plans for rebuilding
Pimlico and Laurel could cost as much as $800
million, and depended on slots being legalized at
the tracks. “It will be a business decision,” he
said, noting that Magna “is in the business of
being stockholders, not philanthropists.”
McAlpine’s message did not seem to please Louis
J. Ulman, a member of the Maryland Racing
Commission, who said it was his understanding
that Magna was committed to rebuilding the two
tracks slots or no slots. Ulman said he felt the
new pronouncement “was not consistent with
Magna’s prior statements.” McAlpine answered
that comment and a question from a legislator as
to the possible closing of Pimlico by saying, “the
whole dynamic has changed since we first got
involved in Maryland. The bigger question is,
can horse racing actually succeed here?” The
man who holds the answer to that, Maryland’s
Democratic House speaker Michael E. Busch,
appears to have decided to let the sport/business
wither on the vine. He keeps talking about “enriching track operators,” but says little or nothing about the value and future of Maryland’s
horse racing industry. If Maryland ceases to be
a significant racing state, and the industry and
its infrastructure shrivel up and die, Mr.
Busch can almost singlehandedly take
credit for its demise.
October 8, 2003
In other Maryland developments, Ameristar Casinos of Las Vegas was on hand at the hearings,
announcing that it was looking at sites in the Baltimore metropolitan area should the legislators
choose that route rather than track slots. A
spokesman said the company preferred Baltimore, although it was open to other sites. Among
other sites mentioned by both the Baltimore Sun
and Washington Post was Bainbridge, in Harford
county, but a state senator from that county said
flatly, “It’s not going to happen at Bainbridge.”
WHAT’S NEXT IN CALIFORNIA?
The election of The Terminator as governor of
California may be a scary prospect for the state’s
Indian tribes. Ahnold has talked about renegotiation of compacts between the state and Indians, and about requiring the tribes to pay taxes
on their slot winnings. The tribes have been seeking expansion beyond the 2,000-slot limit presently imposed on each. How this plays out remains to be seen, but Las Vegas was celebrating
Schwartzenegger’s victory as a positive development in curbing competition.
EXPANSION IN FLORIDA
The Orlando Sentinel reports that the 7,486 voters in Hamilton county, Florida’s poorest, approved a jai-alai fronton and OTB facility by a
2-1 margin in yesterday’s elections. The area has
been hard hit by layoffs in the phosphate mining
industry and by changes in farming. A Jacksonville developer, Glenn Richards, who wants to
build the fronton and OTB and possibly a racetrack on 220 acres at the intersection of Interstate 75 and U.S. route 129, says his plans are
not based on the county’s low-income residents
but on heavy tourist traffic that runs through
the area on the Interstate.
For a summary of news of the previous week,
check www.harnesstracks.com.
SPEAKER FOR MICHIGAN SLOTS
The speaker of the House in Michigan, Rick
Johnson, announced yesterday that he is seeking approval for legislation that would give Michigan tracks slots and other alternative gaming.
The legislation currently is being considered by
the Senate Gaming and Casino Oversight committee, and the state’s tracks testified before that
group yesterday. As proposed, each of the seven
tracks in Michigan could have up to 500 machines, and if approved by the Michigan lottery
commissioner, up to 2,000. While the House Fiscal Agency predicted a dropoff in business for
Detroit’s three casinos, speaker Johnson said the
legislation would stop the drain on “a tremendous amount of agriculture jobs.” No timeline
has been set for consideration of the bills by the
Senate committee.
RI GOVERNOR SNUBS WEMBLEY
The governor of Rhode Island, Don Carcieri, has
refused to discuss a $50 million expansion at Lincoln Park dog track in Providence, saying he is
unwilling to deal with a company facing federal
bribery charges. A spokesman said the governor wants to see new ownership at the track in
the face of a 22-count indictment handed down
last month, with Lincoln Park’s owner Wembley
PLC as a corporate defendant. The chairman of
the British company, Claes Hultman, says the
company does not plan selling the track. The
move by the governor was big news across the
country in Colorado, where Wembley USA is
spending big money in a push to get slots at
Colorado’s five tracks, four of which it owns, in
the state’s Nov. 4 balloting.
MAGNA UNVEILS DIXON PLANS
Magna Entertainment will formally announce its
plans for a $250 million track and entertainment complex in Dixon, California,
tonight in a public presentation.
October 9, 2003
RUMBLES ON THE PRAIRIE
A report by a state-hired consultant in Iowa says
that a proposed riverboat in downtown Des
Moines would impact the Prairie Meadows Racetrack and Casino by 40%, causing its $150.4 million gross annual gambling revenue to shrink to
$90.9 million a year. The report said the riverboat
would be a success, pulling in a predicted $132
million a year, but at the expense of the racino in
Altoona, less than 10 miles away.
BET DISPUTE AT FREEHOLD
The Autotote computer glitch that permitted betting at a number of tracks after the 10th race at
Belmont Park Sept. 20 was over has triggered an
interesting dispute at Freehold Raceway. A Freehold bettor allegedly made a $30 trifecta bet on
an automated machine after the race in question
was over, netting $10,380 on the cold trifecta bet.
Donald Codey, Freehold’s general manager, has
“for the moment” barred the bettor, David
Monici, from the track and is holding the money
in escrow. Freehold’s former general manager,
and also former chairman of the New Jersey Racing Commission, Dennis Dowd, is representing
Monici, claiming there is no rule prohibiting purchasing bets after a race is over. Dowd was quoted
in the Asbury Park Press as saying, “Let’s assume
the bet was made after the race was over. So
what? Even assuming the bet was placed late,
the racing rules in this state dealing with
parimutuel betting puts obligations on the seller
rather than the purchaser of bets. It’s similar to
when a minor purchases cigaretts from a vending machine. The owner of the vending machine
has the obligation to control or prevent that sale.”
Dowd is taking the position that the commission
has a rule stating no tickets are to be sold after
betting has ceased, and claims that “the wagering obviously had not stopped in this case.” He
says “perhaps there should be rules on this,
but there are none now.”
October 10, 2003
16 ENTER MESSENGER STAKE
NO CASINOS FOR MARYLAND
Sixteen 3-year-old pacers, including the Triple
Crown-seeking No Pan Intended, have entered
the $421,575 Messenger at The Meadows near
Pittsburgh. The third jewel in the Triple Crown
for pacers will be raced Saturday, Oct. 18, but
two fields of eight colts will race this Saturday
night in two elimination divisions to determine
the field for the final. No Pan Intended was not
eligible for the Messenger, but supplementary
conditions provide that a horse that wins the first
two legs can supplement. Owner Bob Glazer put
up the $35,000 to enter, and then saw his Pacific
Fella colt, winner of the Cane Pace and Little
Brown Jug among his 12 victories this year,
worth $791,863, draw seventh post in the second
elimination, with his principal rival,
Whatanartist, drawing second post in the same
elimination. The first four finishers in each elimination will return for the championship a week
from Saturday.
According to the Frederick County Gazette.net,
the three most powerful men in Maryland have
agreed that there will be no gambling casinos in
the state. The Web service reports that Gov. Robert L. Ehrlich Jr., house speaker Michael E. Busch
and senate president Mike Miller Jr. had “a meeting of the minds at a private dinner Tuesday night
in the governor’s mansion.” The agreement
comes, the service reports, “despite the swarming of casino lobbyists in Annapolis, with gaming companies sniffing around the state for possible sites and floating detailed proposals that
gambling interests say will generate far more cash
than what they derisively term ‘slots barns’ at
racetracks.” Gov. Ehrlich said yesterday that if
the casino companies are pushing for destination
resorts, they are wasting their time and money
on lobbying, and said casinos have “never been
part of anybody’s plan...it’s never been on the
table.” The dinner meeting, the Gazette.net reported, also included the state treasurer, controller, members of Ehrlich’s staff and key Democratic and Republican lawmakers, and was the
first major summit of the state’s fiscal leadership.
The announcement does not change the indecision over where slots will be located, but is one
less obstacle in the way of tracks obtaining them.
SENECAS STILL EYE BUFFALO
Although they already have declared for the Buffalo suburb of Cheektowaga for their next casino site, the Seneca Nation of Indians still is casting desirous glances at downtown Buffalo. The
tribe hired a professional casino consultant in
mid-September to evaluate sites in the city, and
Seneca Nation president Rickey L. Armstrong
says “the door isn’t closed” on the city center.
GOT A PHOTO FINISH HANDY?
Tammy Gantt, the former HTA executive assistant who now is director of promotions at Calder
Race Course, is looking for a photo finish camera for her friends at the Kenya Jockey Club in
Africa. If you have an extra or old one lying
around, you can contact Tammy at
TGantt@ calderracecourse.com, or
Perrie Hennessey, the British president
of the Kenya JC, at jck@karibunet.com.
BIGGEST TURNOUT FOR SIS
Next week’s Standardbred Investigative Service
security directors’ conference in Canonsburg, PA,
and The Meadows will have the best turnout of
any SIS gathering to date. Twenty harness tracks
and four thoroughbred tracks are sending representatives to the meeting that opens in
Canonsburg Monday afternoon, includes a full
day’s session at The Meadows Tuesday, and concludes back at the convention hotel in
Canonsburg Wednesday. For further information, contact SIS at 410-392-2287.
MASSACHUSETTS ‘FLUID’
The Boston Globe reports that the slots situation
in the Senate “remains fluid” while intense
backroom haggling goes on in an attempt to maximize revenue for the state on gaming. One bill
under consideration would empower a new Gaming Commission to take land by eminent domain
and resell it for top dollar to casino developers.
It is hoped that plan will win over powerful skeptics like house speaker Thomas Finneran and governor Mitt Romney, and the Globe says such legislation “would probably allow the state’s four
racetracks to bid on three licenses to install 1,000
to 1,500 slot machines each, creating competition that would drive up bids.”
LAME DUCK MANEUVERING?
Arnold Schwartzenegger has won, but he won’t
take office for a few weeks yet, and Gray Davis
may help repay his Indian supporters one more
time before leaving office. The acting chairman
of California’s gambling control commission says
he was asked by a Davis admininstration official
last week to fire the board’s general counsel, who
the Indians consider a source of antagonism. The
acting chairman refused to do so, and there is
talk that Davis may fill two commission vacancies with supporters and force out the general
counsel. Indian tribes contributed more than $10
million to Schwartzenegger foes and anti-recall
causes, and the new governor has attached
enough credence to the reports that he has called
on Davis to stop all appointments during the transition period. The acting chairman says he reminded Davis staffers that it required three votes
to take any commission action, and since he
would not vote to oust the counsel it could not be
done. After saying that, he was told there would
be five commission members within a week,
which presumably would solve the voting issue.
October 13, 2003
MAGNA READIES DIXON PLANS
Magna Entertainment president Jim McAlpine,
who crosses America like the rest of us cross the
street on the way to the post office, was at it again
last week. We thought we had pinpointed him at
a legislative hearing in Maryland, but by that
time he was on a jet for Dixon, California, where
he filled in 200 citizens of the little town of Dixon
on Magna’s plans for them. It was the first public hearing in two years, and McAlpine told them
Magna’s Dixon enterprise will “not be just another racetrack. It is a flagship of a new generation of racetracks.” Magna plans to spend $250
million to build a thoroughbred track, 240-room
hotel and conference center, restaurants, theaters, and a shopping complex, and McAlpine
told the Dixonians that the project would create
more than 1,000 new jobs and generate an estimated $1 million for city coffers from the betting
alone. “We’re a tax generator,” he said. “Big
projects like this don’t come every day.” The
Davis Enterprise reported that Dixon businesses
and landowners were among those most in favor
of the project at the meeting. Dixon has not yet
approved the plans, which call for a two-stage
construction, starting with the track ovals and
grandstand and stables for 1,600 horses. A Finish Line Pavilion would seat 6,800 and could be
converted into a 2,000-seat theater in the round.
The hotel and conference center, department
stores, shops, restaurants and a multi-screen
movie complex would follow. McAlpine said construction could start in two to three years.
TOUGH TALK FROM SILVER
New York’s most powerful Democrat, Assembly
speaker Sheldon Silver, has threatened to close
down the Mohawk casino near the Canadian border if Gov. George Pataki does not take early action on a casino in the Catskills. Silver’s call
comes almost two years after Pataki got legislative approval to do so.
October 14, 2003
MAN BITES DOG IN MICHIGAN
NO LOVE IN THIS TENNIS GAME
In a refreshingly new development for racing, the
city manager of Hazel Park, Michigan, approved
hiring a lobbyist for $3,000 at city expense to work
in the state capital in Lansing and try to get slots
for Hazel Park Harness Raceway. The city manager, Edward Klobucher, was not apologizing for
the action, either, telling the local newspaper that
“Either the city takes a stand or sticks its head in
the sand. This isn’t something we’re trying to
hide.” A senate committee currently is holding
hearings on a House-passed bill to allow video
poker and slots at the state’s seven tracks.
Klobucher says the town already has gotten
$3,000 value from the lobbyist since “we now have
eyes and ears in Lansing on a regular basis.” In
another positive development, Michigan governor Jennifer Granholm announced she is interested in the proposal for racinos in the state as
one possible way to raise revenue, and added that
she would look at taxes as a last resort to keep
the budget in balance.
Professional tennis in Great Britain is under a
cloud after bookmakers there and in Australia
suspended betting several hours before a match
between Yevgeny Kafelnikov of Russia and
Fenando Vicente of Spain in Lyon, France. The
action came when odds dramatically reversed in
favor of Vicente, who had not won a match since
June. The subsequent investigation included
agreements between the tennis association and
Betfair, the British Internet betting company, to
inspect clients’ betting records. Other Internet
betting companies, not identified, also were contacted for their records. The tennis association
said at a news conference in Madrid that it had
been aware for some time of rumors about some
irregular betting patterns in the game.
There have been major police raids in Italy,
meanwhile, on businesses tied to online gaming,
following a yearlong investigation. More than
500 police were involved in raids code-named Operation Black Jack.
MORE ON RACING SERVICES
The mess in North Dakota, where Racing Services allegedly underreported $100 million in bets
and owes the state $6.5 million in back taxes, is
widening. North Dakota governor Hoeven now
is supporting attorney general Wayne
Stenehjem’s efforts to take control of the racing
commission, which consists of director Paul
Bowlinger and one assistant and an accountant.
Bowlinger was accused by a state representative
of “being real remiss....in not being on top of this,”
but an editorial in the Fargo Forum came to his
defense, called the attack “a cheap shot.” The
newspaper said it was Bowlinger who blew the
whistle and brought the Racing Services problem to the attention of the attorney general, while
the legislature “was rushing through special interest goodies to make a fat-cat
bettor happy” to bet in Fargo.
BIG BUCKS IN COLORADO
The green ones, not the ones with horns. The
Rocky Mountain News reports that more than $7.8
million now has been spent on Amendment 33,
the proposal to allow slots at Colorado’s five
tracks, making the ballot initiative the most expensive in Colorado history. Most of the money
has come from Colorado’s casinos on one hand
opposing the amendment, and Wembley USA,
which owns four of the state’s five tracks, pushing it. The vote comes up for decision next month.
BIG TOWNER DIES AT HANOVER
Big Towner, one of the best known and most successful pacing sires in harness racing with $112
million earned by his get, has died at the age
of 29 at Hanover Shoe Farms in Pennsylvania.
OHIO SLOTS BILL MOVES AHEAD
The 33-member Ohio Senate is expected to approve today a scholarship plan for high achievers in Ohio high schools, to be funded by slots at
Ohio tracks. The plan was approved by a 7-1
vote of the Senate State and Local Government
Committee last night to put the measure on the
primary ballot next March. Any joy over the development was tempered quickly by the announcement of the speaker of the Ohio House,
Larry Householder, saying he doubted the plan
would go anywhere in that body. The house minority leader said he thought “a substantial majority” of his caucus would back the proposal.
Householder did say that he would be receptive
to slots at tracks if the proceeds were used to end
a sales tax increase in Ohio, currently in effect
until July 1, 2005. The development obviously
opens the possibility of negotiation and compromise, so last night’s vote, and today’s, can only
be construed as substantial progress.
LUC HEADS BACK TO CANADA
Luc Ouellette, leading driver at the Meadowlands
this year and in four of the last five seasons, and
one of the sport’s top stars at 38, is leaving his
home in Ft. Lee, NJ, and moving to Ontario,
where he has bought a small farm in Milton and
plans to settle with his wife and baby son.
Ouellette, whose parents still live in his native
Quebec, cited proximity to them and the beauty
of the Ontario countryside as primary reasons
for his move, also cited the uncertainty of the
future of racing in New Jersey as a reason for his
move. “No one knows about the future of racing
in New Jersey because of the slots going in across
the river in New York and possibly to the west in
Pennsylvania,” he said, adding that racing is so
healthy in Ontario right now, with an abundance
of tracks and year-round racing, that the
prospect of country living there is too appealing to pass up.
October 15, 2003
In another Jersey development, an ad hoc task
force of local business, union and civic leaders
rounded up by a state senator whose district includes Monmouth Park, have asked to meet with
New Jersey Sports and Exposition Authority
president George Zoffinger to see if they can be
included in discussions about Monmouth Park’s
future. The state senator, John O. Bennett III,
said, “We don’t want to hear that the park has
been sold and have to pick up from there.” The
legislative director of AFL-CIO Local 54, sister
chapter of local 69 that represents 350 Monmouth
Park employees, was even more vocal, telling the
Asbury Park Press, “We don’t want to be eating
crumbs off the floor, we want to sit at the table.”
Monmouth Park accounts for some one-third of
the tax base of Oceanport, where it is located.
Dennis Drazin, who represents thoroughbred
horsemen in New Jersey, was quoted as saying,
“The purpose for joining the Stakeholders’ Task
Force is to have the thoroughbred industry be
an informed part of the process.”
RUFFIAN ROOM APPROPRIATE
Yesterday’s meeting of the Maryland Racing
Commission was held in the right spot -- the
Ruffian room at Laurel Park. The meeting included shouting and profanity by commissioners as the closing of Pimlico’s stable area was discussed and several minority trainers leveled
charges of racism and discrimination in being
denied stalls. Maryland Jockey Club president
Joe DeFrancis vehemently and angrily denied
charges of discrimination, contending that it was
denying stalls to trainers who kept horses at its
tracks but raced elsewhere. Jockey Club COO
Lou Raffetto said stabling at the club’s tracks
was a right, not a privilege, and Magna Entertainment president Jim McAlpine, also at the
meeting, said “No racetrack owner in any state
should be forced to run a regional training
center for horses who race out of state.”
October 16, 2003
SENATE OKS OHIO SLOTS VOTE
JIM RASMUSSEN DEAD AT 66
The Ohio Senate yesterday voted, 24-9, to send
the issue of slots at tracks to the voters of the
state next March, and also approved, 21-12, tying the profits to fund a pair of scholarship programs that would help nearly 25,000 Ohio high
school seniors each year. The measure not goes
to the House, where the speaker opposes using
the money for scholarships, preferring to use it
for reducing the state’s sales tax. The proponent
of the Senate bill, Senator Lou Blessing of Cincinnati, said he and Senator Kevin Coughlin of
Cuyahoga Falls, will attempt to convince House
Speaker Larry Householder of the benefit of the
scholarship programs. The Cincinnati Enquirer
reported that if the measure passes, it will bring
in between $370 million and $740 million in profits a year, starting when fully implemented in
2006.
Jim Rasmussen, former chairman of the Racing
Association of Central Iowa, which holds the
gambling license at Prairie Meadows, has died
following a four-year battle with lung cancer.
Rasmussen, a construction executive, joined the
Prairie Meadows board after it emerged from
bankruptcy in 1993 and led the successful fight
for slots that turned the track from closure and
debt to prosperity and solvency. He became
chairman in 1995, and held that position until
he retired in May of this year. He was responsible for the hiring of Bob Farinella as president
of the racino, and former general manager Tom
Timmons said, “Prairie Meadows wouldn’t be
where it is today without Jim. It was a team effort, but Jim was the captain. He knew how to
work with lobbyists and legislators.”
PATAKI SHAKES ‘EM UP AGAIN
A copy of the Senate bill as passed is available to
directors on our HTA Web site.
KEENELAND ON MEDICATION
The board of directors of Keeneland Race Course
has voted to support the efforts of the Racing
Medication and Testing Consortium to develop
a national medication policy and also urged the
Kentucky Racing Commission to throw its support behind the policy once it is finalized and
adopted. The move is likely to put the track at
odds with Kentucky’s thoroughbred horsemen,
who have generally and consistently opposed
tightening of medication rules in the commonwealth. The Keeneland vote is significant for that
fact and in that it takes the first major step that
will be needed to implement whatever the Consortium adopts: approval of its new rules and
recommendations by state and provincial racing
commissions. Keeneland’s example needs
to be followed by racetracks everywhere.
No one is quite sure what game he plays, and
New York governor George Pataki has left them
guessing once again. He has told reporters for
Indian Country Today that he might consider negotiating with out-of-state tribes, a move that the
newspaper says “could be a policy shift with widespread implications.” The paper quoted Pataki
as saying, “Our goal is still to have compacts
reached with the tribes that are in New York state.
If we can do that, that is our preference. If we
can’t do that, then we will have to take another
look.” The paper posed the question as to
whether this was simply a ploy to get New York
tribes to the bargaining table and concede to revenue sharing or local jurisdiction, or whether
Pataki was really serious about allowing out-ofstate tribes to enter the potentially lucrative
Catskills market. It concluded that it didn’t
know, and that “signals from Albany are mixed.”
There seemed to be the implication that “white
man speak with forked tongue.”
October 17, 2003
EHRLICH WILL COMPROMISE
A NEW POWER BROKER
The governor of Maryland, Robert L. Ehrlich Jr.,
announced yesterday in a radio interview that
he is willing to accept slot machines at free-standing locations in the state as well as at Maryland’s
racetracks, as long as the tracks get the majority
of the sites. Speaking on WTOP in Washington,
Ehrlich said he expects a compromise can be
worked out that would include both types of outlets, but that he would insist on the majority -- at
least half -- of the slots be at tracks. The
governor’s chief opponent on slots, House of Delegates speaker Michael E. Busch, who got them
killed in that chamber, appeared on the radio station after Ehrlich and said no slots plan is currently before the House. “We’re gathering information,” the Baltimore Sun reported him saying, “but the initiative is clearly the initiative of
the governor. When asked if he thought a slots
bill would pass, he replied, “It’s a highly volatile
issue.” The chairwoman of the House Ways and
Means Committee that killed the bill earlier this
year, Sheila Ellis Hixson, said she had the votes
for slots next year, but only as part of a broader
revenue package that includes a major tax increase. Ms. Hixson told the Washington Post that
“we don’t see anything going without another
funding source. Our game plan would be if slots
move, we would like to see a 1-cent sales tax move
with it as a package.”
Belinda Stronach, president and CEO of her
father’s Magna International, has emerged as a
major power broker in Canadian politics. Ms.
Stronach was revealed to be the prime mover between the building of Canada’s latest political entity, the new Conservative Party, combining the
Canadian Alliance and Progressive Conservative
parties. The Toronto Star called Ms. Stronach
“the architect” of the merger of the two parties,
saying she played behind-the-scene roles, with “a
little help” from former Tory prime minister
Brian Mulroney, in putting the two groups together. “Both leaders understood the need to
combine the parties,” Ms. Stronach told the newspaper. “Certainly corporate Canada would like
to see that both parties merge together.” She said
she acted as “a concerned Canadian citizen” in
the process, adding that “I expressed the need to
have checks and balances in our political process, so that we can go forward and create and
debate policies, which are good for Canadians
and make for a stronger Canada.” The newspaper noted that Ms. Stronach “has strong ties to
former Ontario premier Mike Harris, who could
be a candidate -- perhaps the leading candidate
-- to lead the new party.” Mr. Mulroney, speaking from Berlin, praised Ms. Stronach’s involvement, saying she served as “facilitator to initiate
this process and keep it on track from beginning
to end.”
VOTERS IN PA CONCERNED
A poll conducted by Quinnipiac university in
Connecticut among Pennsylvania voters claims
that 60% of 1,116 voters think the continuing legislative deadlock over education is hurting the
state’s schools, and 64% of them favor putting
slots at tracks, presumably to help out that situation. The vote favoring slots was highest in
Pittsburgh’s Allegheny county, where
71% of voters thought slots at tracks were
a good idea.
SCOTT CHARMS ‘EM IN BANGOR
Shawn Scott moved closer to having a racino at
Bangor Raceway yesterday when the city and
Scott’s Capital Seven LLC reached accord on letter of intent for a $30 million entertainment complex at the city-owned Bass Park. Under the nonbinding agreement, Bangor will receive an estimated $420,000 in annual base rent and another
$1 million to $3.8 million in percentage rent
of gross slots revenue.
October 20, 2003
NYRA INDICTMENTS “LIKELY”
BRING IN THE GOV’S FRIEND
That was the prediction in the New York Daily
News today as it reported that federal prosecutors have been interviewing John Russo, NYRA’s
former general counsel, in their efforts to build a
case against the New York Racing Association.
Russo, NYRA’s lawyer for 12 years from 1989
until 2001, “would probably be a witness for the
prosecution in any criminal trial,” according to
the Albany Times-Union. Russo told reporters,
“I’ll do what’s required of me as a citizen of these
United States. If subpoenaed, I will testify.” As
that story surfaced, the Queens Chronicle raised
the question of Aqueduct’s future, noting that
“For years, Gov. George Pataki has expressed
interest in revoking the NYRA’s charter and selling the property, which most community residents are against. The 193 acres would represent a substantial windfall to the state and would
be lucrative for potential buyers because it is
zoned C8-1, which allows as-of-right construction of virtually any facility.”
R. D. Hubbard says it isn’t so, but he may have a
hard time convincing New Mexico’s racing commission. Hubbard has asked the commission to
add Paul Blanchard, a close friend and heavy contributor to Gov. Bill Richardson, as a part owner
in Hubbard’s bid to build a track in Hobbs, on
the Texas border near El Paso. Hubbard is one
of four bidders for the track, which has been a
hot issue in the state for two years and finally
appears set for decision Oct. 29. Blanchard,
president of the Downs in Albuquerque, was cochairman of the governor’s transition team, a
Richardson appointee to the state Board of Finance, and a contributor of more than $100,000
to Richardson’s election campaign. Hubbard
spokesman Bruce Rimbo, president of Ruidoso
Downs, denies “going out to find a friend of Bill,”
and says Blanchard understands New Mexico
racing and has a lot of important contacts in the
state. Blanchard, if approved, would own a 15%
share, as would Los Alamitos owner Dr. Ed Allred
and Rimbo. Hubbard would retain 55% controlling interest. Also bidding for the license are
Ken Newton, former owner of The Downs at
Santa Fe; Shawn Scott of Las Vegas, Vernon
Downs, Bangor Raceway and points west; and
Santa Fe art dealer Gerald Peters.
CONTROVERSY IN BOSTON
A Senate proposal to allow only the four racetracks in Massachusetts to bid on three slot machine licenses is creating heat. Two Senate leaders -- Michael W. Morrissey, a Quincy Democrat
who is chairman of the Government Relations
Committee, and Republican minority leader
Brian P. Lees, are supporting the tracks with the
logical argument that they already host gambling
and are natural locations for slots, with adequate
parking, easy access, and public confidence. The
state treasurer, Timothy P. Cahill, is opposing the
idea, saying it minimizes competition and is not
the most economically beneficial approach for the
state. He also is arguing the proposal is unfair to
the sparsely populated western section of the
state. The governor, Mitt Romney, meanwhile still apparently opposes slots to
solve the fiscal crisis.
TIMES NOW HAS BETTING SITE
TIMES:Standard now is in the betting business.
The Harrisburg, PA, publication house run by
CEO David Dolezal has opened an online betting service affiliated with AmericaTab Ltd., the
Columbus, Ohio-based, Oregon-hubbed betting
operation of Charles Ruma of Beulah Park.
Called tBet, Dolezal says the service “is the only
account wagering website that is owned and controlled by harness horse owners. Better yet, more
money via tBet is put back into harness purses,
information services and promotion of the
sport than any other horseracing Internet
website.”
HOW BIG IS BIG? THIS BIG
There is constant talk about what slots can or
cannot do for racing, but until one sees actual
figures the impact sometime is lost. The Ontario
Lottery and Gaming Corporation, which controls
slots in the province, sends checks quarterly to
the host municipalities involved in its racetrack
slots program. Their recent mailing for this year’s
second quarter to the 15 municipalities that have
tracks with slots is revealing. The checks, representing 5% of the gross slot revenue over the second quarter of the corporation’s fiscal year, totaled $13,514,342. Toronto obviously got the
lion’s share, $3.8 million, but Milton, where
Mohawk Raceway is located, picked up $1.6 million. Since slots were introduced, the Ontario
municipalities have been paid $179,487,445 from
the track slot program.
In a related development, it was announced that
the state of West Virginia expects $419 million
from its lottery system this year, which includes
track slots. That represents 14% of general revenues of West Virginia, the largest percentage
among states receiving gambling revenue. Since
the first tickets were sold in January, 1986, West
Virginia has reaped $1.8 billion from $5.05 billion in sales. A West Virginia lawyer who argued
unsuccessfully before the state’s supreme court
to abolish video poker machines told the justices,
“The state is fiscally hooked.”
TEST CASE FOR TERMINATOR
A dusty parcel of vacant land a few miles west of
Needles on the California-Arizona border will become the first test case of the resolve of
California’s muscled new governor. The lame
duck administration of outgoing governor Gray
Davis has reached agreement with the Fort
Mojave tribe to build a non-reservation
casino near Needles, and Arnold
Schwarzenegger will have to approve it.
October 21, 2003
As agreed by Davis, the tribe will pay 5% of its
net winnings to the state’s general operating fund,
and for the first time the tribe’s own court system would have authority over civil litigation
resulting from casino activities, such as slip-andfall cases. University of Nevada Las Vegas gaming professor Bill Thompson calls the compact
approval “the first real test of Arnold
Schwarzenegger’s attitude toward Indian gaming in California. It’ll tell us whether he’ll be an
expansionist, will hold the line or will try to turn
back the tide.” A spokesman for the governor
said “he will renegotiate every compact to ensure tribes are paying their fair share,” adding
that Connecticut -- where tribes pay 25% of their
casino revenues to the state -- could be the model.
FILION NEARS 15,000 WINS
Herve Filion, seeking his long-sought goal of
15,000 driving victories, is only four away as he
leaves Pocono Downs in Pennsyvlania and heads
for Harrington Raceway and Dover Downs in
Delaware. Filion won one race on Pocono’s closing card Saturday to bring his total to 14,996.
Harrington closes Oct. 30, and Dover picks up
Nov. 1. Filion’s quest was preempted by
Germany’s great driving star, Heinz Wewering,
who won his 15,000th driving victory last month.
DOLLARS OVER INTEGRITY
Like most other jurisdictions, Florida faces fiscal problems, in and out of racing. One of its
solutions, however, defies common sense. In addition to talking about expanded gaming to close
its operating gap in regulating racing -- attendance is down 80% at Florida tracks in 13 years
and state revenues are down from $110.5 million
to $34.9 million -- the Office of Program Policy
Analysis and Government Accountability is talking about relaxing medication regulations. If
it does, it should drop that “Accountability” tag from its name.
NY EPO TESTS START NOV. 1
The New York State Racing and Wagering Board
has approved an emergency rule that clears the
way for post race testing of erythropoietin and
darbepoietin antibodies and the tranquilizer
drugs reserpine and fluphenazine as of Nov. 1.
New York thus becomes the first state in the nation to adopt the new EPO test, joining the province of Ontario which also will introduce the test
Nov. 1. If a post race sample is found positive for
erythropoietin, better known as EPO or its brand
name Epogen, or darbepoietin, also known as DEPO or by its trade name Aranesp, the horse involved will not be disqualified but will be excluded
from further competition until its system is free
of the antibodies. Research indicates the antibodies can remain in the blood of treated horses
for as long as four months, so a positive test can
be costly to owners and trainers. Because precise time of administration cannot be determined
at present, trainers will not be subject to penalty
for now under the trainer responsibility rule. In
announcing the start of testing, New York racing
board chairman Michael J. Hoblock and board
member Cheryl Buley commended the work of
Dr. George Maylin, director of the board’s Equine
Drug Testing and Research Laboratory at Cornell
university, for his leadership in developing the
test. EPO is a natural occurring substance produced by the kidneys, but synthesized EPO, sold
as Epogen and Procrit, and second generation
D-EPO, sold as Aranesp, are being used to affect
performance, and the New York and Ontario tests
are a significant step forward in addressing this
problem. Repeated use of the synthetics can impair natural production of EPO and result in
anemia, and there is no legitimate use for either
erythropoietin or darbopoietin in the racehorse.
Both have been found in New York samples, as
have reserpine and fluphenazine, both
potent tranquilizers with no legitimate
use.
October 22, 2003
KY HORSEMEN RESIST CHANGE
To no one’s great surprise, Kentucky horsemen
and veterinarians, by and large, objected yesterday to strengthening of medication rules in the
Bluegrass in a hearing called by racing commission chairman Frank Shoop, who now favors the
move. Shoop found one strong ally in respected
trainer John Ward, who spoke in favor of the
idea, saying he found the liberal medication rules
in Kentucky “a crutch,” and disagreeing that
“Banamine four hours out is something a good
trainer needs.” Other Bluegrass hardboots disagreed, asking the commission not to do away
with anti-inflammatories and to retain its adjunct
medication policy with Salix, and Kentucky veterinarians, happy with current business, concurred. It is not likely that national rules will be
bent to adhere to Kentucky rules, so it will be
interesting to see what develops as the Shoop
commission studies the problem. Another open
forum has been scheduled for Nov. 18.
EHRLICH SAYS NO TO TAX IDEA
The political battle in Maryland between the governor and the speaker of the house that threatens the state’s horseracing industry has taken a
turn for the worse. Gov. Robert L. Ehrlich Jr. is
resisting the idea of his archrival, house speaker
Michael E. Busch, to tie slots to taxes, and has
announced bluntly that he will not make that
trade. “The minute they start playing those
games,” it’s over,” the governor said. The budget secretary in Maryland, James (Chip) DiPaula
Jr., has blamed the House failure to pass slots for
delays in school funding, a key issue in the state.
Busch rejects the idea, calling it “baloney” and
saying, “The idea that you can’t fund education
without some kind of gambling revenue doesn’t
resonate with anybody who has more than a second-grade education.” Perhaps, by simply raising taxes, but that idea may not fly, in Maryland or elsewhere.
BACK BURNER OR COOKING?
You’re undoubtedly as tired of this story as we
are, and as the tracks in Pennsylvania are, but
the Associated Press reported today that “with
bills that would raise income taxes and lower
property taxes passed by the House and being
considered by the Senate, a stalled effort to legalize slot machines may get going again in earnest, lawmakers say.” The story acknowledged,
as we all know, that the slots issue has been placed
on a back burner, and made it clear that House
Democratic leader H. William Weese, who wants
slots at locations other than tracks, will push for
that compromise. It would be nice to get this
matter resolved, but the package may be tagged
with a “Do Not Open Before Christmas.” Pennsylvania governor Ed Rendell is scheduled as a
featured speaker at a racino conference at Mountaineer Racetrack and Gaming Resort in Chester,
West Virginia, Nov. 12, but that doesn’t necessarily mean the matter will be resolved by then.
MARYLAND, MY MARYLAND
Then there is Maryland. Events there never cease
to be interesting. William J. Rickman Jr., whose
family owns HTA member Ocean Downs and
Delaware Park, told touring lawmakers visiting
his Ocean Downs track that they should include
all of the state’s licensed tracks in any slots legislation, which was not surprising, but he
“shocked” at least one delegate when he also
asked the Ways and Means Committee members
to consider allowing track owners to build satellite slot locations if residents oppose having slots
at tracks in their areas. Ocean Downs was omitted from slots legislation earlier this year because
of local opposition, so Rickman gave them an alternative to think about. A Las Vegas gambling
company, meanwhile, fired its Maryland lobbyist after he said he thought full-scale casinos could emerge from the coming legislation session.
October 23, 2003
Ameristar executive vice president Gordon
Kanofsky sent a letter to Maryland House and
Senate leaders saying the lobbyist, Michael
Gisriel, “was not authorized to make these statements to the media on behalf of Ameristar Casinos,” and that his views “do not reflect the position of Ameristar Casinos regarding the legalization of gaming in Maryland.”
Centaur, faced with a Nov. 1 deadline to close its
purchase of Rosecroft Raceway, has asked for 30
days additional time, but faced unfriendly reactions from members of the board of Cloverleaf,
which owns the track. Centaur, with only nine
days left to close, offered to sweeten the purchase
price by a million dollars to give it more time,
but skeptical horsemen raised objections, one of
them asking, “How can we believe you? A year
ago you stated you could buy us just like that.
But now you’re asking for more time.” Jeff
Smith, Centaur CEO, told the group, “This can
be done. This will be done.” A $2.5 million deposit forfeiture clause hangs in the balance.
NIXON IN GRAVE CONDITION
After rallying for a few days from kidney failure,
former USTA president Corwin Nixon has suffered a relapse and is reported in grave condition. His family was called to his hospital bedside this morning as his condition worsened.
ANOTHER TOTE FAILURE
With one investigation of a tote system failure
ongoing in New York involving bets made after
races were run, another case has turned up at
Pompano Park in Florida, where all wagers were
refunded on last night’s second race after it was
discovered the mutuel windows did not close until
after the race was completed. GM Dick Feinberg
ordered the total refund rather than honor bets
made during and after the race was contested.
Autotote is the service provider in New
York, United Tote in Florida.
October 24, 2003
SARATOGA SLOTS JOB FAIR
BAUGH, MCGREGOR HONORED
HTA’s member Saratoga Raceway, gearing up
for a mid-January slots opening, is holding a twoday job fair to recruit employees for 300 positions it will need to fill for the VLT casino it is
building at the track. Saratoga and its slots operating partner, Delaware North, are hiring bartenders, cocktail servers, dishwashers, cooks, bus
staff, porters, salad and sandwich preparers,
stand attendants, cleaners and electricians for
food and maintenance. VLT operations also will
require surveillance officers and supervisors, reward center clerks and supervisors, cashiers,
sweep counters, floor attendance monitors and
general supervisors, as well as management positions including assistant director of marketing,
customer service manager, director of surveillance
and staff accountants. Those new hires will staff
an operation that will offer 1,311 VLTs, two new
bars and a new food court in 35,000 square feet
of space renovated in the track’s lower grandstand and 20,000 square feet of new construction adjacent to the grandstand. Saratoga is investing $12 million in the expansion.
Two prominent harness racing figures have received high honors from their university alma
maters.
ISLE OF CAPRI GETS BRIT OK
Isle of Capri Casinos, the owner of HTA’s Pompano Park harness track member, has become
the first American casino operator to receive approval for English operations from the Gaming
Board for Great Britain. Through a definitive
agreement expected to close by the end of the year,
Isle of Capri will acquire a two-thirds majority
interest in Blue Chip Casinos PLC for $8 million, with the remaining one-third held by English private investors. Blue Chip is acquiring
the Castle Casino near Birmingham and has approval to develop and operate two other properties in that area. Isle of Capri chairman Bernard Goldstein also announced it plans
to operate a casino in Coventry as part
of its international expansion.
Philip J. (Jack) Baugh, former owner of
Almahurst Farm and one of the sport’s major
breeders for years, has received Duke University’s
Honorary Alumnus Award. Baugh, who holds a
PhD from Duke, was a former North Carolina
legislator, a U.S. Air Force jet pilot, and a member of the Duke board of trustees from 1981 to
1993 and its chairman during the last two years
of that tenure. Jack currently is president and
CEO of P. J. Baugh Industries in Nicholasville,
KY.
Ann McGregor, wife of harness trainer John
McGregor and one of southern California’s most
successful realtors, has been designated the outstanding alumnus of the year at the University
of Wisconsin. Ann has her own real estate company in Rancho Santa Fe, specializing in high
end properties, and maintains her longstanding
interest and dynamic advocacy of harness racing.
HTA proudly salutes both high achievers.
WHITE RETIRES, BOOK A HIT
Tom White, longtime publicist and promotional
guru for the Red Mile, has retired from the historic Lexington track. Tom covered his first race
for the Red Mile with a story in the Lexington
Herald-Leader 41 years ago and has covered every Kentucky Futurity since Safe Mission’s victory in 1962. He will continue doing publicity
for the Little Brown Jug in Delaware, Ohio.
White’s most recent accomplishment, A Century
of Speed...The Tradition Continues, is an update
of Red Mile history and has received warm
welcome.
October 27, 2003
‘RACE OR GET OUT’ IN MD
SMART MOVE BY THE USTA
The Maryland Jockey Club, upset at trainers who
stable at their tracks but race elsewhere, evicted
eight of them and their 27 horses from the Bowie
training center Saturday. The Maryland racing
commission has asked the MJC to halt further
evictions, and COO Lou Raffetto said the MJC
tracks were willing to work with the commission,
but that the evictions were necessary and more
will follow for those trainers who do not support
Maryland racing. Raffetto told the Washington
Post that Saturday’s evictions were “only the first
wave.”
The sky did not fall, as predicted, when the United
States Trotting Association instituted conversion
of Canadian currency into U.S. dollars. On Saturday the USTA’s Executive Committee took the
next logical step, basing the conversion not on a
January 1 peg, but on a daily basis, discovering
this did not entail rocket science. The government and banks across the country do it daily,
and it is more realistic than basing changes only
on swings of 15% or more, as the current rule
provides. The new conversion will take effect
January 1, 2004, and represents a victory for new
USTA president Phil Langley, a strong supporter
of the conversion plan. Two major thoroughbred
writers, Bill Finley of ESPN and the New York
Times, and Dan Liebman, executive editor of
Blood-Horse magazine, recently wrote strong articles noting USTA’s successful conversion and
urging the thoroughbred industry to adopt the
same policy.
CASINO THREAT IN COLORADO
Colorado’s mountain casinos, faced with the
prospect of slots at the state’s five racetracks if
Amendment 33 passes in next month’s elections,
say they will “step up and do something different” if that happens. Lynette Halley, the former
manager of the Black Hawk casino in Central
City and now city manager of the town, told the
Denver Post that the “something different” could
well be proposing raising the limited stakes, currently $5 on all bets, a move that would require
another statewide vote and major public relations
campaign. Colorado’s casinos already have spent
more than $3 million fighting Amendment 33 on
grounds that it creates an expansion of gambling,
so a further campaign to raise bet limits might
be difficult as well as expensive. There is a precedent, however. Three years ago, Deadwood,
SD, which also has limited-stakes gaming, raised
its $5 limit to $100, and Florida raised its limits
this year.
I. Nelson Rose, who specializes in
gaming law, stated a truth that racetracks know
well. “The reality is,” he said, “when competition comes in existing operations are hurt. Then
it becomes a ‘level playing field’ problem, with
each side arguing it needs more. The
problem is, a level playing field is impossible.”
ROSECROFT FIRM ON DEADLINE
Tom Chuckas, CEO of Rosecroft Raceway, says
the track’s owner, Cloverleaf Enterprises, considers its contract with Centaur Rosecroft LLC
valid and binding, and plans to adhere to the Nov.
1 deadline for a closing by Centaur. The Indiana-based company filed legal complaints asking for an Administrative Action for a Declaratory Ruling by the Maryland Racing Commission and a complaint, filed in Indiana, against
Cloverleaf, requesting an order to extend the Nov.
1 deadline. Chuckas said, “We are working with
the Maryland Racing Commission to review these
complaints but at this time it appears as if Centaur is trying to artificially extend the Nov. 1
deadline. CEI will honor its contractual obligations and considers the November 1 deadline
firm.” Centaur stands to lose a $2.5 million
deposit forfeiture if it does not prevail in its
legal actions for extension.
1,300 SEEK SPA JOBS
Between unemployment and the excitement of a
new racino operation, some 1,000 applicants
showed up for interviews at Saratoga Raceway
in preparation for the opening of the track’s VLT
operation in mid-January. General manager
Skip Carlson and a team of 20 interviewers from
Delaware North, which will run the Saratoga
operation, spent four hours between noon and 8
p.m. yesterday in screening the applicants, and
Carlson said another 300 or 400 resumes and applications arrived in the mail. No salaries were
announced for any of the jobs, those depending
on negotiations with Hotel Workers Local 471,
which will represent most of the new hires.
Carlson said customer service was the prime target of the interviews, and could be making job
offers as early as Wednesday after a second round
of interviews today. Those being considered for
positions such as vault supervisor, slot auditors,
security director and beverage manager must
complete a 58-page state licensing application.
Others considered for cashiers, security guards,
cooks and bartenders had to complete a 15-page
application.
A POLL OF 831 IN MARYLAND
The Washington Times reports that if Maryland
legalizes slots” an overwhelming majority” of
voters think the state should control them rather
than racetracks, but the “overwhelming majority” is based on 831 responses in a state with a
population of 5 million. According to the independent Gonzales Research and Marketing Strategies of Annapolis, 56% of respondents supported
slots and 34% opposed them, with 10% undecided, and of those favoring them 62% thought
the state should control them and only 11%
thought tracks should control them. Stories contained no mention of how many thought
slots should be at tracks, or who paid for
the poll.
October 28, 2003
Forty-eight percent of the respondents thought
slots should not be at tracks only, while 34% said
they should, with 14% having no opinion. Tim
Capps, executive VP of the Maryland Jockey
Club, called the support for having them at locations other than tracks “a mile wide and an inch
deep,” because people favored other sites in the
abstract but not when specific alternatives were
identified.
Pimlico Race Course owner Joe DeFrancis, discussing plans for track expansion, said that without slots there would be none, and Pimlico could
close. If slots came to the state but not the track,
DeFrancis said, “We’ll be lucky to stay open.
Lucky.”
In another poll, of 600 voters in Kentucky conducted by the Associated Press and four newspapers and television stations, 55% of those responding opposed an expansion of gambling, with
43% in favor and 2% undecided. Forty-seven
percent favored slots at tracks and 52% were
opposed to that idea. Sixty-five percent, however, were opposed at allowing slots at several
different locations.
RED MILE TO RACE ONE MEET
The Kentucky Racing Commission yesterday
granted permission for the Red Mile to hold its
130th meeting next season as a single meet, from
the end of July until the middle of October. Not
only is a spring meeting abandoned, but the track
also will have quarter horse racing, although how
much or when was not announced. In its original application, the Red Mile asked for only two
days, which presumably would allow it to simulcast quarter horse racing as well as harness. The
bulk of the harness meeting will be raced Thursday through Sunday nights, with the first week
of Grand Circuit racing, Sept. 27 thru Oct. 2,
having a 12:30 post and the last week reverting to nights.
DISAGREEMENT ON QUARTERS
The Kentucky Racing Commission had no sooner
awarded quarter horse dates to the Red Mile than
an attorney representing some members of the
Kentucky Quarter Horse Association objected,
saying the association had no valid contract with
the group, that there was an overlap of dates with
harness racing, and that safety issues were involved. The Red Mile dismisses all of those issues and believes it does have a signed contract,
and the racing commission chairman, Frank
Shoop, said the commission was firm on awarding quarter horse dates to the Red Mile and the
quarter horse association could work out its differences with the track. The overlap claim was
unexplained and perplexing, since the commission awarded the Red Mile two days of quarter
horse racing July 16-17 and under its new dates
arrangement the Red Mile’s harness meeting will
not start in 2004 until July 30 and extend to Oct.
5, with no spring meeting. With that change,
Bluegrass Downs will conduct an April 29 -June
5 spring harness meeting.
NEWS CHALLENGES SCOTT
The Bangor Daily News has published a strong
editorial challenge to the claims of Capital Seven,
Shawn Scott’s company that is trying to build a
racino at Bass Park in Bangor. Polls show the
proposal is headed for approval by Bangor voters, but the newspaper published some sobering
figures in its opposition, concluding, “Given
Capital Seven’s track record, the quality of this
deal is not high enough to warrant voter support.” The paper pointed out, concerning Capital Seven’s claims that lower prescription costs
for the elderly and scholarships in Maine would
result, that under the statute involved in next
month’s referendum the licensed operator would
get 75% of gross income after winnings
are paid to players, and only 10% of the
remaining 25% would go to prescription
relief and 3% to scholarships.
October 29, 2003
Also at stake in next week’s elections in Maine is
the issue of whether the state should approve the
plans of the Penobscot Nation and
Passamaquoddies tribe to build a $650 million
casino in Sanford. Proponents contend the casino would bring jobs to Maine’s hard-hit manufacturing heartland, while opponents cite the
usual objections: crime, lack of adequate regulation, and illusory benefits. Las Vegas interests
are behind this push, too, and the Providence
Journal says polls show voters narrowly opposing the measure. As proposed, the casino would
have 4,000 slots and 180 table games.
MANDATORY SIMULCASTING?
In a bold call for radical action, the Ontario Harness Horsemen’s Association is asking the
Ontario Racing Commission to mandate that all
Ontario tracks carry every available Ontario simulcast signal at all times. The OHHA’s COO,
John Walzak, says horsemen are finding a hard
time getting their horses raced, and that “we need
to reach a point where horse supply and race date
supply match. They don’t right now. Tracks tell
us that they’re opposed to increasing race dates
because it will cost them money. So what can we
do to bridge that gap? If tracks can’t support
additional days then we need to sit down and
discuss how to fix it. If it’s a wagering problem,
then we need to get more wagering. We can do
that if every Ontario track takes every other
Ontario track’s signal.” The OHHA also asked
the racing commission to impose additional race
dates on Rideau Carleton, Clinton, Western Fair,
Hiawatha and Woodstock, five of the smaller
tracks in the province. The commission has deferred awarding racing dates for 2004 to give
tracks an opportunity to study the OHHA request
and respond to it. Standardbred Canada’s story
on the OHHA development contained no indication of any track response, nor did it quote
any reaction from any Ontario track official.
October 30, 2003
GOING, GOING, GONE.....
MD STATE FAIR WANTS SLOTS
For the nostalgic in racing, demolition work was
scheduled to begin today on tearing down one of
the great edifices in American racing....Garden
State Park in Cherry Hill, NJ. The original Garden State was built by Gene Mori in 1942, and
featured top races like the Jersey Derby, Cherry
Hill Stakes and Trenton Handicap, which drew
major stars of the American running turf. The
track burned to the ground in 1977, and then
was rebuilt in 1985 when penny stock impresario Robert Brennan invested $140 million into
creating what he called The Racetrack of the 21st
Century, with marble floors, mirrored bars and
the Phoenix dining room, representing the legendary bird rising from the ashes. With the crash
of Brennan’s empire and declining attendance,
Garden State’s days became numbered, and it
closed forever in 2001, with Brennan in prison
for fraudulent stock transactions and unreported
concealed income. Developers moved in with lavish $500 million plans for a new community, and
with the destruction of the track 1,659 condominiums, townhouses and apartments will be
built on the 200-acre development.
Everybody in the pool! Now officials of the Maryland State Fair, smelling the sweet scent of slots,
have decided they are the “best location around”
for the money-makers, and apparently -- despite
strong local opposition -- has the support of slotsmaker-or-buster Michael Busch. The speaker of
the Maryland House, who killed slots almost
single-handedly earlier this year, thinks the state
fairgrounds would be an ideal location for them,
and a legislative panel studying the issue is due
at the fairgrounds today on an inspection tour.
Baltimore county residents, however, want nothing to do with slots in their backyards in
Timonium. The fairgrounds lawyer calls their
concerns over traffic problems “overblown,” but
the president of one community association there
said the residents “have spoken loud and clear,”
with more than 3,000 sounding a petition against
locating slots at the fairgrounds. That spokesman, Michael Blair of the Stratford Community
Association, told the Baltimore Sun that the decision of state fair officials to continue to press
for slots “shows they have no concern for the
neighbors.”
Another doomed racetrack may take on a new
life in the east as well -- as a film studio and school
-- if plans materialize for Green Mountain Racetrack in Pownal, Vermont. The Kleiser-Walczak
studio, currently based at the Massachusetts
Museum of Contemporary Art in North Adams,
with a digital animation studio in Los Angeles, is
interested in acquiring the track and its 144-acres
if the state of Vermont will help out. The owner
of the track for the last 10 years, John Tietgens
of Clarksburg, Massachusetts, says “things look
very favorable,” but the president of KleiserWalczak was less optimistic and reluctant to discuss the deal, calling negotiations “a little
bit of a sensitive subject.” Tietgens said
the ball was in Vermont’s court.
SCOTT POURS IT ON IN MAINE
The hot issue in Maine, as election day nears, is
Question 3, which would allow two Indian tribes
to build a $650 million super casino in the state.
Less prominent, but no less hotly contended, is
Question 2, which would allow slots at harness
tracks in Bangor and Scarborough. So far, according to the Portland Press Herald, Las Vegas
promoter Shawn Scott has poured more than $1.5
million into the campaign for legalization. The
state’s racing and agriculture committee lists
DDRA Capital Inc. as the sole donor, and that
group used Scott’s Capital Seven letterhead in
filing its expense form. A local election also will
consider whether Bangor approves Scott’s
plans for the town’s Bass Park.
October 31, 2003
“A LOUSY DEAL FOR MAINE”
PLAINRIDGE ISSUE LOOKING UP
That was the final word from former governor
Angus King of Maine as voters prepared to go to
the polls Tuesday to vote on slots at tracks in
Scarborough and Bangor. That issue has been
pushed into eclipse of sorts by the larger issue of
a huge Indian casino, but King leveled his last
minute attack on the Shawn Scott proposal for
slots in Bangor which would give the track operator 75% of revenue. Bangor voters approved
the issue locally in June, and Scarborough residents will vote on it as a local issue next week,
but a statewide vote also is on the ballot. The
track issue has been overshadowed in the dollar
derby by the Indian question, with almost $10
million spent for and against that measure and
about $1.5 million on the racino issue, most of
that by Scott’s Capital Seven.
The Sun Chronicle newspapers in Massachusetts
report that “if slot machines come to Massachusetts, they probably will come to Plainville.” The
papers say that the possibility that Plainridge
Racecourse would be left out of legislation for
slots licensing “has diminished with a Republican proposal to include all four of the state’s racetracks -- not just three -- in legislation on expanded gambling.” The report said that senator
minority leader Brian Lees plans to introduce a
gambling measure next week that calls for licensing all four tracks, as well as two resort casinos.
There had been concerns that as the smallest of
the state’s four tracks, Plainridge might have lost
out in bidding for a license if only three were issued.
In Kentucky, meanwhile, Democratic gubernatorial candidate Ben Chandler has publicly declared his support for legislation that would allow slots at the state’s racetracks, harness and
thoroughbred.
In New Mexico, heavy hitters have lined up behind R. D. Hubbard, the veteran track owner who
is seeking the hotly contested license for a new
track at Hobbs, on the Texas border near El Paso.
Hubbard got commission approval to add Paul
Blanchard, the president of The Downs at Albuquerque, to his ownership team. Blanchard’s
track contributed $100,500 to governor Bill
Richardson’s election campaign. But Hubbard
was getting support from bigger names than
Blanchard. Trainer Bob Baffert wrote the commission in support of Hubbard, as did Roy Wood,
executive director of the California Racing Board,
and Tom Meeker of Churchill Downs. Hubbard
also was prominent in winner’s circle
shots of the Breeders Cup at Santa Anita
Saturday.
TEACH ‘EM TO PLAY THE GAME
Potential newcomers to harness racing will have
an opportunity to learn the ropes from experts
Sunday when the huge Harrisburg horse sale gets
underway. The United States Trotting Association, for $40 a person or $45 a couple, will conduct a workshop for first-time purchasers, explaining the risks and rewards of buying yearlings. Professional trainers will critique choices
of prospective owners, budgeting will be explained, pedigrees and conformation will be covered, and the prime ingredient in the marriage - choosing a trainer -- also will be addressed. Ellen
Harvey at Harness Racing Communications, 732780-3700 is the contact, and e-mail can be sent
to HRCNEWS@aol.com.
A KEY TRACK MEETING IN NJ
The future of the Meadowlands and Monmouth
Park will be on the table Nov. 12 when major
political leaders, probably including Gov. Jim
McGreevey, will meet with racing leaders to
discuss the issue of racing in New Jersey.
November 3, 2003
OWNERS GET RECOGNITION
BID WAR FOR ROSECROFT?
For years in harness racing, publicists would refer to great horses by their trainer’s names, as in
“Delvin Miller’s Countess Adios.” The trend
gradually faded to where releases today usually
but not always link the owner and the horse, as
in “Bob Glazer’s No Pan Intended.” But by
whatever measuring standard, owners come up
short on recognition, and in many cases are ignored completely. It was gratifying, therefore,
as well as highly informational, to see Standardbred Canada recently change the format of its
excellent reporting of results at Canadian tracks.
The SC results now list charts followed by sire
and dam breeding and ownership of the first
three finishers, a major contribution to news dissemination. The USTA also recently amended
its reporting format, but chose to mention breeders rather than owners in its credit lines. Both
assume the arduous task of making money with
their horses, of course, or at least of breaking
even. For that tough job, critical to the success
of the sport and industry -- and to let people know
who own winners and other successful horses -the naming of owners is a laudable effort, and
we congratulate Standardbred Canada on leading the way.
The Washington Post reports that “a new bidding war may emerge for Rosecroft Raceway, as
the Prince George’s county harness track tries
to erase a year of uncertainty over its ownership
and enhance its prospects for casino-style gambling.” The newspaper said that after the track’s
current owner, Cloverleaf Enterprises, held firm
to a Nov. 1 deadline for a closing by Centaur Inc.
of Indiana -- which Centaur could not meet after
dismissing its potential partner Delaware North
from an agreement between the two -- new suitors have surfaced to buy the track. The Post
named them as Peter Angelos, owner of the Baltimore Orioles and a nationally known lawyer
and political donor; Leucadia National corporation of New York, a conglomerate that formerly
was part owner of the Maryland Jockey Club
tracks at Pimlico and Laurel and still holds a 20year interest in any future slots revenue, should
they accrue; and Delaware North itself, Centaur’s
rejected partner. The newspaper said that Cloverleaf had been prevented from entertaining offers while its contract was still binding, but with
expiration of the deal negotiations with new potential buyers could begin as early as this week.
Centaur, meanwhile, has filed suit to extend the
deadline, but even if successful it does not appear likely that the Maryland Racing Commission now will entertain reconsideration. Thomas
F. McDonough, chairman of the racing commission, openly called Centaur’s lawsuit a ploy, saying “It strikes me as a transparent attempt to
extend the deadline. I’m not sure they’ll get away
with that.” Rosecroft is seeking to have the suit
dismissed.
MORE CREDIT WHERE DUE
Most people in harness racing -- and certainly
everyone in harness racing in the Delaware Valley of Delaware and Pennsylvania -- know the
veteran publicist Marv Bachrad. Happily, those
people who read Delaware Today now know a lot
more about him. In a long profile with a great
picture of Marv and his beloved Dover Downs
behind him, feature writer Jennifer Marie Miller
told of his sports announcing and writing career,
his radio coverage of all major sports, and his
multifaceted talents. It was a great piece
on a great guy, a longtime major contributor to the sport in the Delaware Valley and far beyond.
MAINE ELECTIONS ON SLOTS
Voters in the state of Maine go the polls tomorrow to decide on whether to allow slots at
Bangor Raceway and Scarborough Downs.
November 4, 2003
WE THINK THE KIDS ARE RIGHT
DEVELOPMENTS IN IOWA, MD
We don’t know any of the kids in the Hodgkins
Middle School in Augusta, Maine, and we don’t
know Sue Pattershall or Kim Dawes, two of their
teachers who are staff co-chairwomen of the student council at the school. But we admire the
teachers and agree with the kids.
The Iowa Lottery commission is installing some
4,000 high-tech video pull-tab machines in bars,
restaurants and fraternal clubs around the state.
The new machines cost $1 to play, with the top
prize in market tests being $300.
They held a mock election in the school yesterday in which 357 kids -- 79% of the school’s student body -- participated. Besides this being
civics teaching at its best, it was interesting to
see how the kids voted. They turned down Question 3, which asks if the state should allow a huge
casino to be built by the Passamaquoddy Tribe
and Penobscot Nation, by a vote of 199 to 158.
Then they approved, by a vote of 216 to 141,
Question 2, which asks if slot machines should
be allowed at Scarborough Downs and Bangor
Raceway.
We have a hunch that their elders, voting today
on the same questions, will come up with the same
answers.
In Colorado, meanwhile, the most expensive lobbying campaign in the state’s history comes to a
close today with the statewide vote on Amendment 33, which would give slots to the state’s five
racetracks, four of which are owned by the British-owned Wembley/USA, which is having problems in Rhode Island with charges of bribery.
Amendment 33 would allow the tracks to install
up to 2,500 VLTs at the horse and greyhound
tracks along Colorado’s Front Range. Under the
proposal, 61% of proceeds, or an estimated $25
million, would go to promoting Colorado tourism and state and local parks. The state’s casinos, which strongly opposed the amendment,
gave 14% of their $707 million in earnings last
year to state-funded programs. The two
sides have spent $9.4 million lobbying for
and against the issue.
The same idea is being floated in Maryland,
where the state’s Licensed Beverage Association
board will meet tomorrow to vote on a proposal
to allow slots in bars and wherever else booze is
sold. Gov. Robert L. Ehrlich Jr.’s office and state
legislative leaders have pronounced the idea
“dead on arrival,” with both House of Delegates
speaker Michael E. Busch and Senate president
Thomas V. Mike Miller agreeing on this one.
In another interesting development in Maryland,
the former speaker of the House, Casper R. Taylor Jr., has been hired as a new lobbyist for Centaur Inc., in its battle with Cloverleaf Enterprises.
Taylor told the Baltimore Sun that he and Gary
R. Alexander, principal partner in the Alexander
& Cleaver lobbying firm, will represent the Indiana company on state regulatory issues and its
contract dispute with Cloverleaf. Taylor said he
expects to work mainly with the Maryland Racing Commission, whose chairman has expressed
displeasure with Centaur’s efforts to extend the
deadline for its contract to buy Rosecroft Raceway.
In New York, meanwhile, the state reportedly is
considering allowing OTB facilities to operate as
many as 20,000 VLTs, according to the Buffalo
News.
In Oklahoma, the Choctaw Nation has bought
Blue Ribbon Downs for an undisclosed figure,
just one day before the distressed track was to
undergo a sheriff’s sale. The Choctaws
think they can make it work.
VOTERS SPEAK, LOUDLY
Voters across the country voiced their feelings on
gambling issues yesterday, and for the most part
their expressions were loud and clear. In Maine,
they overwhelmingly rejected -- 64% to 36% -the idea of two Indian tribes building a $650 million casino in Sanford. Voters in southern Maine,
where Sanford is located, overwhelmingly voted
no, with lesser conviction expressed by voters elsewhere in the state. The issue cost competing sides
$9 million, with $6.8 million of that sum coming
from Think About It, financed by Marnell
Corrao, the company that built a number of gambling operations in Nevada. Maine voters did
approve, however, slots at tracks in the state,
assuring Las Vegas entrepreneur Shawn Scott
of a racino in Bangor, where voters and the town
council earlier approved a $30 million project
which will give Scott’s Capital Seven a 75% share
of casino revenues. Scarborough Downs was a
loser, however, for despite the statewide approval
of slots at tracks voters in Scarborough rejected,
4,494 to 3,553, the idea of lifting a zoning ban on
slots at the tracks, voted earlier this year.
In Colorado, a slots-at-tracks proposal backed
principally by Wembley/USA, which owns four
of Colorado’s five dog and horse tracks, was rejected by a 4-1 margin. Wembley’s cause obviously was hurt by bribery charges against the
company in Rhode Island. The defeat was hailed
by Colorado’s mountain casinos, which opposed
it with a heavy influx of cash. With 99% of the
votes counted, Amendment 33, which would have
given Wembley slots, failed miserably, with 81%
of voters rejecting it and only 19% voting for it.
In Alabama, voters in Macon and Greene counties decisively approved bingo for nonprofit organizations, which could benefit VictoryLand dog
track and Greenetrack simulcasting as
sites for the bingo games.
November 5, 2003
The results from Maine were being watched with
interest in Massachusetts, where a bill was introduced yesterday in the Senate providing for slots
at the state’s four tracks, including HTA member Plainridge Racecourse in Plainville. Under
the proposed legislation, each track would be required to install no fewer than 1,000 machines
and no more than 1,500, and would have to pay
$25 million for the license. The bill also provides
for two casinos, with the Wampanoags of
Martha’s Vineyard having right of first refusal
on one of them. The casino licenses would cost
at least $150 million. The state would receive
60% of net revenues from slots at tracks and 25%
of net revenues at the two casinos. Both Gov.
Mitt Romney and state treasurer Timothy P.
Cahill have expressed opposition to any measure
that limited competition for the slots. The legislation, coming after months of debate and speculation, was filed as an amendment to the Senate’s
$115 million economic stimulus package. Unlike
the casino proposal, which requires at least $400
million in spending for new facilities, there is no
minimum expenditure in the bill for expansion
of track facilities.
COMMISSION TO CENTAUR: NO
The Maryland Racing Commission yesterday
turned down an appeal from Centaur Inc. to step
into a dispute between that company and Cloverleaf Enterprises, owner of Rosecroft Raceway.
Centaur had asked the commission to intervene
in the ongoing dispute between Maryland tracks
over splits in simulcasting revenue, which it
claims has prevented it from completing financing for the track acquisition. The commission
declined, saying the proposal amounted to an artificial extension of the Nov. 1 deadline for Centaur to close on its purchase of the track. Centaur said that despite the turndown, it would
move forward to a lawsuit to compel Cloverleaf to honor the contract. Cloverleaf plans
to entertain other offers.
CORWIN NIXON DEAD AT 90
Corwin M. Nixon, a power in Ohio politics for
more than 30 years as a member and minority
leader of the Ohio House of Representatives, and
a director of the United States Trotting Association for 47 years and its president for 14 years
between 1988 and 2002, died at 7 a.m. this morning at 90 after fighting kidney problems for weeks.
Nixon served as vice chairman of the USTA board
from 1960 to 1964, was its chairman from 1965
until 1987, and then took over the reins of the
organization. During most of those years he also
served as a director of Harness Tracks of America
and as a trustee of the Harness Racing Museum
and Hall of Fame in Goshen, NY, where he also
was enshrined as a member of the Living Hall of
Fame. He was an owner, breeder, trainer, executive manager of Lebanon Raceway and president
of the Miami Valley Trotting meet at Lebanon,
and former president of the International Trotting Association and chairman of the American
Horse Council. Mr. Nixon’s political career in
the Ohio legislature was spread over decades, and
he was one of Ohio’s most honored men. He held
an Honorary Doctor of Laws Degree from Ohio
University, was inducted into the Ohio State Fair
Hall of Fame in 1980, into the Ohio Harness
Racing Hall of Fame in 1986, harness racing’s
Living Hall of Fame in 1993, and into the Little
Brown Jug Wall of Fame a year later. Nixon was
a director of numerous banks and hospitals in
Ohio, including Bethesda in Cincinnati,
Grandview Hospital in Dayton, the Cincinnati
Auto Club, and the Citizens’ National Bank in
his home town of Lebanon, and bridges, hospitals and schools around Ohio have been named
for him. A biography, “A Life of Service” by
Patricia M. George, was published several years
ago, and former Ohio governor Jim Rhodes said
of Nixon, “There was no finer man ever.
He was liked by everyone.”
November 6, 2003
U.S. Senator George Voinovich, a former Ohio
governor who worked with Nixon, said that
“throughout his career Corwin Nixon was a
leader who cared more about getting things done
for his constituents and for Ohio than about partisan politics. Corwin was not an idealogue.
Rather, he looked for practical solutions that
would benefit the most people.”
Gov. Rhodes wrote about Nixon, “He is what
made Ohio great. He was always quiet, and never
out of place. He told the truth; he is honest and
sincere.”
That was how we found him. We were close for
well over 50 years, and never had a difference.
He was a great friend and ally, and all in this
sport have suffered a deep wound and lost a great
supporter.
WAXMAN GETS DAY’S GRACE
Bob Waxman of Ontario, one of the major breeders and owners in harness racing, who was suspended first by the Pennsylvania racing commission and then indefinitely in Ontario on financial irresponsibility charges, has been given a stay
until tomorrow by a Pennsylvania Commonwealth Judge on the eligibility of horses and the
issue in general.
MD LEGISLATORS FINISH TOUR
Members of the Maryland House of Delegates
Ways and Means committee, who have been touring the state getting first hand views of where
slots might or might not be located, took in western Maryland yesterday and heard Ocean Downs
and Delaware Park track owner William
Rickman Jr. that he will build a track in western
Maryland, but not if other tracks get slots and
his does not. Earlier the delegates saw the best
in harness racing while visiting Joe and
JoAnn Thomson’s beautiful Winbak Farm.
November 7, 2003
NIXON FUNERAL PLANS
GLOOM IN MASSACHUSETTS
Funeral arrangements have been completed for
longtime HTA director and former USTA president Corwin M. Nixon, who died yesterday morning in Grandview Hospital in Dayton of kidney
failure at the age of 90. Visitation will be on Tuesday, Nov. 11 from 4 to 8 p.m. at the OswaldHoskins Funeral Home, 329 E. Mulberry Street,
Lebanon, Ohio 45036. There will be additional
visitation Wednesday morning from noon to 1
p.m. at the Lebanon United Methodist Church,
122 E. Silver Street, Lebanon OH 45036, followed
by funeral services Wed. at the church at 1 p.m.
There is no joy in Massachusetts today. In what
the Boston Herald called “a stunning reversal
after two days of deadlocked debate,” Senate
leaders pulled a plan that would have given slots
to the state’s four racetracks and established two
casinos as well. The newspaper said the passage
of the bill had been considered by some observers as a sure thing, given the solid support of the
Senate president Robert Travaglini. But following the resounding defeat of casino legislation in
Maine, and word from House leaders that they
would not support the measure, the Senate split
down the middle and the slots measure was withdrawn without a vote. The loss may prove temporary, for both proponents and opponents
agreed that it will rise again in next year’s budget debate, when legislators will be looking at a
projected $2 billion shortfall. For now, however,
it will be racing and simulcasting as usual in the
Bay State.
Newspapers across Ohio, including the state’s two
biggest, the Cleveland Plain Dealer and the Cincinnati Enquirer, recounted Corwin’s long career
of public service. The Enquirer noted that “Evidence of his clout can be seen all over Southwestern Ohio. His name is on a Mason park, a
Waynesville covered bridge, Miami University’s
aquatic center in Oxford, a wing of the
Brookwood Retirement Community in Sycamore
Township, a Wilmington aviation maintenance
school and a Dayton health center. He also helped
secure funds for a new Franklin bridge, Mason
library, Warren county Alternative School and
Lebanon courthouse.” Also pointed out were his
unique bipartisan leadership qualities during his
30 years as an influential Ohio legislator. One
legislator who served with him told the Enquirer,
“Corwin would promise to deliver so many votes,
and he could do it, and that’s how budgets got
passed.”
Memorials can be sent to the Warren County
Humane Association, P.O. Box 313, Lebanon,
Ohio, 45306; the Corwin M. Nixon Nursing
School Fund, c/o Lebanon Citizens National
Bank, P.O. Box 59, Lebanon, Ohio, 45036; or
the Lebanon United Methodist Church,
122 E. Silver Street, Lebanon 45036.
MORE MAGNA MAGNIFICENCE
Magna Entertainment has announced plans to
add a 2,500-seat simulcasting theater complex,
offices, up to 80 residences, a sports club and a
food court to its ambitious plans for a racetrack
just north of Detroit’s Metropolitan Airport. The
$350 million development will be built on 200
acres along Interstate 94 if city voters approve
the idea at a Dec. 2 non-binding vote. City officials in Romulus already have said they will approve both projects if voters approve. The new
track and complex will be called Michigan
Downs, and could include slots if state legislators
approve a measure now before the Senate. Magna recently bought the land involved for $28
million, and may have a casino for a neighbor.
The Sault Ste. Marie Tribe of Chippewas recently
gained zoning approval for one, and are hoping to build nearby the pro-posed Magna
track location.
HERE’S WHERE THINGS STAND
A week after elections, here is where things stand
around the country in racing.
In New Jersey, track executives and key legislators will meet Wednesday in Trenton to discuss
the future of racing in the state. George Zoffinger,
president and CEO of the Sports Authority that
operates the Meadowlands and Monmouth Park,
says the meeting is not about slots at tracks, but
if that is not an option then something else will
have to be found to bolster business. “What we
can’t do is sit back and do nothing,” he says, “or
we will be at a serious competitive disadvantage.”
In Maryland, Cloverleaf Enterprises has contacted 18 companies and individuals who are interested in buying Rosecroft Raceway, giving
them until Nov. 21 to submit proposals. CEO
Tom Chuckas Jr. says a buyer will be selected by
mid-December. Interested parties include Peter
Angelos, owner of the Baltimore Orioles, who
can’t own the track because of major league baseball rules but can put together a group that could
include his son Lou; Ameristar Casinos of Las
Vegas; Robert L. Johnson, founder of Black
Entertainment Television, headquartered in
Washington, DC; and Joe Thomson, the major
harness breeder who owns Winbak Farm, the
2,000-acre operation that is the second largest
harness racing breeding farm in North America;
and Delaware North of Buffalo, NY, which had a
deal with Centaur of Indiana that Centaur broke.
Centaur is still trying to salvage its option, but
Cloverleaf wants no part of it and contends the
option is dead and buried.
In Massachusetts, senators who let slots-at-tracks
die without a vote last week, now are discussing
the possibility of a statewide public referendum on the issue in March.
November 10, 2003
In New York, where Vernon Downs has been advertising a racino as “Opening Soon” and is still
talking about a Nov. 21 opening date, officials of
the state Lottery Division say the so-called
Miracle Isle operation is at least three months
away. For one thing, the track filed what the
division called “an incomplete application,” and
consideration after it receives all information requested will take “at least six weeks.” Furthermore, the track can not install the 1,100 gaming
machines it has ordered until the license is
granted, so a Nov. 21 opening would indeed be a
miracle, unless it is just for a walkaround tour of
the premises. Vernon Downs now has gone
deeper in debt, a filing with the SEC shows, borrowing $23 million from Vestin Mortgage company of Las Vegas for $1.84 million for a twoyear loan and the right to appoint three directors on the Vernon board, where Shawn Scott
already has six members, including his mother.
Reports say New York harness owner-breeder
and real estate magnate Jeff Gural is assembling
a group that will try to buy the track from Scott.
In Maine, where slots at tracks were approved
last week and the city of Bangor gave Shawn Scott
a deal which provides his Capital Seven with 75%
of slots revenues, the Maine racing commission
still is checking Scott and his colleagues and must
rule next month on granting a license. It is the
last obstacle in the way of Scott’s deal for a racino
at little Bangor Raceway. A huge Indian casino
proposal was voted down in Maine, and in a long,
eloquent and bitter statement the president of
the Penobscot Nation, Barry Dana, said in part,
“Nothing has changed. My people have lived
with these hollow promises for 500 years. Promises from state leaders combined with lies, scare
tactics and intimidation to keep a majority of the
state’s wealth, power and resources in the hands
of a select few. There are still two Maines.”
SUPPORT FROM ANDY BEYER
The Maryland Jockey Club recently took action
on an issue of interest to all racetrack operators:
control of its stable area. The MJC ejected eight
trainers whose horses had not raced often enough
at its tracks, but were racing elsewhere. The action brought emotional response and a variety of
other angry responses at the last Maryland Racing Commission meeting. Another was held today, and one of America’s most influential racing writers, Andy Beyer, weighed in with one of
his forceful columns, read nationwide. Commenting on the MJC’s edict of “race or get out,” Beyer
wrote, “The MJC owns the stable areas, pays for
their upkeep, and has the right to determine who
gets a certain number of stalls.” He quoted the
MJC’s COO, Lou Raffetto Jr., who had issued
the order, saying that “We’re tired of trainers
not being held accountable. People think that
having stalls is a right, but it’s a privilege and we
decided to crack down on people who abuse the
privilege.” (This newsletter, incidentally, shamefully had that quote backwards in a recent edition.) Beyer, reviewing the situation including
the laments of trainers, concluded that “Such
words may sound coldhearted, and most horsemen will object to Raffetto’s actions, but racing
fans ought to applaud what the MJC is trying to
do....That aim (increasing field size by getting
Maryland horses to run in Maryland) is a reasonable one that should be lauded, even if he has
to use tough measures to achieve it.”
November 11, 2003
Shane Sellers, Gary Stevens, Alex Solis, Edgar
Prado and Robby Albarado, said the patches
were not advertising or promotional but expressions of support for disabled jockeys. The racing commission attorney, J. Bruce Miller, says
the case pits First Amendment free speech rights
against Tenth Amendment states rights, and that
“historically the federal government has left regulation of racing to the states themselves and has
almost exclusively avoided interfering.” He also
claimed patches could interfere with stewards being able to see the race clearly, to which the jockeys responded that the patches do not interfere
with stewards’ duties any more than colorful silks
and saddle cloths. Miller said he “didn’t know
really where it’s all going to stop if we lose the
case.” Perhaps he should ask NASCAR.
CRANK UP THE CRANKCASE
Opponents of slots at tracks come in all forms
and sizes, and one in Vancouver, British Columbia, has come up with a novel approach. He objects to the possibility of slots at Woodbine
Entertainment’s Hastings Park, but not elsewhere. He thinks the city of Vancouver should
place 600 slots in a new downtown casino, with
revenue from the first five years given to Woodbine to build a new, larger track outside of the
city. The council is considering a proposal to allow 900 slots at Hastings Park and will hold a
public hearing on the issue in January.
SKIP CARLSON LOSES FATHER
JOCKS SUE IN KENTUCKY
Thirteen major jockeys who rode in the Kentucky
Derby and were fined $500 each for wearing a 3
by 5 inch patch on their riding pants have sued
the Kentucky Racing Commission on charges
that the fines violated their First Amendment
rights of free speech. The jocks, including big names like Kent Desormeaux,
On a sad day in which Corwin Nixon is laid to
rest in Lebanon, Ohio, comes more sad news.
George W. Carlson, father of Saratoga Raceway’s
vice president and general manager George
(Skip) Carlson, has died at 77. Memorials can
be sent to the Alzheimer’s Association, 85
Watervliet Avenue, Albany, NY 12206, in
memory of George W. Carlson.
November 12, 2003
SCARBOROUGH MAY MOVE
TRACK RIGHTS UPHELD IN MD
Sharon Terry, the owner of Scarborough Downs,
is exploring possibilities of moving her track after Scarborough town voters turned down a bid
for slots at the track last week, despite a statewide vote in favor of them. Ms. Terry is asking
the neighboring town of Saco to hold a referendum on slots, and says she would consider relocating her 53-year-old track in order to compete
with Bangor Raceway, which voted for slots and
gave Las Vegas promoter Shawn Scott a 75%
share of revenues from them. The mayor of Saco,
William Johnson, said he totally supports the idea
of the issue of slots going to voters, and the mayorelect, Mark Johnston, says Ms. Terry called him
last week the day after the election, to discuss
the issue. Ms. Terry is requesting a referendum
reading, “Do you approve of the operation of slot
machines at a commercial racing track to be located in Saco, Maine?” Under current law, a
slots operation could be operated separately from
Scarborough provided it was within a five-mile
radius of the racetrack, which it would be in areas of Saco. In its proposal to Saco, however,
Scarborough said it is proposing to move its entire operation there, according to
MaineToday.com. There is precedent for a track
moving because of a slots vote. In Ontario former
Barrie Raceway left Barrie and built Georgian
Downs 10 miles away in Innisfil, and Elmira
Raceway, which recently closed, is relocating with
a new Grand River track in Elora.
In a 6-2 vote yesterday, the Maryland Racing
Commission upheld the right of the Maryland
Jockey Club to close its Pimlico Race Course for
winter stabling and training, calling the issue -correctly to our mind -- a business decision for
track management and not a racing commission
matter. The vote, despite noisy protest, confirms
what has always been believed here, that the role
of racing commissions is not to interfere with the
operation of a racetrack’s business, but to protect
the interest of the state or province it represents
and assure the integrity of the sport in that jurisdiction. The policy was spelled out by chairman
Thomas McDonough, who made the motion not
to address plans to close the track to winter training. “We need to draw the line where regulation
substitutes for the judgment of the licensee, and I
think that’s appropriate. It’s a business decision.”
Because the commission declined to intervene,
horsemen’s leaders immediately accused
McDonough of being “an ally of the Maryland
Jockey Club” and called the decision not to allow
discussion of the issue “an affront to the horsemen of Maryland.” Commission member Terry
Saxon, who voted with the majority in declining
to hear the issue, said, “At some point in time,
track management has to protect the bottom line.”
Former board chairmen John Franzone and Louis
Ulman voted against the decision not to hear the
matter, Franzone claiming that “I’m not for overregulating somebody’s business, but this is a highly
regulated industry, and it’s a monopoly. It’s incumbent on the commission to deal with these issues.” So despite his declaration that he didn’t
want to overregulate, he voted to do so. The Maryland Jockey Club is a private company, and it
should have the right, in its best business judgment, what it does with and who it allows in its
stable areas. Yesterday’s vote, in the face of noisy
horsemen opposition, was a courageous and
correct decision.
DETROIT CASINOS WANT VOTE
Detroit’s casinos, upset and obviously frightened
by racino legislation currently in the state Senate, are arguing for a vote on the issue. A spokeswoman said a ballot measure should either take
the form of a constitutional amendment, which
the legislature cannot change, or an initiative, which could be altered by legislative action.
November 13, 2003
RENDELL SAYS SLOTS BY XMAS
KY TRACKS WANT PUBLIC VOTE
The governor of Pennsylvania has told the Pittsburgh Post-Gazette that he expects to have a bill
legalizing slot machines in the state by the end of
the year, and called the prospect “a present for
the people of Pennsylvania.” Gov. Ed Rendell
added, however, “Lord knows what the bill will
contain. The devil is in the details.” Asked about
sites other than tracks, Rendell said he could accept “an extremely limited number”, perhaps two
and no more than four. A key figure in the battle
over the issue, however, has different ideas. Senator Vince Fumo of Philadelphia is working on a
bill that would allow up to six non-track facilities as well as slots at tracks. Rendell, attending
a conference on gambling at Mountaineer Racetrack and Gaming Resort in West Virginia, and
meeting Pennsylvanians gambling there, said,
“It’s a shame all our money comes here instead
of staying in the state.”
At the same Mountaineer conference at which
Gov. Rendell announced his hoped-for Christmas slots, the president of Turfway Park, Bob
Elliston, announced that Kentucky tracks would
ask the General Assembly to turn that issue in
Kentucky into a referendum on a constitutional
amendment. The tracks apparently are willing
to gamble on public support, and Elliston cited a
Louisville Courier-Journal poll which indicated
that 56% of those contacted said they supported
the idea of slots at tracks.
ONE PER COMPANY IN MD
Robert L. Ehrlich Jr., the governor of Maryland,
has moved toward compromise with archrival
Michael E. Busch, speaker of the Maryland
House. Ehrlich now says he supports a plan that
would limit a slots gambling license to one per
company, a move that if adopted would force the
Maryland Jockey Club to choose either Laurel
Park or Pimlico Race Course as its slots location.
Paul Micucci, executive VP of gaming for Magna Entertainment, called any arrangement
based on ownership “inequitable,” without commenting on which track Magna might prefer if
such a bill passed. “To unfairly penalize any facility simply because of shared ownership,”
Micucci said, “puts at risk the economic viability of the facility left behind....Why should the
owners of the Maryland Jockey Club be penalized for making a large investment, rather
than a smaller investment, in an important Maryland industry?”
SCARBOROUGH VOTE TUESDAY
The City Council of Saco, Maine, will vote Tuesday on whether to schedule a referendum to consider Scarborough Downs’ owner Sharon Terry’s
request to move her racetrack to Saco. Ms. Terry,
angry at Scarborough’s refusal to allow slots at
the Downs, now proposes “to build a facility to
make the city of Saco proud.” She has an option
on a 69-acre parcel on route 1, less than half a
mile from the Maine Turnpike and on the
Scarborough town line. How she might build a
racetrack on 69 acres is questionable, but she is
talking about a new $25 to $40 million track and
not just a slots facility, which would be allowable
under local law without moving her present track.
A glitch already has arisen, according to
MaineToday.com. It reports that track officials
announced yesterday that negotiations had broken down with a slot machine supplier, leading
the outgoing mayor of Saco to question whether
action is appropriate until that issue is resolved.
The mayor-elect, however, says he prefers a track
to a proposed 400-home development on the site,
which would add a burden to Saco’s already
underfinanced school budget and require, he said,
more schools and buses. In last week’s vote on
allowing racinos, Saco residents approved the
measure 3,877 to 3,342, while Scarborough
voters turned it down 4,494 to 3,553.
THE OLD SIMULCASTING PLOY
Maryland racing, messed up by political hassling
over slots, now faces another serious challenge.
The Thoroughbred Horsemen’s Association, angered by the Maryland Jockey Club closing its
winter training and stabling at Pimlico and frustrated by a racing commission that correctly declined to step into a management-horsemen dispute by a vote of 6-2, now has voted 11-1 to halt
simulcasting of out-of-state races. The horsemen’s
lawyer, Alan Foreman, says “the horsemen are fed
up. We have to do what’s best to protect the interests of horsemen.” How closing down simulcasting will protect the interests of horsemen takes
some imaginative wishful thinking. Lou Raffetto,
the Maryland Jockey Club’s COO, pointed out
that, “In looking out for themselves, they’re going to pull the plug on simulcasting, which will
force us to immediately slash purses and God
knows what else.” Raffetto said the purses might
have to be cut by 75%, and said, “To do that to
their general membership....is irresponsible. I
can’t believe that just because they didn’t get what
they wanted, that they would jeopardize the whole
racing program. It’s like the spoiled kid taking
his bat and ball and going home because he didn’t
get his way.” Foreman, speaking of the racing
commission vote not to intercede in the dispute,
called it “a power play...that was the last straw.
That was like an earthquake.” If it was, the decision to halt simulcasting will create aftershocks
far worse than the quake itself. Using the simulcast threat as leverage, Foreman said the horsemen would like to meet with track management
to try to resolve their differences. Raffetto said
the door was always open. The horsemen have
set a Nov. 30 deadline, the day after the Maryland
Jockey Club plans to close its Pimlico stables for
the winter. The chairman of the racing commission, Tom McDonough, said he was willing
to revisit the issue if a majority of commission members choose to do so.
November 14, 2003
The Interstate Horse Racing Act of 1978, which
the horsemen presumably are using as their leverage, never was intended as a bargaining tool for
issues like stall space or training quarters, and all
parties to this dispute know that.
GREEN PEACE IN ILLINOIS?
The Emerald Casino’s gaming license in Illinois,
shut down since July 29 of 1997, may be up and
running again by April, but not as the Emerald
Casino and not by its owners or operators. According to the Chicago Sun-Times, the state’s attorney general, Lisa Madigan, has apparently
worked out a deal in which 22 female, black, Hispanic or Asian investors in the ill-fated operation will recoup original investments of $31.2
million and get the chance to reinvest it in whatever company buys the vacated Emerald license.
Another 30 investors will recoup their original
investments worth $19.6 million but will not be
able to reinvest the money in the new casino. The
majority shareholders in Emerald, Kevin and
Donald Flynn and family members, will lose $20.6
million in investments and interest rather than
face charges of making misleading statements to
the Illinois Gaming Board. The Flynns will, however, get back some $22 million they loaned the
operation since 1996. Two other investors -- Joseph Salamone, who put up $375,000, and Sherry
Boscarino, who invested $1.5 million thru a family trust, may lose that money because of allegations of being involved in or associates of people
involved in organized crime. When asked about
court challenges by Emerald, Illinois Gov.
Blagojevich told the newspaper the license could
be operational in 2004 “and be available for the
next fiscal year.” Where the new casino -- the
10th and last license in Illinois --might be located,
and who will operate it, remain unanswered questions. At least six municipalities are seeking the
license, but the governor may make the final decision and could select a seventh.
November 17, 2003
ROBINSON OUT AT WOODBINE
THE LAME DUCK SQUAWKS
Following another positive test on one of the
horses he trains, Bill Robinson has been declared
persona non grata at Woodbine Entertainment
tracks in Ontario. Following a milkshaking positive on the horse Flight Plan that raced a week
ago Saturday, Woodbine issued an announcement reading, “Effective Friday, November 14,
Mr. Robinson’s privileges to enter and race horses
at WEG were revoked indefinitely. Horses previously entered to race at WEG are being allowed
to race as programmed but under a 24-hour retention.” The violation was the 11th ruling involving Robinson-trained horses.
Republicans in Kentucky, who now control the
statehouse, are fuming over Paul Patton’s final
acts as governor. Patton, who leaves office early
next month, reappointed most of the 12 members of the Kentucky racing commission, including chairman Frank Shoop and executive director Bernie Hettel, and replaced three. The Republican chairman of the horse farming subcommittee in the state senate, Damon Thayer, called
the move “a sad attempt to remain relevant by a
man who completely lost the confidence of the
people of Kentucky,” and said he will ask Gov.elect Ernie Fletcher to get rid of Patton’s appointments and make his own. The governor’s chief
of staff said Fletcher will ask the newly appointed
and reappointed members of the racing commission not to accept their appointments.
SUSAN BALA OUT IN DAKOTA
The attorney general of North Dakota, Wayne
Stenehjem, has removed Susan Bala, the founder
and owner of Racing Services, from the day-today operation of her betting facility. Stenehjem
says he asked the court-appointed receiver who
has managed the operation since August to remove Bala because she was disrupting operations.
He told the Fargo Forum, “I discussed with the
receiver her involvement and suggested to him
this might be a good time for her involvement to
cease. He (the receiver) told me he had told her
she needs to be out of the building but out of the
operation, too.” Ken Maloney, who has run the
day-to-day operations of Racing Services since
July, remains in that role. Under the new order,
Bala will be allowed to be in RSI’s offices to provide assistance and expertise to the receiver, but
will not have any role in managing the company.
Big bettors have deserted Racing Services since
its troubles became public, and betting revenue
to North Dakota has plummeted. Total OTB
betting there had reached $214.5 million last year.
A new contender, Lien Games, a licensed charitable gaming distributor based in Fargo,
now is seeking the lone license, up next
month.
A PETITION IN BANGOR
MaineToday.com reports that a petition drive is
underway in Bangor to initiate a city referendum
intended to overturn the deal cut by the city with
promoter Shawn Scott for his racino at Bangor
Raceway. Two city councilors have lent their
name to the petition, which hopes to rescind the
city council’s 5-3 vote to accept Scott’s proposition. One of the dissenting councilors, Anne
Allen, said the petition was not an attempt to reverse the results of the June vote to allow slots at
the track, but “to make sure we have a good deal
with a good partner.” Petitioners have 45 days
to collect 2,274 signatures, which would be 20%
of the votes cast in Bangor in the last gubernatorial election, to get the issue to a referendum vote.
Scott, meanwhile, who now controls Vernon
Downs and has a Bangor deal for 75% of slots
revenues, has offered to assist Sharon Terry,
owner of Scarborough Downs, if she gets a favorable vote tomorrow night on a referendum
in Saco, Maine, to close Scarborough and
build a racino in Saco.
VERNON DOWNS IN THE NEWS...
Hoolae Paoa, board chairman, president and chief
executive officer of Mid-State Raceway, Inc., the
parent of Vernon Downs, the Miracle Isle Gaming
Resort Hotel (formerly the Comfort Suites Inn?)
and the still-under-construction and not-yet-licensed Miracle Isle video gaming facility, has announced the appointment of Rose Frawert as the
company’s chief financial officer. Frawert, who
joined Mid-State in September, was named to her
new position at the company’s November 14 board
of directors meeting. Prior to joining Mid-State,
Frawert recently served as casino controller for
Park Place Entertainment’s Reno Hilton hotel and
casino. Frawert replaces James Wise, who resigned
from his position as CFO and treasurer on November 14. Of Frawert’s appointment, Paoa said,
“Mid-State Raceway is indeed fortunate to have a
person of Rose’s talents and experience take over
its financial responsibilities.”
Meanwhile, the Albany Times Union was busy reporting on some of Hoolae Paoa’s talents and experience. In today’s edition of the paper, writer
James Odato reveals that Vernon’s top corporate
officer is a convicted felon. According to the report, Paoa was convicted of felony theft in Hawaii
in 1984. He pleaded guilty to stealing from a management company after being charged under a 27count indictment. The New York State Racing and
Wagering Board issued Paoa a temporary racing
license for this year. Board Spokesperson Stacy
Clifford told the Times Union that the Board is
aware of the conviction, and that criminal histories do not necessarily preclude people from getting a racing license. Vernon Downs has attempted
to become the first of eight New York racetracks to
install video lottery terminals, and the track has
been advertising an early November 2003 opening
of its slots parlor. Mid-State’s finances and operations have been under scrutiny by state
regulators, who issued a conditional racing
November 18, 2003
license to the track this year in spite of “recommendations against such a move by the board’s
staff.” Since acquiring Vernon more than a year
and a half ago, Mid-State’s debt has grown to $23
million from $7 million, according to Jeff Gural, a
Mid-State shareholder.
COURT REBUFFS PATAKI
The U.S. Supreme Court refused to get into a debate over Indian gaming on Monday. The administration of New York Gov. George Pataki has urged
the justices to consider whether courts have the
authority to block tribal-state agreements, which
state lawyers noted are in place in about 25 states
nationwide. The justices, however, declined without comment to review a 4-3 decision by New York’s
highest court that found that governors cannot
bypass the legislature in authorizing Indian tribes
to establish casinos. The ruling invalidated a 10year-old compact that Gov. Mario Cuomo reached
with the Mohawks to open a casino in New York.
The lawsuit was filed by the Saratoga Chamber of
Commerce and other gambling opponents. The
Mohawk tribe did not participate in the case. “I
am very pleased by today’s decision,” said
Cornelius Murray, the lawyer representing the
groups that sued. “It paves the way for a second
lawsuit, now in the Appellate Division, Third Department of the state Supreme Court, which will
answer the ultimate question of whether Indian
casino gaming is constitutional, even if the governor receives legislative authorization.”
SLOW GOING IN PENNSYLVANIA
It’s looking more and more like Gov. Ed Rendell
and the Pennsylvania legislature won’t finish a state
budget until late December -- or even as late as early
in 2004. While state legislators returned yesterday
from a 2-week break, their disagreement with
Rendell on key funding issues, such as slots at
tracks, makes a quick resolution unlikely.
November 19, 2003
LEHMAN TELLS NJSEA: SELL
SACO SAYS NO, LOUDLY
Lehman Brothers bankers in New York have
advised the New Jersey Sports and Exposition
Authority to sell control of the Meadowlands and
Monmouth Park to private operators. The
NJSEA, in response, will convene its full board
next Wednesday to decide whether to solicit formal bids, consider leasing the tracks, or stay put
and play its present hand, according to the Newark Star-Ledger. Lehman Brothers, asked by
NJSEA CEO George Zoffinger to evaluate the
situation, estimated the two tracks to be worth
$300 million, but others close to the situation disagree with Lehman’s advice. Dennis Drazin,
counsel for the New Jersey thoroughbred horsemen, thinks Lehman and the state of New Jersey
have undervalued the tracks, telling the Star-Ledger that it makes little sense to sell them when
phone betting, Internet betting, OTB and technology could put them “on the cusp of major
growth.” The issue of slots also is pending, although it appears that Atlantic City casinos have
enough strength and clout in the state to either
block or delay that development. The Star-Ledger called the latest developments “a direct result of Gov. James E. McGreevey’s mandate to
get the state out of the sports business,” noting
that during the last 18 months the authority had
turned over control of Giants Stadium to the
Giants, nearly finalized an agreement to transform the Continental Airlines arena site into a
sports, entertainment and retail complex, and
possibly turn over control of the arena to the New
Jersey Nets and Devils if they remain in the building. John O. Bennett, the outgoing Republican
president of the New Jersey senate, who represents the district in which Monmouth Park is located, told the Star-Ledger he is opposed to selling or leasing the tracks until the sports authority produced a plan that guaranteed high
purses over the tracks over the next three
years.
With some 300 residents packed into the city
council chambers of Saco, Maine, and more than
75 of them speaking up in a session that lasted
almost five hours, the council rejected, by a vote
of 6-1, the idea of holding a referendum next
month to allow Scarborough Downs owner
Sharon Terry to build a new track in the town.
Terry had asked for the referendum after
Scarborough voters turned down the idea of a
racino at Scarborough Downs. Ms. Terry had
obtained an option on a parcel of land just over
the Scarborough-Saco boundary line, and so,
according to MaineToday.com, had Victoria Scott,
the mother of Las Vegas promoter Shawn Scott.
It had been reported earlier that Scott had offered to partner with Ms. Terry, but Kathryn
Ralston, Ms. Terry’s associate at Scarborough,
told the Associated Press that the offer had been
rejected. Now, with Saco out of the question,
Scarborough Downs has asked the city council
of nearby Westbrook to hold a referendum on
having a racino built there, and a public hearing
has been scheduled for Westbrook high school
for next Monday. Ms. Terry also reportedly has
been talking to property owners in Old Orchard
Beach, which could result in the return of harness racing to that community which at one time
held Grand Circuit racing on a storied track
where Greyhound, among other great horses,
raced.
IN OTHER DEVELOPMENTS...
Ohio senator Louis Blessing has proposed to earmark slot revenues for the state’s general fund
as a compromise toward the opposing House.
Horsemen and management may be nearing a
compromise in the Maryland dispute over
Pimlico winter training. And Hoolae Paoa, president of Vernon Downs, has offered to step down
if past criminal convictions threaten chances
of a casino license there.
November 20, 2003
NOT A GOOD WEEK FOR SCOTT
P.S. TO VEGAS: MOVE OVER
Things went from bad to worse this week for Las
Vegas whiz kid Shawn Scott. First his close associate Hoolae Paoa turned out to be a convicted
felon; then investigators in Maine announced
they would release the findings of more than 100
financial and legal documents from seven states
they have researched; it was revealed that the
racino law in Maine apparently was written not
by legislators but by a lawyer hired by Scott; the
Wisconsin Oneidas announced they have purchased property near both Vernon Downs and
the Turning Stone casino, presumably with the
intention of building a casino on their old ancestral grounds; and then New York City real estate magnate and harness horse owner-breeder
Jeff Gural and his associates, who want to buy
Vernon from Scott, filed a federal lawsuit alleging that Scott and his pals had “looted” millions
from the track. Vernon has announced loudly
that it would be the first to open a racino in New
York, even though it does not yet have a license
to do so for 2004, and the new legal development,
combined with others in New York state, may
delay things further. The Gural suit filed late
Wednesday in Manhattan by Gural’s Vernon
Downs Acquisition LLC; former Vernon president John Signorelli; and Gary Greenberg of Albany; names Scott, his partner John Baldwin of
Las Vegas, and Hoolae Paoa, currently president
and CEO of the track, among others. It lists a
series of loan transactions and alleges the warrants were issued in violation of federal securities law. The most recent transaction cited was a
$3 million line of credit to Mid-State Raceway,
which owns and operates Vernon, with interest
at 25% plus a 25% loan fee. The complaint in
the federal action also alleges that Scott lost his
Cheyenne Casino gaming license in 1997 “because Nevada regulators concluded that
Cheyenne’s financial statements were ‘to
a large extent smoke and mirrors.’”
Las Vegas casino operators have talked loudly
and spent lavishly trying to stem the challenge of
California Indian casinos that can cut into their
business. Now they have a new threat, and a far
more ominous one. The city of Palm Springs,
long a major destination for the rich and famous
of Los Angeles and Hollywood, this month opened
a posh Indian casino smack downtown, in the
heart of the city’s business section of expensive
shops and fancy restaurants. Not only opened it,
but declared open war on their Nevada neighbors with ads asking, “Why Vegas?” Palm
Springs itself is a city of only 46,000, but it claims
it has 3 million visitors a year. It also now has
6,649 slot machines, 163 table games, and millions of dollars in cash prizes and merchandise,
according to the Contra Costa Times, which headlined its story, “Palm Springs bets future on casinos.” With more sun than Vegas, with a glitzy
reputation already built, and with good direct
access by air from around the country, this city
is one that could win its bet.
WESTBROOK FOR MS. TERRY?
The Portland Press Herald in Maine reports that
things may be looking up for Sharon Terry, the
operator of Scarborough Downs who has been
looking for a new site for a racino after being
turned down by both her home town and neighboring Saco. The newspaper says prospects are
brighter in Westbrook, where four of seven city
councilors have said they favor sending the proposal to referendum. One problem for Ms. Terry
is that two of those favoring the idea will be out
of town when the city council meets next Monday to decide the issue, and time is running out.
Scarborough does not yet have an option on
Westbrook property, and faces a Dec. 31 deadline on having town approval. The undecided
councilmen have indicated they would like
specifics, including location.
November 24, 2003
TWELVE BIDS FOR ROSECROFT
WORKING THINGS OUT IN NJ
Depending on which newspaper you read, Maryland governor Robert Ehrlich is either winning
over the legislature toward slots or is still stalemated by speaker of the house Michael Busch.
Either way, it is obvious that a lot of people feel
certain Rosecroft Raceway will get them soon,
for twelve bidders met last Friday’s 5 p.m. deadline to submit bids to buy the track from Cloverleaf Enterprises, the horsemen’s group that owns
the track. Cloverleaf CEO Tom Chuckas Jr. did
not release the names of the twelve, but one of
the bidding groups quickly identified itself. Louis
Angelos, son of Baltimore Orioles owner Peter
Angelos and a member of his father’s law firm,
said he represents “an entity to acquire the assets of Rosecroft.” His father is not participating because of a ban on major league owners also
owning racetracks. The newspaper reports referred to earlier painted different portraits of how
governor Ehrlich is faring. The Baltimore Sun,
polling Republican legislators, found that 34 of
57 now are ready to vote for slots, 9 are opposed
to any slots measure, 3 are undecided and 11 did
not respond to the newspaper’s survey. That represents significant change, since a majority of Republican legislators once were strongly opposed
to slots. The Washington Post, reporting on
Ehrlich’s first press conference in months, said
he now is willing to limit slots to either Pimlico
or Laurel as a concession to Busch, but also reported that Busch still is intransigent. Ehrlich
had said that he expected “real progress over the
next few weeks” and that his staff and Busch’s
were meeting face to face, but Busch said he was
unaware of any negotiations at any level between
his office and the governor’s. An Ehrlich spokesman said chances were 50-50 that the General
Assembly would meet in a special session before
January to consider the issue, but Busch
said, “I wouldn’t put any heavy money
on that.”
Regardless of what happens in Maryland, it appears some deal-making is underway in New Jersey as to a compromise between racing and Atlantic City casinos. The Bergen Record reported
that state legislators met Friday with executives
from the New Jersey Sports and Exposition Authority to discuss the possibility of some support
arrangement for racing from shore casinos, and
$100 million of “diverted revenue” over the next
three years was mentioned. State senator Paul
Sarlo, a Woodridge Democrat who wants slots at
the Meadowlands with casinos as partners, was
quoted as saying, “We’re moving toward a compromise, which is the right thing to do, and maybe
this is a steppingstone to working together in
other ways in the future.”
ANOTHER TERRORIST VICTORY
Not all terrorists activity is in Iraq or Afghanistan. The impact of terrorists is being felt in this
country in the chipping away at civil liberties
under the so-called Patriot Act of 2001. The latest incursion occurred last week in Congress,
where both houses quickly passed a broad expansion of the FBI’s counter-terrorism powers.
The latest move, which seems assured of the
president’s signature, will require businesses that
handle large cash transactions -- including casinos, travel agencies, car dealerships, jewelry
stores, realtors, even the U.S. Postal Service and,
presumably, racetracks -- to surrender all financial records to the FBI without a court order.
Supporters claim the greater FBI powers are
needed to protect against terrorism. Civil libertarians and others see it as one more loss of privacy. I. Nelson Rose, the California expert on
gambling law, called it “an overreaction” and said
there is no evidence that terrorists are using gambling cash. Secrecy shrouded House and Senate committee action on the bill, and no taxpayer cost was revealed.
MAINE HAPPENINGS BIZARRE
If you like soap operas, tune in on the one going
on in Maine. Each day brings a new development. Here are the latest fascinating happenings:
The Westbrook city council voted 4-1 to send
Sharon Terry’s request to build a new
Scarborough Downs racino in Westbrook to a
referendum vote next month. If the public votes
yes, Scarborough Downs presumably will become
Westbrook Downs, at a location less than five
miles from its former site.
The Portland Press Herald/Maine Sunday Telegram obtained a copy of a pre-election 11-page
agreement, which troubled the state’s governor
John Baldacci, in which Scarborough Downs and
Bangor Historic Track and the Maine Standardbred Breeders and Owners Association agreed,
among other things, to give “complete and unequivocal support for Capital Seven, Shawn Scott
and its affiliated persons or entities in any ‘good
moral character’ determination required with
respect to Capital Seven or any of its affiliated
persons or entities.” The chief counsel to the governor said that while industry groups and associations are allowed to make agreements to try
to influence legislative or regulatory processes,
he was “surprised when I read the agreement,
not from a legal perspective as much as from a
citizen perspective -- that there is a contractual
obligation for individuals to attest to the good
moral character of another individual.” A director of the Maine Standardbred Breeders and
Owners Association, William Childs, said “if we
find dead bodies in his back yard, we will not be
supporting him,” presumably meaning Scott.
He did not say when or if the group would begin
looking for dead bodies, or if it had before signing the agreement, which the
November 25, 2003
governor’s office says “should have been seen by
the public before the election, so that people voting on Election Day would have all the information necessary to make the right decision.”
To add to the bizarre situation, full page ads suddenly appeared urging Westbrook to reject
Sharon Terry’s application to build there. They
were paid for by a PAC called Good Morals for
Maine, which registered with the state Commission on Governmental Ethics and Election Practices five days before the November election, with
a registration form bearing a fax number that
originated in Las Vegas. The number matched
that on a separate form from a political action
committee funded by Capital One LLC, a subsidiary of Scott’s Capital Seven. Asked about
this action in view of the formal written agreement that included Capital Seven to work together for a Scarborough racino, the executive
secretary of the Maine Harness Horsemen’s Association, William Hathaway, told the Portland
Press Herald, “I am very disappointed and this
is certainly a regrettable circumstance.”
JOHN CAMPBELL ON ESPN2
The sport’s most articulate and successful driver,
John Campbell, gets a national shot tomorrow
morning with a live interview on ESPN2’s morning show Cold Pizza. The show gets two airings,
one from 7 to 9 a.m. and another at 9 to 11 a.m.
On Breeders Crown day morning this Saturday,
New York’s WCBS-TV’s weatherman Jeff
Beradelli will do live remotes from the Meadowlands, and two interviews featuring Crown personalities also are scheduled to be aired.
NO SURPRISES, PLEASE
HTA directors and track execs coming to the
Racing Symposium, please let us know so we
can look you up while in Tucson.
MORE INTRIGUE IN MAINE
Developments were flying at warp speed in Maine
this morning. First, Superior Court justice
Donald Marden denied Shawn Scott’s petition
for a temporary restraining order to prevent the
Maine Agriculture Department, which oversees
the Harness Racing Commission, from releasing
its findings on a background check on Scott.
Then Scott’s lawyers rushed to Portland and just
as the findings were scheduled to be released at
noon, they were granted a stay until Monday by
Leigh Saufley, chief justice of the Maine Supreme
Court. The hearing will be held Monday at 2
p.m. That was only half of today’s story, however. Scott has filed suit against Scarborough
Downs, claiming that after track owner Sharon
Terry made a verbal agreement to partner with
Scott’s Capital Seven she had refused to sign a
written version. Ms. Terry, who won a referendum vote in nearby Westbrook, gained it after a
lengthy public hearing in which her new partner, Peter Carlino of Penn National, appeared
personally and made what was described as an
impressive argument for approval, which the city
council voted for 4-1. Even that development
grew complicated, however, as the mayor and new
council of the town of Saco, adjoining
Scarborough, announced it might reconsider the
decision made last week by the outgoing administration not to hold a referendum. Ms. Terry
holds an option on 69 acres of land in Saco, but
none as yet in Westbrook. Shawn Scott’s mother,
Victoria, also holds an option on land in Saco.
Finally -- well, that’s hardly accurate, since nothing seems “finally” in Maine these days -- Shawn
Scott’s PR firm denies that Scott’s Capital Seven
had anything to do with the full page ads suddenly run by something called Good Morals For
Maine, urging Westbrook and Saco to vote
against Scarborough moving to those
towns. The firm could offer no explanation of how the registration for the PAC
November 26, 2003
Good Morals for Maine happened to come from
the same fax number in Las Vegas as the registration for Scott’s Capital Seven. Maine harness racing officials said they were “stunned” and
“amazed” that after signing on to testify to Scott’s
character and having him agree to support
Scarborough Downs, he would be linked to ads
urging voters to turn down Scarborough’s request. The ads appeared after Scarborough chose
to partner with Penn National rather than Capital Seven.
HARBOR TRACK IN BALTIMORE
That’s the proposal being floated by the chairman of the Maryland Stadium Authority, Carl
A. J. Wright, a close political ally of Gov. Robert
L. Ehrlich Jr. The Authority built both the major league football and baseball stadiums in Baltimore, and Wright told a legislative committee
in Annapolis yesterday that construction of a
horse racing track and gambling resort in
Baltimore’s Inner Harbor “would let Maryland
set the standard for the racing industry.” He did
not say “standardbred,” and he talked about the
Preakness moving to the new site instead of being raced at its traditional Pimlico home. Nothing was heard from Ehrlich on the issue, but
Wright has heavy clout with the governor, having been a major fundraiser for his campaign and
having served as chairman of his inaugural committee.
TWO ROOMS AT LOEWS
Two rooms at Loews Ventana Canyon hotel in
Tucson, the site of the upcoming annual Racing
Symposium, are available thru our friends at
TRA. If interested, call Margie Pollard directly
at the TRA offices at 410-392-9200.
HAPPY THANKSGIVING
Have a great holiday. We’ll be back with
the Daily Executive Newsletter Monday.
A SLIGHT CHANGE IN STATUS
Last week, when confronted with the fact that
the registration of a group called Good Morals
for Maine came from the same fax machine as
promoter Shawn Scott’s Capital Seven LLC,
Scott abruptly denied having anything to do with
the organization, which ran full page ads urging
the towns of Saco and Westbrook in Maine to
turn down requests to build there by Scarborough
Downs. He referred the matter to a spokeswoman, Christen Graham, who told reporters,
“There is no relationship and there never was.”
The denial was important, because Scott still
needs to be licensed later this month by the Maine
Racing Commission, and a lot of disturbing elements have come into play in recent days, including Scott suing Scarborough for allegedly breaching a verbal commitment to partner on a new
track, the revelation that the president of his
Vernon Downs operation is a convicted felon, and
the embarrassment to harness racing groups, including Scarborough Downs and Bangor Raceway, which had signed an agreement to testify to
Scott’s character at the upcoming commission
meeting. It now turns out that the denial of a
relationship was not accurate. Obviously unable
to explain the fax number situation, Graham issued a prepared statement saying that Scott “was
neither aware of that assistance” nor did he “approve of the activities in which the committee has
been engaged,” quickly adding, “No Maine rules
or laws have been violated.” Perhaps not, but
the Scarborough lawsuit and another filed by
Scott to block release to the public of results of a
state background check have shaken the confidence of a number of people involved in Maine.
The Bangor Daily News ran a headline, “Council
wavers on developer” and the Kennebec Journal
Online carried one reading, “Racino leader wrong
man for business here.” The Maine Supreme Court holds a hearing later today
on the background release.
December 1, 2003
The same sentiments are surfacing in New York,
where Scott controls Vernon Downs, which hopes
to get a license to operate slots. The Albany Times
Union.com headlined a story, “Officials antsy
over racetrack casino,” with a lead by the paper’s
Capitol bureau writer James M. Odato reading,
“Two Oneida county lawmakers are worried
about Vernon Downs’ ability to get key licenses
to keep the track open and run a casino.” Sen.
Ray Meier, a Utica Republican, was quoted as
saying, “I think anybody looking at the allegations unfolding in the news media have some concerns.” Assemblyman David Townsend, a Republican from Rome, told Odato, “I get a sick
feeling in my stomach. Every time we turn
around another issue pops up with these guys
from Vernon Downs.”
GIULIANO RESURFACES
Louis Giuliano is back in the racing news in
Massachusetts. The Boston Globe reports that
the Rhode Island developer, who lost out in a
battle for Plainridge Racecourse, now has won
preliminary approval from the Massachusetts
Racing Commission to open Foxboro Place,
across from the New England Patriots’ stadium
on route 1 and some six miles north of Plainridge.
The property is across the highway from old
Foxboro Downs, which was torn down to make
way for the stadium that opened last year.
Giuliano still needs town zoning approval, but
the building inspector of the town of Foxborough
has ruled the track does not qualify as a stadium
and would not be allowed under current zoning.
Giuliano will appeal that decision at a Dec. 17
meeting of the town’s zoning board of appeals.
RED MILE WINS VAN LENNEP
The Hambletonian Society has named the ownership team of the Red Mile in Lexington as winners of the 2003 Van Lennep Memorial Achievement Award for restoring and revitalizing
the historic track.
GOING, GOING, GONE IN OHIO
The Cleveland Plain Dealer and Dayton Daily
News reported today that the deal for slots at Ohio
tracks had crumbled in the legislature, and appears dead. Both papers quoted key lawmakers
and lobbyists as saying the legislature had failed
to reach a compromise following last ditch efforts
to revive the legislation, and today was the deadline for getting a proposal on the March 2004
ballot. The irony in the failure is that enough
votes apparently existed, but differences in how
to spend the profits -- whether on college scholarships for worthy Ohio kids or to boost the general fund for tax relief -- doomed the venture.
Ohio’s tracks now face the prospect of collecting
the signatures of 322,899 registered voters by
August 4 next summer in order to get the proposal on the November 2 general election ballot.
One key player in the movement for slots, Sen.
Louis Blessing of Cincinnati, planned to make a
final pitch for the plan today, but admitted it was
“a longshot.”
TODAY’S SHAWN SCOTT SAGA
Here are the latest developments in Shawn Scott’s
battle for slots in Maine:
The state’s Supreme Judicial Court held a hearing yesterday on whether to grant Scott’s petition to keep the state’s agricultural department
from issuing a public release of its background
check on Scott. No decision was reached or announced as of press time. A lower court had denied Scott’s request to bar the release, but the
Supreme Court granted a stay and yesterday’s
hearing.
Gov. John Baldacci of Maine is urging the Maine
Harness Racing Commission to delay consideration of a license for Scott to operate Bangor
Raceway, saying he would like to
strengthen the regulation of gaming before issuing a license for the racino there.
December 2, 2003
The new mayor of Saco, where the town council
turned down a bid for a referendum on letting
Scarborough Down build a racino there, announced as his first act yesterday after taking
office that he will hold another special meeting
tomorrow night at 7 p.m. to reconsider the possibility of allowing the racino. Sharon Terry, owner
of Scarborough Downs, has an option on 69 acres
of land on the Saco-Scarborough line, within the
5-mile limit imposed at Shawn Scott’s request,
and Ms. Terry also has an apparent partner in
Penn National Gaming.
The Syracuse Post-Standard reported that the
Vernon Town Board will investigate whether its
town codes officer committed misconduct by
working for Vernon Downs at the same time he
was inspecting the track’s casino.
THREE RACING VOTES TODAY
On today’s calendar:
A vote in Romulus, Michigan, on approving
Magna Entertainment’s plans for a new track
and entertainment complex there.
Consideration by the city council of Vancouver,
British Columbia, on a staff report recommending 600 slot machines for Hastings Park.
A Florida Supreme Court hearing on a tracksponsored PAC request for a November 2004
statewide ballot question that would let MiamiDade and Broward county voters decide on slots
at tracks.
MILLSON BACK AT WINDSOR
The Windsor Star reports that John Millson has
returned to Windsor Raceway as chairman of the
board. Millson had been president of the HTA
track for 11 years, but had been absent following the death of owner Tom Joy during a
dispute over control of the track.
December 3, 2003
ROSECROFT BIDDERS EMERGE
ROMULUS VOTERS SPEAK
Cloverleaf Enterprises, which owns Rosecroft
Raceway, has not released the names of the 10 (or
is it 12?) bidders for their tracks, but Baltimore
and Washington newspapers have been chipping
away at the list. Cloverleaf is scheduled to meet
tomorrow to consider the list, and CEO Tom
Chuckas Jr. says he hopes to announce the winning bidder by Dec. 12, a week from Friday. The
Washington Post says there are 10 bidders, the Baltimore Sun says there are 12. The Post’s list of contenders includes the group formed by Louis
Angelos, son of Baltimore Orioles owner Peter
Angelos; Harrah’s Entertainment of Las Vegas;
Penn National Gaming of Pennsylvania; Magna
Entertainment of Ontario; and Carl D. Jones, a
prominent African-American businessman who
was associated with the unsuccessful Centaur group
and now is partnering with Robert A. Pascal, an
unsuccessful Republican nominee for governor of
Maryland in 1982 who was in charge of patronage
appointments for former governor William Donald
Schaefer. Pascal describes his friendship with current powerful House speaker Michael E. Busch as
“a father-son relationship.” Busch has been able
to control the slot machine issue in Maryland this
year. Pascal identified Rosecroft as “a good piece
of property with good potential that gaming might
happen. It’s worth the effort.”
The city of Romulus, Michigan, took a step toward
a gaming and entertainment hot spot on Tuesday
when voters approved proposals by Magna Entertainment Corp. for a racetrack/entertainment center and by the Sault Ste. Marie Tribe of Chippewa
Indians for a casino. The casino proposal passed
with 57 percent support and the racetrack question passed with 53 percent support. Romulus is
mainly known as the home of Detroit’s Metro Airport. Magna bought a 212-acre site and proposes
a $125 million racetrack. Magna officials are working to amend a Michigan law that allows horse track
operators to run just one racetrack in the state, according to a report in The Detroit News. If the law
is amended, Magna is poised to build a track and
170,000-square-foot entertainment complex. Legislators are also considering whether to allow slot
machines at Michigan racetracks.
HASTINGS SLOTS DELAYED
The city council of Vancouver, British Columbia,
split almost down the middle on the issue of slots
for Hastings Park, did yesterday what political
bodies do frequently when faced with tough decisions. They did nothing. They voted, 6 to 5, to
defer a decision until June 8, supposedly to give it
time to talk to residents of the area about their
wishes. They did, however, approve a public hearing on 600 slots on a Vancouver casino site, which
caused Hastings Park president Phil Heard to say
he felt like a boxer who had just “gotten
two to the head.”
TODAY’S SCOTT REPORT
There is no such thing as a day without Shawn Scott
doing something, and yesterday was one of them.
In New Mexico he filed a challenge to the racing
commission’s awarding of the Hobbs license to R.
D. Hubbard, citing Hubbard’s problems last year
with the Belterra Casino Resort hooker incident in
Indiana. In Maine, he now has angered newsmen,
not a wise move for a guy seeking favors there.
Columnist Bill Nemitz, writing in the Portland Press
Herald, started his column by asking, “Who is this
Shawn Scott and what is he trying to hide?” The
question arose again in connection with Scott’s
hearing before the Maine Supreme Court to block
release of his background report. Nemitz said
Scott’s PR gal, Christen Graham, told him,
“Shawn’s not going to talk to you today -- that’s
the bottom line. He’s not ready to talk to the media.” Scott obviously is not short on ego, but he’s
short on judgment getting the press upset when he’s
already under fire.
December 4, 2003
WHOA, NELLIE, FUSS IN NJ
A STEP CLOSER TO XANADU
The Newark Star-Ledger reports this morning
that the New Jersey Racing Commission has
asked a state court judge to levy tens of thousands of dollars in fines against the New Jersey
Thoroughbred Horsemen’s Association and turn
over the finances of the organization to the commission. The bad blood between the two organizations goes back at least two years, with the commission alleging that the THA board has spent
hundreds of thousands of dollars in legal fees to
counsel Dennis Drazin, and has used other funds
that should have gone to backstretch employees
on airline travel, hotel stays and celebratory dinners. A hearing has been scheduled for Dec. 19,
and the newspaper says that if State Chancery
Court Judge Alexander Lehrer accepts the THA’s
accounting and spending practices, the battle
may be over. The implications go beyond that,
however, for Drazin accuses commission director Frank Zanzuccki of personal attacks designed
to keep Drazin from taking a seat on the
reconfigured racing commission.
Kubla Khan’s pleasure dome moved a step closer
to reality yesterday when the New Jersey Sports
and Exposition Authority finalized its agreement
to build a $1.3 billion sports and entertainment
center around the Meadowlands Arena. Carl
Goldberg, chairman of the Authority, called it
“a historic day for the sports authority” after
signing of the agreement with a consortium of
builders following 10 months of negotiations.
The Mills corporation of Arlington, Virginia, and
Mack-Cali Realty of Cranford, NJ, will build
Xanadu on 104 acres of Sports Authority property. Mack-Cali’s CEO Michael Hirsch called
the negotiations “a very long process, a very detailed process” after NJSEA president George
Zoffinger signed the agreement following Gov.
James E. McGreevey’s approval. The Sports Authority board voted to approve the deal on a 9-2
vote, with one of the two dissenters, Raymond
Bateman, saying, “On the 30-40 days a year when
Giants Stadium is filled to capacity, I predict it
will be absolute gridlock.” Construction could
start as early as spring depending on the outcome of a lawsuit, now is in the appellate division of New Jersey Superior Court, filed by rival
developer Hartz Mountain Industries, and obtaining necessary environmental permits.
AND ANOTHER IN MARYLAND
Another racing commission member is in the
news this morning. John Franzone, a member
of the Maryland Racing Commission, is reported
by the Washington Post to be “the brainchild” of
the idea to build a new racetrack in Baltimore’s
Inner Harbor. The idea had been credited to Carl
A. J. Wright, chairman of the Maryland Stadium
Authority, but the Post says it is really Franzone’s
idea. He is a neighbor of Wright and told the
paper, “I’ve talked to Carl a lot about it since he
joined the Stadium Authority.” Franzone was
an appointee of former governor Parris
Glendening, the bitterly anti-slots Democrat who
preceded present slots advocate Robert L. Ehrlich
Jr. Franzone wants Pimlico and Laurel
racetracks consolidated, saying, “The
state really doesn’t need a Laurel and a
Pimlico.”
TODAY’S SCOTT REPORT
Shawn Scott now has hired Kathleen Newman,
a member of the Maine State Liquor and Lottery Commission, to head a new PAC called
Maine Opportunities, which is running ads designed to block Penn National Gaming from
partnering with Scarborough Downs. Ms.
Newman says her dual role is not a conflict of
interest, but the governor of Maine does not
agree. Saco’s new town council, meanwhile, reversed the decision of the old one and will
hold a referendum this month on allowing
December 5, 2003
FEDS CUT A DEAL WITH NYRA
SCOTT LOSES A BIG ROUND
According to press reports in New York Newsday
and the New York Times, the Justice Department
has worked out an arrangement with the New
York Racing Association, known as deferred prosecution, under which NYRA will be indicted but
not go to trial. The Times reports the indictment,
for conspiracy, tax evasion and fraud charges,
could come as early as today, and while NYRA
would be free under the agreement to continue
to operate Aqueduct, Belmont Park and Saratoga
Race Course, several of its managers would be
less fortunate and have to stand trial. Newsday
said NYRA would pay several million dollars in
fines and several members of its board of trustees will resign.
Promoter Shawn Scott and his retinue of lawyers lost a big round yesterday in Maine, when
the state Supreme Judicial Court turned down
his request for confidentiality of a background
check and the 32-page report was immediately
released to the press, which had requested it under the Freedom of Information Act. Although
Scott’s lawyers crowed that “You will not find
any criminal record, any indictments, any arrest
records, anything like that involving Shawn
Scott,” it became apparent why they had fought
so hard to release the document. Among other
things, Maine Today.com reported:
FUMO JUST WON’T QUIT
Every time slots legislation for tracks in Pennsylvania comes up for discussion, the name of state
senator Vince Fumo, a Philadelphia Democrat,
comes up with it. He has played a large role in
the legislative battle that still exists, and now he
has injected a new issue. Fumo says he will introduce a bill that would give two Oklahoma
Delaware Nation Indian tribes gaming licenses
on 315 acres of land near Philadelphia they claim
they own. A Fumo spokesman says the proposed
legislation, still in draft form and not yet introduced, would limit Indian gaming to the two
Delaware Nation tribes already involved, and,
according to him, could eliminate a court fight
that would best be avoided. In Maryland, meanwhile, 17 directors of Cloverleaf Enterprises met
yesterday to discuss the various interests seeking
to buy the track. No announcement was made,
but Rosecroft director of operations Mary Manny
did say that two of the applicants, Cloverleaf director Mark Racigliano and Winbak farm owner
Joe Thomson and his partner Lloyd
Arnold, were “in it to revive racing and
make it what it used to be.”
That though Scott claimed that his Capital Seven
owned less than 50% of Bangor Historic Track,
it paid 96% of the purchase price.
That Scott companies did not provide all materials requested by the state, and that a similar
problem had existed in New York and Louisiana.
That Scott’s close associate Hoolae Paoa had a
history of arrests and convictions from 1978 to
1997.
That Scott companies were involved in 36 lawsuits from 1992 to 2000 in four states, and have
been subject to 13 liens, four tax liens and one
bankruptcy.
That Scott held an interest in “dozens of companies that demonstrated sloppy, if not irresponsible, financial management and accounting
practices.”
That a business associate of Scott’s “appears to
exercise some managerial and financial control
over Scott’s companies.”
Altogether, not a shining Scott day.
December 8, 2003
JOE MCLOONE DIES AT 86
THE DEEPER WOODS OF MAINE
Joe McLoone, one of the most popular directors
and presidents in HTA and USTA history, died Dec.
5 at his home in Hobe Sound, Florida, after a brief
illness. Ebullient and exuberant, with a story for
and about everyone, Joe could light up any room
and keep any discussion on even keel. He had been
a Seebee in the South Pacific in World War II and
was a retired commander in the U.S. Naval Reserve.
A former president of Freehold Raceway as well as
HTA in 1980 and 1981, and USTA and the World
Trotting Conference, he also served as board chairman of the Centra State Medical Center in Freehold and was active in the Association for Retarded
Citizens from 1972 to 1993. A Brooklyn native,
Joe was a New Yorker at heart but a citizen of the
world. HTA sends its deepest regrets to his wife
Sheila, and to his sons Briane of Sea Bright, NJ,
and Tim, of Little Silver, NJ. Joe was buried in
Maplewood Cemetary, Freehold, and memorial
donations may be made to the Father Benedict
Fund at St. Bellarmine Church in Freehold or the
St. Vincent DePaul Society at St. Christophers in
Hobe Sound, Florida.
Shawn Scott is finding out that the woods of Maine
grow thick in the northern reaches of the state, and
as far as that goes the bushes even get thicker on
the rolling hills of central New York. The slick Las
Vegas promoter now talks only to the press through
a PR lady named Cristen Graham, who has been
kept busy trying to turn negatives into positives.
Scott’s trick of skirting conflict of interest laws in
hiring officials is beginning to haunt him, in both
Maine and New York. In Maine the town of Bangor
and the governor are uneasy over hirings of a
Bangor councilman and a state liquor commission
member to work for Scott’s causes, and in New
York there are now second thoughts on the part of
legislators about events at Vernon, including the
hiring by Scott of a town codes inspector. Adding
to the growing problems is the arrival of Penn
National Gaming, a most formidable foe, on the
scene, which earlier Scott had all to himself. The
governor, whose older brother briefly represented
Scott, wants the Maine Racing Commission to delay action Dec. 15 on Scott’s Bangor license, which
would give the legislature time to appoint a new
gaming commission that would take over racino
supervision. Public perception is changing in
Maine, and public pressure, self spoken and
through media, may in the end play a far more crucial role than originally expected.
CRIMINAL TRIAL FOR TRAINER
The Maine Racing Commission hasn’t gotten
around to it yet, despite a thorough SIS investigation, but the Animal Welfare office of the Maine
Department of Agriculture has decided to prosecute
Chris Lefebvre, accused of causing the death of a
horse in his care. Lefebvre, is alleged to have improperly milkshaked the pacing mare She’s A Lady
Too, so badly last June at Scarborough Downs that
the mare died of severe lung trauma. A criminal
trial, filed by the Animal Welfare office, is scheduled for next Monday, Dec. 15 at 1 p.m. in criminal
court in Portland. It is the same day the Maine
commission is scheduled to hear the licensing matter of Shawn Scott, but Executive Newsletter will
make certain the Lefebvre matter is not lost in the
news shuffle.
Vernon Downs also is facing new licensing in two
weeks, and UticaOD.com, covering the track’s
Mohawk Valley area, says the Maine revelations
“have raised more questions about the past gambling ventures of the investor, Shawn Scott.” The
service says that politicians who have vouched for
the track in the past “are voicing concerns these
days,” and one assemblyman, David Townsend,
who represents Vernon’s district , was quoted as
saying, “I think it’s all up in the air at this point
until the parties at Vernon deal straight up with
the state about the individuals involved.”
December 9, 2003
TALK AND ACTION
NEW FUMO SLOT PLAN IN PA
The talk was here in Tucson, as the weeklong
University of Arizona’s Racetrack Industry Program Symposium got underway. The action was
virtually everywhere else.
Pennsylvania state senator Vince Fumo, who has
been in the thick of the slots-at-tracks battle from
day one and does not want tracks to be the only
ones to have them, has floated a new idea. Fumo
wants three classes of tracks: A, B and C. Six
“A” licenses would go to operating or licensed
commercial racetracks. Two class “B” licenses
would be available for federally recognized Indian tribes, provided they paid the state the same
share other licensees, including the tracks, paid;
and five class “C” licenses would go to other applicants, two of which would be in Philadelphia
and one in Pittsburgh. Fumo’s staff says a market study projects gross revenues of at least $2.9
billion from those sites, which with a 34% tax
would provide the $1 billion governor Ed Rendell
wants to raise. Fumo held out a carrot to tracks
that would lose a third of their revenues from
the competition. He proposes giving them a
greater profit margin than proposed in previous
legislation. Mike Jeannot of The Meadows said
he could live with the Fumo idea, but he still prefers a tracks-only bill.
In Michigan, the issue of slots at tracks, stalled
in the Senate, cleared another hurdle. The Michigan Daily headlined its story today, “Bill that
makes way for ‘racinos’ ready to pass in Michigan Senate,” and the lead of the story read, “The
leader of the Michigan Senate said yesterday he
won’t stand in the way of legislation that would
allow horse race tracks to install slot machines.”
The Majority Leader, Ken Sikkema, a Republican, said he saw no reason to hold up a vote on
the four-bill package if there is support for it in
the 38-member Senate.
The headline, however, seemed at odds with the
story and unduly optimistic, for Jason Allen, the
chairman of the Commerce Committee, which
has the bill bottled up, said he doesn’t expect to
hold a hearing on it before the legislature adjourns for a winter recess in two weeks. The
chairman’s spokesperson said “We need to reexamine what’s going on,” which sounds like the
mideast crisis all over again. One of the majority leader’s fellow Republicans, Larry Julian, who
sponsored the main bill in the legislative package, told the news service, “I don’t believe Senator Sikkema in his heart supports this package
at all. I’m not asking him to support it. All I’m
asking him to do is allow it to come up for its
day.” One interesting and helpful development
was the support of the president of Michigan
State University, located in the state capital of
Lansing. President Peter McPherson threw the
university’s political clout behind the bill, saying
it would bring much-needed revenue to
the state and boost Michigan’s racing
industry.
THE MARYLAND MUDDLE
There is almost as much talk in Maryland as in
Tucson. The House Ways and Means committee
met yesterday and is meeting today, but House
Speaker Michael Busch, the man who holds slots
in his hands, says there will be drafting of a bill
for the session that begins January 14. Instead,
he wants to know which plan will do most for
Maryland. So the bidders for Rosecroft Raceway will just have to sit tight and wait.
ONE RACE BAFFERT DIDN’T WIN
The U.S. Supreme Court has refused to hear an
appeal from thoroughbred trainer Bob Baffert
in his effort to reverse a Court of Appeals decision that denied Baffert $102,780 that had been
awarded by a federal judge in the Nautical
Look morphine case.
December 10, 2003
A STARTLING REVELATION
CLOVERLEAF EVALUATING
Racing Symposium week got underway in Tucson yesterday with a startling revelation: slots
help purses at racetracks! In Ontario, where
racinos are most firmly entrenched, purses are
up 156% in the last six years, claims are up 110%
in volume and 228% in value, the number of licensees is up 33%, racing dates are up 22%, and
total handle is up 19%. Those numbers, presented by Ontario Racing Commission executive
director and CEO Jean Major, underscore what
slots can do, but Major said handle is not matching purse money, since most of the purse increases
are coming from slots, not racing. He and other
speakers said as much as 90% of purse money at
some tracks comes from slots revenue, and Major says the racing product has not had significant growth. That contention might have been
challenged by Hugh Mitchell of the Ontario
Jockey Club, who was unable to fulfill a speaking engagement at the Symposium, for the quality of the racing product at Woodbine and
Mohawk Raceway has escalated to world class
status, matched only by that at the Meadowlands.
Major emphasized that racing must not lose sight
of the live product. Other panelists emphasized
the obvious -- that slots have resulted in huge
increases in purses -- and a study by students at
the Race Track Industry Program confirmed that
states with slots have had not only higher purses
but more races, race days, larger fields and higher
quality stakes.
HTA director Tom Chuckas Jr. and his Cloverleaf Enterprises board are hard at work mulling
over ten bids for their Rosecroft Raceway, and
the wide discrepancy in dollar value is not making the job easier. The Baltimore Sun says the
largest bid for the physical assets of the track is
$25 million by Harrah’s Entertainment of Las
Vegas, but Chuckas told the paper that the true
value of Rosecroft has to include consideration
of how much each bidder plans to devote to the
number of racing programs, purses, and other
benefits. According to the Sun, some of the proposals include future shares of slot revenues for
Cloverleaf should slots at tracks be legalized in
Maryland. The paper said the bid of the Louis
Angelos group included $10 million for the track
but $190,000 a day from slots revenue, which
could add as much as $70 million to the deal.
“NOT A SLAM DUNK”
That was the assessment of Albany Law School’s
Bennett Liebman at the Symposium on the subject of constitutionality of New York’s slots-attracks legislation. The issue gets a court hearing
next Tuesday, and Liebman says that while the
court may try hard to find the measure
constitutional because of the money involved to the state, it “is no slam dunk.”
THEN THERE IS SHAWN SCOTT
Silent Shawn Scott speaks only through a voluble
lady named Christen Graham and lawyers these
days, and those parties’ latest gambit was to announce they are seeking citizens of the towns of
Westbrook and Saco to become plaintiffs in law
suits to invalidate local referendums being held
in those towns on the racino issue. Scott’s lawyer Stephen Langsdorf said, “I do believe there
are substantial grounds for invalidating that election process. I expect litigation would be likely.”
Ms. Graham was more direct. She said her
employer’s ultimate goal is to cooperate on a
racino in southern Maine with Scarborough
Downs, but that until that happens, he will work
against the track’s partnership with Penn National Gaming. Pro and anti-racino groups have
organized, working on their own and not, they
say, with Scott. One pro-racino group’s organizers included Mark Gartley, a former secretary
of state in Maine, and the former mayor of
Westbrook. Penn National also is helping
the group with financial aid.
December 11, 2003
CONSORTIUM MAKES ITS PITCH
JOCKEY CLUB PLAN DISCUSSED
Leaders of the Medication and Testing Consortium made their pitch yesterday to the people
who will decide the fate of whatever they come
up with: the racing commissioners. Unfortunately there is no national organization that can
mandate rules in various states in this country - that privilege is the zealously guarded province
of racing commissioners -- and although their national organization has been strong on rhetoric
on uniformity and a drug free environment in
past years, it has been short on results. So regardless of what the Consortium ultimately proposes, it is the commissioners, with complete autonomy in their jurisdictions, who must be sold
on adopting Consortium recommendations, and
the Consortium leader, Dr. Scot Waterman, fired
his best shot yesterday, hoping to hit the target.
He noted there was no finished plan -- he called
the work of the Consortium “a living, breathing
document” -- and work on it will continue at another Consortium meeting late in January in
Florida. Lonny Powell, president of the Association of Racing Commissioners, one of two commissioners groups briefed at yesterday’s closeddoor session, called reaction positive.
There was lively discussion yesterday in Tucson
about the Jockey Club’s idea to change the system of transmitting bets in simulcasting. That
idea calls for direct transmission of each bet as it
is made from a guest track to a host site, rather
than mass transmission of collected wagers. The
Jockey Club is working with Scientific Games
on the idea, but much remains to be done, and
the project is likely to be the subject of deep interest and discussion at the joint meeting of HTA
and the Thoroughbred Racing Associations in
March.
ANOTHER SHOCKER
On the heels of yesterday’s Symposium’s startling revelation that slots can help tracks, another
shocker was revealed yesterday: horse racing’s
marketing isn’t getting the job done. Speakers,
noting that the careers of thoroughbred equine
stars are increasingly short-lived, concluded that
the sport needed to concentrate on the human
stars, most of whom are unrecognizable to the
general public. The senior director of media relations of the NTRA called that approach “a nobrainer” but said “If we were doing such a great
job of it, we probably wouldn’t be gathered here.’ That’s debatable. It was
warm and sunny in Tucson yesterday,
great golfing weather.
NYRA AND 24 INDICTED
The New York Racing Association and 24 individuals charged with federal crimes were indicted
today in a New York District Court. The charges
claimed that NYRA and senior management were
aware of a tax-cheating scheme by mutuel clerks
which the government said resulted in $19 million in unreported income since 1980. NYRA
agreed to pay $3 million in fines as part of an
agreement which Andrew C. Hruska, acting U.S.
attorney, called a plan to “do everything we can
to punish the racing association short of dissolving it.” More details on the indictment tomorrow.
COMMISSIONERS WON’T QUIT
The new governor of Kentucky, Ernie Fletcher,
wants his racing commissioners -- including appointees made by lame duck governor Paul
Patton last week -- to quit, but so far they haven’t
obliged him, and don’t appear inclined to do so.
As of yesterday, the governor’s office said his request “was still in place.”
HOTEL FORMS NEXT WEEK
Hotel reservations forms for the annual meeting
will be mailed next week. Hotel reservations
should be made through HTA, not the ho-
NYRA OFF HOOK, NOW SLOTS
The New York Racing Association’s immediate
future was cleared yesterday, with a $3 million
fine payable in $500,000 installments over three
years after its deferred prosecution indictment
by federal prosecutors. MGM Mirage CEO
Terrence Lanni said his company’s work on a
racino at Aqueduct would resume at once, and
NYRA chairman Barry Schwartz said VLTs could
be in operation there by next fall. Both New York
state comptroller Alan Hevesi and attorney general Eliot Spitzer were “pleased” with the result,
and so was U.S. Attorney Andrew C. Hruska, who
brought the charges, so the matter likely is over.
Kenny Noe and Terry Meyocks, who had been
rumored as indictment targets, were not indicted,
with the hammer falling on two former mutuel
department directors, Vince Hogan and Clem
Imperato, who face up to five years in jail and
$250,000 fines for falsely certifying mutuel clerks’
records. Four mutuel clerks in addition to others already found guilty, face charges. Schwartz
told Blood-Horse magazine that it was cooperation with authorities, and not political clout, that
saved it from prosecution.
THE ONEIDAS TELL NY “NO”
Ray Halbritter, the highly educated leader of the
Oneida Indian Nation, refused to smoke the peace
pipe with New York state yesterday. He told
employees of the Oneida’s hugely successful Turning Stone casino that the Nation would not accede to New York’s request for a cut of the
casino’s profits as part of any new agreement.
“We will not let the state leverage jobs and the
livelihoods of our employees as part of these negotiations,” a Nation news release said, and
Halbritter added, “I’m telling you and I’m telling the state, we are not negotiating these jobs.”
New York earlier attempted to declare
Turning Stone’s right to operate invalid,
but gave up that battle last week.
December 12, 2003
Turning Stone opened 10 years ago just four miles
from Vernon Downs, and has prospered every
year since. Oneida documents indicate it made
a profit of some $70 million last year. The Seneca Nation, which operates the more recent
Niagara casino in Niagara Falls, pays 25% of its
slots revenues to government.
PENN INDIAN CASE CLOUDY
Pennsylvania governor Ed Rendell is opposed to
allowing Indian casinos under any slots bill passed
there, but the issue may be out of his control as
far as the Delaware Tribe is concerned. The Delawares once roamed all of Pennsylvania, and
Rendell’s press secretary acknowledged that “no
question the Delawares were literally all over the
Commonwealth of Pennsylvania, from east to
west.” They also are a “restored tribe” under
federal law, meaning they once had federal status, lost it, and regained it. As such, any land
they acquire in Pennsylvania and put in trust
would qualify as a Class II gambling site, allowing them to operate poker and some forms of
blackjack in which players compete against one
another, with the host site sharing each pot. If
Pennsylvania legalized slots, however, it is likely
the Delawares then could do the same.
NO SLOTS IN ‘04: KY LEADERS
The two top leaders of the Kentucky legislature - Senate president David Williams and House
Speaker Jody Richards -- have told the Northern Kentucky Chamber of Commerce that casino gambling is not likely to be legalized by the
General Assembly next year. Williams, a Republican, and Richards, a Democrat, both said that
they did not think the legislature would consider
the issue in the 60-day session that starts Jan. 6
unless new governor Ernie Fletcher made it a
personal issue. Both Williams and Richards said
they considered that highly unlikely given the
governor’s previous statements on gambling
expansion.
December 15, 2003
NY PULLS PLUG ON SCOTT
ROSECROFT: NOW THERE ARE 3
In identical, terse rejections, the New York State
Racing and Wagering Board on Friday notified
promoter Shawn Scott and his chief lieutenant,
Hoolae Paoa, the president of Scott’s Vernon
Downs, that they would not be licensed to participate in racing in New York. The notices,
signed for the board by its racing and wagering
investigator, Patrick Wade, read that after careful consideration, the applicants were refused licenses because “your experience, character, and
general fitness are such that your participation
in racing or related activities would be inconsistent with the public interest, convenience or necessity, or with the best interests of racing generally.” How the denials affect Vernon Downs
will not be known until Dec. 23, when the Racing and Wagering Board could vote on the racing license for the track. As for Vernon’s racino
license, that matter rests with the state Lottery
Division, which says it is still waiting for final
documents from Vernon Downs.
The Cloverleaf Enterprises committee that is
weighing proposals from ten suitors for its
Rosecroft Raceway property has narrowed the
list to three, but CEO and HTA director Tom
Chuckas Jr. still is not announcing any names, of
either successful or unsuccessful candidates in the
cut. Chuckas told the Baltimore Sun, “We’ve
gone back to three principals for additional information and clarification, and we have our accounting evaluating some of these proposals.
Some of the specifics we’re looking at are racing
background and the minority equity piece.” A
Cloverleaf meeting is scheduled for Dec. 20. Although Chuckas and Cloverleaf have done a good
job of keeping the names of candidates confidential, the Sun identified a partnership that includes
Maryland political heavyweight Robert A. Pascal and prominent minority businessman Carl D.
Jones and Penn National Gaming as among the
unsuccessful applicants.
Two of Scott’s many lawyers tried to downplay
the license denial, one saying Scott and Paoa
would appeal, another saying the decision should
have no affect on Scott’s pending license application to operate Bangor Raceway in Maine. The
Maine commission was to have met today to consider the application, but the hearing was postponed until tomorrow because of a snowstorm.
Scott had threatened to challenge the governor
on when he could operate slots, but backed off
because “we thought it was a wise decision and
timely to cooperate.” Scott now says he plans to
comply with a February 23 date, which resulted
when Gov. John Baldacci invoked a section of
the state constitution that prevents the new racino
law from taking effect until 45 days after the legislature convenes, which is Jan. 7.
Scarborough Downs also is seeking legislative changes that would negate a Dec.
31 deadline to find a new site.
While that matter gets resolved, the big divide
between the governor and House speaker in
Maryland continues, and the speaker, Michael
Busch, made clear that when the legislature reconvenes on Jan. 14 the Democratic majority in
the House will not give the Republican governor
an easy time. The president of the Senate, meanwhile, predicts a slots bill will be padded in the
coming session of the General Assembly.
PENN SLOTS THIS WEEK?
The Harrisburg Patriot-News reports this morning that “legislative leaders and top negotiators
for Gov. Ed Rendell believe that this week, after
nearly nine months of impasse, they will resolve
the budget, medical malpractice reform, property tax reform and the slot machine gambling
issue.” Powerful Philadelphia state senator
Vincent Fumo also predicts a vote on his bill,
which would provide six track slot licenses,
could be voted on this week or next.
December 16, 2003
“MUDDY” IS THE RIGHT WORD
IT TOOK A WHILE, BUT....
The headline on the Baltimore Sun’s SunSpot.net
this morning reads, “Slots debate gets muddier.”
They are well chosen words. It now turns out
that the political battle between governor Robert L. Ehrlich Jr. and House speaker Michael E.
Busch has taken a new turn, with Busch determined to deny Ehrlich his way. In the process,
he may bring Maryland’s private racetrack operators to their knees. Busch’s latest foray is to
go beyond slots at tracks and “reform” the
horseracing industry in Maryland by replacing
privately owned tracks with state owned racing
facilities. This makes a good sound bite, of course,
and when pressed Busch admits he has no specific plan and that he needs to talk with House
members first and work through ideas. He says
the House Ways and Means committee currently
studying gambling in Maryland will produce
“findings” but not specific recommendations or
legislation. Instead, they will announce what is
acceptable to Busch. “Muddying” is indeed the
right word.
It takes a while for harness racing ideas to sink
in, or at least be accepted, by thoroughbred racing, but eventually many are. The idea of industry-controlled past performance information,
rather than privately owned outside control, resulted in Equibase, decades after the USTA blazed
the way. Now the Jockey Club and Equibase have
announced, two years after USTA showed it
could be done without apocalypse, that they will
begin converting Canadian dollars into U.S. dollars for their record keeping because “it is the
right way to go.” It will take a while, however.
The change to “the right way” won’t start until
January 1, 2005. The USTA, meanwhile, changes
to daily conversion rates, rather than annual or
periodic, Jan. 1, 2004. Who knows what’s next?
Maybe even acceptance of the safety and sense
of artificial insemination one of these days, now
that “natural cover” has moved from 40 or 50 to
150 or more with the runners.
SCOTT MAINE HEARING TODAY
Well, it’s today unless it is still snowing in Maine.
Yesterday’s scheduled session was snowed out,
and the Maine Racing Commission was to take
up the issue today. Some strange things are being said there, too. One commissioner, Norman
Trask, said he views Scott’s license denial in New
York as separate from the licensing process in
Maine. “I don’t know what the criteria in New
York necessarily is,” Trask said. “We have our
criteria by statute in Maine and we are obligated
to look at our criteria and see if Mr. Scott meets
it.” New York’s criteria was character and honesty and fitness to serve. We presume that even
by statute those qualifications might be germane
in Maine. Scott and his chief lieutenant
Hoolae Paoa, meanwhile, are appealing
their ouster from racing in New York.
TWO TO GO FOR THE EMERALD
Resolution of the long-running Emerald Casino
license matter in Illinois cleared another hurdle
yesterday when the Illinois Gaming Board approved unanimously the deal proposed by state
attorney general Lisa Madigan. Under that plan
some investors would recoup their money, but
the Donald and Kevin Flynn father-son pair that
led to the fracas over the license because of alleged mob ties would not, except for loans made
to the venture over the years. What could be the
final step leading to sale of the potentially hugely
profitable casino license -- the last in Illinois -comes Thursday with a hearing in front of the
federal bankruptcy judge who must approve the
proposal. The last barrier is a threatened lawsuit by the town of Rosemont, near Chicago’s
O’Hare Airport, which is seeking not only $45
million it spent on a casino parking garage but
also anticipated tax revenues that never
materialized.
BAD NEWS IN MARYLAND
The war in Maryland between Gov. Robert L.
Ehrlich Jr. and House of Delegates Speaker
Michael E. Busch continued yesterday in a
“heated and unproductive” closed door meeting.
The Washington Post reported that “efforts to
reach a grand legislative compromise on gambling in Maryland collapsed yesterday, prompting some lawmakers to predict a bruising fight
over slot machines when the General Assembly
convenes next month.” The paper, quoting Senate
president
Thomas
V.
“Mike”
Miller, said Ehrlich had marked the meeting as
a deadline for progress in negotiations with
Busch, and now will take a more confrontational
approach. Miller told the Post, “It’s asinine not
to make it a top priority. I’m not backing off.”
Busch claimed the governor and Miller had nothing to offer, and said, “As far as I’m concerned,
slots isn’t the primary issue. Slots is at the bottom of the list.”
BAD KARMA IN NEW YORK
A week or so ago law professor and former New
York racing commissioner Bennett Liebman
warned that the constitutionality of VLTs in New
York “is no slam dunk.” Yesterday his admonition seemed verified in a story on the opening of
Appellate Division consideration of the issue filed
by James M. Odato, the capital bureau writer
for the Albany Times Union. Odato wrote, “In a
case with enormous ramifications on the future
of legal gambling and on the state’s budget-balancing strategy, the court showed a remarkable
hesitancy in embracing arguments justifying a
plan for video gambling machines at racetracks
and more casinos. Appellate Division justices repeatedly questioned whether the biggest expansion of gambling in New York’s history is allowed
under the state constitution.” Odato said
the justices seemed receptive to the arguments of lawyers for Donald Trump
and the Saratoga Chamber of
December 17, 2003
Commerce that the law allowing the VLTs at eight
racetracks in the state passes constitutional muster. One justice, Karen K. Peters, repeatedly
asked whether the constitution allows for a percentage of VLT revenues to go to tracks rather
than to education. Track and casino lawyers argued the 2001 law is justified, but Odato reported
that “the judges sharply questioned their arguments.” New York’s tracks are preparing for
early 2004 openings of their racinos, HTA’s
Saratoga Raceway member saying it will begin
racino operation Jan. 14 with 1,319 VLTs, with
purses expected to double in short order. As for
the constitutionality issue, the Appellate Division
is expected to hand down its decision within two
months, and the matter is almost certain to wind
up in the Court of Appeals, New York’s highest.
FEDS INDICT SUSAN BALA
Susan Bala, whose Racing Services Inc. handled
hundreds of millions in wagers in its storefront
operation in Fargo, North Dakota, has been indicted by the federal government on charges of
conspiracy, money laundering, and illegal transmission of wagering information, according to
Fargo news reports. Ms. Bala is scheduled to
appear in court tomorrow, at which time the U.S.
attorney and state attorney general will hold a
joint press conference to announce the charges.
Racing Services has been the subject of an eightmonth investigation and is operating under state
receivership on allegations that it failed to report
almost $100 million in wagers.
LAWYERS TALK, SCOTT SILENT
Promoter Shawn Scott said his lawyers told him
to say nothing yesterday as his license hearing
got underway in Maine, and he let them do all
the talking. The Maine racing commission is
considering his application to operate Bangor
Raceway.
OUT TO BEAT THE BUSCH
Gov. Robert L. Ehrlich Jr. of Maryland, tired of
trying to mollify or compromise with House
speaker Michael E. Busch, has now made it
known he will pursue slots legislation without
Busch’s support. Ehrlich formerly said he would
not seek slots at tracks without Busch’s approval,
but after futile and fruitless attempts at compromise the governor says he is accepting the advice
of Senate president Thomas V. Miller. “I talked
to President Miller Friday,” Ehrlich told the Baltimore Sun. “He asked us to put a bill in. We
will most likely do so.” A spokesman said the
governor’s bill would be the same, or very similar, to the one approved by the Senate but defeated by the House this year, providing for 11,500
slots at Maryland’s tracks, with the state’s share
of proceeds going to public education.
BUDGET AGREEMENT IN PA
In Pennsylvania, the Republican controlled Senate and Democratic governor Ed Rendell have
reportedly reached agreement, after three days
of private negotiations, on a budget that would
increase the state income tax by almost 10%,
breaking a nine-month impasse. One key legislator who has been in the thick of the slots discussion in Pennsylvania, state senator Robert
M. Tomlinson, says when the budget deal is
sealed, a compromise could be reached on allocation and taxing of slots as a tool to lower property taxes, and could be part of an overall package to be voted on at one time.
ADVANTAGE SCOTT IN MAINE
As racing knows well from hearings on driver and
trainer suspensions, the battle frequently is not
equal when young assistant attorneys general go
up against high priced defense lawyers.
From all press accounts, that is happening in the Shawn Scott licensing hearing
before Maine’s racing commission.
December 18, 2003
Scott’s lawyers there have been pounding hard
at the thoroughness of the commission’s investigatory procedures, and an accountant who earlier had told the commission that Scott “does not
have adequate financial resources” to operate
Bangor’s Historic Track acknowledged under
questioning that the Las Vega promoter’s net
worth is not less than $48 million, and reversed
his earlier opinion. The commission executive
director admitted that he didn’t turn up any positive information about Scott during the search,
but also said he didn’t look for any. “It wasn’t
something that was a priority to look for,” he said.
There was no mention of what was a priority to
look for, but round one in the hearing did not go
well for the commission staff. A Scott-backed
PAC, meanwhile, began a barrage of televison
commercials attacking Penn National Gaming,
resorting to seemingly dirty trick tactics that
Penn National called “outrageous and untrue.”
Scott is seeking to get voters in the towns of
Westbrook and Saco to deny Scarborough Downs
and Penn National from building a new track in
one or the other of those towns. Eric Schippers,
VP of public affairs for Penn National, said Scott
“has truly crossed the line” with the ads tying
Penn National to an auto accident in West Virginia involving a drunken driver who allegedly
had been served free drinks in a Penn National
racino. In other Scott developments, Kathleen
Newman, a member of the Maine Lottery Commission who is working for Scott, resigned from
the commission, and Hoolae Paoa, the ex-felon
who has been president of Vernon Downs, stepped
aside after losing his New York license.
NO SALE OF MEADOWLANDS
That was the word yesterday from NJSEA chairman Carl Goldberg, who said, “If a transaction
is ever to be undertaken, it will be a lease and not
a sale.” He said that method would allow the
NJSEA to control the track’s use and fate.
December 19, 2003
ACTION AT ROSECROFT
TWO JOB OPPORTUNITIES
A Cloverleaf selection committee meets tomorrow to offer its recommendation to shareholders
on a new owner for Rosecroft Raceway. The
original list of 10 suitors was cut to three, and
presumably will be narrowed to one tomorrow,
although a cryptic note was sounded when
Rosecroft director of marketing Mary Manney
told news sources that the fact that a Dec. 12
meeting of the selection committee -- members
of the horsemen’s group that owns the track -had narrowed the search “doesn’t mean that the
others aren’t in the game.”
If you’re looking for a change of scenery, or are
between engagements and hungry, two organizations are looking for good men or women.
The Maryland Racing Commission is seeking a
presiding judge to work at Rosecroft Raceway
starting on January 14. Send resumes to J.
Michael Hopkins, Executive Director, Maryland
Racing Commission, 500 N. Calvert Street, Baltimore, MD 21202, telephone 410-230-6330, fax
410-333-8308. All applicants must have their
resume submitted by December 31, so don’t delay.
BALA IN DEEP WITH CHARGES
Racing Services founder Susan Bala and her vice
president Raymundo Diaz Jr. are in deep water
or ice in Fargo, North Dakota, despite her public
statement that there is no merit whatever to the
federal government’s conspiracy and money
laundering charges. The Fargo Forum reports
that a magistrate told Bala and Diaz yesterday
that they could face up to 20 years in prison on
each count if convicted. The pair pleaded not
guilty to all 12 charges involving $99 million of
what the government calls illegal bets. Trial was
set for Feb. 23 before U.S. District Judge Ralph
Erickson. The government claims Bala and Diaz
told employees that Racing Services didn’t have
to pay taxes or be licensed because it was engaged
in Internet betting.
DON CODEY’S FATHER DIES
Don Codey Sr., father of Freehold Raceway’s general manager Don Codey Jr., has died at 83. Visitation will be held from 1 to 4 p.m. and 7 to 9
p.m. Saturday and Sunday, Dec. 20 and 21, at
the Codey Funeral Home, 69 High street, Orange,
NJ, (973) 678-0570, and funeral services will be
held 10 a.m. Monday, Dec. 22, at St.
John’s church, 94 Ridge Street, Orange,
NJ. HTA extends its deepest sympathy.
If the Deep South is your dish, the Birmingham
Racing Commission is seeking an immediate Executive Secretary for the greyhound/horse track
in Birmingham. They say they offer excellent
salary and benefits package including health/life
insurance, retirement and vacation, and call it
“a perfect position for right person.” If you think
you’re the right person, send inquires and resumes to the Birmingham Racing Commission
at 2101 6th Avenue North, Suite 725, Birmingham, Alabama 35203. The telephone number
there is 205-328-7223.
YOU KNOW IT’S ON THE LEVEL
You do when a track holds a race with the premier of the province in it, and he loses. That’s
what happened at HTA member Edmonton
Northlands recently, when they gave the premier
of Alberta, Ralph Klein, a steed named Lethal
Charm to drive in a match race with a Tory
backbench legislator named George VanderBurg.
Although the premier finished three lengths behind VanderBurg, he said, in politically correct
fashion, that he didn’t consider it a loss, he considered it “a very tight race.” The winner said he
was under heavy pressure from his family
to win.
December 22, 2003
VET IS WINNER AT ROSECROFT
PENN NATIONAL SUES SCOTT
A group headed by Dr. Mark Ricigliano, a veterinarian at Rosecroft Raceway for 18 years, was
announced as the winner of the competition to buy
the track Saturday. The Cloverleaf Standardbred
Owners Association board of directors voted 13
to 4 to sell to Dr. Ricigliano’s group, known as
Northwind Racing LLC, members of which have
not yet been announced. It was announced, however, that the group will include African American ownership representation, perhaps as high as
20% or 30%, after recommendations from a
Washington African American investment firm,
Pembroke Group, are received. Dr. Ricigliano, a
member of the Cloverleaf board, recused himself
from the voting. Rosecroft CEO Tom Chuckas Jr.
did not announce details of the purchase agreement, but said of the vote, "I believe this deal addresses the short-term concerns of the horsemen
and benefits us in the long term." The vote came
after a selection committee had narrowed the ten
candidates down to three, the two losing finalists
being an Indiana group headed by Ralph Ross, a
major investor in Indiana Downs, and a group led
by the son of Baltimore Orioles owner Peter
Angelos. Dr. Ricigliano, in addition to his veterinary practice, owns LightWave Communications,
a Maryland telecommunications company.
Penn National Gaming, incensed over what it
called "an insidious campaign of deception and
lies," has sued Las Vegas promoter Shawn Scott
and Maine Opportunities, a political action committee supported by Scott, for libel. The PAC treasurer, Kathleen Newman, until recently a member of the Maine Lottery commission when she
went to work for Scott, also was named in the action. Penn National filed the suit after appearance
of full page ads saying Penn National had been
charged in the 1990s with violating federal money
laundering laws, but which Penn National says
involved another gambling company. The suit also
charges defamation of character and interference
with business relations. The suit came as the hearing on Scott’s suitability for a gaming license was
adjourned for the holidays. It will resume January 8. Before adjournment, a parade of selected
witnesses testified to Scott’s character, one calling
him "a visionary."
ROBINSON LOSER IN ONTARIO
The Ontario Racing Commission, after a hearing
Saturday, dropped the hammer on leading trainer
Bill Robinson. The commission fined Robinson
$100,000 and suspended him for five years for
cumulative penalties over the years, the most recent being a medication positive Nov. 8 with the
pacer Flight Plan, disregarding commission rules
on reporting the death of horses in a trainer’s care,
and unauthorized removal of a horse from surveillance in a detention barn. Robinson is
expected to appeal, as he has most other
suspensions in the past.
JOE TAYLOR DIES IN ACCIDENT
Joe Taylor, a manager at Gainesway Farm in
Kentucky in both the standardbred and thoroughbred years of that farm’s greatness, died
Friday afternoon in a two car accident. Taylor,
79, had been associated with John and Clarence
Gaines for more than half a century. His sons
operate Taylor Made Sales Agency, one of the
largest thoroughbred sales companies in the
world.
NOTE TO PHOTOGRAPHERS
A reminder to all HTA track photographers: the
deadline for submissions for HTA’s first Track
Photographer of the Year is the end of this month.
The award is being presented for creative track
photography in an effort to increase the appeal
of harness racing photography to media. The
winner will receive a short vacation at the joint
HTA/TRA meeting in Sanibel Harbour in
March and Nova Award recognition.
December 23, 2003
VERNON AUDITORS QUIT
U.S. COURT UPHOLDS INDIANS
Shortly after selected character witnesses were
telling the Maine Racing Commission what an
upstanding gentleman Shawn Scott is, the independent auditing firm that represented his management at Vernon Downs said it had enough of
begging for needed information, and quit.
Urbach Kahn & Werlin, based in Albany, NY,
said it had notified Vernon officials on Oct. 16
that the firm was concerned about Vernon’s failure to file several quarterly Form 10Qs and an
annual 10K report with the SEC, and that “as a
consequence of Mid-State’s failure to establish
and adhere to a plan for curing its delinquency
with the SEC, we hereby resign, effective immediately.” In Maine, U.S. District Judge George
Z. Singal ordered Scott and Maine Opportunities, a Scott-financed committee that has been
running ads against rival Penn National Gaming, to cease running apparently erroneous statements in newspaper ads about Penn National,
which has sued Scott for libel. Penn National’s
vice president of public affairs, Eric Schippers,
said of Scott and his committee, “Bottom line,
they lied and they got caught.” Scott employees
have been busy extricating themselves from corners in which they have painted themselves. A
spokeswoman, Christen Graham, first denied
Scott had anything to do with earlier ads run in
Maine, then said employees had run them without his knowledge. A later report said he had no
employees. Now Kathleen Newman, the former
member of Maine’s Lottery Commission who
resigned under conflict of interest charges after
she went to work for Scott while still on that commission, is busy explaining how the ads -- which
Penn National calls “libelous, defamatory and
disruptive of the democratic process” -- came
about. She says they had hired private investigators, who apparently passed on information about the wrong company to a
“political consultant,” who wrote the ads.
A federal appeals court has upheld California’s
tribal gaming law, saying that although it gives
tribes special privileges to operate casinos it violates no federal law. The decision, from the 9th
Appellate Court in San Francisco, upholds the
2002 decision of a Sacramento federal judge who
ruled against four San Francisco area card clubs
that were trying to halt operation of a an Indian
casino in San Pablo. Both courts agreed that
Proposition 1A, approved by California voters
in March of 2000, gave Indians a monopoly, but
that it does not violate either the federal Indian
Gaming Regulatory Act or the constitutional
guarantee of equal protection. The Lytton Band
of Pomo Indians, named in the suit, plan to convert a card room in San Pablo, across the bay
from San Francisco, into a casino. Acknowledging that such casinos hurt the business of card
rooms, the court affirmed that it violates no federal law. “In summary,” the court ruled, “Congress acted rationally in balancing the sovereign
interests of tribes and states...and the state of
California...acted rationally in limiting the placement and concentration of Class III (slots) gaming operations to Indian land...” HTA has distributed the decision to directors today as an important court action.
LIEN GETS RACING SERVICES
The State giveth and the State taketh away.
North Dakota invoked that law of gambling yesterday when it stripped indicted Susan Bala of
her Racing Services and gave the license to Lien
Games of Fargo, an established supplier of pull
tabs and gaming supplies. The five-member commission unanimously rejected an appeal from
Nelson Clemmens, an applicant from Goshen,
KY, who wanted to buy Racing Services and operate it under another name. Clemmens says
he still may try to buy Racing Services and
relocate it elsewhere.
INDIANA CHASES SLOTS, AGAIN
While Maryland and Pennsylvania and Ohio continue with the agonies of obtaining slots, a new
face has entered the chase, or more accurately
an old face renewing an old effort. A new bill is
being proposed in Indiana for slot-like pull tabs,
and is being tied to a financial crisis in the state.
Rick Moore, general manager of HTA member
Hoosier Park, is quoted by Indianapolis TV station TRV6 as saying, “There’s been no state
where its been introduced and has had a negative impact. It’s been all positive. It’s a win for
the state, horsemen and the racetracks themselves.” The television station says the bill is likely
to pass in the House of Representatives, but the
Senate remains a big question mark, where a
similar bill foundered last year. One representative, who supports the idea of video pull tabs,
says the bill would reduce the number of OTBs
in Indiana. It would allow tracks to have as many
as 750 pull tab machines and 1,500 at OTBs, but
even its proponents predict a tough legislative
battle.
GRINCH STALKS SEABISCUIT
Thoroughbred racing staked much of its promotional and marketing hopes on the backs of a
horse long dead this year, hoping that Seabiscuit
would send people pouring to the tracks. Now,
with Christmas at hand, the Grinch appears in
the form of Bill Christine, one of the most respected thoroughbred racing writers in America.
The star Los Angeles Times writer raises again
the issue of Kayak II, Seabiscuit’s stablemate,
who some -- including the Daily Racing Form
charts of the race -- think was not persevered
with in the stretch in order to let Seabiscuit win
the 1940 Santa Anita Handicap. Christine says
a nephew claims Johnny Adams, who rode Kayak
to victory in the 1939 Cap, refused the
mount in 1940 because owner Charles
Howard wanted to let Seabiscuit win.
December 24, 2003
Buddy Haas, who did ride Kayak, supposedly
told his sister he was under orders to let Seabiscuit
win. Author Laura Hillenbrand, who wasn’t
around at the time, says she couldn’t find any
quotes to support the rumor, although she was
aware of it, so she left it out of the gloryifying
tale. The movie ignored not only the rumor but
the horse, leaving Kayak out entirely. So what’s
next? Seabiscuit II. The Real Story?
ANOTHER STAY FOR ROBINSON
Trainer Bill Robinson, suspended last week for
five years and fined $100,000 for still another offense, has been given a 30-day commission stay
in Ontario, with conditions. Those conditions
include: his horses must be in the paddock at
least six hours before racetime; medications,
drugs and other substances may be administered
to those horses only by a veterinarian licensed
by the Ontario commission, and vet records of
any administrations must be reported in detail;
any horse trained by Robinson may be released
or transferred to another trainer only with the
consent of judges; any horse owned in whole or
part may be transferred to another owner only
with the consent of judges.
MP BELINDA STRONACH?
The Toronto Globeandmail.com reported today
that Belinda Stronach, who now runs her father’s
huge auto parts empire as president of Magna
International, has not closed the door on a possible run for leader of Canada’s new Conservative party. Ms. Stronach, who has been instrumental in organization of the new political group,
is reported as “wanting to see this thing succeed.”
She has been a strong supporter of merging the
Canadian Alliance and the Tories and
acted as principal facilitator in that
effort during the summer.
HAPPY HOLIDAYS.
SEE YOU MONDAY.
LITTLE TOWNS MAKE BIG NEWS
Until the November election, the towns of Saco
and Westbrook were pleasant little Maine villages, out of sight and the spotlight. Then, when
voters in nearby Scarborough rejected the idea
of the town’s Scarborough Downs becoming a
racino, a quirk in the law inserted by promoter
Shawn Scott suddenly vaulted Saco and
Westbrook into prominence. That quirk was that
Scarborough Downs, if rejected by its town as it
was, could seek to rebuild in a town within five
miles of its present location, which it quickly chose
to do, making neighboring Saco and Westbrook
its only possible sites. It also quickly chose not to
be associated with Shawn Scott, a decision also
made later by the New York Racing and Wagering Board, which refused to license him in New
York. Saco’s city council turned down
Scarborough’s advances, but the town administration changed and so did the new mayor and
council. Westbrook had a meeting and left the
issue to voters. So tomorrow, election day in
Maine, the two towns vote on whether they want
a racino. The issue has turned nasty, with namecalling, libel charges, pushing and shoving, and
a lot of uncivil, un-Mainelike behavior. Mr. Scott
has contributed to part of it with his penchant
for hiring local or state officials to work for him
while holding their jobs, and for paying for dirty
newspaper ads against a competitor, Penn National Gaming, that have led to the libel charges.
The governor has entered the picture, wanting
the legislature to change the law to provide separate oversight over racinos, and when the state
racing commission adjourned the Scott licensing hearing until Jan. 8 it gave the governor the
opportunity to get that job done in a new legislative session. Wednesday is the deadline for
Scarborough to find a new home, and the votes
tomorrow in the little towns of Saco and
Westbrook have created national interest.
December 29, 2003
The area’s most important newspaper has
strongly opposed the racino idea editorially, but
labor unions have supported it. Sebastian Sinclair
of Christiansen Capital Advisers attributed the
interest to the fact that “it is the only thing going
on in the industry right now,” which may be a
slight overstatement giving the slots issues in
Maryland, Pennsylvania and Ohio. In any event,
things are lively in the woods of Maine these days,
and the conduct of the campaign has not helped
matters. Staff writer Beth Quimby, who has covered the story for the Portland Press Herald,
quoted Dennis Bailey, spokesman for the antiracino group Casinos No!, as saying, “People are
asking, ‘Are these the type of people we want to
invite to our community, suing each other, calling each other names and fighting?’” The answer comes tomorrow night.
TWO PLESACS FOR CHICAGO
The trotting horse Plesac has been around Chicago for five years now, and has earned $2.5 million for owner Richard Balog of nearby St.
Charles, Illinois. Now another big winner named
Plesac has arrived on the scene, and hopes to
make a name there on Chicago area harness
tracks. Dan Plesac, who pitched for seven teams
-- most recently the Philadelphia Phillies -- over
an 18-year major league career, has passed a
written trainer’s test at Maywood Park and plans
to race there and at Balmoral. “I hoped to have
a career that would lead me to be secure enough
to train and have my own horses,” he told the
Chicago Sun-Times Larry Hamel, “and baseball
fulfilled the first half of my dream. This isn’t
going to be a life-or-death situation. I’m not
mortgaging my future. Training horses is a difficult job. I just want to start at the bottom and
get a feel for what I need to do. I’m concentrating on having four or five horses racing and a
couple of young horses on the farm.” If he
does as well as the other Plesac, he’s all set.
December 30, 2003
POCONO: BIG PLANS, BIG IFS
WINDSOR’S CUP SPRINGS BACK
If slots come to The Downs at Pocono, its owners, Penn National Gaming, plan to add a Hollywood-themed casino to the track at the gateway
to Pennsylvania’s northeast resort country. Fred
Lipkin, a Penn National spokesman, said the
company’s recent acquisition of the Hollywood
Casino chain has prompted the company to make
its racino operations complement the Hollywood
style. Penn National is ready, but is the Pennsylvania legislature? A spokesman for House Majority leader Sam Smith answers yes, saying, “Everybody feels very confident that this is going to
happen.” How soon is problematic, but the legislature returns in late January, and Penn National and the state’s other tracks, established or
embryonic, are ready.
The Provincial Cup, the shining racing centerpiece of HTA’s member Windsor Raceway, will
return to its once traditional spring date in 2004,
and will be a $450,000 event for 3-year-olds raced
on Sunday, May 30. The Cup was originally
raced in the spring when it was introduced in
1966, but nine years later a grandstand fire forced
postponement of the race until fall, and it has
remained there since. This year it was raced
Sunday, Dec. 14, and lost the year’s top 3-yearold pacer in No Pan Intended, as it had other top
3-year-olds in recent years. The new alignment
will allow the race to serve as a rich tuneup for
the $1 million North America Cup at Woodbine,
and Windsor racing secretary Paul Hawman
thinks the change “will be huge.”
READY TO CUT THE EMERALD
INDIANA DOWNS SCALES BACK
Finally, a resolution to the Emerald Casino mess
in Chicago. The sale process starts next month,
and the decision on a winner will be announced
March 15. That’s the schedule announced today, with initial proposals to be submitted to an
investment banker January 19. Details on the
bidders will be announced the next day, and the
Illinois Gaming Board will select three finalists
Feb. 23, with those three making presentations
to the board a week later. An auction will follow
on March 10, and the winner will be announced
five days later. Emerald, knocked out of the box
by alleged mafia ties of its leaders, is selling in a
forced sale, with its top officials forfeiting $20.6
million and other investors getting their money
back. A bankruptcy judge will decide if the town
of Rosemont, where a parking garage for the proposed Emerald Casino was built back when it
still was in play, will get the $45 million it is seeking. The Rev. Tom Grey, the anti-gambling maven from Rockford in northwestern Illinois, said the sales procedure will be “an
all-out feeding frenzy.”
The refusal of Kentucky thoroughbred horsemen
to allow simulcasting of Kentucky races by Indiana Downs has forced HTA’s newest Indiana
member to scale back on its plans for a full service restaurant at its upcoming OTB in
Clarksville. General manager Jon Schuster had
hoped to open the new facility by year’s end, but
now hopes to open it by mid-March. Schuster
says a Kentucky signal could mean as much as a
40% increase in simulcasting, but acknowledged
that opposition from the Kentucky HBPA, fearing impact on Churchill Downs’ operations,
makes it unlikely that the Downs will get the signals.
SIGNALS ON HTA/TRA AGENDA
The growing controversies over simulcasting signals and account wagering services will be part
of feature discussions at the upcoming HTA/TRA
joint annual meeting March 3-6 at Sanibel
Harbour in Florida. Registration forms and
hotel reservation packets have been mailed.
Make your reservations early.
December 31, 2003
MAINE TOWNS VOTE “NO!”
LET’S ALL SUE FOR NEW YEAR
Scarborough Downs lost round one in its bid to
move out of Scarborough to become a racino yesterday, when both nearby towns of Saco and
Westbrook voted overwhelmingly to reject allowing Scarborough to operate there. Under current Maine law, written in this instance by attorneys for promoter Shawn Scott, Scarborough had
only until today to get a favorable vote to move
within five miles of its present location if
Scarborough voters turned down its bid to operate a racino, which they did. Saco and Westbrook
were the only towns that qualified, and after an
acrimonious campaign the citizens of Saco said
no in resounding fashion, voting 62%-38%
against the proposal. Westbrook followed suit,
voting down the proposal 59% to 41%. That
leaves Scarborough owner Sharon Terry and her
partner Penn National Gaming with one option,
to ask the Maine legislature to give them more
time and geographic latitude to relocate the track
to a racino-accepted site. The governor of Maine,
meanwhile, who had the good sense to be vacationing in Arizona during the town election, reportedly greeted the news with glee. A spokesman for governor John Baldacci said the vote
reaffirmed the governor’s position against an
expansion of gambling.
Everybody in the pool. Keep those lawyers going. That was the news on the last day of 2003 as
Vernon Downs sued real estate magnate and harness horse owner Jeff Gural and Bally’s Manager Inc., a Park Place Entertainment subsidiary,
sued Cloverleaf Enterprises, owners of Rosecroft
Raceway.
TimeSite.com, the Web site of TIMES:in harness
magazine, was sticking to a story by its New England correspondent Stan Gutkowski that Shawn
Scott had sold his interest in Bangor Raceway.
Scott’s spokeswoman, Bangor officials and Kehl
Development of Iowa, which had wanted to buy
the track, all denied the story, but the magazine
said it stood by Gutkowski’s report, saying it
came “from a knowledgeable source close to the
proposed sale.” Shawn’s flack said people were
disparaging Shawn Scott’s “good work”
in Bangor. “Bangor has not been sold,”
she said. “We’re working too hard to
keep it.”
Vernon claims Gural, who wants to buy Vernon,
told lies about Vernon Downs managers, persuaded the track’s auditors to quit (although they
said it was because the track has refused to submit needed financial reports) and orchestrated
“a vituperative smear campaign in the press,”
according to the Syracuse Post-Standard.
The Bally’s suit claims Cloverleaf ignored a 1997
deal giving Bally’s the right to control slot machines and other alternative gaming if they are
legalized in Maryland. The suit was filed Dec.
23, three days after Cloverleaf’s board voted to
sell Rosecroft to veterinarian Dr. Mark
Ricigliano, and asks for $100 million in damages.
Ricigliano told the Washington Post that he was
aware of the 1997 deal with Bally’s, saying, “We
knew it was out there, but it’s not going to have
any effect on the sale going through.” Ricigliano
said that other than the minority owner -- yet to
be named -- who will acquire a 20% to 30% stake
in Rosecroft -- he was sole owner, and “if I don’t
have a partner, it makes no difference to me.”
IS IT ROSEMONT OR BUST?
A U.S. appellate court has ruled that the Illinois
legislature meant exactly what it said in 1999
when it said the Illinois Gaming Board “shall”
approve the Emerald Casino’s choice of location.
Emerald chose the northwest Chicago suburb of
Rosemont, and the town now contends that is
the only place where new owners can locate under the 1999 law.
HAPPY NEW YEAR!

2003 - Harness Tracks of America, Inc.

Transcription

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