HARNESS TRACKS OF AMERICA Executive Newsletter
HARNESS TRACKS OF AMERICA Executive Newsletter
HARNESS TRACKS OF AMERICA Executive Newsletter
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<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 2, 2008<br />
JOE BRUNO SPEAKS<br />
We know not who speaks with forked tongue,<br />
but we do know a discrepancy when we see one,<br />
and statements issued by Senate boss Joe Bruno<br />
and the office of the governor of New York<br />
cannot both be accurate. Racing in New York<br />
continues, as expected, with no new operator<br />
and no legislation permitting it, but the major<br />
adversaries continue their head-butting. Bruno,<br />
in a statement to the press, said, “Negotiations<br />
have been very constructive over the last several<br />
weeks. However, we have been unable to get the<br />
Governor’s staff to meet with us since Friday in<br />
an effort to resolve remaining differences. For<br />
months I have called for open public leaders<br />
meetings to reach an agreement by the end of the<br />
year. The Governor and Speaker have rejected<br />
these calls. Today, I am renewing that call and<br />
asking Governor Spitzer and Speaker Silver to<br />
conduct a public meeting on January 2 to finalize<br />
an agreement. I am confident that our differences<br />
can be resolved.” Bruno went on to say<br />
his hopes for a settlement today “were hindered<br />
by NYRA’s intransigence on remaining issues<br />
that would assure accountability and oversight.”<br />
Summarized, it is everybody’s fault except good<br />
old Joe’s. According to Bruno, Spitzer and Silver<br />
are the bad guys. Gov. Spitzer’s office says<br />
an agreement already is in place, and will stay in<br />
place until Jan. 23, and adds, “The Governor’s<br />
Office has been in daily contact with representatives<br />
of the State Senate, the Assembly and<br />
NYRA.” Reconcile all the oratory as you wish.<br />
The horses, unaware of the oratory, are running<br />
today, and so are the politicians, in all directions.<br />
This will be resolved and forgotten, perhaps not<br />
for the 30 years the governor wants but for longer<br />
than Bruno wants, and Hal Handel can begin<br />
running the New York Racing Association<br />
on a day-to-day managerial basis. What<br />
a pleasant prospect that is for the start of<br />
a brand new year.<br />
LET’S SEE..2+2 = WHAT’S THAT<br />
You’ve heard of the gang that couldn’t shoot<br />
straight. Now try the gang that couldn’t count.<br />
Jockeys in Ireland this time, 14 of them who<br />
pulled up one track circuit early in a jump race<br />
of 2 miles 5 furlongs. They began heading for<br />
the unsaddling enclosure when five of them realized<br />
their mistake, turned around, and raced<br />
the final lap. The English racing press noted,<br />
“While jockeys individually occasionally ride a<br />
finish too early, it is rare for an entire field to do<br />
so.” Their mistake even fooled the commentator,<br />
who described the first “finish” in animated<br />
terms before also realizing the error. Having<br />
been one of those, we can understand race callers<br />
who have trouble counting.....but jockeys?<br />
Those who finished second, third and fourth in<br />
the race -- and five-others as well -- were suspended<br />
for five days. That’s 5, boys...1..2..3..4..5.<br />
It’s easy until you get past 10.<br />
THINGS SLOW? TRY BINGO<br />
Milton McGregor, who has tried dogs in Birmingham,<br />
now thinks Bingo may be the better<br />
bet. He is hoping to add electronic bingo machines<br />
to his track, where he was forced to remove<br />
casino-like machines a year ago, according<br />
to the Birmingham News. The paper reports that<br />
previous objections from Greenetrack, a Eutaw<br />
dog track that has hundreds of Vegas-style bingo<br />
machines and was able to block Birmingham,<br />
now is talking joint venture with McGregor. The<br />
Birmingham Racing Commission is next stop.<br />
STEEL YOURSELF FOR THIS<br />
Anyone who ever saw it remembers the old<br />
Bethlehem Steel Works in Bethlehem, PA, as one<br />
of the biggest and most foreboding structures<br />
imaginable. Now, almost 400,000 square feet of<br />
building have been demolished, and the Vegas<br />
Sands Corporation, whose stock is falling,<br />
expects to open the giant casino in 2009.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
$11 MILLION, & UNRESOLVED<br />
This is not a post-dated, after-the-fact “I told<br />
you so” item. When the California Horse Racing<br />
Board first mandated synthetic tracks, we<br />
wrote we felt it was a knee-jerk reaction to criticism<br />
of on-track injuries. We are not opposed to<br />
synthetics, but when you are talking $10 million<br />
or so without testing under battle conditions you<br />
are risking big money. A Bloodhorse.com article<br />
this week carries a headline, “Santa Anita<br />
Track Dilemma Not Over,” a story in which Paul<br />
Harper, the technical director of Cushion Track<br />
Footings, the builder of Santa Anita’s synthetic,<br />
acknowledges that trying to create a track to<br />
withstand 110 degrees “was in hindsight a mistake<br />
as this has almost certainly compromised the<br />
drainage characteristics of the surface.” With<br />
heavy rain predicted for the next three days,<br />
Santa Anita plans to seal its track to avoid further<br />
drainage problems. Cushion Track noted<br />
other installations, including one at Hollywood<br />
Park, have been well received, and Paul Harper<br />
said that if Cushion is unable to find a remedy<br />
to stabilize the track it will install a new one at<br />
the end of the current meeting, at an estimated<br />
cost of $6 million. We sympathize with the present<br />
problems, but memories of 40 years ago returned<br />
when California plunged ahead with its<br />
mandate. Back then, in the 1960s, the industrial<br />
giant 3-M Company, urged by its then chairman<br />
William McKnight, a racing man, turned its<br />
huge research capabilities and financial resources<br />
to creating what it called a Tartan track. It<br />
worked initially, but was unable to withstand the<br />
constant pounding it received under battle conditions<br />
at The Meadows in western Pennsylvania,<br />
and ultimately was removed. We were there<br />
the first day Tartan was tested, at Max Hampt’s<br />
farm in Mechanicsburg, PA, and the ensuing trials<br />
and ultimate tribulations remain fresh<br />
in mind. It will be five years before the<br />
final verdict on year-round synthetics.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 3, 2008<br />
Ron Charles, Santa Anita’s president, says<br />
Magna has spent $11 million so far for its Cushion<br />
Track, and it would cost another $6 million if<br />
the track must be replaced with drainage problems<br />
corrected. He has vowed to do whatever is<br />
necessary to restore ideal racing conditions.<br />
SPLIT ELLIS PARK IN TWO?<br />
Ron Geary, owner of Ellis Park in Henderson,<br />
KY, is thinking of cutting the baby in half. He<br />
says if slots are approved in Kentucky, he would<br />
build a casino in Owensboro -- not a racino in<br />
Henderson -- to move it away from riverboat<br />
competition in Indiana. Geary told the Indianapolis<br />
Star, “Whether at Ellis Park or in Owensboro,<br />
under an Ellis Park license, some percentage<br />
of the money bet would go into the purse<br />
funds at Ellis Park.” Kentucky’s new governor<br />
Steve Beshear wants slots, and a state senator<br />
from Owensboro already has filed pre-legislation<br />
to amend the state constitution to permit them.<br />
Owensboro is Kentucky’s third largest city, behind<br />
Louisville and Lexington.<br />
SCHEDULE CHANGES AT WEG<br />
Woodbine Entertainment has changed its post<br />
times for 2008. Starting tonight, and for the<br />
balance of the season, Woodbine’s first post on<br />
Thursday, Friday and Saturday nights will be<br />
7:30, rather than the 7:20 that will remain on<br />
Monday cards. Sunday racing is gone for the<br />
winter and will not return until racing returns to<br />
Mohawk on May 1.<br />
DON’T GET SHUT OUT<br />
We are in our final week for reservations at the<br />
Renaissance Vinoy in St. Petersburg, site of the<br />
HTA/TRA meeting Feb. 17-20. If you would like<br />
a stall, call Jen Foley at HTA, 520-529-2525, e-<br />
mail jen@harnesstracks.com, and she will be<br />
happy to accommodate you. Be sure to<br />
make your own Tampa air reservations.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
LEERHSEN WINS DAN PATCH<br />
Charlie Leerhsen, executive editor at Sports Illustrated<br />
and author of the soon-to-be published<br />
Simon and Schuster production Crazy Good:<br />
The Story of Dan Patch, the Most Famous Horse<br />
in America, is the winner of Harness Tracks of<br />
America’s 2008 award for contributions to publicity,<br />
publishing and promotion of harness racing.<br />
Leerhsen, one of the finest writers plying the<br />
trade in America today, is author of three previous<br />
non-racing books, on Donald Trump, former<br />
NBC president Brandon Tartifkoff and test<br />
pilot Chuck Yeager. His book on Dan Patch<br />
arrives after more than two years of intensive<br />
research criss-crossing the country in what he<br />
called “solving a mystery,” filling in thousands<br />
of blanks on the story of the wonder horse that<br />
captivated America at the start of the 20th century,<br />
when trains, cigars, washing machines,<br />
and children - a host of them - were named for<br />
him. Leerhsen interviewed countless dozens of<br />
people, and injected his book with much of the<br />
drama and conflict of a story he calls “better<br />
than Seabiscuit.” He notes that Seabiscuit was<br />
not born cripple, unable to stand and nurse, as<br />
Dan Patch was; never pulled the local grocery’s<br />
delivery wagon; never drew 110,000 people to<br />
see him race against the clock.<br />
Leerhsen was first hired to work for the United<br />
States Trotting Association by Stan Bergstein,<br />
then vice president of publicity and public relations.<br />
He worked at USTA from 1976 until 1981,<br />
when he left to become a senior writer for Newsweek.<br />
He left that magazine in 1992 to become<br />
entertainment editor, and then assistant manager<br />
editor, of People for six years, after which he<br />
was named editor of the weekly US, joining<br />
Sports Illustrated as executive editor<br />
six years ago.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 4, 2008<br />
Leerhsen will receive his aptly named Dan Patch<br />
award at the joint meeting of Harness Tracks of<br />
America and the Thoroughbred Racing Associations<br />
at the Renaissance Vinoy hotel in St. Petersburg,<br />
Florida, Tuesday night, February 19.<br />
FARINELLA LEAVES TIOGA<br />
Bob Farinella, president of Tioga Downs and<br />
Vernon Downs for American Racing and Entertainment,<br />
is leaving that post January 18 and<br />
will be succeeded by Pete Savage. Farinella, in<br />
a typical class move, issued a farewell statement<br />
in which he wrote, “Over the past 14 months we<br />
have crossed many bridges together and I am<br />
pleased with the changes we have undertaken<br />
to offset the tremendous negative burden of a<br />
broken lottery economic model and all the negative<br />
press that has been associated with it....I am<br />
confident that the pieces that we have worked so<br />
hard to assemble will all gel in 2008 and to that<br />
extent as I elect to turn over the reins to Pete Savage<br />
I want to extend my personal thanks for the<br />
friendship and professionalism extended me.”<br />
BROOKS SPRUNG FOR $4 MIL<br />
Former Perfect World Enterprises stable owner<br />
David Brooks, incarcerated since October on<br />
charges including securities and tax fraud, has<br />
been released under house arrest by a federal<br />
judge. He reportedly will be confined to a Manhattan<br />
apartment under constant surveillance<br />
with an armed guard, and as part of the release<br />
agreement he posted a $400 million personal recognizance<br />
bond, co-signed by his brother Jeffrey<br />
and secured by $48 million in assets. Brooks<br />
also supposedly sent $4 million to tribal holy men<br />
in Senegal, West Africa for religious ceremonies<br />
to help in his acquittal. One wag asked, “How<br />
many prayers do you get for $4 million.”<br />
While pondering that, send your hotel reservations<br />
for Florida to Jen Foley at HTA,<br />
520-529-2525. Time is short.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 7, 2008<br />
SANTA ANITA TO HOLLYWOOD?<br />
Torrential, unrelenting rain -- 5 1/2 inches of it<br />
over the weekend -- washed out racing at Santa<br />
Anita Saturday and Sunday, including the<br />
$100,000 Santa Ysabel and the $150,000 San<br />
Pasqual Handicap. The problem, beside the<br />
punishing rain, was the inability of Santa Anita’s<br />
new Cushion Track to absorb water. With<br />
the cancellation, California Horse Racing Board<br />
chairman Richard Shapiro announced a poll of<br />
his members tomorrow on the issue of allowing<br />
Santa Anita to transfer its meeting to Hollywood<br />
Park in Inglewood. That track also has<br />
a Cushion Track, but unlike the one in Arcadia it<br />
was not built to withstand 110-degree heat. That<br />
decision -- called “an after-the-fact mistake” by<br />
Cushion Track Footings technical director Paul<br />
Harper -- led to serious drainage problems from<br />
the start of the meeting, and Harper and his crew,<br />
and Santa Anita track superintendent Richard<br />
Tedesco and his ground corps, have been unable<br />
to solve the problem. The entire surface was removed<br />
and replaced in December, but without<br />
adequate drainage the track is not safe for racing.<br />
Cushion Track says it will replace it, a task<br />
costing $6 million, and Santa Anita already has<br />
spent $11 million on the installation and subsequent<br />
maintenance attempts, according to president<br />
Ron Charles. Charles was summoned to<br />
Florida over the weekend to meet with Santa<br />
Anita’s owner, Frank Stronach, concerning the<br />
problem.<br />
INTERIOR TO MONTICELLO: NO<br />
The United States Secretary of the Interior, Dirk<br />
Kempthorne, has for the moment ended hopes<br />
of a San Regis Mohawk casino at Monticello<br />
Raceway in the New York Catskills, and another<br />
Indian casino planned for Sullivan county.<br />
Kempthorne refused to grant Indian reservation<br />
land in trust. The Mohawks say<br />
they will sue Kempthorne.<br />
SOME INTERESTING FIGURES<br />
Ohio and Oregon have released handle figures<br />
for last year, and they are revealing. In Ohio,<br />
betting at HTA’s Lebanon Raceway, Northfield<br />
Park, and Scioto Downs, and at Raceway<br />
Park, all were down, a total of 14.3%. Scioto<br />
was down 21.25% with two less days of racing<br />
than in 2006; Lebanon was down 15%, with<br />
two more days; Northfield was down 13.6%,<br />
with the same 364 days of racing; and Raceway<br />
was down 6.7%, with 362 days of racing in both<br />
years. All thoroughbred tracks in the state also<br />
were down, ranging from Thistledown’s loss of<br />
14.55 % through Beulah Park’s decline of 9.5%<br />
to River Downs’ 8.2%, with only a day’s difference<br />
in number of racing days. Statewide totals<br />
dropped 12.71%.<br />
Oregon’s racing commission issued handle figures<br />
for the last seven years. Hub betting was<br />
negligible in 2000, but in its first full year, 2001,<br />
Greyhound Channel, doing business then as US<br />
Off-Track, had a high second quarter, handling<br />
$3.168 million. In 2007, now known as Pay Dog,<br />
it handled over $7 million in each of the first three<br />
quarters of the year. TVG went from a high quarter<br />
of $13.8 million in 2001 to $151.4 million in the<br />
third quarter of 2007; AmericaTAB went from<br />
$11.2 in the last quarter of 2001 to $62.3 million<br />
before being acquired by Churchill Downs in the<br />
second quarter of 2007. Youbet, which arrived<br />
in Oregon in 2002, had a high quarter that year<br />
of $42.5 million, and its high quarter in 2007 was<br />
$133.3 million. The Racing Channel, doing business<br />
as Oneclickbetting.com, handled $42.9 million<br />
in its highest quarter in 2002, and only $10<br />
million in its best quarter last year. XpressBet<br />
entered the fray in 2005, with a high quarter of<br />
$26.2 million, and posted $56.1 million in its best<br />
trimester last year. IRG, in the same time frame,<br />
went from $2.1 million to $87.3 million in its best<br />
quarter. Churchill’s Twin Spires hit $39.4<br />
million in its second quarter last year.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 8, 2008<br />
WITH FLOODS, BUILD AN ARK<br />
That was the philosophy of the late and deeply<br />
missed Tom Joy, who owned Windsor Raceway<br />
in its better years. Now Ron Charles, just<br />
named Chief Operating Officer of Magna Entertainment<br />
Corporation, gets a chance to show<br />
similar optimism. Magna’s Santa Anita was<br />
washed out for the third straight day yesterday,<br />
as more rain fell in southern California, bringing<br />
the weekend total to a reported 7 1/2 inches.<br />
Charles, in his new job, will be responsible for<br />
all operational aspects of MEC’s business interests,<br />
and will answer directly to chairman and<br />
interim CEO Frank Stronach. As for considering<br />
his limited options with his drowned Cushion<br />
Track, Charles has a few. He expects permission<br />
today from the California Horse Racing Board<br />
to move the remaining days of the 85-day spring<br />
meeting to Hollywood Park. Joe Harper has tentatively<br />
offered Del Mar for training purposes,<br />
contingent on approval of his fair board. And<br />
the Los Angeles Daily News reported that Santa<br />
Anita might scrap the Cushion and revert to dirt<br />
for the remainder of its spring meeting, something<br />
the racing board obviously would have to<br />
approve, since it was the group that mandated<br />
synthetic tracks in the first place. Santa Anita’s<br />
forced cancellation yesterday marked the first<br />
time in the 71-year history of the track that races<br />
were cancelled on three consecutive days, and<br />
new COO Charles called the situation “unacceptable.”<br />
The track hopes to reopen with live<br />
racing on Thursday.<br />
SEND SURVEYS TO BRODY<br />
All HTA member tracks should have received<br />
their wagering survey forms from Brody Johnson<br />
by now. Will the responsible parties please<br />
fill them out and return them, as soon as possible<br />
by fastest means, to Brody. His welfare<br />
hangs in the balance, and he’s a guy we<br />
really cannot afford to lose.<br />
LOOKING FOR WORK? TRY US<br />
An HTA member with a long racing season is<br />
looking for a racing secretary and for a track superintendent.<br />
If you are interested, send your<br />
resume to the aforementioned Mr. Johnson at<br />
the home office in Tucson. Keep Brody busy!<br />
UP THE HILL WITH VERNON<br />
New York Assemblyman J. Gary Pretlow of<br />
Mount Vernon, chairman of the Assembly’s Racing<br />
Committee, announced today that a “conceptual<br />
agreement” has been reached between<br />
harness horsemen and those who run the tracks<br />
at which they race. Pretlow would not give details<br />
until the Assembly bill was printed, possibly<br />
today. Jeff Gural was not waiting, meeting with<br />
the State Racing and Wagering Board today,<br />
and the Assembly now is drafting a bill in accordance<br />
with the agreement. The state Senate<br />
passed a favorable bill earlier that could mean<br />
$5 million to Vernon.<br />
DOWN THE SLOPES AT EMPIRE<br />
Monticello Raceway is in what New Yorkers call<br />
The Mountains, and the slopes were steep yesterday<br />
as the stock of the track owner, Empire Resorts,<br />
fell to a record low yesterday on news that<br />
the U.S. Department of the Interior had denied<br />
a land-trust application that would have given<br />
the St. Regis Mohawk Indians a major casino<br />
in the Catskills. Empire’s stock dropped $54,<br />
from $3.08 to $1.42 a share. Empire’s stock was<br />
called “always volatile” by one financial adviser,<br />
while Monticello president David Hanlon called<br />
Interior’s decision “regrettable.” The decision<br />
came after federal environmental approval and<br />
favorable rulings from both previous New York<br />
governor George Pataki and present governor<br />
Eliot Spitzer.<br />
You are now almost out of time for room<br />
reservations for the HTA/TRA meeting.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 9, 2008<br />
DIRT-Y DOINGS IN CALIFORNIA<br />
The California Horse Racing Board yesterday<br />
voted unanimously to allow Santa Anita to run<br />
some or all of its remaining races at Hollywood<br />
Park if it cannot solve the drainage problem<br />
with its Cushion Track quickly. Board chairman<br />
Richard Shapiro said of the decision, “We are<br />
removing any regulatory impediment” for Santa<br />
Anita, including the option to return to dirt until<br />
a new synthetic track could be installed. Shapiro<br />
said the board was not deciding that racing<br />
should be transferred to Hollywood Park, but<br />
rather removing any restrictions “for the benefit<br />
of all parties.” According to the California<br />
Thoroughbred Breeders Association boardwatch,<br />
50% fewer horses have died since the synthetic<br />
track mandate became effective. The newsletter<br />
says before the new surfaces were installed,<br />
there was 1 horse death per 443 starts, and since<br />
installation the incidence of fatal accidents had<br />
dropped to 1 in 913.<br />
FAIRMOUNT SLASHES DATES<br />
Fairmount Park in southern Illinois has announced<br />
it will shorten its season by 33 1/3%<br />
this year, cutting back from 90 racing dates to<br />
60. Track president Brian Zander said financial<br />
strains on the track from competing riverboat<br />
competition was making the move necessary. His<br />
action came as the Illinois legislature continued<br />
its contentious debate about new gambling laws<br />
that could include slots at Illinois tracks. The<br />
casino industry has been bitterly opposing the<br />
idea, claiming oversaturation of the market, as it<br />
has in New Jersey, but one key Illinois legislator<br />
backing the move -- Rep. Lou Lang of Chicago’s<br />
northwestern suburb of Skokie -- said the real<br />
and only reason for the opposition is that the riverboats<br />
do not want the tracks to have slots. The<br />
Illinois House, Michael Madigan, said the<br />
riverboats will have to learn they may<br />
not get exactly what they want.<br />
SCOT WATERMAN THE MAN<br />
Dr. Scot Waterman, executive director of the<br />
Racing Medication and Testing Consortium, is<br />
the 2008 winner of Harness Tracks of America’s<br />
Distinguished Service Award. Waterman will<br />
receive HTA’s equine bronze at the association’s<br />
Nova Awards dinner Tuesday night, February<br />
19, during the joint HTA/TRA annual meeting<br />
at the Renaissance Vinoy hotel in St. Petersburg,<br />
Florida. A graduate of the University of<br />
Illinois College of Veterinary Medicine and an<br />
honors graduate of the University of Arizona<br />
Race Track Industry Program, Dr. Waterman<br />
played a leading role in the creation of the Medication<br />
and Testing Consortium and has been its<br />
leader and driving force in the five years since<br />
its inception. He has campaigned tirelessly,<br />
coast-to-coast, urging racing commissions to<br />
adopt RMTC guidelines, and more than 25 have<br />
agreed. Brock Milstein, president of HTA, called<br />
Waterman’s work “inspirational, and of huge<br />
benefit to the entire horseracing industry.”<br />
CLASSIC SERIES: PAY 1 FEE<br />
The Classic Series for older pacers and trotters<br />
will kick off this year on April 7 at Dover Downs.<br />
The series offers a solid deal to owners who nominate,<br />
requiring only a single nomination payment<br />
on February 15 for the three $85,000 preliminary<br />
legs and the chance to qualify for the $250,000 final<br />
at each gait. Mohawk Racetrack will host the<br />
second leg May 31, the Meadowlands will offer<br />
the third leg on July19, and the finals will be held<br />
with the Hambletonian eliminations a week later.<br />
THE RUMOR MILL REPORTS<br />
Rumors from Pennsylvania predict big changes in<br />
the composition of the state’s racing boards can be<br />
expected in the next six months. The harness racing<br />
commission, reports say, will be merged with<br />
the thoroughbred board, and casualties could include<br />
Ben Nolt on the thoroughbred board<br />
and Anton Leppler on the harness side.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 10, 2008<br />
BRIAN CASHMAN AT HTA/TRA<br />
Brian Cashman, general manager of the New<br />
York Yankees, and his Hall of Fame father John,<br />
one of harness racing’s best known executive<br />
personalities, will enliven the Nova Awards dinner<br />
presentations during next month’s joint annual<br />
meeting of Harness Tracks of America and<br />
the Thoroughbred Racing Associations.<br />
The Cashmans will chat with master of ceremonies<br />
and racing commentator Dave Johnson in<br />
a conversation titled, “No One Ever Grew Old<br />
With a Promising 2-year-old in the barn or a<br />
Pennant Contender in Winter Training.” The<br />
conversation will be a prelude to presentation<br />
of the Nova bronzes to owners of the champion<br />
harness horses of 2007, and awards to other dignitaries<br />
being honored at the dinner.<br />
The full agenda of the HTA/TRA meeting will be<br />
released tomorrow.<br />
THE ELOQUENCE <strong>OF</strong> SILENCE<br />
If you were waiting to hear what Gov. Eliot<br />
Spitzer had to say about racing and gaming in<br />
his State of the State message in Albany yesterday,<br />
don’t bother to hang around. He said<br />
nothing. No mention of racing, harness or thoroughbred;<br />
no mention of casino or tribal gaming;<br />
no mention of VLTs. His only mention of<br />
anything related to gambling was a pitch to find<br />
more money in the state lottery system, “either<br />
by taking in private investment or looking at<br />
other financing alternatives. As we do this, we<br />
will assure that the State continues to regulate<br />
all lottery games, and that we continue to receive<br />
the more than $2 billion annually that the lottery<br />
now provides. Today’s endowment dollars<br />
will be a down payment on tomorrow’s dreams.”<br />
To read his speech in full, if interested, try<br />
http://www.ny.gov/governor/keydocs/<br />
state_of_the_state_address2008.pdf.<br />
AND THE THUNDER <strong>OF</strong> DELAY<br />
If you enjoy watching glaciers move, New York<br />
is the place to be. Ask Harness Racing TV. The<br />
company is awaiting a decision from the New York<br />
Racing and Wagering Board, but all it can get<br />
is board spokesman Dan Toomey’s pronouncement<br />
that, “We are reviewing the application.”<br />
This, by the way, is the second application of<br />
HRTV, which provided an earlier version to the<br />
board in December. HRTV, owned by Churchill<br />
Downs and Magna Entertainment, would like<br />
to resume showing Aqueduct races, which it<br />
stopped showing January 4, informing viewers<br />
board approval was pending. The racing board<br />
approved Xpressbet.com and Twinspires.com --<br />
two HRTV wagering sites -- offering wagering<br />
on Aqueduct, but is in deep meditation on HRTV<br />
itself showing Big A races. TVG formerly held<br />
exclusive rights to New York signals. Spokesman<br />
Toomey, asked to elaborate on the decision<br />
delay, told reporters he could not put a timetable<br />
on how long the review process might take.<br />
ERIC LEDFORD RETURNS IN NJ<br />
harnessracing.com reports today that driver Eric<br />
Ledford, banned last winter for possession of<br />
prohibited substances in New Jersey, will be relicensed<br />
this week and probably return to driving<br />
immediately at the Meadowlands. Although<br />
Ledford’s year suspension from the racing<br />
board was up some time ago, a spokesman said<br />
the board had not issued a license until criminal<br />
probation expired.<br />
BURNED TWICE, SAME FLAME<br />
The painful scorch of changed facts and misunderstanding<br />
burned <strong>Executive</strong> News twice yesterday.<br />
Happily, executive director Anton Leppler<br />
will not be a casualty of reorganization of<br />
racing board staffs in Pennsylvania, and the vituperative<br />
CTBAboardwatch newsletter in California<br />
has no affiliation with the California<br />
Thoroughbred Breeders Association.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 11, 2008<br />
“IT WILL BE MY BILL”<br />
If there were any doubts or concerns about the<br />
intentions of the new governor of Kentucky,<br />
Steve Beshear, on the subject of casinos or racinos<br />
in the Bluegrass, they should be resolved<br />
now. The governor told newsmen this week, “In<br />
the end, I’m going to make the decisions and<br />
fashion the legislation. It will be my bill.” The<br />
issue was clouded a bit earlier in the week when<br />
Nick Nicholson, president and CEO of Keeneland,<br />
mentioned that Keeneland and the Red<br />
Mile might partner on a casino license and locate<br />
it somewhere other than either track in Fayette<br />
county. Legislators are asking where the facilities<br />
would be located before they vote on the issue,<br />
and the governor made it clear he will let<br />
them know where he wants them. Rep. Larry<br />
Clark, a Louisville Democrat and the House<br />
Speaker Pro Tem, said the tracks must choose<br />
their financial strategies, including locations, but<br />
would not have to make that decision until the<br />
constitutional amendment comes up for legislative<br />
approval. Asked what the next step would<br />
be, Clark said, “I’m waiting on the governor.<br />
When he has his legislation, I’ll be glad to look<br />
at it.”<br />
A SIGNIFICANT NUMBER<br />
For the first time in their 20-year history, Atlantic<br />
City casinos handled less money last year<br />
than they did the year before, and racetracks<br />
and new no-smoking regulations were blamed.<br />
Philly.com quoted Carlos Tolosa, president of the<br />
eastern division of Harrah’s Entertainment, as<br />
saying, “It is a shock...a slap on the side of the<br />
head for anyone who owns a casino in town.”<br />
Harrah’s owns the Harrah’s Marina, Showboat,<br />
Caesars and Bally’s in Atlantic City, and Tolosa<br />
said, “This is a wakeup call for everybody that<br />
we have to continue to build nongaming<br />
attractions and convert this resort town<br />
into a destination, and that we have a<br />
long way to go.” Tell you what, Carlos.<br />
Give us the slots, we’ll give you the rest.<br />
LIKE A REALLY BIG MARKET?<br />
Think China. The official Xinhua news agency<br />
says the huge country may legalize horse racing<br />
for the first time since the Communist Party assumed<br />
power 59 years ago, in 1949. The Beijing<br />
government has approved regular horse racing<br />
in the central city of Wuhan, where it existed a<br />
century ago, and is considering the introduction<br />
of betting on those races next year. Xinhua says<br />
the experiment is a prelude to the return of nationwide<br />
betting on horses throughout China.<br />
If they bet on the mainland the way they do in<br />
Hong Kong and elsewhere, the Chinese represent<br />
a gargantuan market for the sport. One Chinese<br />
researcher estimated the introduction of betting<br />
could create 3 million jobs a year, and 83% of<br />
Wuhan residents polled thought it would have a<br />
positive social impact. With Bill Nader, formerly<br />
of NYRA, running Hong Kong racing, and the<br />
door already open to an American racing executive<br />
in China, it might be time to try Berlitz and<br />
get a head start.<br />
CONTROLLER JOB OPEN<br />
An HTA member is looking for a controller. If<br />
you are interested, please send your resume to<br />
Brody Johnson at brody@harnesstracks.com.<br />
DOWD ON WORLD IN <strong>HARNESS</strong><br />
Dennis Dowd, senior vice president of racing for<br />
the New Jersey Sports and Exposition Authorities’s<br />
Meadowlands and Monmouth Park operations,<br />
became the current interviewee on HTA’s<br />
World in Harness. His 35-minute, wide-ranging<br />
interview provides a fascinating view of his varied<br />
career as an amateur trainer-driver, attorney,<br />
racing commissioner and commission chairman,<br />
developer of New Jersey’s account wagering system,<br />
and former president of Freehold Raceway,<br />
Ocean Downs, Rosecroft Raceway and Vernon<br />
Downs. Access the show through www.<br />
harnesstracks.com/worldinharness.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Paul J. Estok, Editor<br />
January 14, 2008<br />
BRIAN CASHMAN & HIS HALL <strong>OF</strong> • Maury Wolff, racing economist & long-time major bettor<br />
• Nick Eaves, President & COO, Woodbine Entertainment<br />
FAME SIRE IN A BASEBALL-RACING<br />
CHAT ON THE HTA/TRA AGENDA<br />
Brian Cashman, general manager of the New York Yankees,<br />
and his Hall of Fame father John, one of harness racing’s<br />
best known executive personalities, will enliven the<br />
Nova Awards presentations during next month’s joint annual<br />
meeting of Harness Tracks of America and the Thoroughbred<br />
Racing Associations.<br />
The Cashmans will chat with master of ceremonies and<br />
racing commentator Dave Johnson in a conversation titled<br />
“No one ever grew old with a promising 2-year-old or a<br />
pennant contender in winter training.” The conversation<br />
will be a prelude to presentation of Nova bronzes to owners<br />
of the champion harness horses of 2007, and awards to<br />
other dignitaries being honored by HTA.<br />
Here is the agenda of the February 17-20 meeting of racing’s<br />
two major racetrack trade associations:<br />
SUNDAY, FEBRUARY 17<br />
All day Arrivals and Registration<br />
4:30-6:30p.m. HTA Fin. and Exec. Committee<br />
MONDAY, FEBRUARY 18<br />
All day Arrivals and Registration<br />
8:00-9:00 a.m. HTA Scholarship Committee<br />
8:00-9:00 a.m. HTA Mission, Awards, Convention<br />
Committee<br />
9:15-10:45 a.m. HTA Committee of the Whole<br />
11:00-12:30 HTA Board of Directors<br />
1:00-6:00 Golf or AFTERNOON FREE<br />
1:00-3:00 TRA 2020 Committee<br />
7:15-9:15 Welcome Buffet Supper Reception<br />
TUESDAY, FEBRUARY 19<br />
All day Arrivals and Registration<br />
8:00-11:15 a.m. GENERAL SESSIONS (Open to All)<br />
(Speakers subject to change in final agenda)<br />
8:00-8:10 a.m. Welcome<br />
• Brock Milstein, President, HTA<br />
• Robert Bork, President, TRA<br />
8:10-9:00 a.m. Trust in the Pari-Mutuel System:<br />
Looking at Late Odds Changes<br />
• Craig Fravel, <strong>Executive</strong> Vice President, Del Mar<br />
• Curtis Linnell, Director of Wagering Analysis, TRPB<br />
9:00-9:45 a.m. Swimming with Whales: Will They<br />
Beach Offshore or can They be<br />
Returned to the Racetrack?<br />
• Mike Maloney, one of America’s biggest bettors<br />
9:45-11:00 a.m. Keeping the “Race” in Racinos: Are They<br />
Simply Purse Builders, or Can They Offer<br />
Racing Meaningful Opportunities to Broaden its<br />
Patronage?<br />
• Chuck Atwood, Vice Chairman, Harrah’s Entertainment<br />
• Charles Hayward, President & CEO, NYRA<br />
• Jeff Gural, Principal, Tioga Downs & Vernon Downs<br />
• Bill Oberle, Speaker Pro Tempore, Delaware House of<br />
Representatives<br />
• Gary Palmer, President & CEO, Prairie Meadows<br />
• Chris McErlean, Vice President of Racing, Penn National<br />
Gaming<br />
• Bill Fasy, COO, Delaware Park & Ocean Downs<br />
11:00-11:30 a.m. Ghost Stories: Experiences of Charlie<br />
Leerhsen, <strong>Executive</strong> Sports Editor, Sports Illustrated, in<br />
writing his new racing book Crazy Good, on Dan Patch<br />
11:30-12:30 HTA/TRA Joint Board Meeting<br />
7:30-8:30 Nova Awards Reception<br />
8:30-10:30 Nova Awards Dinner<br />
WEDNESDAY, FEBRUARY 20<br />
All day Arrivals and Registration<br />
8:00-12:15 a.m. GENERAL SESSIONS<br />
8:00-9:00 a.m. Miami Project Presentation to TRA<br />
9:00-9:30 a.m. The Mitchell Report & Racing<br />
• Bennett Liebman, Acting Director, Government Law Center<br />
& Visiting Assistant Professor of Law, Albany Law School<br />
9:30-10:30 a.m. Medication & Regulation: Can Research<br />
Succeed Without Stronger, Meaningful<br />
Support from Regulators; including Prosecuting<br />
the Guilty while Protecting the Innocent<br />
• Alan Foreman, Chairman, Thoroughbred Horsemen’s<br />
Association, Inc.<br />
• Dr. Scot Waterman, <strong>Executive</strong> Director, RMTC<br />
• Ed Martin, President, RCI<br />
• Ben Wallace, Past Trainer of the Year, Canada<br />
10:30-11:00 a.m. Racing and New Technologies: Having<br />
Missed the Television Boat a Half Century Ago,<br />
Will We be Left to Sink Again Without Adapting<br />
to New Forms of Communication?<br />
• Eric Wing, Senior Director of Media Relations, NTRA<br />
• Seth Merrow, Publisher, Equidaily<br />
• Dave Johnson, Host, Sirius Satellite Radio<br />
10:00-12:00 TRPB Board Meeting<br />
1:30-3:30 TRA Board Meeting
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 15, 2008<br />
POCONO SLOTS TOP THE EAST<br />
Slot machines at HTA member Mohegan Sun<br />
at Pocono are the most productive in the east,<br />
according to a gambling research firm, and two<br />
other HTA member track’s racinos -- The Meadows<br />
and Chester Downs -- occupy the top five.<br />
Spectrum Gaming Group of Linwood, NJ, reports<br />
that the slots at Mohegan at Pocono generated<br />
an average $403 a day in the Sept. 20 thru<br />
Nov. 30 quarter. Mohegan Sun in Connecticut,<br />
the parent of the Pocono operation, was second<br />
during that span with $390 a machine, followed<br />
by Philadelphia Park’s $369, The Meadows<br />
Racetrack and Casino’s $347, and Harrah’s<br />
Chester Casino and Racetrack’s $322. Bobby<br />
Soper, president and CEO of Mohegan Sun at<br />
Pocono, said he was pleased but not surprised at<br />
the results. “Pennsylvania is a robust market,”<br />
he said, and it follows it will be for harness horses<br />
racing there as well. The Spectrum Group’s<br />
managing director, Michael Pollock, said,<br />
“You’ve got some very sharp operators there.<br />
They know how to reach players and give them<br />
what they want.” Gross revenue at Pennsylvania’s<br />
six operating slots parlors was $1.04 billion<br />
last year. The state takes 55% of gross gaming<br />
revenue, giving it $572 million in 2007. Racing<br />
is not the only beneficiary. The state’s taxpayers<br />
will receive property tax cuts, and budget secretary<br />
Michael Masch says a relief fund for that<br />
purpose now contains $576 million. At year’s<br />
end there were 12,686 slot machines operating in<br />
the state, according to Philly.com.<br />
OLDIES ARE GOODIES<br />
Florida gets more than its share of senior citizens,<br />
and its US Harness Writers chapter intends to<br />
see that they are recognized. This year it is sending<br />
old timers Alan Prince and Murray Janoff<br />
into the Communicators Hall of Fame in<br />
Goshen, and nominating Erwin Grossman<br />
and John Berry for next year.<br />
AXELROD IN, STARTS HAPPILY<br />
Ivan Axelrod, chairman of the board of the<br />
United States Trotting Association, has a new<br />
job as well. The California financial manager<br />
has been named president of Sacramento Harness<br />
Association, racing at Cal Expo, succeeding<br />
Ralph Scurfield, the former longtime chairman<br />
of the California Horse Racing Board, who<br />
has resigned his SHA presidency but remains a<br />
member of the board of directors. Axelrod was<br />
greeted with good news, as its Cal Expo landlord,<br />
which had granted rent relief last May, reduced<br />
its rent another $30,000 a month. SHA, a<br />
not-for-profit association, now will pay $180,000<br />
a month rather than $210,000. The reduction<br />
came at the urging of the California Horse Racing<br />
Board, and opens the way for negotiation for<br />
a new lease for its 10-month meetings. General<br />
manager Dick Feinberg says SHA now hopes to<br />
exercise the first of its three one-year options,<br />
covering next September thru July of 2009.<br />
AS WE WERE SAYING.....<br />
When we were so rudely interrupted recently,<br />
the Pennsylvania thoroughbred and harness<br />
racing boards will be reorganized and placed<br />
under the oversight of one person, to be chosen<br />
after a nationwide search according to Gov. Ed<br />
Rendell’s chief of staff, Greg Fajt. Fajt said the<br />
majority of both staffs are expected to remain<br />
in place. There currently are three harness and<br />
three thoroughbred tracks in Pennsylvania, with<br />
a fourth harness track and racino to be built in<br />
Lawrence county in western Pennsylvania.<br />
JOHNNY PODRES DEAD AT 75<br />
Johnny Podres, famed as the winning pitcher for<br />
the Brooklyn Dodgers in the 1955 World Series,<br />
and a harness racing fan and horse owner, has<br />
died at 75.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
THE MAN FROM AUSTRALIA<br />
Thank goodness for our allies and friends. Santa<br />
Anita, about ready to give up and ship out to<br />
Hollywood Park if a solution was not found to<br />
its Cushion Track drainage problems, reached<br />
out to Australia for help. It arrived, in the form<br />
of Ian Pearse, founder of a synthetic surface<br />
company called Pro-Ride. Pearse met with Dr.<br />
Jean-Pierre Bardet, professor and chairman of<br />
the civil engineering department at the University<br />
of Southern California. The two performed<br />
tests and experiments, and it turns out the polymers<br />
and fibers in Pearse’s Pro-Ride, mixed with<br />
Cushion Track, prevented bonding of water and<br />
track material and allowed adequate drainage to<br />
solve -- at least temporarily -- Santa Anita’s track<br />
problems. Track president Ron Charles decided<br />
against a move to Hollywood Park or petitioning<br />
the California Horse Racing Board to return<br />
to dirt for the remainder of the winter meeting<br />
that runs through April 20. Charles told Daily<br />
Racing Form’s Jay Privman that a timeline was<br />
being developed to mix Pro-Ride with Cushion<br />
Track, and that the process would take 10 to 12<br />
days to install the binder. He said, “The tests<br />
show that we’ve found a way to reformulate the<br />
existing Cushion Track surface. With the addition<br />
of polymers and fiber, the surface becomes<br />
kinder, more consistent, and it cushions the<br />
impact of the track on the horses. It functions<br />
properly in diverse weather conditions and reduces<br />
the amount of kickback,” which had been<br />
a complaint of some horsemen. Charles called<br />
the tests “dramatic and extremely encouraging.<br />
We have only a short window of opportunity<br />
to get this done and we believe we have finally<br />
solved the Cushion Track drainage problem. After<br />
exhaustive research, we feel strongly that this<br />
is the way to go. We’ve made this choice based<br />
upon the results of scientific testing and<br />
the reaction of the horsemen to whom<br />
we’ve shown the final product.”<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 16, 2008<br />
With Charles’ announcement, the racing board<br />
cancelled the teleconference meeting scheduled<br />
for tomorrow, since its sole purpose was to consider<br />
Santa Anita’s request to return to a temporary<br />
dirt surface.<br />
ANOTHER ANNOUNCEMENT<br />
There was another track announcement yesterday,<br />
a continent apart from Santa Anita. New<br />
Jersey Sports and Exposition Authority senior<br />
vice president of racing Dennis Dowd repeated<br />
what he said earlier on HTA’s World in Harness<br />
concerning the return to action of driver Eric<br />
Ledford. “As a state-owned facility,” Dowd announced,<br />
“the Meadowlands cannot simply ban<br />
Eric Ledford from driving if he is licensed by the<br />
New Jersey Racing Commission. However, we<br />
will be vigilant in monitoring Mr. Ledford’s conduct.<br />
Currently, he is licensed by the commission<br />
only to drive, and we have informed his attorney<br />
that if he intends to participate as a trainer or<br />
owner, our position will be reevaluated.”<br />
DOWN DOES NOT STOP UP<br />
Two of America’s biggest casinos -- Mohegan<br />
Sun and Foxwoods in Connecticut -- reported<br />
sharp drops in business in December. Mohegan<br />
Sun slot revenue was down 18.8%, and Foxwoods<br />
suffered the largest one month decline in<br />
its 15-year history, down $11.4 million from December<br />
of 2006. Beyond that, November slots<br />
revenue was down $3.4 million, or 5.7% from<br />
November a year ago. Weather and construction<br />
were blamed. The picture did not deter MGM<br />
Mirage, which announced yesterday it has filed<br />
key environmental permit applications for a $5<br />
billion super mega casino on 72 acres next door<br />
to its Borgata, that operation a joint venture<br />
with Boyd Gaming. The new MGM Grand Atlantic<br />
City will have 3,000 rooms in three towers,<br />
and the largest gambling casino in AC with<br />
5,000 slots and 200 table games, due 2012.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
THE BOY WHO CRIED OTB<br />
Like the fable of similar name, no one believes<br />
him after the repeated cries. Does Michael<br />
Bloomberg really think Albany will be coerced<br />
by his threats to close a city industry that provides<br />
1,500 jobs and handles $1 billion of New<br />
York’s $2.7 billion in annual wagering. The New<br />
York Times expressed skepticism in its story today,<br />
reporter Ray Rivera writing, “Whether real<br />
or a mere negotiating tactic, the plan promises<br />
to intensify debate in Albany” as the legislature<br />
considers the fate of the New York Racing Association.<br />
Rivera went on to write that “some<br />
industry analysts said the plan looked more like<br />
a bargaining ploy,” and he quoted Daily Racing<br />
Form publisher and columnist Steve Crist as saying,<br />
“It’s 100 percent posturing. OTB is looking<br />
for a larger slice of the betting handle.” New York<br />
City OTB president Ray Casey says the threat is<br />
real. “It’s very serious,” he told Rivera,“We’ve<br />
been trying for years to have the inequities corrected,<br />
and this is an action at this point for<br />
us, and for me personally, of last resort.” The<br />
Bloomberg threat to shut down OTB June 15 if<br />
no legislative relief is forthcoming might carry<br />
some credibility if the issue of selling OTB were<br />
discussed at the same time. Why anyone would<br />
close down an operation worth hundreds of millions<br />
of dollars to private operators without serious<br />
efforts to sell it makes it difficult to believe<br />
that the threat is anything other than the Times<br />
story implies: a bargaining ploy.<br />
MEANWHILE, IN HARRISBURG...<br />
While the NYRA and New York City OTB matters<br />
occupy Albany legislators, their counterparts<br />
in Pennsylvania’s House were enjoying an<br />
orgy of tax cut proposals following on the heels<br />
of exceptional success with slots at the state’s racinos.<br />
The legislators went on what Philly.<br />
com called “a tax-cutting stampede” of<br />
proposals for billions of dollars of cuts.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 17, 2008<br />
No action was taken, because all the talk involved<br />
amendments to an underlying property tax issue<br />
up for consideration today. Yesterday’s proposals<br />
included slashing personal income taxes by a<br />
billion and other hugely expensive cuts on everything<br />
from cell phone taxes to inheritance taxes<br />
and pet adoptions. House members, Philly.com<br />
reported, paid little heed to warnings about the<br />
enormous hole they were potentially blowing in<br />
the state budget.<br />
WHAT ELSE IS NEW?<br />
Thoroughbred horsemen, acting through their<br />
eastern-based Thoroughbred Horsemen’s Association,<br />
are asking state racing commissions to<br />
slow down the rush to enact bans on steroids.<br />
Daily Racing Form reports THA chairman Alan<br />
Foreman as saying the intent of the delaying effort<br />
is to avoid “unfair punishments” that would<br />
result from horses moving from anti-anabolic<br />
states to those not adopting such rules. Unification<br />
of rules is, of course, the mission of the Racing<br />
Medication and Testing Consortium, of which<br />
Foreman is an influential board member. Foreman<br />
notes that the goal is not yet accomplished.<br />
“Right now,” he was quoted in the Form, “we’ve<br />
got this piecemeal approach for a problem that<br />
needs a national solution.” Will someone please<br />
step up and bell the commissioners’ cat.<br />
FORE! CONTACT HTA’S BRODY<br />
If you want a respite from the work scheduled<br />
for consideration at the upcoming HTA/TRA<br />
joint annual meeting, now is the time to contact<br />
Brody Johnson at HTA. Golf has been arranged<br />
for Monday afternoon, Feb. 18, starting at 1<br />
p.m., for men and ladies, with clubs and shoes<br />
available for rental. Transportation will be provided<br />
to the course, 1.7 miles and 5 minutes from<br />
the hotel. Brody has full details.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 18, 2008<br />
BANGOR HTA’S 44TH TRACK<br />
Bangor Historic Track, located downtown on<br />
Main Street in Bangor, Maine, has applied for<br />
membership in Harness Tracks of America and<br />
will become the association’s 44th member when<br />
the HTA board meets in St. Petersburg, Florida,<br />
February 18. Jon Johnson, Bangor’s general<br />
manager, will serve as the track’s director on the<br />
HTA board, with the track’s manager of raceway<br />
operations, Corey Smith, as alternate director.<br />
Bangor is a member of Penn National Gaming’s<br />
ever-widening circle of tracks and gaming<br />
facilities.<br />
NEW LIFE FOR SACRAMENTO<br />
The California Horse Racing Board this week<br />
extended the license of the Sacramento Harness<br />
Association, racing at Cal-Expo in Sacramento,<br />
for 11 weeks while it continues to study the financial<br />
condition of the not-for-profit track, HTA’s<br />
and harness racing’s only west coast operation.<br />
SHA had hoped for a full license through its<br />
scheduled August 2 close, but the board instead<br />
granted it racing dates through March 30, and<br />
said it would reconsider the matter at a March<br />
27 meeting. It has asked SHA, under its new<br />
president Ivan Axelrod, to provide its audited<br />
financial statement for 2007 showing a positive<br />
net worth, a $400,000 letter of credit to cover potential<br />
liabilities, a plan for future harness racing<br />
operations, and other documentation showing<br />
profitable operation. The commission, issuing<br />
the extension, also issued “a very public message<br />
of support for harness racing.” The message encouraged<br />
harness horsemen to continue racing<br />
in California while the board makes sure the industry<br />
is on solid financial footing. Elsewhere in<br />
California, Hollywood Park president Jack Liebau<br />
called for “a forum” of track officials, trainers,<br />
owners, veterinarians and breeders to<br />
meet for an in-depth discussion on synthetic<br />
tracks.<br />
2008 ADIOS SET FOR POCONO<br />
In a cooperative move reported here earlier unofficially,<br />
Mohegan Sun at Pocono and The Meadows<br />
Racetrack and Casino have announced that<br />
Meadows’ classic centerpiece event, the Adios for<br />
3-year-old pacing colts, will be raced this year at<br />
Pocono while The Meadows builds its new track.<br />
The move bodes well for Pennsylvania harness<br />
racing, already flush with slots success, and assures<br />
unbroken continuity for the Pace for the<br />
Orchids. Pocono’s vice president of racing, Dale<br />
Rapson, called it “an honor to host the Adios,”<br />
which will become the richest race in Pocono history<br />
when it is presented Aug. 9. The Meadows’<br />
John Marshall, Rapson’s counterpart at the<br />
western Pennsylvania track, thanked Pocono for<br />
keeping the Adios in Pennsylvania and called the<br />
move “clearly in the best interest of racing.” The<br />
classic’s sister race for fillies, renamed the Quinton<br />
Patterson Adioo Volo to honor The Meadows’<br />
longtime plant superintendent, also will be<br />
raced at Pocono, and a voice will move with the<br />
races. Roger Huston, the familiar Voice of the<br />
Meadows, will remain in that role for the Adios<br />
presentations at Pocono.<br />
LUNCH, RACES AT TAMPA BAY<br />
The agenda of the joint HTA/TRA annual meeting,<br />
that appeared here in Monday’s <strong>Executive</strong><br />
<strong>Newsletter</strong>, did not show it because of space limitations,<br />
but the Tuesday, Feb. 19 program will include<br />
lunch and the races at Tampa Bay Downs.<br />
We thank president Stella Thayer and vice president<br />
and general manager Peter Berube for<br />
their hospitality, and look forward to a delightful<br />
afternoon at the track. Transportation will<br />
be provided.<br />
STILL TIME TO NOMINATE<br />
Pompano Park has extended its nominating date for<br />
the $350,000 Isle of Capri and $100,000 Francis Dodge<br />
pacing series, and the $100,000 Mack Lobell trot series,<br />
from Jan. 22 to Jan. 25 to accommodate horses being<br />
sold at the big winter sale at the Meadowlands<br />
Jan. 21.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 21, 2008<br />
JUST WHAT RACING NEEDS<br />
The New York State Lottery, with the tacit support<br />
of Gov. Eliot Spitzer and at the urging of several<br />
Wall Street firms, is thinking of expanding<br />
its outlets to coffee shops and malls in the state.<br />
It would not be done, according to the Albany<br />
Times Union, by the state but through privatization<br />
of a large segment of the lottery. Spitzer will<br />
unveil the plan tomorrow in his budget proposal,<br />
having been inspired by the Wall Streeters who<br />
are convinced the state should diversify the gambling<br />
market by broadening the demographic of<br />
lottery customers. Their rationale is triggered<br />
in part by the thought that anyone who can afford<br />
a $4 cup of coffee at Starbucks can afford<br />
a lottery ticket, but obviously the sweep of the<br />
proposal would take in a lot of others strolling<br />
or shopping in malls. Patrick Maloney, the governor’s<br />
first deputy, gave it a pleasant spin by<br />
cloaking the proposal in the robe of education.<br />
“We want to consider anything,” he said, “with<br />
an eye toward creating more value for higher education<br />
and consistent with the governor’s principles<br />
- - support for K-12, continuing all existing<br />
regulation and oversight, and no big increase in<br />
gambling.”<br />
V-75 POOL NOW AT 18 MILLION<br />
Saturday’s V-75 bet in Stockholm, Sweden, did<br />
not have a payout for seven consecutive winners,<br />
or five either because the payoff did not reach the<br />
government’s threshold, and the carryover jackpot<br />
now is $18 million US for next Saturday’s<br />
pool. Advance wagering for the V-75 starts on<br />
Wednesdays and remains open until the close of<br />
business on Fridays. The bet is available in the<br />
US at the Meadowlands, Monmouth Park, and<br />
Freehold Raceway in New Jersey, and at Delaware<br />
Park in Delaware and Saratoga Gaming<br />
and Raceway in Saratoga Springs, NY. It<br />
is the most popular bet on horse racing in<br />
the world in terms of pool size.<br />
AROUND THE HTA CIRCUIT.....<br />
ROCKINGHAM PARK has a great idea for<br />
reaching the youth market. It is offering a<br />
$15,000 grand prize in an inaugural New England<br />
College World Series of Poker, open to all<br />
students at least 18 who currently are enrolled in<br />
an accredited college or university in a six-state<br />
New England area. The tournament will begin<br />
Wednesday, Feb. 7, with satellite games of $25,<br />
$40 and $70 to be held through Saturday, Feb. 9,<br />
and the top four finishers in the $70 category, the<br />
top two in the $40 division and the top one in the<br />
$25 bracket winning a seat in the final on Feb.<br />
10. There also is a buy-in provision for the final<br />
for $150 with 8,000 starting chips. First prize of<br />
$15,000 is based on a minimum of 300 players.<br />
Ten percent of the players, or the top 30 finishers,<br />
will receive cash prizes. Players can pre-register<br />
at the track’s poker room to avoid being shut<br />
out. Poker at Rockingham, operated by Granite<br />
State Poker, benefits a variety of local charities.<br />
Want to bet they are oversubscribed?<br />
THE DELAWARE COUNTY FAIR has commissioned<br />
a new book, featuring personal and<br />
favorite memories of the Little Brown Jug, to be<br />
written by Jug publicist Tom White and his colleague<br />
Jay Wolf. Publication is expected in the<br />
summer of 2009.<br />
THE CALIFORNIA <strong>HARNESS</strong> HORSEMEN’S<br />
ASSOCIATION will induct driver Rick Kuebler<br />
and major owner Lloyd Arnold into the California<br />
Standardbred Hall of Fame at the association’s<br />
meeting in late March. Horses I’m Damn<br />
Good and Denali also will be inducted.<br />
PRAIRIE MEADOWS will recognize 194 community<br />
betterment projects on January 31, and<br />
award $1.98 million in grants to foster programs<br />
in education, human services, economic development<br />
and the arts.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 22, 2008<br />
MASS GOV PICKS UP STEAM<br />
Deval Patrick, the governor of Massachusetts,<br />
apparently is a Boston brawler as well as a savvy<br />
politician. Girding for a legislative battle with<br />
Sal DiMasi, the powerful House speaker who opposes<br />
expanded gambling in the state, Patrick<br />
held a “cabinet meeting” that turned out to be a<br />
pep rally with organized labor cheering his proposals<br />
for casino gaming. Included in the turnout<br />
was the head of the 107,000-member Massachusetts<br />
Teachers Association, the president of<br />
the Massachusetts AFL-CIO with 400,000 members,<br />
and the head of the Greater Boston Labor<br />
Council. The leader of the 75,000-member Massachusetts<br />
Building Trades Council was there,<br />
and said, “We are geared up and ready to go.”<br />
Robert Haynes, the AFL-CIO boss, said, “We<br />
intend to do a full court press and do a real campaign<br />
to advance this issue.” Patrick said of the<br />
gathering, at which union officials held up procasino<br />
placards, “It’s important to pay attention<br />
to everyone in the work force. Let us get this<br />
heard and debated. Let us carry this over the<br />
line.” The Rev. Richard McGowan, an economics<br />
professor at Boston College, thought the occasion<br />
was significant. “I think this is a lot broader<br />
group,” he said. “The teachers never got near<br />
this before. All they need is for the firemen and<br />
police to say they are for it.” Anne Wass, who<br />
leads the teachers’ group, said, “We don’t normally<br />
take positions on issues that some say are<br />
not educational, but the budget cuts to public<br />
education have been so drastic and dramatic.”<br />
Gov. Patrick presents his budget this week, facing<br />
a $1.3 billion deficit.<br />
A RICH HUMANE SOCIETY<br />
People think of the Humane Society as simply a<br />
benefactor of animals, but they deal with political<br />
animals too. The HSUS is giving $500,000<br />
to anti-slots forces in Miami, Florida, to<br />
oppose a slots vote set for Jan 29.<br />
THE TEAGUE MARKET STRONG<br />
The Tattersalls January mixed sale at the Meadowlands,<br />
driven by an ownership difference of<br />
opinion in the powerful George Teague stable,<br />
set new records, with 387 horses sold for $13.4<br />
million, an average of $34,730. The race horse<br />
market, reflecting the influence of slots on purses,<br />
saw 287 horses bring $11.7 million of the total,<br />
averaging $40,925. Teague and one partner,<br />
the Only Money Stable, bought 2006 Pacer of<br />
the Year Total Truth for $900,000, second highest<br />
price ever paid at auction for a harness horse.<br />
Teague also bought the 2007 Breeders Crown<br />
3-year-old filly pace winner Artcotic, like Total<br />
Truth part of a disputed Teague stable partnership,<br />
for $315,000. Other Teague stable stars<br />
selling included 3-year-old pacers Moon Beam,<br />
sold to Richard Annunziata of Mahopac, NY,<br />
for $750,000, and Duneside Perch, purchased by<br />
trainer Ross Croghan for $700,000; the Hambletonian<br />
Oaks winning trotting filly Danae, which<br />
brought $240,000; and Isabella Blue Chip,<br />
2-year-old pacing filly champ of 2006, sold for<br />
$210,000.<br />
DELEAN, GAZETTE LOST<br />
The Montreal Gazette, one of Canada’s most important<br />
newspapers, has ended racing coverage<br />
in the wake of economic problems. The paper’s<br />
outstanding racing writer for 25 years, and columnist<br />
for the last 18, Paul DeLean, bade farewell<br />
to readers with a column thanking them for<br />
their “feedback, story ideas, cooperation and encouragement.”<br />
Fortunately for racing, DeLean<br />
will continue writing, doing regular features for<br />
The Harness Edge.<br />
ATTRACTIVE JOB OPENINGS<br />
An HTA member track is looking for a substitute<br />
racing secretary available for immediate work.<br />
Another HTA member is seeking a simulcast director/racing<br />
development coordinator. If<br />
interested, contact Paul Estok at HTA.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 23, 2008<br />
CRUNCH TIME IN NEW JERSEY<br />
Jon Corzine, the governor of New Jersey, and<br />
the state’s legislators, now have a clear choice.<br />
They can sacrifice the state’s premier position<br />
in world harness racing at the altar of the Atlantic<br />
City casinos, or they can fulfill commitments<br />
and promises and produce some action in<br />
the place of rhetoric. Dennis Robinson, the New<br />
Jersey Sports and Exposition Authority’s chief<br />
executive officer, announced a draconian purse<br />
cut as of the end of the month if the state does<br />
not either replace the expired subsidy of Atlantic<br />
City casinos or provide slots for New Jersey<br />
tracks. Robinson said the NJSEA has been subsidizing<br />
purses at the Meadowlands, but cannot<br />
continue. “Right now,” he told the Newark Star-<br />
Ledger’s New Jersey.com, “we’re paying higher<br />
purses than we’re earning. It’s as simple as that.<br />
I think we would lose our position as the number<br />
one harness track in North America, so it’s a<br />
serious issue.” There is no question that Robinson<br />
is right if the proposed 45% purse cut takes<br />
place. Nightly purses would drop from $220,000<br />
a program to $90,000, and the Meadowlands<br />
would fall from its 30-year position of preeminence<br />
among harness tracks. The New Jersey<br />
Standardbred Owners and Breeders Association<br />
president, Tom Luchento, said, “We are still<br />
hoping that the governor will fulfill the promise<br />
he made in October to provide a supplement for<br />
the racing industry. We are at a crossroads for<br />
the future of racing and breeding in this state.<br />
We need the legislature and the Governor to step<br />
up and finalize this agreement.”<br />
Freehold Raceway, not waiting for the governor<br />
or legislators, released a reduced purse structure<br />
that severely cuts prize money at the daytime<br />
HTA member. The lowest class, $4,000 claimers,<br />
would race for $2,000, the highest class for<br />
$9,100. That class raced for $14,000 last<br />
Saturday.<br />
ONTARIO MOVES FORWARD<br />
While New Jersey’s crisis deepened, the Ontario<br />
Racing Commission voted to move forward with<br />
the provincial Horse Improvement Program, an<br />
ambitious proposal put forth by the Industry<br />
Advisory Group. The ORC acted after a Monday<br />
meeting of industry associations advised<br />
John Blakney, the commission’s executive director,<br />
that it could not reach agreement on any<br />
change in the wagering levy and slots revenue<br />
contribution to fund the proposal. The commission<br />
board then revisited the issue and voted to<br />
move forward this year, using existing Horse<br />
Improvement Program funding. A Breeders Reward<br />
Program will be part of the improvement<br />
package. The commission asked a review panel<br />
headed by law professor and former commission<br />
chairman Stanley Sadinsky to identify how sustainable<br />
funding might be attained. The ORC is<br />
Ontario’s designated hitter on implementing the<br />
program.<br />
SPITZER: SLOTS AT BELMONT<br />
Facing a $4.4 billion budget gap, the governor<br />
of New York, Eliot Spitzer, yesterday outlined<br />
a budget replete with cuts and a controversial<br />
proposal to put slots at Belmont Park. The plan<br />
includes a one-time $250 million payment to the<br />
state from whichever company is awarded the<br />
contract to operate the video slots. Spitzer no<br />
sooner announced the plan than House Speaker<br />
Sheldon Silver cast doubt on its fate. Senate<br />
Majority Leader Joe Bruno supported Spitzer<br />
saying, “I hope he gets the speaker there.” In a<br />
related development, the non-profit Racing Association<br />
Oversight Board now operating the<br />
New York Racing Association while the legislature<br />
fiddles, voted to sharply curb the powers of<br />
the new chairman of the New York Racing and<br />
Wagering Board, Steven Newman, a Spitzer appointee.<br />
A government source said the purpose<br />
was “to shut Newman down.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
RACING? WHAT’S RACING?<br />
That seems to be the attitude of Jon Corzine,<br />
the governor of New Jersey, and his legislature.<br />
While putting the stature of America’s number<br />
one harness track, the Meadowlands, at risk, and<br />
failing so far to do anything to solve the plight of<br />
the state’s tracks, the legislature now is toying<br />
with the idea of trying an end run around federal<br />
restraints on sports betting. An Assembly committee<br />
is scheduled to consider legislation today<br />
to ask voters to allow casinos to offer professional<br />
sports betting, according to philly.com. The legislators<br />
are concerned about keeping the casinos<br />
competitive with neighboring states (read Pennsylvania)<br />
but have not given much thought to<br />
keeping racing competitive. Although the state<br />
capital is in Trenton, New Jersey seems to be run<br />
from Atlantic City, where the 11 casino bosses<br />
get pretty much whatever they want. After bills<br />
to allow sports betting passed the Senate in 1992<br />
and 1993 but went nowhere from there, the issue<br />
became largely moot when the federal government<br />
banned sports betting except for four<br />
grandfathered states. New Jersey is not one of<br />
them. Delaware, Montana, Nevada and Oregon<br />
are those grandfathered. Now assembly budget<br />
chairman Lou Greenwald and Senate wagering<br />
committee chairman Jim Whelan want to circumvent<br />
federal law. Senate president and former<br />
governor Richard J. Codey, who knows and<br />
values the state’s racing, has a different view.<br />
“I think Appalachian State would have to beat<br />
the Giants before the federal government would<br />
allow New Jersey to change the law to permit<br />
sports betting in casinos,” Codey said. Happily,<br />
there is one voice of reason left in Trenton. In<br />
another New Jersey development of interest, an<br />
appellate court has ruled that the New Jersey<br />
Racing Commission violated the Open Public<br />
Meetings Act last year when it distributed<br />
monies from the Casino Simulcasting<br />
Fund without providing its reasoning.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 24, 2008<br />
The commission was ordered to meet again to<br />
reconsider the matter.<br />
FREE SPEECH AND BRITCHES<br />
Another racing commission has been challenged,<br />
this time in Kentucky. Jockey Jeremy Rose has<br />
filed a suit there contending the Kentucky Horse<br />
Racing Authority’s ban on advertising on jockeys’<br />
riding pants is a violation of his free speech<br />
rights under the Constitution. A U. S. district<br />
court judge ruled almost four years ago against<br />
an earlier version of the ban, which was altered<br />
and implemented by the Authority.<br />
HEALTH V. WEALTH IN INDIANA<br />
A measure that would have banned smoking in<br />
racetracks, bars, bowling alleys, and all other<br />
public and work places died in committee yesterday<br />
in Indiana. The executive director of the<br />
Licensed Beverage Association hailed the vote,<br />
saying, “Tobacco is still a legal product.” The<br />
administrator of a county health department<br />
called the ban’s defeat “unfortunate.”<br />
SLOTS BATTLE HEATING UP<br />
Slots proposals in Miami-Dade county in Florida,<br />
and in the state of Massachusetts, are nearing<br />
critical boiling points. The Florida vote<br />
comes next Tuesday, Jan. 29, and opponents<br />
have dragged out the old war-cry of “the crack<br />
cocaine of gambling,” which now has been used<br />
for opposition to everything from trifectas to<br />
tiddleywinks. One possible blow to approval<br />
came this week when the Miami Herald threw<br />
its editorial voice against slots in a strong appeal<br />
to readers to vote no on the issue. In Massachusetts<br />
Gov. Deval Patrick included $124 million in<br />
his budget allocations despite the fact that there<br />
is still substantial opposition to his three-casino<br />
idea in the state legislature. That vote will not<br />
come until early summer.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
THIS IS UNBELIEVABLE<br />
The incredible inaction of New Jersey’s governor<br />
and legislature in allowing the state’s once proud<br />
horse racing industry to slide down the slippery<br />
slope -- and help push it there -- took a new turn<br />
yesterday. The Assembly’s Tourism and Wagering<br />
Committee enthusiastically endorsed sports<br />
betting for Atlantic City casinos, despite it being<br />
against federal law. The state’s policy of “anything<br />
the casinos want” continues, as the chairman<br />
of the Assembly’s Budget Committee, Lou<br />
Greenwald, said the federal law banning sports<br />
betting can be challenged as a violation of states’<br />
rights. This one could be headed for the U. S.<br />
Supreme Court, but what happens to racing in<br />
New Jersey before that long process is completed<br />
could be a grim story for a once dominant industry.<br />
The president of the Casino Association of<br />
New Jersey, which at times appears to run the<br />
state, thanked the committee backing sports betting<br />
by saying, “It has been a tough year for our<br />
industry. We appreciate the fact that you’re taking<br />
this effort, the heavy lift that it is, to help the<br />
industry out.” Leon Zimmerman, testifying before<br />
the committee for the Standardbred Breeders<br />
and Owners Association, told members of the<br />
huge impact of casinos on racing in the state, and<br />
said it endangered the livelihood of thousands of<br />
people who are in the horse racing and breeding<br />
business. He noted that a recent study at the state<br />
university at Rutgers found racing contributes<br />
$1.7 billion a year to New Jersey’s economy.<br />
In a strong letter to Gov. Jon Corzine, the director<br />
of Rutgers Equine Science Center, Karyn<br />
Malinowski, joined by the president of the SBOA,<br />
Tom Luchento, and the president of the state’s<br />
thoroughbred horsemen’s association, Dennis<br />
Drazin, told Corzine, “We are not crying wolf,”<br />
and said a real and imminent disaster was<br />
about to happen in the state, including<br />
possible loss of the Hambletonian.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 25, 2008<br />
“If the lowered purse structure remains as reported,”<br />
the letter said, “the Meadowlands will<br />
have to cancel the premier events scheduled at<br />
the track. Races like the Hambletonian and<br />
Breeders’ Crown will need to find a venue outside<br />
of New Jersey. Horsemen could no longer<br />
allow the large expenditure from purse accounts<br />
needed to support these world class events that<br />
bring national attention to our great state. This<br />
is a sobering thought for all involved. We are on<br />
the edge of collapse of the entire horse industry<br />
in New Jersey.”<br />
NO VERNON ACTION, EITHER<br />
This week’s session of the New York Assembly<br />
has ended without action on the tax relief bill,<br />
and the best racing got there was Assemblyman<br />
Bill Magee’s promise that “We’re working on<br />
it,” and the hope that it might be discussed next<br />
week. Yonkers reportedly is unhappy with the<br />
legislation as proposed, and its horsemen continue<br />
their damaging opposition under a leadership<br />
apparently intent on torpedoing the measure.<br />
PASSPORT, BANS IN ONTARIO<br />
Ontario’s racing commission approval of new<br />
measures designed to protect the province’s<br />
horses and horse industry are far reaching.<br />
They include a “horse health passport” that<br />
will require public disclosure of all vaccination<br />
records to new owners; greater limits on commission<br />
approved veterinarian-only administration<br />
of medications except in emergencies; limits<br />
on shock wave therapy; mandated use of safety<br />
reins and safety vests; new guidelines regarding<br />
trainer transfers; new measures on out-of-competition<br />
testing; and perhaps most significant of<br />
all, banning from racing for 90 days of horses<br />
that show positive tests. Commission chairman<br />
Rod Seiling said the new rules are designed to<br />
protect the health of the horse, ensure the safety<br />
of the participant, and reinforce the integrity<br />
of the sport.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 28, 2008<br />
LEGISLATIVE ACTION IN NY?<br />
A bill introduced last week in the New York Assembly,<br />
described as “essentially a compromise<br />
among track operators, horsemen and breeders,<br />
and state officials,” could break the legislative<br />
logjam in Albany. The bill’s sponsor, Assemblyman<br />
J. Gary Pretlow, the man who Jeff Gural<br />
thought he had a deal with last summer, reportedly<br />
has crafted a consensus piece of remedial<br />
legislation that downstate horsemen describe<br />
as “both economically sound for the state and<br />
our industry.” Yonkers Raceway’s opposition to<br />
earlier legislation reportedly has been satisfied<br />
by stabilizing the track’s percentage of slots revenue<br />
at 32%, regardless of total play, as opposed<br />
to the present sliding scale that drops it to 26%<br />
after $160 million. New York’s SOA says it is in<br />
“total support of the bill.” It would redistribute<br />
video lottery vendors fees for Vernon Downs and<br />
restate allocation of racing dates.<br />
NOT SO HAPPY IN NEW JERSEY<br />
If there is any cause for joy in New York, there<br />
is little in New Jersey, where smoke and mirrors<br />
are all that the governor and legislature have so<br />
far produced in the way of a state subsidy agreement<br />
with Atlantic City casinos. Horsemen met<br />
yesterday and are talking boycott of the entry<br />
box, a move Dennis Dowd of the Meadowlands<br />
calls “not timely or appropriate.” Dowd says the<br />
governor already is aware of the situation and<br />
working on it, and a boycott would do little more<br />
than deprive owners of purses, not pressure<br />
the state into action. Two state senators, Jennifer<br />
Beck of Monmouth county and Paul Sarlo<br />
of Bergen, Essex and Passaic, sent a joint letter<br />
to Joseph A. Corbo, the president of the Casino<br />
Association of New Jersey, which some think is<br />
the de facto government of the state, asking for a<br />
meeting within two weeks, but both Freehold<br />
and the Meadowlands have draconian<br />
purse cuts in the works.<br />
RIDE THE WAVE IN INDIANA<br />
One place where optimism and happiness reign<br />
is Indiana, where slots are on the way, and two<br />
job openings are available at HTA’s Hoosier<br />
Park meeting in Anderson. Hoosier is looking<br />
for a track superintendent for both its harness<br />
and thoroughbred meetings, and also has a spot<br />
open for a program director for harness racing.<br />
JOY IN WOODBRIDGE, TOO<br />
The Meadowlands’ OTW operation in Woodbridge,<br />
NJ, now three months old, is exceeding<br />
all expectations. It racked up $18 million in bets<br />
to the beginning of this month, and if business<br />
holds it could handle at much as $70 million<br />
this year. If that holds, the NJSEA, parent of<br />
the Meadowlands, could pick up $3 million in<br />
Woodbridge. Woodbridge is the first of 15 offtrack<br />
wagering facilities planned for New Jersey,<br />
and the operation, called Favorites, is the<br />
top grossing OTW in the country, according to<br />
Frank Zanzuccki, executive director of the New<br />
Jersey Racing Commission. The food business<br />
at McLoone’s restaurant also is doing well, and<br />
the only problem to date has been a tough one<br />
to solve: parking. Nearby businesses are complaining<br />
their customers have no place to park.<br />
Site planners please note.<br />
1 PLUS 1 EQUALS 2 IN FLORIDA<br />
A 38,000-member teachers’ union in Miami-<br />
Dade county in Florida has figured out that slots<br />
at county tracks could generate more tax money<br />
for education, and has endorsed a vote for them<br />
in tomorrow’s election. Karen Aronowitz, president<br />
of the United Teachers of Dade, said her<br />
schools need the additional $210 million that predictions<br />
say slots could provide, and even though<br />
the money would be spread over all 67 counties<br />
in Florida, Ms. Aronowitz says, “You fill a cup<br />
drop by drop. We can’t let any funding<br />
source go untapped.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
The death of Tom Cholakis. The popular former<br />
HTA director as president of Capital District<br />
Regional OTB, died at 73. Operated on for an<br />
artery blockage, he left the hospital, returned<br />
home, went into cardiac arrest and died suddenly.<br />
A member of a prominent Rensselaer county<br />
political family and a former county majority<br />
leader and Republican chairman, he was headlined<br />
in an Albany Times Union feature eulogy<br />
as “a class act.”<br />
Maier gets a year in jail, 5 years probation. Former<br />
driver Daniel Maier, convicted of bribery<br />
to affect the outcome of a race at Cal-Expo,<br />
was sentenced to a year in prison and five years<br />
formal probation for his part in a race-fixing<br />
scheme. Maier did not drive in the race in question,<br />
but bet more than $3,000 on it. Maier, 23,<br />
is appealing. A second driver who was involved<br />
in the case and testified for the prosecution, Raymond<br />
Burt, received six days in jail and three<br />
years probation. Sacramento Harness, racing<br />
at Cal-Expo, also barred veterinarian Stephen<br />
Slender from its grounds after receiving a notice<br />
that Slender had been suspended by the British<br />
Columbia Racing Commission.<br />
The Meadowlands 2008 National Harness Handicapping<br />
Championship will be held June 21 at<br />
the track. It is the only tournament for harness<br />
players to feature a $50,000 guaranteed grand<br />
prize, and players can earn their way through<br />
qualifying rounds or buy in for $1,000. The first<br />
qualifier of the season will be Saturday,<br />
Feb. 23. Fourteen tracks held qualifying<br />
rounds for last year’s championship.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 29, 2008<br />
LOST IN SPACE..OR OUT <strong>OF</strong> IT Northfield Park’s horsemen responding to a<br />
January was a busy month, and a number of<br />
newsworthy items were lost in space, or actually<br />
because we ran out of it. Here are a few that deserve<br />
tardy attention:<br />
Cleveland news story broadcast about starving<br />
and neglected horses at an area farm, produced<br />
500 pounds of specialized grain feed, blankets,<br />
and hoods. An Ohio Harness Horsemen’s Assn.<br />
representative, Amy Hollar, organized the response<br />
to an appeal from the Portage County<br />
Animal Protective League request. Northfield<br />
COO and past HTA president Tom Aldrich, commenting<br />
on the development, said, “I have seen<br />
this spirit many times from Northfield’s horsemen.<br />
At the core of this business is a respect and<br />
love for these animals.”<br />
Pocono, Woodbine build new paddocks. Mohegan<br />
Sun at Pocono is building a new $3.5 million<br />
paddock and will introduce it at the start of the<br />
2009 harness racing season. The 52,670 squarefoot<br />
building will be air conditioned and heated,<br />
accommodate a 14-race card, and contain the<br />
racing’s secretary’s office, program department<br />
and horsemen’s bookkeeper’s office. Work will<br />
begin in September after the 2008 harness meeting<br />
and the paddock is expected to be ready in<br />
March, 2009. Woodbine Entertainment has already<br />
broken ground on its state-of-the-art paddock,<br />
designed to incorporate the best features<br />
of the old one with the best ideas of paddocks<br />
around North America. The two-story building<br />
will contain 160 stalls, drug testing stations<br />
for runners and harness horses, offices for track<br />
veterinarians, emergency personnel and track<br />
maintenance crews, a television studio and a second-floor<br />
kitchen/cafeteria seating 60 to 75, with<br />
an elevator and panoramic view of the track.<br />
Target date for completion is Sept. 1.<br />
A Joe Joyce scholarship is being established at<br />
the Race Track Industry Program at the University<br />
of Arizona in memory of the racing leader<br />
who contributed so much to the program as<br />
a member of its advisory committee.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 30, 2008<br />
AN ELOQUENT VOICE STILLED<br />
And a good friend gone. The death at 86 of Dominic<br />
Frinzi, orator, statesman, 26-year leader of<br />
Harness Horsemen International, opera authority,<br />
fighter for unity and a force of good in harness<br />
racing, diminishes the sport even further in<br />
a time of crisis. Frinzi, a prominent Milwaukee<br />
attorney who once ran for governor of Wisconsin,<br />
traveled coast to coast in the interest of unification<br />
of harness racing, arguing eloquently<br />
that horsemen and management had to work<br />
together as a team for the common good. He<br />
interceded in numerous disputes, represented<br />
numerous causes, and gained wide respect as a<br />
voice of reason. A close friend of HTA, he made<br />
numerous appearances before its board, worked<br />
tirelessly for horsemen’s causes, and still found<br />
time to play an active role in state, regional and<br />
national Italian community activities. His stentorian<br />
tones and wise understanding of the need<br />
for balanced, power in the sport will be sadly<br />
missed, with no one even close to his skills on<br />
the scene. He was inducted into Harness Racing’s<br />
Hall of Fame in 1996 and to the Wisconsin<br />
Hall of Fame two years later, and won both<br />
HHI’s Man of the Year and U.S. Harness Writers<br />
Good Guy Award. Visitation will be on Monday,<br />
Feb. 4 from 4 to 8 p.m. at the Schmidt and<br />
Bartelt Funeral Home at 10121 West North Ave.<br />
in Wauwatosa, Wisconsin, with a Requiem Mass<br />
Tuesday, Feb. 5 at 12 noon at Gesu Church, 1145<br />
Wisconsin Avenue in Milwaukee.<br />
WAITING ON CORZINE<br />
Horsemen and management at Freehold Raceway<br />
agreed on a one-week postponement of the<br />
draconian purse cuts ordered by the track in the<br />
view of inaction by the governor or legislature on<br />
the purse subsidy issue. Amid threats of strike<br />
action, the SBOA called a special meeting<br />
of horsemen for 6 p.m. Saturday, Feb. 2,<br />
in the Meadowlands back paddock.<br />
MIAMI-DADE GET THEIR SLOTS<br />
Despite the tumult and the shouting, the city of<br />
Miami, and Miami-Dade county overwhelmingly<br />
approved slots at their tracks yesterday, by an<br />
almost 2-to-1 margin. The vote paves the way<br />
for upgrading and renovation of Calder Race<br />
Course, Flagler Dog Track and Miami Jai Alai,<br />
all in the area covered by the vote. The tracks<br />
claim the development will produce 6,000 new<br />
jobs, stimulate local business and generate $210<br />
million for state revenues that could be used for<br />
education purposes. An identical bill was defeated<br />
three years ago.<br />
STALL PUT ON STEROIDS<br />
It didn’t take long to undo the ballyhoo about<br />
steroids. The Maryland Racing Commission,<br />
which just a month ago announced its intention<br />
of banning anabolic steroids on race day,<br />
now has caved in to horsemen’s protests and<br />
scrapped the idea indefinitely for “further study.”<br />
Chairman John Franzone, who says, “We could<br />
implement this tomorrow, but we don’t know<br />
how we’re going to test for it or how we’re going<br />
to pay for it.” Franzone presumably could have<br />
asked those same questions a month ago when<br />
the commission moved forward with the ban. Instead,<br />
he criticized Delaware and Pennsylvania<br />
for starting policing steroids without consensus.<br />
Franzone now has created a four-man commission<br />
task force to study new rules in the hope of<br />
implementing a steroid policy, delaying any ban,<br />
until Jan. 1, 2009, at the earliest. Time, and steroids,<br />
march on. And some racing leaders continue<br />
the old line of “There go my people. I am<br />
their leader. I must follow them.”<br />
HOOSIER GIRDS FOR HIRING<br />
HTA member Hoosier Park has scheduled two<br />
career opportunity forums to provide local residents<br />
with job opportunity information as it<br />
gears up for slots this coming season.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
SVENSSON GROOM <strong>OF</strong> YEAR<br />
Fia Svensson, a diminutive 22-year-old Swedish<br />
groom in the Florida-based Jonas Czernyson<br />
stable who delights in providing special care<br />
and attention to tough and difficult horses, has<br />
been named Caretaker of the Year by Harness<br />
Tracks of America, the association of major harness<br />
tracks in North America, and Hanover Shoe<br />
Farms.<br />
The winner, chosen by a committee of racing executives<br />
and officials who groomed horses themselves<br />
earlier in their careers, is symbolic of the<br />
dedication and sacrifices of all caretakers everywhere.<br />
Ms. Svensson, who currently works with five<br />
horses in the Czernyson stable and helps other<br />
caretakers with their duties as well, earned recognition<br />
for her overall work ethic and selfless<br />
contributions to her horses. They included last<br />
year’s winner of the $85,000 final of the New<br />
Jersey Sires Stake for 2-year-old trotters, the<br />
Self Possessed colt Better Than Most. Described<br />
along with other Svensson charges as “no walk in<br />
the park,” the colt could be a nasty kicker in the<br />
paddock on any second visit. After Jeff Gregory<br />
drove him to victory, Ms. Svensson stopped<br />
Gregory on the backstretch and had him replace<br />
the colt’s earplugs, knowing otherwise the winner’s<br />
circle would be “a gruesome scene.”<br />
Another pupil was a Danish colt named Number<br />
One D, with a sign hanging on his stall door<br />
reading, “Caution, I Bite.” The colt delighted in<br />
grabbing arms of unwary visitors, and bit Ms.<br />
Svensson in the stomach while she was blanketing<br />
him. She responded in her usual fashion,<br />
saying, “All he needs is love.” Ms. Svensson’s<br />
pride and joy last year was the 3-year-old<br />
Dream Vacation filly Resortful, second in<br />
the $750,000 Hambletonian Oaks.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
January 31, 2008<br />
After the filly fractured a cannon bone and was<br />
retired in Kentucky, Ms. Svensson spent a vigil<br />
with her at Millstream Farm before returning to<br />
New Jersey to groom Per Henriksen’s Breeders’<br />
Crown winner Southwind Serena.<br />
Ms. Svensson will receive an oil painting of herself<br />
and a favorite horse of her choosing, as well<br />
as one of the Hanover-HTA jackets that goes to<br />
all caretakers named as nominees.<br />
The four runners-up in the Caretaker of the Year<br />
competition were Kelly Prinz, caretaker of Lis<br />
Mara; Mary Ceaser, groom in a small Massachusetts<br />
family stable; Mario Glynn, who groomed<br />
two million dollar winners -- Our Lucky Killean<br />
and Moving Pictures -- in Casie Coleman’s<br />
powerful Ontario stable; and Diana Fagnani, a<br />
groom for more than 20 years in the Jim Groff<br />
stable in Pennsylvania.<br />
CAREFUL BOYS, HE IS TOUGH<br />
A news story from New Jersey says harness<br />
horsemen at the Meadowlands are considering<br />
a boycott of the entry box in protest to lack of<br />
action by Gov. Jon Corzine, and will be meeting<br />
Sunday to discuss the matter. It is a bad idea, for<br />
three reasons and perhaps more.<br />
If the idea is to pressure the governor into action,<br />
it is not likely to work. He already is aware<br />
of the problem, and his negotiators are working<br />
on trying to solve it and reportedly are nearing<br />
resolution.<br />
The move is likely to greatly upset and irritate<br />
the governor, turning a dispassionate neutral<br />
into an unneeded foe.<br />
The horsemen are overmatched. Their power in<br />
New Jersey, compared to the casinos, is minute.<br />
Don’t pick fights where you aren’t likely to<br />
win, and more important might get hurt.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
NEW STEROID DEVELOPMENTS<br />
Faced with challenges to the readiness of steroid<br />
testing and its cost and efficacy, the Racing<br />
Medication and Testing Consortium announced<br />
yesterday that it would have additional research<br />
in place by August that would “reduce the anticipated<br />
costs and better facilitate the testing” and<br />
regulation of anabolic steroid administration to<br />
racehorses of all ages. Given that time frame,<br />
the RMTC strongly reinforced its belief in the<br />
procedures and the need for them, but adopted a<br />
year-end deadline for nationwide acceptance of<br />
model rules. The Solomonic solution should end<br />
a mini-rebellion set in motion by Alan Foreman,<br />
CEO of the Thoroughbred Horsemen’s Association;<br />
Kent Stirling, chairman of the National<br />
Horsemen’s Benevolent Association medication<br />
committee, and Dr. Steven Barker, the state racing<br />
chemist of Louisiana who frequently steers a<br />
course far apart from his colleagues. It was imperative<br />
that the RMTC, faced with financial issues,<br />
respond quickly, firmly and unequivocally,<br />
and its chairman, Dr. Robert Lewis, did so, saying,<br />
“Our entire board firmly believes that the<br />
regulation of anabolic steroids in racehorses is<br />
essential to the integrity of horse racing and the<br />
welfare of the horse.” Alex Waldrop, president<br />
and CEO of the National Thoroughbred Horsemen’s<br />
Association, took a public relations tack,<br />
summarizing the issue by saying, “Given the<br />
scrutiny of anabolic steroids by the media and<br />
Congress, and the consequential negative perception<br />
of these drugs by the public, the horse<br />
racing industry must take initiative on its own<br />
volition to properly and uniformly regulate the<br />
use of anabolic steroids in racehorses this year.”<br />
Dan Fick, CEO of the RMTC, stressed that it was<br />
not seeking a delay, but on the contrary urging<br />
commissions and jurisdictions to move forward<br />
aggressively toward meeting the year-end<br />
deadline.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
February 1, 2008<br />
Foreman and Stirling were careful in their remarks<br />
not to appear to be jumping ship from the<br />
RMTC, where both are board members. Both<br />
represent horsemen, the users of anabolic steroids,<br />
and both walk fine lines. Foreman, whose<br />
call for delay triggered the RMTC’s new deadline<br />
schedule, called the issue “very emotional<br />
on all sides,” and said the 11-month reprieve in<br />
enforcement would give the entire industry sufficient<br />
time to address the testing and regulatory<br />
issues that need to be resolved and allow for adjustments.<br />
Stirling, also conscious of his dual<br />
role, said, “I don’t think the model rule is quite<br />
ready for prime time. I sit on the RMTC, which<br />
has done good work. I’m not bashing it, but mistakes<br />
were made.” Barker, not a member of the<br />
RMTC, took a loose horse approach, calling the<br />
model rule as drafted “an embarrassment,” and<br />
saying, “The group that put this together should<br />
be taken out and beaten. What we’ve heard is an<br />
awful lot of misinformation and mythology.” He<br />
was talking to horsemen, deeply aware of their<br />
dislike of restrictive medication rules, and not<br />
to fellow scientists and peers. A more civil approach<br />
was taken by Chris Scherf, representing<br />
thoroughbred racetracks on the RMTC board.<br />
He said the RMTC understood there were “testing<br />
and logistical issues” that racing commissions<br />
will have to address before adopting the model,<br />
but reiterated that the RMTC stands by the<br />
rules and thinks all racing jurisdictions should<br />
adopt and enforce them by the end of the year.<br />
Proposed penalties range from a $500 fine to a<br />
$2,500 fine, plus suspension, but some jurisdictions<br />
are contemplating fines as high as $10,000.<br />
In a significant policy change, the United States<br />
Trotting Association now will publish lifetime<br />
major suspensions and penalties of drivers and<br />
trainers, with details available, on its Web site<br />
for use by prospective and present owners and<br />
other interested parties.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
February 4, 2008<br />
IT ALWAYS COULD BE WORSE<br />
No matter how pressing your problems, how<br />
troublesome your annoyances, how disturbing<br />
your relationships, things always could be worse.<br />
Ask management at Santa Anita. The track cancelled<br />
its eighth day of racing Saturday, with a<br />
$181,000 Pick Six carryover, and announced it<br />
will not resume racing before this coming Friday<br />
while more work was done on its water-logged<br />
Cushion racing strip. While this was going on,<br />
the Thoroughbred Owners of California used its<br />
veto power to deny permission for Santa Anita<br />
to simulcast to New York’s OTB, saying it wants<br />
that entity to pay the same percentage as other<br />
wagering platforms, like TVG, that serve multistate<br />
customers via account betting. OTB says<br />
its out-of-state account betting is negligible, and<br />
asks why, if the dispute is over account wagering,<br />
the TOC should take it out on OTB simulcasting.<br />
SPITZER’S PLAN A LONGSHOT?<br />
That’s what the Rochester Democrat and Chronicle<br />
called it in yesterday’s edition, saying Assembly<br />
members, led by Speaker Sheldon Silver,<br />
still are unhappy with Spitzer’s proposals. The<br />
paper’s Albany bureau writer Joseph Spector<br />
says Silver and other members of Spitzer’s own<br />
party do not want slots at Belmont Park; do not<br />
want expansion of Quick Draw, the keno game;<br />
and do not want portions of the state lottery sold<br />
to private interests. Other than that they’re<br />
fine. Silver said, “I don’t believe that we should<br />
make gambling an attraction where people on<br />
their lunch hour, people after work, can go and<br />
gamble a day’s pay, a week’s pay, a month’s pay.<br />
I believe very honestly that you shouldn’t be<br />
balancing the budget by, in effect, taxing lower<br />
income working men and women in this state.”<br />
New York currently has 734 Quick Draw<br />
terminals, but Spitzer wants to drop limits<br />
and allow them in all stores and bars.<br />
OHIO’S GOV NOW LIKES KENO<br />
He didn’t like horse racing having slots when<br />
that issue was a red hot election item in Ohio,<br />
but it’s amazing how a looming $733 million<br />
budget deficit can change a governor’s mind.<br />
Ted Strickland, who runs the Buckeye State<br />
these days, now thinks electronic keno can help<br />
solve the fiscal problem, and he is proposing it<br />
for bars, tracks and private clubs. He thinks<br />
the machines can provide $73 million to help<br />
fund the state’s schools. Rob Walgate, the vice<br />
president of the Ohio Roundtable, a conservative<br />
research group opposed to gambling, called<br />
the switch “pretty embarrassing to the state. Six<br />
months ago we kicked the gambling industry out<br />
of the state. Now we’re stepping in and doing<br />
the exact same thing we threw them out for. This<br />
is crazy. It makes no sense.” Ah, but $73 million<br />
does to the governor, Rob, and what’s a mind for<br />
if it can’t be changed?<br />
CANADA’S BEST IN DEAD HEAT<br />
They huffed and they puffed, and in the end they<br />
wound up at the wire together. Voters could not<br />
separate the undefeated 2-year-old pacing colt<br />
of last season, Somebeachsomewhere, from the<br />
3-year-old Little Brown Jug and North America<br />
Cup winner Tell All, and the race for Canadian<br />
Horse of the Year honors wound up in a dead<br />
heat between the two. It was the second time<br />
that happened, the first being 12 years ago when<br />
Riyadh and Whenyouwishuponastar also were<br />
deadlocked for the honor.<br />
GOOD JOB FOR RACE SECY<br />
An HTA member track with a long season and<br />
slots has an opening for a racing secretary. Send<br />
resumes to HTA at 4640 E. Sunrise Drive, #200,<br />
Tucson, AZ 85718 or fax to 520-529-3235, or e-<br />
mail jen@harnesstracks.com and we will forward<br />
to the track for their consideration.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
February 5, 2008<br />
ON THE ROAD TO HELL<br />
New York’s state budget division has started<br />
down the path to privatization of the state lottery,<br />
an announced goal of Gov. Eliot Spitzer.<br />
The agency has started a talent search for an independent<br />
investment adviser for the governor,<br />
who wants $4 billion upfront for openers. Whoever<br />
is hired will advise on an option for leasing<br />
the lottery, ways to optimize value, and developing<br />
a bid procedure and negotiating guidelines.<br />
OHIO’S FLAVOR <strong>OF</strong> THE MONTH<br />
When Ohio’s seven tracks tried to get slots last<br />
fall, Gov. Ted Strickland denied them on grounds<br />
they were games of chance, not skill. Now that<br />
he has flip-flopped to supporting Keno, a shell<br />
game at best, he is calling them games of skill.<br />
When the tracks tried to operate video games<br />
of skill late last year, they were told they were<br />
games of chance and shut down. The governor<br />
has been called hypocritical over this contradictory<br />
stand, one attorney noting that keno games<br />
are gambling pure and simple, with no element<br />
of skill involved. This time it seems no one but<br />
the gov will have anything to say about it. The<br />
keno proposal reportedly needs neither legislative<br />
nor voter approval.<br />
NO PROGRESS ON CAL-NYCOTB<br />
No progress to report in the dispute between the<br />
Thoroughbred Owners of California and HTA<br />
associate member New York City OTB. Ira<br />
Block, OTB’s general counsel, says there have<br />
been no discussions since the California horsemen<br />
denied access to California thoroughbred<br />
signals. There has been no urgency to, since<br />
Santa Anita is repairing its Cushion Track once<br />
again and has cancelled eight days of racing,<br />
with none scheduled before Friday of this week.<br />
Block would not provide details, but said<br />
the California horsemen were asking for<br />
a “premium rate.”<br />
A WARM AND FUZZY SEARS<br />
Brian Sears, currently the leading driver at<br />
the Meadowlands and one of the very best in<br />
the sport worldwide, has not in the past been<br />
thought of as a particularly warm and cozy homeowner<br />
and family man. In a long feature interview<br />
with former journalist and publicist Carol<br />
Hodes, however, Sears comes across as a man<br />
who has found inner peace. Sears told Hodes<br />
he “is enjoying success more because I appreciate<br />
it more,” and says he is more reflective about<br />
his life and the concerns he has for his family.<br />
Sears turned 40 a few months ago, and the death<br />
of a beloved aunt brought a reevaluation of the<br />
idea that “youth makes you feel like you’re bullet<br />
proof. You realize you’re not a kid, and it’s<br />
given me more of an appreciation for life. When<br />
you’re younger you never think you’re going to<br />
grow old, and you’re never going to die.” Talking<br />
about racing at the Meadowlands, still the<br />
sport’s premier track, Sears told Hodes, “They<br />
don’t give it away here. You have to earn it with<br />
every horse you drive.”<br />
ANTI-STEROID STATES FIRM<br />
Despite successful pleas from thoroughbred<br />
horsemen to postpone implementation of antisteroid<br />
regulations until next year, committed<br />
states are moving ahead with their plans. Indiana,<br />
the first to adopt the Racing Medication<br />
and Testing Consortium model rule, reaffirmed<br />
its intentions, executive director Joe Gorajec<br />
saying, “Regulators in Indiana want to do and<br />
need to do the right thing. The right thing is to<br />
curtail the over-reliance on and abuse of anabolic<br />
steroids.”<br />
YES VIRGINIA, THERE ARE 2<br />
Some readers have been confused by two notices<br />
of openings for a racing secretary. It is not an error<br />
or duplication. Two long-season HTA members,<br />
both with slots, are looking for a good<br />
man (or woman).
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
DARKNESS DESCENDS<br />
The sky turned black for Jeff Gural and horsemen<br />
at his Vernon Downs and Tioga Downs<br />
operations yesterday when “me too” infighting<br />
among New York tracks doomed the tax relief<br />
bill sponsored by Gary Pretlow, chairman of<br />
the Assembly Racing and Wagering Committee.<br />
Pretlow could muster only 2 votes on the 10-man<br />
committee. He held the bill aside rather than see<br />
it killed in committee, which could end racing at<br />
the two Gural tracks. Pretlow said Yonkers Raceway<br />
opposed the bill because it didn’t do enough<br />
to help the track get out of a ‘bad’ business decision<br />
to invest $280 million on a VLT facility that<br />
doesn’t earn enough to pay off loans. Unlike<br />
many racinos, Yonkers did not bring in major<br />
professional operators to run its slots project,<br />
but opted to do so itself. Two of Pretlow’s committee<br />
members who opposed the bill said they<br />
did so at the request of Yonkers, Monticello and<br />
Saratoga. Other committee members objected<br />
that Aqueduct was not included. An angry Pretlow<br />
said his bill -- “which I never wanted to do”<br />
-- would have provided $2.8 million for Batavia<br />
Downs, $4.8 million for Buffalo Raceway, $2.4<br />
million for Finger Lakes, $6 million for Monticello,<br />
$6.2 million for Saratoga, $6.3 million for<br />
Tioga Downs, $5.1 million for Vernon, and $26<br />
million for Yonkers. Vernon and Tioga’s principal,<br />
Jeff Gural, who was relying on passage of<br />
the bill, said after it went down, “I don’t know<br />
what to do. This is an example of just pure greed<br />
on the part of some tracks in the state.”<br />
The New York Racing Association, meanwhile,<br />
still faces a Feb. 13 deadline, when its franchise<br />
extension granted by the legislature expires.<br />
CEO Charles Hayward says NYRA is working<br />
on a contingency plan, which “we should be able<br />
to share in the next day or two without<br />
employees.” Hayward said the employees<br />
will meet, perhaps tomorrow.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
February 6, 2008<br />
If the sun isn’t shining in New York, it’s no brighter<br />
in New Jersey. Bloomberg.com addressed the<br />
issue today, saying Gov. Jon Corzine is caught<br />
between Atlantic City’s casinos and the state’s<br />
racing industry, harness and thoroughbred.<br />
The article quoted Senate President Richard D.<br />
Codey as saying, “The clock is ticking. If they<br />
don’t do something quick, especially with the<br />
subsidy, all hell is going to break loose.” Corzine<br />
does not want to give the tracks slots, and the<br />
casinos do not want to continue the $20 million a<br />
year subsidy they paid the last four years under<br />
a now expired contract. The quid pro quo was<br />
that the tracks would not seek slots, effectively<br />
guaranteeing the casinos slots monopoly in the<br />
state. Now the casinos want it both ways. They<br />
don’t want to help the tracks, their spokesman<br />
asking, “Is Smith Corona looking for a subsidy<br />
from IBM?” while at the same time asking the<br />
state of New Jersey to leave them free of all competition.<br />
A question for Joe Corbo, the president<br />
of the Casino Association of New Jersey, would<br />
seem appropriate: “Is IBM looking for a state<br />
or federal law to eliminate competition, including<br />
Smith Corona?”<br />
STRONACH TO INVEST OWN $$<br />
In a long interview in today’s Toronto Star, Frank<br />
Stronach says his Magna Entertainment, which<br />
saw its stock fall below $1 a share on Dec. 31,<br />
will soon benefit from an infusion of millions of<br />
dollars from Stronach’s own personal fortune.<br />
“I can tell you now,” Stronach told business reporter<br />
Tony Van Alphens, “I will put quite a bit<br />
of money in there. I will put more than last time<br />
($20 million last September) because I believe in<br />
the concept.”<br />
VETERANS AT RUNNING ACES<br />
Bob Farinella has been named general manager<br />
and Gregg Keidel racing secretary at the<br />
new Minnesota track opening April 19.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
February 7, 2008<br />
VERNON TO CLOSE, NYRA MAY<br />
Frustrated once again in his efforts to gain tax<br />
relief in Albany -- this time with the opposition<br />
of other tracks in New York state playing a role<br />
-- Jeff Gural has announced he is closing Vernon<br />
Downs at 1 a.m. next Monday, Feb. 11. Gural<br />
said the closure was temporary, and he lashed<br />
out at Yonkers Raceway, which he said would<br />
have received $34 million under the proposed<br />
legislation but upped the ante to $50 million. Gural<br />
said, “We have been in an untenable financial<br />
position for a long time, but now we’re forced to<br />
temporarily close Vernon Downs to get the legislature<br />
to focus on the fact that the original Lottery<br />
business model for these racinos is broken<br />
and it’s time to fix it. Maybe when 600 people<br />
lose their jobs and the state loses the $100,000 a<br />
day that we pay toward education, maybe that<br />
will get their attention.” Other tracks had other<br />
problems with the bill, Batavia Downs for example<br />
not wishing to lose money racing 30 extra<br />
days in the dead of harsh northwestern New<br />
York winters.<br />
The New York Racing Association, meanwhile,<br />
sent notices to its staff and horsemen from NYRA<br />
chief Charles Hayward saying in part, “In spite<br />
of our best efforts to negotiate a long-term agreement<br />
with the state, it now appears that a shutdown<br />
of racing may occur next Thursday. While<br />
we will continue to pursue every option to forestall<br />
this shutdown, all indications point to the<br />
fact that we will be shutting down, and so I felt it<br />
was fair and prudent to give you this notice.”<br />
Joe Bruno, president of the Senate and the key<br />
obstruction to passage of Gov. Eliot Spitzer’s<br />
racing bill, brushed off the notion of a NYRA<br />
closure. “NYRA was threatening last December<br />
to close down racing in New York . It<br />
didn’t happen then and it’s not going to<br />
happen now.”<br />
ON THE BRIGHTER SIDE<br />
In New Jersey, reports that Gov. Jon Corzine has<br />
dispatched negotiators to Atlantic City to hammer<br />
out details of a track subsidy bill.<br />
In Indiana, where Hoosier Park plans to hire 600<br />
people to run its racino, now under construction,<br />
four “career forums” are being held, two in the<br />
track’s home town of Anderson and two others<br />
in nearby Noblesville and Muncie. Construction<br />
of the racino is expected in June, but Hoosier has<br />
not yet issued an opening date.<br />
InMinnesota, harness racing’s newest track,<br />
Running Aces Harness Park, now under construction<br />
on the north side of the Minneapolis-St.<br />
Paul urban complex, announced it will open for<br />
racing on its mile track April 11. Aces will operate<br />
53 days, racing Friday, Saturday, Sunday<br />
and Monday nights through July 6, with a 6 p.m.<br />
post time on Fridays, Saturdays and Mondays<br />
and 3 p.m. afternoon cards on Sundays. Veteran<br />
Bob Farinella, formerly of Prairie Meadows and<br />
Tioga/Vernon Downs, has been named general<br />
manager and Gregg Keidel, the longtime racing<br />
secretary at Northfield Park, has been granted a<br />
leave of absence to do the same job at Running<br />
Aces. Dave Bianconi will fill in until Keidel returns<br />
in early July.<br />
In Kentucky, www.kentucky.com reports that<br />
Gov. Steve Beshear’s plan for racinos and casinos<br />
in the state “has taken a double-barrelled hit<br />
even before it’s been unveiled.” The news service<br />
says the election of Republican Brandon Smith<br />
to the Senate not only bolstered the opposition,<br />
but that it could have a dampening effect on the<br />
Democratic-controlled House. The Republican<br />
House caucus chairman, Rep. Bob DeWeese of<br />
Louisville, said, “I would think that House members<br />
would probably not want to hang themselves<br />
out on a vote if it’s not going to go<br />
anywhere in the Senate.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
In New York, Senate president Joe Bruno, the<br />
man stepping on the brakes slowing a New York<br />
Racing Association agreement, went on the offensive<br />
again, accusing NYRA of “scare tactics”<br />
in its threat to close down next week if action is<br />
not taken on extension of its franchise. Bruno<br />
outlined what he called the framework of a franchise<br />
agreement that he said was close to the announcement<br />
stage. Its provisions include:<br />
-- A 25-year extension of the NYRA franchise<br />
rather than 30, with periodic reviews, a new<br />
11-man board with 10 members appointed by<br />
the state, and four-year term limits for NYRA<br />
chairman;<br />
-- A state appropriation of $75 million to get<br />
NYRA out of bankruptcy and an additional $30<br />
million for operational costs until the Aqueduct<br />
racino is built and underway;<br />
-- Work on building that Aqueduct racino to begin<br />
within 30 days, starting with appointment of<br />
a vendor to build and run it;<br />
-- Purses to get 6.5% of VLT revenue initially,<br />
then 7.5% after three years; breeders would get<br />
1% initially, then 1.5%.<br />
Both Bruno and state government spokesman<br />
said they expected the finished bill would<br />
be acted on before the expiration of the<br />
extension deadline next Wednesday.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
February 8, 2008<br />
DECISIONS CLOSE IN NJ, NY Bruno may accuse NYRA of “scare tactics” with<br />
It appears that the light in the tunnel may be the its talk of closing down, but Jeff Gural says he<br />
other side of the mountain, and not a train approaching.<br />
Racing leaders in New Jersey expect Monday without action in the Assembly on the<br />
is not bluffing and he will close Vernon Downs<br />
an imminent response as to what Gov. Jon Corzine’s<br />
representatives have been able to work summer by a committee chairman who could<br />
tax relief bill that he says was promised him last<br />
out with the Atlantic City casinos on continuation<br />
of a subsidy arrangement. Freehold already has passed the legislation, and state senator Joe<br />
not deliver when the time came. The Senate<br />
has implemented its sharp purse cuts, and the Griffo asked Gural to hold off for three weeks<br />
Meadowlands is waiting to see what evolves before<br />
doing so. The negotiations have been tough could be addressed again. Gural said no, adding<br />
until the next legislative session, when the matter<br />
and up and down, and nothing is certain as this that to do so would be interpreted that he was<br />
newsletter goes to press.<br />
bluffing, and he says he is not, he has gone as far<br />
as he is willing to go.<br />
A LITTLE MATTER <strong>OF</strong> U.S. LAW<br />
The New Jersey Assembly, salivating over the<br />
$100 million or so bet in Las Vegas last Sunday<br />
on the Super Bowl, voted once again for sports<br />
betting yesterday, the third time it has taken<br />
such action. Assemblyman John Burzichelli, a<br />
co-sponsor of the legislation, proposed allowing<br />
the betting at the state’s three tracks, the Meadowlands,<br />
Freehold Raceway and Monmouth<br />
Park. Senate president Richard Codey, a big<br />
fan and friend of racing, said, “It doesn’t matter<br />
where he wants to put it, federal law does not allow<br />
it.” Codey said a better option would be for<br />
Burzichelli to sponsor a resolution asking New<br />
Jersey’s attorney general to go to court against<br />
the federal government. Rep. Frank Pallone said<br />
he would sponsor such legislation if it provided<br />
that the racetracks would be given the right to<br />
operate sports betting.<br />
HE SAYS, SHE SAYS<br />
New York’s St. Regis Indians say Empire Resorts<br />
has dumped them as partners in their joint deal<br />
to build a racino at Monticello. Empire denies<br />
that, but reportedly was near signing a contract<br />
to build at the former sight of the Concord hotel,<br />
once regarded as the jewel of the Catskills.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
VERNON RACINO CLOSES<br />
Jeff Gural did what he said he would do, and<br />
closed the doors of the Vernon Downs racino at 1<br />
a.m. this morning. He called the closing temporary,<br />
saying he would reopen the facility as soon<br />
as the New York Assembly passed the tax relief<br />
bill he had been promised by the chairman of its<br />
wagering committee. Gural said the uncertainty<br />
of the situation “puts a terrible burden on our<br />
employees and their families,” adding that he<br />
hoped for quick legislative action so he can reopen<br />
“in a matter of days rather than a number<br />
of weeks.” Simulcasting also is closed, shutting<br />
down revenues of $150,000 or so a week, and Vernon’s<br />
750 VLT’s had been grinding out $500,000<br />
a week, according to Vernon sources.<br />
In Albany, the main action was not Vernon but<br />
final details of the NYRA franchise extension.<br />
Senate president Joe Bruno, presiding over the<br />
delay, keeps saying the solution is imminent, but<br />
staffers were still at work yesterday, and the state<br />
budget director, Laura Anglin, said forecasts for<br />
revenue now are $384 million less than predictions<br />
three weeks ago, but the NYRA bailout will<br />
continue as scheduled. “The risk of recession,”<br />
she was quoted, “has increased since we got out<br />
our budget.” NYRA president Charles Hayward<br />
said NYRA had notified its employees of a possible<br />
shutdown Thursday of this week, but had<br />
not made a public announcement to fans for fear<br />
of them misunderstanding and thinking NYRA<br />
had given up on negotiations.<br />
In New York City, meanwhile, Mayor Michael<br />
Bloomberg said the NYRA situation would hinder,<br />
not help, the New York City OTB shortfall<br />
by delaying any state aid to OTB. Bloomberg repeated<br />
his intention to shut down the city’s OTB<br />
network in mid-June if relief is not forthcoming<br />
from Albany, and now is clearly<br />
on the record as intending to do it.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
February 11, 2008<br />
Bloomberg was quoted in the New York Post as<br />
saying, “New York City has been forced, because<br />
of the New York State policies, to subsidize a<br />
bookie operation. And we’re just not going to<br />
do that.”<br />
In New Jersey, meanwhile, all reports indicate<br />
some solution -- perhaps not one racing will be<br />
happy with -- is imminent in the casino subsidy<br />
to tracks.<br />
PENNSYLVANIA CELEBRATES<br />
While New York and New Jersey agonize over the<br />
inaction of their legislatures, Pennsylvania celebrated<br />
its good fortunes with a “Celebration of<br />
Pennsylvania Racing” gathering of some 300 at<br />
Harrah’s Chester Casino and Racetrack. Dave<br />
Palone was honored as the state’s top driver,<br />
Mickey Burke as the leading trainer, and caretaker<br />
Dave Teed as the best groom of 2007. John<br />
Marshall, vice president of racing at The Meadows,<br />
said, “The celebration is further evidence<br />
that the Pennsylvania Horse Race Development<br />
Act is doing what it was intended to do.”<br />
Underscoring the success of the Pennsylvania<br />
program, 37 municipalities in northeast Pennsylvania<br />
submitted 83 funding requests to the<br />
state’s Department of Community and Economic<br />
Development, seeking $75 million when the<br />
first disbursement of county-wide grants is made<br />
from levies on Mohegan Sun at Pocono Downs.<br />
Since only $11.6 million was generated last year<br />
for the fund, a major editing job was required,<br />
and the Department narrowed the field to 32<br />
proposals, still involving $57.6 million. That<br />
number will be cut to fit the $11.6 million available,<br />
and the grants will be announced March 14.<br />
Funds sought include sewer development, curbs<br />
and sidewalks, condominiums and commercial<br />
buildings, and a mine-water reclamation<br />
project. Someone will be disappointed.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
Vernon closed yesterday, as Jeff Gural promised,<br />
and UticaOD.com reported that it may stay closed<br />
until the end of the month, with its 200 winter<br />
employees out of work. State Assemblywoman<br />
RoAnn Destito told the news service that some<br />
committee members still need to be convinced<br />
passage of the bill is the right thing to do. She<br />
said she hopes her colleagues “recognize there is<br />
an urgency here.” Another legislator, state senator<br />
Joseph Griffo, said the negotiating committee<br />
working on the NYRA bill also is considering<br />
the Vernon matter as part of a settlement plan.<br />
Griffo said, “Unfortunately this appears to be<br />
the manner sometimes in which Albany works.<br />
You wait until you’re on the brink, and then<br />
it appears that there is progress. Now they’re<br />
trying to deal with the racing issue collectively,<br />
rather than in segments.”<br />
NYRA, meanwhile, has showed its teeth in what<br />
the New York Post’s Ed Fontaine called “a game<br />
of chicken.” Joe Bruno keeps saying the deal is<br />
done -- his exact words were “It’s not ideal. It’s<br />
a deal” -- and said an announcement would be<br />
made by the deadline for franchise extension on<br />
Wednesday. C. Steven Duncker, chairman of<br />
NYRA, had a slightly different take on the situation.<br />
He said, “Unfortunately, a weekend review<br />
indicated that the franchise discussions are going<br />
backward, not forward. The areas of concern<br />
continue to be the economic model for the<br />
future of racing in New York and governance.<br />
It is essential that the legislation provides<br />
a proper framework to ensure that New<br />
York thoroughbred racing maintains<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
February 12, 2008<br />
THE WORD IS BLEAK<br />
its leadership for the life of the new franchise.<br />
That’s this morning’s status report on the fate The bill does not provide the proper business<br />
of New York thoroughbred and harness racing, model and economic terms that permits NYRA<br />
with Vernon Downs closed for simulcasting and to emerge from bankruptcy, nor does it correct<br />
VLT’s and NYRA promising to be closed Thursday<br />
if a settlement is not reached by tomorrow. ing in New York, a broken model that can only<br />
the broken business model of thoroughbred rac-<br />
worsen and further imperil this industry under<br />
the legislation currently proposed.”<br />
Bruno’s spokesman, Scott Reif, was quoted in<br />
the Post as saying of Duncker’s statement, “We<br />
think it lacks credibility. It’s an example of more<br />
scare tactics. We’re continuing to work with the<br />
Governor and the Assembly to finalize the agreement<br />
and still expect to announce by Wednesday.”<br />
Bruno accused Gov. Eliot Spitzer of “putzing<br />
around” on reorganizing the NYRA board<br />
and added, “If you don’t do something new and<br />
different, shame on us.”<br />
Did you ever try a one-handed handshake?<br />
STATE CAN’T STOP SHUTDOWN<br />
The Troy Record, commenting on the threatened<br />
NYRA shutdown, reported that the New York<br />
State Labor Department cannot stop the action<br />
if NYRA chooses to close. A spokeswoman, Chris<br />
Perham, told the newspaper, “Our hands are tied<br />
if they (NYRA) don’t do what they’re supposed<br />
to. The WARN act (a federal bill that prohibits<br />
shutdowns without 60 days notice) does not contain<br />
any enforcement power for the state Labor<br />
Department.” Ms. Perham said NYRA employees<br />
would have to take action in federal district<br />
court to prevent a NYRA shutdown. A NYRA<br />
spokesman, John Lee, said, “The legal opinion<br />
we’ve received is that the law does not apply to<br />
this situation.” Lee said the state had offered<br />
NYRA another extension beyond Wednesday,<br />
but “we have serious problems with operating<br />
again with another extension.” The ball<br />
passes once again to Joe Bruno’s court.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
February 13, 2008<br />
A MULTI-SIDED STORY<br />
Perhaps the most interesting aspect of the NYRA<br />
agreement hammered out in typical New York<br />
state photo finish fashion was the early reporting<br />
of the event. Depending on who was doing the<br />
writing, totally different elements were stressed.<br />
The New York Times took the high road, saying<br />
that NYRA would continue to run the tracks, as<br />
it has for 53 years, for another 25 years, rather<br />
than 30, and would receive $105 million from<br />
the state to stabilize operations, with that money<br />
to be paid back by future racino revenues. In<br />
return NYRA is giving up its claim to the land<br />
its tracks are built on, ceding that to the state,<br />
but will retain controlling interest of its board<br />
of directors. A formal report of the final version<br />
of the agreement is expected today. The Albany<br />
Times Union led its story with mention that the<br />
state gets the deeds to the three tracks, Aqueduct,<br />
Belmont Park and Saratoga Raceway. It<br />
quoted Steve Newman, chairman of the NYRA<br />
oversight board, as saying it was his understanding<br />
that all four parties -- the governor, Assembly<br />
speaker Sheldon Silver, Senate president Joe<br />
Bruno, and NYRA -- had agreed to terms, with<br />
final details to be hammered out today. Newsday<br />
headlined its story, “NYRA deal closed, but Belmont<br />
VLTs not authorized,” saying VLTs would<br />
not be coming to NYRA’s flagship track. The<br />
Times Union story intimated that the state’s seven<br />
harness tracks’ share of increased VLT revenue<br />
would be part of the NYRA settlement.<br />
READY FOR THE TRUMP TROT?<br />
The St. Regis Mohawks say they have withdrawn<br />
from their partnership with Empire Resorts and<br />
are out of the deal for a Catskill casino in the<br />
New York resort mountains. Taking their place<br />
will be The Donald -- Donald Trump -- who is<br />
partnering with developer Louis Capelli<br />
to build a $700 million entertainment<br />
palace at the site of Capelli’s Concord.<br />
FREEHOLD CUTS HURT CARDS<br />
With New York finally resolving its racing crisis,<br />
New Jersey continues to dally in reaching a settlement<br />
with the Atlantic City casinos on continuation<br />
of their subsidies for the state’s three racetracks.<br />
Freehold Raceway, which has implemented deep<br />
purse cuts, is feeling the effects of horsemen leaving<br />
the state for other venues. The Asbury Park<br />
Press reports some 20% fewer races, quoting general<br />
manager Don Codey as saying the track now<br />
was drawing only 65 to 70 horses a day in the entry<br />
box compared to the 100 normally received.<br />
Codey told the paper, “The horsemen are starting<br />
to react. We’ve had to list purses at levels nobody<br />
wants to see.” A spokesman for Gov. Jon Corzine<br />
said, “The administration is working very hard<br />
to craft a deal that does as much as possible to<br />
stabilize the future of horse racing.” In the end<br />
Corzine’s refusal to consider slots at tracks could<br />
damage New Jersey’s racing and breeding industry<br />
beyond repair.<br />
A GREAT OWNER GONE<br />
The current generation in harness racing may<br />
not know him, but Dr. Max Fischer of Washington,<br />
DC, who died recently at 86, was one of the<br />
finest owners in harness racing. In partnership<br />
with attorney Norman Diamond, he owned top<br />
horses like Directo Scooter, Bit O Fun and Rocket<br />
Speed, and was at one time vice president of the<br />
Cloverleaf SOA and Harness Horsemen International.<br />
Fischer, a 1946 graduate of Georgetown<br />
Medical School, was chief resident for the US<br />
Army in the ear, nose and throat division of Tokyo<br />
General Hospital in Japan for two years. He<br />
followed that with a distinguished 55-year career<br />
in otolaryngology in private practice and service<br />
at Washington area hospitals and in public service<br />
volunteer work. Dave Legum and Warren<br />
Cameron trained his horses, and Fischer and Diamond<br />
were a popular and successful team<br />
on the Washington-area scene for years.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
February 14, 2008<br />
HERE IS NY’S VALENTINE The franchise board could create local advisory<br />
Here is a summary of what the new racing legislation<br />
passed yesterday in New York state pro-<br />
offer input on development plans proposed by<br />
boards for each track in the state which could<br />
vides:<br />
NYRA.<br />
Extends NYRA’s franchise for 25 years.<br />
Clarifies that the state owns all land on which<br />
the three thoroughbred tracks rest, the physical<br />
properties themselves, and all intellectual rights<br />
including simulcasting.<br />
Reconstitutes the NYRA board to include a total<br />
of 25 members: 14 to be appointed by NYRA; 7<br />
by the governor; 2 by the Senate and 2 by the Assembly.<br />
The governor’s 7 would include 1 recommended<br />
by horsemen, 1 by breeders, 1 by the<br />
AFL-CIO and 1 by OTBs.<br />
Ensures that the selection of the VLT operator to<br />
be named at Aqueduct be subject to the unanimous<br />
approval by the governor, Senate and Assembly.<br />
Obligates NYRA to honor all collective bargaining<br />
agreements to which it currently is a party,<br />
and provides that any VLT operator selected will<br />
enter into present labor agreements and they<br />
and their service industries be represented by a<br />
labor union.<br />
Creates a Franchise Oversight Board of 5 members,<br />
3 appointed by the governor and 1 each<br />
by the Senate and Assembly, to ensure quality<br />
racing and growth of the industry, raise revenue<br />
for education, and ensure integrity and public<br />
confidence in NYRA. The board would monitor<br />
NYRA’s compliance with the franchise agreement,<br />
could terminate NYRA’s franchise if there<br />
were failure to comply with performance<br />
standards, represent the state’s interests<br />
and hold title to the tracks.<br />
Provides for NYRA’s franchise agreement to<br />
include performance standards, to be reviewed<br />
by the oversight board every four years, relating<br />
to racing dates, New York-bred races, stall<br />
maintenance, jockey and equine safety, CAFO,<br />
backstretch operations and the Saratoga training<br />
track.<br />
Provides a statutory percentage payment to<br />
horsemen and breeders at NYRA and harness<br />
tracks and increases marketing allowances to<br />
VLT operators and capital expenditure allowances<br />
(the Vernon Downs solution, but applicable<br />
to all tracks.) In Yonkers’ case, the allowances<br />
could reach $26 million. Vernon’s racino<br />
reopened today.<br />
EDUCATORS BACK GOV’S PLAN<br />
In a lengthy document signed by scores of western<br />
New York education advocates, the signors<br />
endorsed Gov. Eliot Spitzer’s $4 billion public<br />
higher education endowment without ever mentioning<br />
expansion of the state lottery, which will<br />
fund it. The plan is expected to initially produce<br />
$220 million a year of new funding for state universities<br />
and colleges, with that number increasing<br />
to $330 million within 10 years by creating<br />
an endowment fund of $6.3 billion.<br />
AND <strong>OF</strong> COURSE NAYSAYERS<br />
Not everyone was happy. Newsday on Long Island<br />
called the NYRA agreement “bad for state<br />
and Long Island” because it passed up billions<br />
from private investors and does not provide<br />
VLTs for Belmont Park. Its wrath was directed<br />
against Assembly Speaker Sheldon Silver, who<br />
successfully protected Aqueduct by shutting<br />
out Belmont in the slots legislation.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
February 15, 2008<br />
GOV UNVEILS KY SLOTS PLAN<br />
Gov. Steve Beshear of Kentucky unveiled his<br />
slots valentine yesterday, proposing that seven<br />
track racinos and five free-standing casinos be<br />
allowed under a constitutional amendment. The<br />
tracks would pay up to $100 million for license<br />
fees, and Keeneland and The Red Mile would<br />
share a Lexington racing location, with the other<br />
six tracks in the state each getting their own.<br />
Racing would retain only 15% of gross casino<br />
revenue, with the state getting 35% and casino<br />
operators up to 50%. Beshear predicts that<br />
when all systems are go in five years, Kentucky<br />
would reap $600 million a year in taxes.<br />
NEW <strong>HARNESS</strong> TRACK IN NY?<br />
The plans for a lavish pleasure dome at the site<br />
of the old Concord Hotel in the Catskills includes<br />
a new harness track, to take the place of old and<br />
crumbling Monticello Raceway. The plans were<br />
outlined by Concord owner Louis Cappelli in<br />
presentations to local governments, but with considerable<br />
caveats. One was money. Capelli said<br />
he and his partner Empire Resorts can raise half<br />
of the $700 million needed, but they will require<br />
help in funding the balance, and that he plans<br />
on calling on the state of New York to come up<br />
with the other half. Capelli said he has a plan B<br />
in mind, “a fallback position” that would entail<br />
tearing down only half of the Concord and renovating<br />
the other half for a racino. He mentioned<br />
his recently completed $500 million Ritz Carlton<br />
in White Plains, saying it proved his group was<br />
capable of pulling off the pleasure palace, but he<br />
did not mention Donald Trump, who a day or<br />
two earlier had been prominently mentioned as<br />
a potential partner in the venture. One skeptical<br />
local legislator told Capelli, “We went for the<br />
first set of rugs and toilet fixtures. This time I<br />
want to see something with a ribbon cutting<br />
afterwards.” Capelli, who has had<br />
previous grandiose plans, said he knew<br />
this was his last shot.<br />
PAPER CREDITS POLITICIANS<br />
The Binghampton, NY, Press & Sun-Bulletin,<br />
commenting on the NYRA agreement that also<br />
included healthy boosts in tax revenues for New<br />
York’s harness tracks, went out of its way to<br />
thank local politicians who played a role in getting<br />
the compromise through the legislature. The<br />
paper noted that its close neighbor Tioga Downs<br />
and its sister track Vernon Downs will see their<br />
share of racino revenue rise from 32% to 40%,<br />
with an increased marketing allowance and capital<br />
improvement fund worth up to $2.5 million,<br />
and said principal track owner Jeff Gural called<br />
the arrangement “very fair” after a real struggle.<br />
The paper tipped its hat to state senator Thomas<br />
W. Labous, “a strong advocate for Tioga Downs<br />
from the start,” and assemblywoman Donna<br />
Lupardo for “convincing colleagues that a little<br />
compromise could go a long way in preventing<br />
another shuttered upstate business.” It said the<br />
region’s economic future would benefit from the<br />
revenue break for the tracks.<br />
.<br />
YOUBET CLOSING <strong>OF</strong>F-SHORE<br />
Thoroughbred Times reported today that Youbet.<br />
com has announced it will close its offshore wagering<br />
company, International Racing Group, in<br />
the near future. Youbet’s Curacao-based rebate<br />
shop, operating through Youbet’s Oregon hub,<br />
ceased taking bets today because of decreased<br />
business in the last four months. IRG’s customer<br />
base has dropped steadily since the site became<br />
the subject of investigation last fall, when the<br />
Oregon Racing Commission issued a Notice of<br />
Intent to suspend its wagering hub license. Also<br />
in the news, Magna Entertainment may lose its<br />
Nasdaq stock market berth after its stock traded<br />
under $1 for 30 consecutive days. MEC has six<br />
months to boost its stock to avoid being delisted.<br />
There will be no <strong>Executive</strong> News next week<br />
during the HTA/TRA annual meeting.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
February 25, 2008<br />
THE NEW JERSEY SOAP OPERA<br />
Back from another joint HTA/TRA meeting,<br />
and checking in on the New Jersey situation is<br />
like missing a week of a soap opera....nothing<br />
has changed. NJSBOA president Tom Luchento<br />
told Dave Little of the New York Daily News,<br />
“This has gone on much too long. We are at the<br />
point now where it’s like pulling wings off flies.<br />
They’re just torturing us and I get nothing from<br />
the state. No information from the casinos. They<br />
leave us out of the negotiations. We are never at<br />
the table.” Freehold cut its purses by 40%, but<br />
the Meadowlands soldiers on, maintaining the<br />
sport’s highest purse schedule and its number 1<br />
position in harness racing, but not able to support<br />
that schedule indefinitely. “Come spring,”<br />
Luchento told Little, “if we don’t have any more<br />
money, there will be a mass exodus out of this<br />
state that you won’t believe. This thing will just<br />
crumble.” Governor Jon Corzine’s staff apparently<br />
is simply outgunned and overwhelmed by<br />
the Atlantic City casinos’ vast power in the state.<br />
Either that, or Corzine doesn’t care about racing’s<br />
fate, and does not intend to keep the promises<br />
he made to racing months ago.<br />
A NEW THREAT IN MARYLAND<br />
Like kudzu or predatory fish, a new threat has<br />
appeared in Maryland, and this one, currently<br />
limited to St. Mary’s county in southern Maryland,<br />
is threatening to spread and could impact<br />
the state’s horse racing industry. Video bingo,<br />
introduced last August, has exploded, the number<br />
going from 150 to nearly a thousand in the<br />
last month, according to the local sheriff. Resembling<br />
slot machines, they are appearing in bars<br />
and restaurants all over the county, which allows<br />
gaming devices if the proceeds go to nonprofit<br />
organizations. Owners of the machines -- and<br />
the bars and restaurants -- can take a cut<br />
to cover expenses. Maryland doesn’t vote<br />
on slots until November, but the weed is<br />
likely to grow illegally until that time.<br />
DIRT AGAIN AT SANTA ANITA?<br />
It may not be surprising that Santa Anita, which<br />
lost 11 days of racing in late January and early<br />
February because of drainage problems with its<br />
synthetic track, is planning to return to dirt, but<br />
it is a bit startling that the man who mandated<br />
the change to synthetics, racing board chairman<br />
Richard Shapiro, agrees with the decision.<br />
Track president Ron Charles announced over<br />
the weekend that the track is considering returning<br />
to dirt later this year, and CBSSports.<br />
com reports Shapiro as saying he would not<br />
bar the way. “If, at the end of the day,” he was<br />
quoted, “Santa Anita comes forward and says,<br />
‘We’ve looked at the options and we believe for<br />
the safety of the horse and rider that we’ve got<br />
a plan to put in a dirt track on top of a good<br />
solid base’, and they would put in a track that<br />
was safe, personally I’m not totally opposed to<br />
that.” That’s two years and untold millions after<br />
his board mandated synthetics. HTA’s <strong>Executive</strong><br />
<strong>Newsletter</strong> said at the time it felt the mandate was<br />
premature, and events are indicating that assessment<br />
was right.<br />
OTB CRISIS STIRS NOSTALGIA<br />
Last week’s decision by the New York City board<br />
overseeing the city’s OTB operations to close all<br />
71 parlors by mid-June has stirred a sudden<br />
wave of nostalgia in the New York press. The<br />
Times last Saturday ran a long story by Corey<br />
Kilgannon telling how loyal patrons will miss the<br />
establishments, which NYCOTB general counsel<br />
Ira Block said “are like social clubhouses or<br />
gathering places.” Karl Kelly, the regular bartender<br />
at the upscale upper level of the Seventh<br />
Avenue and 38th Street OTB said he had customers<br />
who spent 12 hours a day in the place and bet<br />
only one race, “They just hang out with friends<br />
and spend five bucks for a whole day.” The<br />
Brooklyn Daily Eagle mentioned a New York<br />
Daily News feature about a Brooklyn OTB<br />
that closed four years ago.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
USTA board chairman Ivan Axelrod of California<br />
expressed concerns about the sport’s shrinking<br />
wagering base, and said USTA has to help<br />
tracks market the sport to slots players and<br />
others, “and somehow ‘grow’ the wagering on<br />
our races.” Toward that end Axelrod chaired a<br />
meeting yesterday of USTA board members who<br />
represent tracks with racinos, and promised an<br />
ad hoc committee would report to the USTA <strong>Executive</strong><br />
Committee later this year and provide an<br />
action plan and proposed budget.<br />
AND USTA AMENDS P-M DUES<br />
USTA also amended its pari-mutuel dues structure<br />
for member tracks at yesterday morning’s<br />
board meeting. Here is the actual wording affecting<br />
the changes, since the new formula, like<br />
all dues formulas, does not lend itself to easy<br />
memorization. It can be found in Article 1, Section<br />
4 of the USTA By-Laws, as reviewed<br />
by the USTA Finance Committee and approved<br />
by the board yesterday.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
February 26, 2008<br />
FONTAINE SPEAKS UP AT USTA (b) At tracks in the United States with extended<br />
Attorney Paul Fontaine, who made the motion pari-mutuel meetings of more than ten days duration<br />
where total gross purses are more than<br />
five years ago that led Harness Tracks of America<br />
to deny honors to those under suspension for $50,000, the membership fee paid shall be based<br />
positive tests, has taken his quest a step farther. on the number of programs (performances) applied<br />
for in the current year (note that a ‘dou-<br />
Speaking at the United States Trotting Association’s<br />
3-day annual meeting that ended yesterday,<br />
Fontaine, Plainridge Racecourse’s direc-<br />
single day shall constitute two programs or perbleheader’<br />
or two separate programs raced on a<br />
tor on the USTA board and a member of HTA’s formances), and the net purses raced for at the<br />
<strong>Executive</strong> Committee, said he felt it imperative meeting for the current year, at the rate of $50<br />
that USTA take a more forceful role in urging per program plus 0.33% of the first $4,999,999<br />
state racing commissions to honor USTA’s denial in net purses paid, plus 0.21% of the amount of<br />
of membership privileges in their licensing procedures.<br />
Fontaine said USTA should make cer-<br />
0.15% of the amount of net purses thereafter.<br />
net purses from $5,000,000 to $9,999.999, plus<br />
tain commissions know of USTA’s denials and For the purposes of this rule net purses is defined<br />
as gross purses less the sum of nominating<br />
do what it can to have the commissions consider<br />
them in license denials. President Phil Langley fees, sustaining fees, starting fees, and any other<br />
asked Fontaine to form a USTA committee to amounts paid into the gross purses by stakes<br />
pursue that proposal.<br />
sponsors, state agencies or any other source other<br />
than gaming revenue.<br />
(1) The 0.33%, 0.21%, or 0.15% of net purses<br />
shall be paid upon receipt of prorated statements<br />
which will be tendered to track members<br />
at monthly intervals beginning following the first<br />
month of each track member’s meeting with the<br />
balance, if any, due and payable upon receipt of<br />
final statement at the conclusion of each meeting.<br />
(2) Interest at the rate of 1% a month, compounded,<br />
will be charged on any unpaid portion<br />
of any such statement computed following 30<br />
days from the date of such pro-rata statement.<br />
(3) The definition of ‘net purses’ as set forth herein<br />
notwithstanding, a track member may elect to<br />
compute its net purses by using a standard deduction<br />
of 25% from its gross purses, thereby<br />
arriving at a ‘net purse’ figure in calculating its<br />
membership fees.<br />
Got it?
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
CAL-EXPO FATE THURSDAY<br />
With Sacramento Harness Racing stepping out<br />
of the picture at Cal-Expo Saturday night because<br />
of inability to meet rent requirements,<br />
and Cal-Expo itself applying for the license, the<br />
California Horse Racing Board meets tomorrow<br />
to consider the situation. Other bidders are<br />
reportedly seeking the license, and rumors are<br />
that Cal-Expo would consider another tenant.<br />
For the moment, however, the fair management<br />
will take over as operators of the meeting. Sacramento<br />
Harness Association, the not-for-profit<br />
lessee for the last few years, announced at the<br />
HTA/TRA meeting through their general manager,<br />
Dick Feinberg, that under the terms of its<br />
lease with Cal-Expo, “it cannot perform. Our<br />
goal has been to help in a smooth transition so<br />
that harness racing can continue uninterrupted<br />
at Cal-Expo for the horsemen, the track employees,<br />
and all their families. The industry is very<br />
fortunate that our landlord -- Cal-Expo -- has<br />
picked up the reins and will continue operating<br />
pari-mutuel harness racing at the State Fairgrounds.”<br />
Some existing personnel already have<br />
received notice, however, that their services will<br />
not be needed under Cal-Expo’s regime.<br />
In other California news, lifelong horseman Kirk<br />
Breed has been named executive secretary of the<br />
racing board, replacing Ingrid Fermin, and the<br />
board announced it is considering a proposed<br />
tournament-style pari-mutuel horseracing wager<br />
to be sponsored by the World Poker Tour.<br />
Details were to be announced today at Santa<br />
Anita at a meeting of the board’s Pari-Mutuel<br />
Operations/ADW and Simulcasting Committee.<br />
BRUNO ON THE BRINK<br />
That was how the New York Post described the<br />
situation in Albany after a Democratic victory<br />
in a special upstate election moved<br />
Democrats within one vote of taking control<br />
of the New York Senate.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
February 27, 2008<br />
Democrats have not controlled the New York<br />
Senate in 43 years, but after Assemblyman Darrel<br />
Aubertine won over Republican Will Barclay<br />
in a district where Republicans outnumber Democrats<br />
by 30,000 the Democrats can smell blood.<br />
The Post says Gov. Eliot Spitzer is hoping to woo<br />
“some Republican senators to the Democratic<br />
side before the November elections.” If successful,<br />
Joe Bruno would lose the Senate presidential<br />
seat from which he has wielded enormous power<br />
in the state.<br />
HOOSIER BUYING CITY LAND<br />
Or at least is trying to. Hoosier Park’s hopes of<br />
acquiring its 110-acre site in a deal that would<br />
provide the Anderson, Indiana, parks department<br />
with at least $150,000 a year over the next<br />
five years. Hoosier currently leases the land<br />
from the parks department for $128,000 a year<br />
plus 0.5 percent of pari-mutuel revenue for an<br />
average of almost $186,500, according to the<br />
Chicago Tribune. Centaur, which owns Hoosier,<br />
is considering building a hotel on the property.<br />
Track president and HTA director Rick Moore<br />
says, “We want to own our house. We want to<br />
control our own destiny.” It moved a step closer<br />
when the Anderson Parks Board voted 3-1 Monday<br />
night to recommend the city redevelopment<br />
commission approve the sale.<br />
SETBACK FOR <strong>TRACKS</strong> IN KY<br />
Kentucky’s racetracks lost a crucial round in<br />
their quest for slots yesterday, when a proposal<br />
to provide five racinos for them failed in committee<br />
in the House. House speaker Jody Richards<br />
saved the day with a parliamentary move<br />
that would pave the way for a constitutional<br />
amendment that would allow casinos but not<br />
give the tracks any preference in receiving them.<br />
Speaker pro tem Larry Clark, who favored the<br />
bill, called the committee chair’s move that led<br />
to defeat “the cheapest form of petty politics.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
OUR BIG WORRY CONFIRMED<br />
Horse racing wound up yesterday where it most<br />
fears to be, before a Congressional committee<br />
checking into drug use, particularly steroids. The<br />
mode was defense. Four commissioners of professional<br />
sports were there for questioning too,<br />
as Alex Waldrop, president and CEO of the National<br />
Thoroughbred Racing Association, tried<br />
to convince members of the Congressional Subcommittee<br />
on Commerce, Trade and Consumer<br />
Protection that federal control was not necessary.<br />
Waldrop faced tough questions from Rep.<br />
Ed Whitfield, the Kentucky Republican whose<br />
wife is the former chairman of the Kentucky<br />
Racing Authority, by accusing racing leaders of<br />
failing to make good on promises to self-regulate<br />
medication issues. Waldrop claimed otherwise,<br />
pointing out that every race contested every day<br />
is tested, and that up to 200 drugs are tested for<br />
in one sample. Waldrop said racing spends between<br />
30 and 36 million dollars a year on testing<br />
at 18 private or university laboratories. He<br />
said that although racing had no commission<br />
office like the professional sports represented at<br />
the hearing -- basketball’s David Stern, Bud Selig<br />
from Major League Baseball, Roger Goodell<br />
from the National Football League, and Gary<br />
Bettman from the National Hockey League --<br />
racing used “its convening authority” to address<br />
illegal medication, which he called “a national<br />
issue that all shareholders agree is central to<br />
our industry’s integrity.” Some members of the<br />
Congressional subcommitee were underwhelmed<br />
and suggested what sports fears most: federal<br />
regulation. Joe Barton of Texas said, “Let’s go<br />
ahead and get something into law that is acceptable.<br />
It’s no fun having this hearing every two<br />
to three years.” David Stern insisted that sports<br />
have gotten things right in the intervening years,<br />
but Rep. Martha Blackburn of Tennessee<br />
disputed that strongly. “If we had gotten<br />
it right -- if you all had gotten it right<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
February 28, 2008<br />
-- we would not be here again today. I would<br />
suggest that we have not gotten it right enough.”<br />
Blackburn accused the witnesses of being “very<br />
well coached,” which upset Stern, who replied<br />
that the subcommittee had been provided with<br />
a “voluminous, uncoached record” that showed<br />
“enormous progress.” Rep. Whitfield put the issue<br />
and question bluntly addressing Waldrop,<br />
asking, “Is it time to call the federal cavalry and<br />
send it chasing into your stables with guns blazing<br />
to clean up the sport of horse racing?” Waldrop<br />
replied that a model rule on steroids had been<br />
adopted in many states and that it is hoped that<br />
all states will adopt the Racing Medication and<br />
Testing Consortium and Racing Commissioners<br />
International model rules by the end of 2008.<br />
“If they don’t step up,” Waldrop said, “then it is<br />
incumbent upon the federal government to step<br />
up.” That statement, now on the federal record,<br />
should convince racing commissioners the time<br />
is at hand for action and not rhetoric.<br />
Waldrop’s full statement to the Congressional<br />
subcommittee can be read on HTA’s Web site,<br />
www.harnesstracks.com.<br />
MEADOWS PADDOCK OPENS<br />
After four months of superb cooperation by<br />
horsemen enduring tough conditions with a temporary<br />
paddock, The Meadows is running final<br />
troubleshooting tests on its shining new 38,500<br />
square-foot, state-of-the-art, 11-race paddock<br />
and office complex, and plans to open the facility<br />
one week from today on March 6. John<br />
Marshall, vice president of racing at The Meadows,<br />
thanked all horsemen for their patience and<br />
cooperation, saying, “Our horsemen exhibited a<br />
tremendous collaborative spirit in enduring winter<br />
conditions in the temporary paddock. Their<br />
cooperation was a key element in allowing us to<br />
continue racing through construction.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
February 29, 2008<br />
MONEY PROBLEMS IN QUEBEC<br />
Failure of a government plan to revitalize Quebec’s<br />
harness racing industry by reducing the<br />
number of VLTs in bars has led Attractions Hippiques,<br />
Paul J. Massicotte’s ambitious operation<br />
including four tracks, to cancel two nights of<br />
racing. The underperforming VLT operations,<br />
called Ludoplexes and located next to the tracks,<br />
have fallen well below anticipated projections<br />
and could impact Massicotte’s plans to build a<br />
new Hippodrome de Montreal north of the city.<br />
In cancelling racing on Saturdays in Montreal<br />
and Tuesdays in Trois-Rivieres, Massicotte said,<br />
“This is a decision that I bitterly regret when I<br />
think back to the hopes raised throughout the<br />
Quebec horse racing industry when we signed the<br />
agreement late in 2006 with the government of<br />
Quebec. We were enthusiastic and excited about<br />
this plan to relaunch the industry. In Quebec City<br />
and Trois-Rivieres alone we invested $15 million<br />
more than the initial $23 million committed under<br />
the agreement with the Quebec government.<br />
Moreover, we increased purse money by 40%, as<br />
soon as possible, in order to support the thousands<br />
of jobs that depend on this industry in the<br />
province. We worked with equestrian associations<br />
to bring together stakeholders across Quebec.<br />
I do not exaggerate when I say that we gave<br />
more than 110% in meeting our commitments.”<br />
The Ludoplex plan gives 22% of VLT revenues<br />
to the tracks, but they in turn must reinvest 60%<br />
of that money through purses. Massicotte said,<br />
“At this point, we are forced into making very<br />
difficult decisions. I hope Loto-Quebec (which<br />
runs the VLTs in the province) can soon agree<br />
on a new recovery plan for the industry. That<br />
would allow us to return to a full racing schedule<br />
and, of course, move ahead with the construction<br />
of a new complex north of Montreal. I hope<br />
there is a political will to act -- the survival<br />
of a whole industry depends on it.” Racing<br />
on Sundays continues in Montreal.<br />
CAL-EXPO APPROVED TO RACE<br />
The California Horse Racing Board yesterday<br />
unanimously approved transfer of the harness<br />
racing license at Cal-Expo from retiring Sacramento<br />
Harness Racing to the fair management,<br />
which will operate harness racing at least until<br />
the end of the year. The move, necessitated when<br />
not-for-profit Sacramento Harness felt it no longer<br />
could sustain rent payments to Cal-Expo,<br />
will mark the first time Cal-Expo will operate<br />
racing outside the State Fair meetings held there.<br />
Cal-Expo’s CEO, Norb Bartosik, told the Sacramento<br />
Bee that harness racing will continue<br />
on Thursdays, Fridays and Saturdays through<br />
Aug. 2, when a break for track renovation for<br />
the State Fair meeting takes place, and will resume<br />
in mid-September. Bartosik said, “We’re<br />
picking up many of the same people who worked<br />
with Sacramento Harness. It’s a very fine staff.<br />
We’ll be ready to roll when our dates start.” Recently<br />
elected Sacramento Harness president<br />
Ivan Axelrod, who is chairman of the USTA and<br />
a financial consultant, said the association’s financial<br />
problems were “just too overbearing”<br />
to continue as operator of the meeting. “More<br />
than 20% of our income went to rent,” he told<br />
the Bee, adding, “Nobody can pay that kind of<br />
rent and be viable.”<br />
A SIGNIFICANT DEVELOPMENT<br />
The chairman of the House Democratic Policy<br />
Committee, Congressman George Miller of<br />
California, has become a co-sponsor of Barney<br />
Frank’s Internet Gambling Regulation and Enforcement<br />
Act, which would allow licensed operators<br />
to provide Internet gambling services in<br />
the United States. Miller, who also is chairman<br />
of the House Education and Labor Committee, is<br />
one of the most influential leaders of the Democratic<br />
party and now becomes a major supporter<br />
of federally regulated Internet gambling. The<br />
Frank bills are HR 2046 and 2607.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
CHUCKAS LEAVES ROSECR<strong>OF</strong>T<br />
Tom Chuckas Jr., longtime chief executive officer<br />
of Rosecroft Raceway, is leaving the post<br />
he has held for 10 years. His departure was<br />
announced Saturday in a terse, one-paragraph<br />
release that read, “Thomas F. Chuckas Jr., Chief<br />
<strong>Executive</strong> Officer, and Kelley Rogers, President<br />
of Cloverleaf Enterprises, Inc./Rosecroft have<br />
announced today that the parties have entered<br />
into a mutually agreed separation. CEO Thomas<br />
F. Chuckas Jr. has agreed to assist Cloverleaf<br />
Enterprises, Inc./Rosecroft through a transition<br />
period to ensure the stability and continuance<br />
of operations while Cloverleaf Enterprises, Inc.<br />
begins an immediate search for a successor.”<br />
DEFRANCIS LEAVES MAGNA<br />
In another shocker Saturday, Joe DeFrancis announced<br />
he was resigning today from the board<br />
of directors of Magna Entertainment, ending<br />
more than two decades of DeFrancis involvement<br />
in Maryland thoroughbred and harness racing.<br />
His father Frank played a prominent role in obtaining<br />
favorable legislation for the industry prior<br />
to Joe’s entry on the scene. DeFrancis announced<br />
he was leaving Magna just hours after chairman<br />
Frank Stronach told investors in a conference call<br />
that DeFrancis would not remain as a director<br />
this year. Stronach said he was excluding De-<br />
Francis from Magna’s strategic planning sessions<br />
because of “a conflict of interest,” presumably<br />
involving DeFrancis’ beneficial position should<br />
slots be approved next November. Slots appear<br />
critical to Magna’s survival in Maryland. The<br />
company announced a $43 million fourth quarter<br />
loss last year, and it faces delisting on NASDAQ<br />
if its stock, currently trading at 79 cents a share,<br />
does not rise to a dollar by summer. Stronach<br />
still believes a turnaround is possible,<br />
but Magna’s financial statement said its<br />
“ability to continue as a going concern is<br />
in substantial doubt.”<br />
March 3, 2008<br />
<strong>TRACKS</strong> ON THEIR OWN IN KY<br />
A bill to amend the Kentucky state constitution<br />
to permit up to nine casinos in the state passed<br />
committee muster and went to the full House,<br />
but without provisions mandating any of the nine<br />
for racetracks. The proposal, with assurances<br />
for five racinos stripped out by a revised House<br />
Elections, Constitutional Amendments and Intergovernmental<br />
Affairs Committee, passed by a<br />
7-2 vote, and Gov. Steve Beshear said he would<br />
support it, adding that he would try to help the<br />
horse industry through follow-up legislation.<br />
The deletion of tracks originally failed to pass<br />
the committee, but House Speaker Jody Richards<br />
changed the membership to make certain it<br />
passed and went to the full House. Beshear met<br />
with Richards and four other members of the<br />
House leadership, the Louisville Courier-Journal<br />
reported, and assured tracks following the meeting<br />
that he still was committed to protecting the<br />
horse industry in the state. The newspaper’s<br />
Web site also reported, however, that the senior<br />
Democrat in charge of counting members’ votes<br />
said Friday that he doubts the proposed amendment<br />
to allow casinos will get the 60 votes needed<br />
for passage. The representative, Rob Wilkey,<br />
said he counted 50 votes, but was not sure about<br />
mustering 10 more and said, “I think that its fate<br />
is in serious jeopardy.” If it passed in its present<br />
form, Kentucky’s tracks would have to fend<br />
for themselves in getting racinos from the nine<br />
available licenses.<br />
NO CINCH IN MASS, EITHER<br />
Boston.com reports that an informal poll of state<br />
representatives in Massachusetts shows a large<br />
number undecided on Gov. Deval Patrick’s casino<br />
proposal. Of 107 of the 155 members who<br />
responded, 40 said they were opposed, 27 said<br />
they were in favor, and 40 said they were undecided.<br />
A Jesuit professor of economics<br />
at Boston College said, “The pressure is<br />
really on, big time.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
March 4, 2008<br />
JOY ABOUNDS IN NEW JERSEY<br />
Those fireworks and joyous whoops in New Jersey<br />
mean it’s over, at least for the next three years.<br />
Gov. Jon Corzine made good on his promise to<br />
racing, hammering long and hard to reach an<br />
agreement where the Atlantic City casinos will<br />
provide $30 million a year for three years to help<br />
keep the state’s horse racing industry on even<br />
keel, and in the case of harness racing in its position<br />
of North American dominance at the Meadowlands.<br />
The governor said, “Both the equine<br />
industry and the casino industry play important<br />
roles in New Jersey, from preserving open space<br />
to attracting visitors, and it was essential to<br />
strike a balance that will allow both industries to<br />
thrive.” The casinos signed off on the $90 million<br />
supplement package for purses and help to the<br />
breeding industry in return for a moratorium on<br />
slots at tracks during the three-year time frame.<br />
Corzine said the agreement would involve no taxpayer<br />
dollars and would not reduce casino funds<br />
that flow to the state, but legislators who want<br />
slots at the Meadowlands were not as overjoyed<br />
as the people who race there. State senator Paul<br />
Sarlo, who represents the Meadowlands’ district,<br />
is assistant majority leader, and sponsor of a bill<br />
that would have brought 5,000 slots to the Big<br />
M, told the Bergen Record, “If we want to remain<br />
in the horseracing industry, we are going to<br />
have to enact VLTs in our horseracing tracks.”<br />
Barbara DeMarco, a thoroughbred lobbyist,<br />
told the paper, “We are grateful, we appreciate<br />
it, but it doesn’t solve our problem long term.<br />
For us to sit there and say Atlantic City is an island,<br />
and we can’t touch it. You can’t operate in<br />
a vacuum. Forty-eight states have some form of<br />
gaming.” Dennis Dowd, senior vice president of<br />
racing at both the Meadowlands and Monmouth<br />
Park, who played a large role in sustaining high<br />
purses at the Meadowlands during the<br />
negotiations, said he looked forward to<br />
talent-filled fields this summer.<br />
HOOSIER ‘OWNS OWN HOUSE’<br />
New Jersey is not the only place celebrating today.<br />
HTA member Hoosier Park in Indiana is<br />
happy too, its owner Centaur getting approval<br />
from the Anderson, Indiana, Parks Board to<br />
buy the land on which the track sits, and on<br />
which Centaur is building a major racino, for<br />
$750,000. Track president and HTA director<br />
Rick Moore had said Hoosier wanted to own its<br />
own house and control its own destiny, and he<br />
gets his wish. Hoosier had been leasing the land<br />
from Anderson for $125,000 a year and 0.5% of<br />
pari-mutuel revenue, amounting to $2.1 million<br />
in rent from 1994 to 2005. Until now, Hoosier<br />
had to get approval from the Parks Board for<br />
any material changes. HTA executive committee<br />
member Jeff Smith, Centaur’s managing director<br />
of racing, told the Anderson Herald Bulletin<br />
that the purchase “affects every aspect of how<br />
we do business.”<br />
PLAINRIDGE WILL BE THERE<br />
Massachusetts legislators will hold a hearing on<br />
Gov. Deval Patrick’s proposed casino plans at 10<br />
a.m. Tuesday, March 18, in Boston, and Plainridge<br />
Racecourse plans to be well represented to<br />
let the lawmakers know it wants one. The track,<br />
which opens its 2008 season the previous day on<br />
St. Patrick’s Day, has asked the Massachusetts<br />
Racing Commission for permission to cancel racing<br />
on Tuesday so horsemen and other interested<br />
parties can attend the hearings in numbers and<br />
let the legislators hear their voices. The House<br />
Speaker, Sal DiMasi, is strongly resisting the<br />
governor’s slot plan.<br />
A GOOD JOB OPPORTUNITY<br />
An HTA member track with a major racino is<br />
looking for an experienced Program Editor/<br />
Charter. If you are interested send your resume<br />
to HTA and we will forward to our member<br />
track for its consideration.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
In Indiana, Dennis Tyler, the author of a bill to<br />
allow pull tabs in taverns, who last week said he<br />
would fight Senate changes that eliminated restaurants,<br />
changed his mind and went along with<br />
the Senate, gaining passage in both chambers<br />
and sending the bill to Gov. Mitch Daniels for<br />
signature, which is expected. The measure provides<br />
for the slot-like pull tabs at somewhere between<br />
2,000 and 6,000 establishments, depending<br />
on whether proponents or opponents are<br />
making the estimate, but does not include Hoosier<br />
Park or Indiana Downs or their OTBs. One<br />
opponent, House minority leader Brian Bosma,<br />
an Indianapolis Republican, called the measure<br />
“a ridiculous proposal that did not receive the<br />
appropriate scrutiny in this body by the author<br />
or others. I understand their desire to try to help<br />
the tavern owners, and to do something reasonable<br />
is perhaps appropriate. But to create 6,000<br />
potential minicasinos in this state is a huge step<br />
in the wrong direction.” Pull tabs show symbols<br />
under tab windows on the back, if they match<br />
combinations on the front, the holder is a winner.<br />
The House vote to accept the Senate version<br />
was 53-42, and it is difficult to construe how the<br />
development can be regarded as anything but<br />
negative for horse racing in Indiana.<br />
In Florida, Senator Steve Geller, a longtime<br />
friend of racing, has sponsored SB 970, which<br />
would reduce the state tax on Class III Vegas<br />
style machines at tracks from 50% to 35%.<br />
Senator Dennis Jones has introduced SB 1380,<br />
which would allow Class II “electronic gaming<br />
machines” such as bingo-like slots. Both senators<br />
said the tax reductions would allow<br />
tracks to spend more retained earnings<br />
for marketing and improvements.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
March 5, 2008<br />
THE LEGISLATIVE WHIRL<br />
In Kentucky, Gov. Steve Beshear told the press<br />
Activity all over the place, legislative, judicial he still did not have the 60 votes needed to get his<br />
and gubernatorial.<br />
slots bill passed. Beshear said it was “an uphill<br />
fight” getting the proposed constitutional amendment<br />
on the November ballot. At last count the<br />
bill had 50 House supporters.<br />
In Ottawa, the Canadian federal government is<br />
considering measures to enforce a ban on Internet<br />
gambling on an Indian reservation near Montreal.<br />
Some 400 poker and sports betting sites<br />
operate from the Kahnawake reserve. They are<br />
illegal, but the National Post says “neither federal<br />
nor provincial governments have attempted to<br />
enforce the law” until now. Among the measures<br />
being considered is prohibiting banks and credit<br />
card companies from making financial transactions<br />
with illegal Internet operators, a move taken<br />
in the United States two years ago. The Kahnawake<br />
Mohawks take the same position as U.S.<br />
tribes, that the prohibitions do not apply to them<br />
since they are a sovereign nation. Ross McLeod,<br />
CEO of Great Canadian Gaming, noted that his<br />
tracks and casinos pay $1 billion in tax receipts<br />
annually, and he called the offshore operations<br />
“parasites on the butt of Canada.” McLeod says<br />
he expects the government “to do the right thing<br />
and protect our country’s interests.”<br />
In Georgia, despite long odds in the conservative<br />
state, a group of legislators are again trying to legalize<br />
horse race betting, according to the Jacksonville<br />
Florida Times-Union. The legislators<br />
have introduced HR 1477, which would allow local<br />
option legalization of tracks and casinos.<br />
In California the racing board is setting strict<br />
limits on threshold levels of the four anabolic<br />
steroids allowed under Racing Medication and<br />
Testing Consortium model rules, enabling it to<br />
reclassify the four and move them into penalty<br />
categories that will call for meaningful fines<br />
and purse forfeitures.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
LIFE OR DEATH IN FRANKFORT<br />
Jody Richards, Speaker of the House in Kentucky,<br />
told the Louisville Courier-Journal yesterday<br />
that the bill enabling a constitutional amendment<br />
on slots would be moved to the House floor,<br />
although the 60 votes necessary for passage still<br />
were not there. Separate counts indicated supporters<br />
were in the low or mid 50s at present.<br />
The legislation was passed by the constitutional<br />
amendments committee, which stripped out a<br />
provision for five racinos set aside for tracks and<br />
sent the bill to Rules, where it has been for five<br />
days. Once on the floor of the full House it could<br />
be voted on at any time. The Courier-Journal’s<br />
Gregory Hall reported that Richards’ action is “a<br />
move that sometimes is used to kill bills.” Gov.<br />
Steve Beshear indicated this week that if the bill<br />
passes the House, he will move to have the tracks<br />
provision restored in the Senate, and will support<br />
its passage there. While the legislators considered<br />
the matter, a group of some 500 to 600<br />
people -- the Lexington Herald-Leader called it<br />
“the biggest anti-casino rally yet this season”<br />
-- jammed the Capitol Rotunda yesterday, holding<br />
signs and cheering ministers, lawmakers and<br />
others speaking against the governor’s plan. The<br />
Rev. Jeff Fugate, a Lexington Baptist minister,<br />
organized the protest rally. With appropriate<br />
fire and brimstone, one opponent, John-Mark<br />
Hack, head of the Say No To Casinos movement,<br />
said, “Casino-crats are hell-bent on transforming<br />
the commonwealth with a ‘casino republic.’”<br />
He asked the ‘casino-crat’ politicians “to tell us<br />
which 10% of the children in the Rotunda today<br />
are going to be condemned to a life of addiction.”<br />
YEA AND NEA IN BOSTON<br />
HTA member Plainridge Racecourse got a little<br />
help -- and a lot of hurt -- yesterday in its<br />
slots quest. Rep. David Flynn, saying<br />
casinos won’t work but slots at tracks<br />
might, introduced a bill allowing them.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
March 6, 2008<br />
Massachusetts governor Deval Patrick, meanwhile,<br />
went to the trouble and expense of having<br />
a 12-page color brochure extolling the virtue<br />
of his casino plan printed and distributed to all<br />
legislators. One of them, Rep. Ruth B. Baiser,<br />
a Democrat from the upscale Boston suburb of<br />
Newton, commented that she found it “interesting<br />
that the governor is going to this extent. This<br />
kind of glossy marketing attempt, I’ve never seen<br />
come from someone else in government before.”<br />
The governor, pushing furiously to get his casinos<br />
passed, also went to excess in another area. He<br />
announced a plan to dedicate $50 million a year<br />
from casino take to treat compulsive gambling.<br />
Reporter Scott Van Voorhis of the Boston Herald<br />
pointed out in a story that the amount was<br />
50 times higher than Massachusetts now spends,<br />
and far exceeds any other state in the union. The<br />
closest, Kansas, spends $17 million. The mecca<br />
of American gambling, Nevada, spends between<br />
$2 million and $3 million a year.<br />
REP. ON INTERNET: TAX IT<br />
U. S. Congressman Jim McDermott, a Washington<br />
Democrat, introduced new legislation yesterday<br />
calling for federal regulation and taxation of<br />
Internet gaming. McDermott’s bill -- the Internet<br />
Gambling Regulation and Tax Enforcement<br />
Act of 2008 -- follows a Price Waterhouse Coopers<br />
claim that a tax on online gaming could produce<br />
up to $43 billion over 10 years. The American<br />
Gaming Association’s president, Frank<br />
Fahrenkopf, reasserted that group’s contention<br />
that regulation and taxation of gaming is a state<br />
matter, not a federal one. He called chances of<br />
repeal of the current federal Internet gambling<br />
ban remote. McDermott’s bill has only one cosponsor,<br />
while the bill it is intended to supplement<br />
-- Barney Frank’s similar legislation -- has<br />
46. A McDermott spokesman acknowledged that<br />
Frank’s bill must move before McDermott’s.<br />
Twenty-three million gamblers reportedly<br />
now bet on some 2,300 Web sites.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
March 7, 2008<br />
MIXED REVIEWS ON FED CASE<br />
Depending on your vantage point, yesterday’s<br />
federal court decision dismissing a challenge to<br />
the federal Internet gambling ban was a victory<br />
for the government or for the gambling interests<br />
that brought the case. U.S. District Judge Mary<br />
L. Cooper in Trenton, NJ, ruled that the Unlawful<br />
Internet Gambling Enforcement Act, passed<br />
two years ago, was not unconstitutional. She also<br />
ruled, however, that the challengers of the law,<br />
the Interactive Media Entertainment and Gaming<br />
Association (iMEGA) while not showing sufficient<br />
cause to block enforcement of the gaming<br />
act, did have legal standing to further challenge<br />
the law. The chairman of the challenging group,<br />
Joe Brennan Jr., hailed the decision as a victory.<br />
He said, “You’re looking at a law criminalizing<br />
an activity online that is legal offline in 48 of the<br />
50 states. If I have that right offline in the real<br />
world, I should have that right online. Her ruling<br />
echoes the growing consensus of opinion that<br />
UIGEA is a fundamentally flawed statute.” The<br />
iMEGA president, Edward Leyden, was touring<br />
the Tonga Islands when the decision was handed<br />
down, but he said from there, “At the end of<br />
the day, all we wanted is standing and the ability<br />
to keep fighting. We may ultimately end up<br />
in the Supreme Court.” iMEGA’s lawyer, Eric<br />
M. Bernstein, said, “Granting iMEGA standing<br />
is a major victory any way you look at it. Judge<br />
Cooper’s ruling holds that, even with the passage<br />
of UIGEA (the anti-Internet gaming law) online<br />
gambling is only illegal in states where a statute<br />
specifically says it is. We believe Judge Cooper<br />
missed the opportunity to affirm Americans’ online<br />
privacy rights and we plan to appeal to the<br />
Third Circuit Court of Appeals. Her honor’s decision<br />
significantly undercuts the federal government’s<br />
argument that UIGEA is a well-drafted,<br />
effective and enforceable law.” iMEGA is<br />
the only entity in the industry challenging<br />
online gambling prohibition in courts.<br />
SLIPS & FALLS: TRY HTA’S WIN<br />
Claims emanating from slips and falls still are<br />
a constant challenge to racing management.<br />
The latest example is a $180,579.24 award by a<br />
Mashantucket Pequot Tribal Court judge to a<br />
52-year-old woman who claimed she slipped and<br />
fell on returning to a rest room to tip an attendant<br />
at the Foxwoods Resort Casino. The judge decided<br />
the tribe was 75% responsible for the accident<br />
and made the award on the basis of $120,000<br />
in lost wages and medical bills and the balance in<br />
pain and suffering. HTA cannot prevent such<br />
cases and claims, far too frequent in our business,<br />
but can successfully fight them through the<br />
expert and experienced lawyers we have in WIN<br />
(Wagering Insurance NorthAmerica). If your<br />
liability, auto, and/or comp insurance is up for<br />
renewal, before acting consider contacting Dan<br />
O’Leary, HTA’s lead counsel on such issues, at<br />
Mandell Menkes LLC, 333 West Wacker Drive,<br />
Suite 300, Chicago, IL 60606, tel. 312-251-1000,<br />
fax 312-251-1010, or Chris Gannon at Marsh<br />
USA, 1166 Avenue of the Americas, New York,<br />
NY, tel. 212-345-4033, fax 212-345-4808. You<br />
can be talking big savings through racing’s own<br />
insurance company, rated on track experience,<br />
not other people’s problems. This is an experienced<br />
program, now in its 30th year, totally familiar<br />
and successful in winning favorable decisions<br />
on this troubling issue. Your local broker<br />
can be worked into the program.<br />
MI DEVELOPMENT BACKS MEC<br />
Despite a 60% drop in fourth quarter earnings<br />
attributed to losses at its sister operation, Magna<br />
Entertainment, MI Developments announced it<br />
was hopeful “that we will be able to re-establish<br />
a strong and active working relationship with<br />
them (MEC).” MI Development president John<br />
Simonetti told investors “Magna Entertainment<br />
would need more help, and we continue to<br />
evaluate providing further assistance.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
In Massachusetts, Deval Patrick is not worried<br />
about racing, but about the state losing casino<br />
revenue to Indian tribes. Preparing for his coming<br />
battle with opposing legislators at a Boston<br />
hearing on March 18, his 12-page color brochure<br />
uses the threat of a tribal casino to scare<br />
the troops into line. He has gone so far as to<br />
ask the Mashpee Wampanoags, the leading contender<br />
for a casino, to waive any and all rights<br />
under the 1988 Indian Gaming Regulatory Act,<br />
a move that Jonathon Witten, an adjunct professor<br />
at Boston College Law School who teaches<br />
American Indian Law, calls “outrageous.” Witten<br />
says a tribe cannot -- nor should it -- be asked<br />
to waive sovereign rights. “It’s highly doubtful<br />
the secretary of the interior would allow it, and<br />
with all due respects to the governor, he doesn’t<br />
have that power,” he was quoted. One legislator,<br />
Rep. David Flynn, a supporter of slots at tracks,<br />
told Capecodtoday, “The casino bill isn’t going<br />
anywhere.” He predicted it won’t even come up<br />
for a vote, saying, “I find very little support for it<br />
from members of the House.”<br />
In Ohio, Ted Strickland, a governor who wrecked<br />
racing’s chances to get slots because he opposes<br />
the expansion of gambling, is allowing the state<br />
lottery to add keno to its menu on July 1, further<br />
endangering the welfare of a major Ohio agricultural<br />
industry. Ohioans will be able to play a new<br />
game every four minutes at any establishment<br />
that has onsite alcohol consumption. Northfield<br />
Park is losing no time capitalizing on the opportunity,<br />
building a $350,000 sportsbar and lounge<br />
area that will take up between one-quarter and<br />
one-third of its grandstand ground floor.<br />
It will be deluxe, under chairman Brock<br />
Milstein’s direction and guidance.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
March 10, 2008<br />
THE GOV GOVERNS YOUR FATE In Illinois, slots are still close to the surface, despite<br />
haggling between Gov. Rod Blagojevich<br />
This is hardly a hot news item, but it is being<br />
confirmed daily, wherever horses race.<br />
and the legislature. A Blagojevich spokeswoman,<br />
Abby Ottenhoff, said in an e-mail to the St.<br />
Louis Post-Dispatch, “We’re open to legislators’<br />
ideas, but at the conclusion of last year, it seemed<br />
clear that we’d all be spinning our wheels to stay<br />
focused on gaming expansion to fund the capital<br />
plan.” Although it has been sidelined for the<br />
moment, Rep. Lou Lang, a longtime proponent<br />
from the Chicago suburb of Skokie, says, “I don’t<br />
think it’s really gone away.” Casino business in<br />
the Chicago area, at least in northwest Elgin, has<br />
been underwhelming. The Grand Victoria Casino<br />
there has suffered 20% declines in business in<br />
both January and February. Elgin received $24<br />
million from the casino last year, and if the drastic<br />
drops continue it figures to get a little more<br />
than $19.5 million this year.<br />
In Maryland, Gov. Martin O’Malley is facing the<br />
realities of hard times. In the past he has called<br />
slots a poor way to finance government, but in an<br />
interview with C. Fraser Smith of the Baltimore<br />
Sun he now says, “In a more perfect world we<br />
wouldn’t have slots. But one of the inescapable<br />
facts that most of us have come to accept over<br />
the last few years is that a lot of Maryland money<br />
does leave Maryland for the coffers of Pennsylvania,<br />
Delaware and West Virginia. I think,<br />
unfortunately, it’s a sort of ‘can’t beat ‘em, join<br />
‘em.’”<br />
TRACK BOSSES PLEASE NOTE<br />
Your track should have received two important<br />
surveys last week. One is the HTA dues survey<br />
needed for dues allocation. The other is the wagering<br />
survey which the HTA board unanimously<br />
voted to provide. Please have your action officer<br />
or the applicable person at your track complete<br />
and return them to the HTA office as soon<br />
as possible.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
SLOTS WORD IN KY IS ‘WHOA’<br />
Steve Beshear, the governor of Kentucky who has<br />
campaigned hard for slots at the state’s tracks,<br />
put his proposal on hold yesterday, acknowledging<br />
he could not get the measure passed at<br />
the moment, and turned his attention instead to<br />
budget matters. Speaking candidly to the media,<br />
Beshear said, “I think we’ll know by the end<br />
of this week or the first of next week where we’re<br />
going to stand on it, one way or the other. Opponents<br />
called the measure “all but dead,” but<br />
were not celebrating, the leader of a major anti-gambling<br />
group saying, “dead things have a<br />
weird way of being resuscitated in the Kentucky<br />
General Assembly.” They contended, and were<br />
correct, that the governor lacked the 60 votes<br />
needed to get his bill through the House. Current<br />
counts showed between 50 and 55 votes.<br />
Legislators were amenable to nine casinos, but<br />
would not go along with Beshear’s wishes that<br />
five of the nine be earmarked for Kentucky<br />
tracks. The vote actually calls for a state constitutional<br />
amendment that would be needed, with<br />
that issue to be on the ballot for Kentucky voters<br />
to decide next November if the legislature approved<br />
it.<br />
IF WE SHUT DOWN, YOU RUN IT<br />
That’s what state senator Jim Whelan of Atlantic<br />
county in New Jersey wants his colleagues in<br />
Trenton to pass, a bill what would allow Atlantic<br />
City casinos to regulate themselves if state employees<br />
strike and close down normal administration,<br />
as happened for a week in 2006. To make a<br />
distasteful bill more acceptable, and prevent the<br />
casino bosses from doing whatever they chose,<br />
Whelan tacked on a provision that the governor<br />
had the right to summarily suspend a casino license<br />
if he or she thought there had been “a serious<br />
violation” of any state statute. He generously<br />
also added that any laws broken<br />
during a period of self-regulation would<br />
be punishable up to 10 times the normal<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
March 11, 2008<br />
amount. Why pass such a bill? What makes a<br />
cow moo? Money. The state of New Jersey lost<br />
about $3 million during the shutdown two years<br />
ago, but the casinos say they lost $50 million because<br />
they could not operate while state inspectors<br />
were not working. Whelan says additional<br />
amendments may be necessary to strengthen the<br />
bill, and protect casinos and “every mom and<br />
pop store with a lottery terminal.” Otherwise,<br />
he says, “they all would be banging on our door.”<br />
Tough life, senator, being a public official.<br />
RESERVATION RUMBLINGS<br />
Indian tribes, like the mom and pop shops, are<br />
banging on the door, in their case the door of the<br />
Department of the Interior. They are complaining<br />
that the rejection of 22 applications for new<br />
off-reservation casinos in January were the result<br />
of sleight of hand revisions in distance requirements<br />
that involved lack of due process. Two<br />
major tribes -- the St. Regis Mohawks of New<br />
York and the St. Croix Chippewas of Wisconsin<br />
-- are leading the charge calling for the government<br />
to overturn the policy, which is intended<br />
to stop tribes from building casinos hundreds of<br />
miles from their reservations. Lorraine White,<br />
chief of the St. Regis, said members of her tribe<br />
had traveled to distant locations to support their<br />
families on the reservation by working on construction<br />
projects, including high rise buildings.<br />
“What a bunch of bullshit,” she said, “when<br />
you’re talking to the very people who actually<br />
built New York City with their hands.” Dirk<br />
Kempthorne, secretary of the Interior, told Las<br />
Vegas listeners recently that 10 of the rejected<br />
applications this winter were from tribes that<br />
sought to build casinos between 160 and 1,550<br />
miles from their reservations.<br />
REMINDER: Please return your HTA dues<br />
surveys and wagering surveys as soon as<br />
possible. We need them to continue work.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
DO THEY DESERVE HAVING IT?<br />
That’s a legitimate question concerning members<br />
of the Harness Horse Association of Central<br />
New York, who like lemmings have followed<br />
their Pied Piper leader, Joe Faraldo, over the cliff<br />
again. The horsemen now are suing Jeff Gural<br />
for $250,000 for purses lost when Gural closed<br />
Vernon four days early at the end of Vernon’s<br />
2007 season because he already had lost $10 million<br />
last year and was trying to get the legislature<br />
to pass pending legislation, which it did. Faraldo<br />
was quoted in the Utica Observer-Dispatch as<br />
saying, “I just can’t have sympathy for someone<br />
who breaks an agreement.” Gural asked the logical<br />
question of the reporter: Would the Central<br />
New York members have preferred if he had not<br />
reopened Vernon, and left them ship wherever<br />
they had to in order to find racing opportunities?<br />
“We all agree I made a bad business decision,”<br />
Gural said, “but it would seem Faraldo’s<br />
members are the main beneficiaries of it.” No<br />
need to worry. If Gural ever closes Vernon, Joe<br />
will look after the horsemen.<br />
WHO’S RIGHT IN BOSTON?<br />
Depending whom you listen to, Gov. Deval Patrick<br />
either has or does not have enough votes<br />
to pass his three-casino bill in Massachusetts,<br />
which would likely shut out tracks from consideration<br />
for the licenses. Deval says he does, but<br />
the powerful chairman of the Economic Development<br />
Committee in the House says he does<br />
not. Daniel Bosley, a strong gambling foe, says<br />
only “a couple” legislators have switched their<br />
vote on the issue after a PR onslaught by Patrick,<br />
including a slick 12-page brochure, and he<br />
has seen anything that would change his mind<br />
or reverse his position. Rep. Daniel Flynn, who<br />
has introduced a slots-at-tracks bill, says he may<br />
or may not get enough support to pass it,<br />
but if casinos go down “I’ll have the only<br />
game in town.”<br />
March 12, 2008<br />
STILL THE UGLY <strong>AMERICA</strong>NS<br />
We once were loved in Europe, but those days<br />
are gone forever, or at least the immediate present.<br />
The latest expression is from the European<br />
Union, which has began an investigation of the<br />
U.S. Internet gambling industry that could lead<br />
to more problems in the World Trade Organization.<br />
This time it is not some dot in the Caribbean<br />
doing the protesting. European trade<br />
commissioner Peter Mandelson, addressing the<br />
problem for the EU, acknowledges the United<br />
States “has the right to address legitimate public<br />
policy concerns relating to Internet gambling,”<br />
but goes on to say “discrimination against EU<br />
companies cannot be part of the policy mix.”<br />
While a temporary agreement was thought to<br />
have been reached last December, the Justice<br />
Department continues checking on prior European<br />
actions, and the Europeans, already hard<br />
hit by Justice, is up in arms. Clive Hawkswood,<br />
CEO of the Remote Gambling Association based<br />
in London, says, “We cannot simply sit on the<br />
sidelines and watch while our members, who are<br />
already badly bruised by the unlawful U.S. acts,<br />
suffer the double whammy of being prosecuted<br />
for activities whilst U.S. industry is not.” The<br />
Internet Gambling Enforcement Act passed two<br />
years ago is the genesis, and which exempts horse<br />
racing, was the trigger that fired the present gun<br />
of contention.<br />
SPITZER IS NOT ALONE<br />
Eliot Spitzer is not the only powerful politician<br />
moving to the sidelines. One of Pennsylvania’s<br />
most formidable legislative figures, state senator<br />
Vincent Fumo of Philadelphia, announced today<br />
he will not seek reelection after 30 years of exerting<br />
influence in Harrisburg. A prime mover<br />
in creating Pennsylvania’s casino law, Fumo is<br />
facing health, legal and political problems. He<br />
had a recent heart attack and is facing a September<br />
trial for 139 counts of fraud.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
In Rhode Island, the Senate majority whip,<br />
Dominick Ruggerio, apparently taking his cue<br />
from New Jersey’s legislature, decided Rhode<br />
Island should test the federal ban on sports betting.<br />
He said it could raise “$500 million” in new<br />
state revenue. Unfortunately for Rhode Island,<br />
it is illegal there, and everywhere except Delaware,<br />
Montana, Nevada and Oregon.<br />
The same idea -- sports betting -- was proposed<br />
by sportswriter Dave Perkins in the Toronto Star.<br />
Perkins wants the federal government to change<br />
the Canadian criminal code to allow it, saying<br />
tourists would flock to Ontario and “beat down<br />
the border trying to get in and play their<br />
favorite teams.” Just what the racing industry<br />
needs in Ontario.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
March 13, 2008<br />
AH YES, THE GAMBLING BEAT In Kentucky, the Louisville Courier-Journal had<br />
It may be the slow season in racing, but it sure a headline this morning reading, “Window to<br />
isn’t dull these days on the gaming front. Here’s approve gambling is closing,” saying passage of<br />
a quick roundup:<br />
a state budget yesterday “clears the way for a<br />
last gasp effort in the final 15 days of this year’s<br />
In Massachusetts, the banner headline on the legislative session to approve a constitutional<br />
Boston Globe’s Boston.com this morning reads, amendment allowing casinos.” Reporter Gregory<br />
Hall calls the prospects of getting the needed<br />
“Patrick’s casino plan seen losing backers,” with<br />
a subhead, “DiMasi said to be gaining ‘no’ votes.” 60 House votes “questionable at best.” Votes<br />
DiMasi is the Speaker of the House in Massachusetts,<br />
and the news service reports that he called Speaker Jody Richards backed a proposal for<br />
have been stalled in the low 50s since House<br />
legislators to his office yesterday to persuade nine casinos, with none set aside for tracks. Although<br />
the measure could pass right up until<br />
them to switch their votes on governor Deval<br />
Patrick’s proposal for three non-racing casinos adjournment, scheduled for April 15, Majority<br />
Whip Rob Wilkey thinks the window of op-<br />
in the state. The Joint Committee on Economic<br />
Development and Emerging Technologies starts portunity for passage will be closed after next<br />
its hearing on the hot issue next Tuesday, and week’s sessions. “I think in terms of passing this<br />
the committee chairman, anti-gambling Rep. body (the House) it needs to happen next week,”<br />
Daniel Bosley, says he believes the governor has Wilkey says. While Turfway Park president Bob<br />
overstated the benefits and downplayed the costs Elliston says long term prospects for his track’s<br />
of his casino proposal. “Quite frankly,” Bosley survival are bleak, Ellis Park owner Ron Geary<br />
told the Globe, “I don’t think we need to twist refused to go along with that assessment for his<br />
arms. The votes just aren’t there for this thing. operation. He said of the legislation’s chances,<br />
It seems like every time people lose a vote here, “Every day above ground is a better day than<br />
they blame someone for twisting arms.” being below ground.” You’ve got to love a guy<br />
with that attitude.<br />
In Illinois, a House Gaming Committee approved<br />
a bill that would create an Illinois State Fairgrounds<br />
Racetrack Authority that would extend<br />
the present 10-day non-betting meet at the State<br />
Fairgrounds in Springfield to a longer, pari-mutuel<br />
operation. The mayor of Springfield, Tim<br />
Davlin, testifying for the bill, said it “would free<br />
up a lot of money for our general revenue.” The<br />
bill, HB 4758, would find a contractor to operate<br />
a harness racing meeting for up to nine months<br />
a year. Maywood Park currently operates the<br />
10-day state fair meeting. If the bill were to<br />
pass, it could transform Springfield into a major<br />
training center, since its mile track is one of<br />
the fastest in the nation.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
THE TEA PARTY GROWS NASTY<br />
Things grew testy in the Massachusetts legislature<br />
yesterday, erupting into what the Boston<br />
Globe’s Boston.com called “a political brawl.”<br />
Supporters of Gov. Deval Patrick’s three-casinono-slots-at-racetracks<br />
proposal accused House<br />
Speaker Sal DiMasi of “orchestrating a defeat<br />
of the governor’s casino legislation even before a<br />
legislative committee publicly airs the pros and<br />
cons next week.” One legislator supporting the<br />
legislation said, “There were a lot of reps walking<br />
on eggshells” yesterday. DiMasi continued to<br />
pressure colleagues, and one of Patrick’s spokesmen<br />
said, “From the signals we’re getting we’re<br />
concerned a full and open debate on the merits<br />
is not going to happen.” Observers watched the<br />
battle with humor, the renowned Boston College<br />
theologian and mediator Rev. Raymond Helmick<br />
replying to a reporter’s question of what Gov.<br />
Patrick should do by saying, “Cry,” adding that,<br />
“If DiMasi is determined to stop this, Patrick<br />
has already lost.” Democratic strategist Mary<br />
Anne Marsh was quoted in the Boston Herald as<br />
saying the governor “should just wind back the<br />
clock, walk back out the door and start over.”<br />
She said if he doesn’t make peace and expects<br />
to get anything done over the next three years,<br />
“good luck.” PR specialist George Regan said,<br />
“Sal’s a sensitive guy. If Patrick were smart, he’d<br />
apologize over pasta at Joe Tecce’s (a Boston restaurant)<br />
and move on.” The interim dean of<br />
Boston University’s College of Communications,<br />
Tobe Berkovitz, had a different idea about how<br />
Gov. Patrick should handle DiMasi. “Appoint<br />
him to the Supreme Court (where justices hold<br />
office until 70) and get him the hell out of there,”<br />
he said. The Herald ran all of those, and one<br />
from author and therapist Mira Kirshenbaum,<br />
who said Patrick had three options: Declare<br />
victory and embrace DiMasi, celebrating<br />
progress; Declare defeat and wear a<br />
crown of thorns; Declare a new war.<br />
March 14, 2008<br />
A SUPER CASINO FOR OHIO?<br />
Plans for a casino bigger than Paris Las Vegas,<br />
the Luxor or the Venetian was unveiled yesterday<br />
by two Cleveland investors. The Columbus<br />
Dispatch reported them as saying their $600 million<br />
resort casino would not be glitzy, like Las<br />
Vegas, but built with “Midwestern sensibilities,”<br />
which the paper said meant no gigantic neon<br />
signs or flashy architectural flourishes. Casino<br />
gaming currently is illegal in Ohio, of course,<br />
but Rick Lertzman and Brad Pressman, who announced<br />
the grandiose plans and need 400,000<br />
valid signatures by August to get the issue on the<br />
November ballot, say they will begin radio and<br />
television advertising by the end of this month<br />
seeking statewide support. Yesterday’s announcement<br />
differed from an earlier one by the<br />
pair two years ago, changed after a proposal for<br />
31,500 track slots was roundly defeated in Ohio<br />
last November. This time the pair say they seek<br />
one casino, with 4,000 to 5,000 slots, 100 table<br />
games and 20 poker tables. They also hope to<br />
have 100,000 square feet of specialty retail shops,<br />
eight restaurants, a 1,500-room hotel and conference<br />
center, and a 2,500-seat theater. The two<br />
Clevelanders say a major midwestern gambling<br />
company will finance their proposal.<br />
IT’S LEGAL, BUT LET’S TALK<br />
That was the message in Connecticut yesterday,<br />
where attorney general Richard Blumenthal told<br />
the General Assembly it had the legal authority<br />
to enforce a smoking ban in the state’s two<br />
huge Indian casinos, Foxwoods and Mohegan<br />
Sun. He also said that the ban could and would<br />
be upheld, he felt strongly that the legislature<br />
should try to negotiate a compromise with the<br />
two tribal governments, rather than engage in a<br />
costly legal fight with the wealthy Mashantuckets<br />
and Mohegan tribes.<br />
Legislators indicated<br />
they are likely to pursue that path, rather<br />
than plunge ahead with lawmaking.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
March 17, 2008<br />
DAN PACES FOR 20 MILLION<br />
Never mind the 90,000 and 100,000 crowds he<br />
drew a century ago. This is the big time. Dan is<br />
Dan Patch, and the 20 million is the number of<br />
readers Sports Illustrated says read their magazine<br />
each week. The editors have decided to run<br />
a 6,000-word excerpt of the opening chapter of<br />
Charlie Leerhsen’s upcoming book on Dan, Crazy<br />
Good, The True Story of Dan Patch, the Most<br />
Famous Horse in America, in their May 19 issue.<br />
The accomplishment is not easy to attain and is a<br />
huge major score for harness racing. Leerhsen,<br />
once a writer for USTA and later for Newsweek,<br />
People, US and now executive editor at SI, told<br />
Harness Racing Communications, “Hundreds of<br />
sports books are published every year, and our<br />
excellent crew of staff writers produce a good<br />
number of them, but only a very few have the<br />
honor of being excerpted in America’s leading<br />
sports magazine.” Leerhsen spent two years<br />
researching the great pacer’s history and background,<br />
and he presents the remarkable result<br />
in his beautifully written 338-page paperback. A<br />
similar excerpt also could appear on Sports Illustrated’s<br />
Web site, si.com.<br />
WILL JERSEY DEAL FLY?<br />
Hold the bubbly for a few more days. njbiz.com/<br />
weekly raises the spectre that tax breaks that<br />
would leave the Atlantic City casinos unscathed<br />
financially supporting the state’s three race<br />
tracks may not pass legislative muster. Other<br />
sources report bickering between racing’s segments<br />
over how the $30 million will be split for<br />
distribution. Freehold Raceway, meanwhile,<br />
is raising purses 7% as the first step in restoring<br />
them to levels that existed before cuts, and<br />
SBOANJ president Tom Luchento called the<br />
move “a step in the right direction” and said he<br />
will be meeting with Senator Dick Codey<br />
and Dennis Dowd to discuss the distribution<br />
issue between tracks and horsemen.<br />
COMPETITION FOR MICHIGAN<br />
Michigan’s harness tracks, already beset by<br />
competition from casinos in downtown Detroit,<br />
Windsor and outstate Indian operations, now<br />
face the prospect of new competition from the<br />
sale of the Silverdome in Pontiac. Three new<br />
groups showed up in the third round of bidding<br />
for the huge arena, but one did submit the<br />
$100,000 opening bid, and a second wants to<br />
lease rather than buy, which is not what Pontiac<br />
wants. That outfit, Global Baseball Inc., is<br />
proposing a world baseball league, similar to the<br />
Olympics according to Crainsdetroit.com, that<br />
would play all games in the Silverdome. Its promoters,<br />
headed by president and CEO Curtis<br />
Henderson, think they could realize $30 million<br />
a year in naming rights. One new bidder, U.S.<br />
Hospitality Inc., has offered $32 million for the<br />
site, another bidder wants to open a new Indian<br />
casino, and a third -- Silver Stallion -- wants to<br />
put a racetrack under the giant arena’s roof.<br />
Still another, developer Samir Danou, proposes<br />
a $91 million indoor water park, a $40 million<br />
soccer field, a $60 million horseracing track, a<br />
$38 million hotel and a $45 million convention<br />
center. The sale process began six years ago.<br />
SCI GAMES RENEWS NASSAU<br />
Scientific Games has replaced its existing tote<br />
service contract with Nassau Regional OTB on<br />
Long Island, and signed a second contract to<br />
provide its new Trackplay advanced deposit wagering<br />
system. A new digital Interactive Voice<br />
Response telephone wagering system is part of<br />
the deal, which is for six years and expected to<br />
generate $2 million in annual revenue.<br />
YO GUYS, BABY NEEDS SHOES<br />
All of you have received your dues allocation<br />
survey forms. Please have them filled out and<br />
returned to HTA. We know you’re busy,<br />
but we like to eat.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
March 18, 2008<br />
YOU’VE HEARD THIS BEFORE<br />
Vernon Downs is in limbo again, with horsemen<br />
suing and the New York State Racing and Wagering<br />
Board scheduling a hearing March 26 on<br />
whether Jeff Gural’s closing the track four days<br />
early last fall violated its license. Vernon is scheduled<br />
to open a month from today, but the racing<br />
board says it is likely to consider the track’s<br />
application at its April hearing, which has not<br />
yet been scheduled. The horsemen’s lawyer, Joe<br />
Faraldo, told the Syracuse Post-Standard, “We’ve<br />
done everything we’re supposed to do under the<br />
agreement,” and said horsemen had incurred<br />
costs having to drive to Saratoga and other<br />
places to race. Which raises a question? Have<br />
the horsemen considered that they may have to<br />
make their trips permanently if Vernon closes.<br />
Jeff Gural calls their stance disgraceful, saying,<br />
“These horsemen are just totally unappreciative<br />
of everything we have tried to do. I have paid all<br />
the bills so they could train here since January<br />
2005.” With the new racing law tax break that<br />
he was largely responsible for, Gural offered to<br />
add four days to this year’s season, but Faraldo<br />
told the Post-Standard the horsemen don’t trust<br />
Gural’s promises. The death wish continues.<br />
STILL HOPE IN ILLINOIS<br />
Gov. Rod Blagojevich of Illinois, who proposed<br />
an $11 billion state capital plan in his budget address,<br />
says he will not allow a raise in taxes to pay<br />
for the proposed state infrastructure program.<br />
He says he is willing to discuss gambling expansion<br />
as an alternative funding source for creation<br />
and repairs of existing bridges, roads and<br />
schools, but he prefers his plan to lease the state<br />
lottery. If the discussion resumes in Springfield,<br />
racing in Illinois is likely to get another shot at<br />
slots.<br />
PLEASE RETURN YOUR DUES<br />
SURVEY TODAY<br />
THE BOSTON BEAT<br />
A new development in the Battle of Boston. The<br />
Boston Herald reports that state senator Steven<br />
Panagiotakos, chairman of the Senate Ways and<br />
Means Committee, has a Plan B if Gov. Deval Patrick’s<br />
three-casino plan is defeated in the House,<br />
which the Herald says “now appears increasingly<br />
likely.” Panagiotakos says if the House kills the<br />
Patrick bill, he will seek a statewide referendum<br />
because “the issue is too important to be quashed<br />
amid a series of increasingly personal recriminations<br />
between Gov. Patrick and House Speaker<br />
Sal DiMasi.” The senator says putting the issue<br />
to voters in November, while a non-binding referendum,<br />
would give a clear sense of public opinion.<br />
“You have to try to utilize every avenue you<br />
have if you think something is important enough<br />
to be done,” he said. To get his measure on the<br />
ballot, the senator would have to gain approval<br />
in both houses of the legislature, and if the House<br />
can kill Patrick’s bill, it is unlikely to revive it by<br />
voting for a referendum. Hearings start today.<br />
SUBSIDY BILL TO CORZINE<br />
The New Jersey Senate yesterday voted, 38-1,<br />
to send the $90 million, 3-year casino support<br />
measure for racing to Gov. Corzine. Signature<br />
seems certain, since the governor’s team worked<br />
out the details. Now the question becomes division<br />
of the spoils, at meetings of horsemen and<br />
management already scheduled.<br />
DAN PATCH IS HARDCOVER<br />
Crazy Good, Charlie Leerhsen’s superb book<br />
on Dan Patch due in bookstores June 3, will be<br />
a hardcover, not a paperback as reported here<br />
yesterday. The editor’s proof copy was an impressive<br />
paperback, but Simon & Schuster is going<br />
all out with the hardcover version for which<br />
orders are being taken now at Amazon.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
March 19, 2008<br />
BIG PLANS AT INDIANA DOWNS<br />
Things are on a fast track at HTA’s Indiana Downs,<br />
which has previewed its plans for a 230,000 squarefoot<br />
Las Vegas style entertainment complex to be<br />
called Indiana Live, with a bow to Woodbine. Ross<br />
Mangano, the Downs’ chairman, said the track is<br />
paying the state $250 million in license fees and<br />
will be spending another $180 million in building<br />
Indiana Live. Mangano made a point of emphasizing<br />
that his track was not in competition<br />
with Indianapolis entertainment-wise. “We’re not<br />
competition to the city of Indianapolis. We’re a<br />
complement to the city of Indianapolis,” he said,<br />
and undoubtedly will tell the Indiana Gaming<br />
Commission the same thing on March 31. Helio<br />
Castroneves, the two-time Indy 500 winner and<br />
Dancing with the Stars champion, was present for<br />
the preview, and told Eyewitness News, “I think<br />
the night life is going to be the best part. Obviously<br />
the gaming is going to be incredible. It’s no<br />
question it’s going to be fun.” Indiana Live will<br />
open in a temporary facility in May or June, with<br />
full gaming following in July, and the Indiana Live<br />
Casino scheduled to open early next year.<br />
CAL EXPO HOSTS EAST- WEST<br />
The second annual East-West Invitational Driving<br />
Challenge for amateur drivers will be raced<br />
at Cal-Expo in Sacramento Friday and Saturday<br />
nights, April 4 and 5, following success of the<br />
inaugural of the event last spring. A seasoned<br />
East team of five top C.K.G. Billings amateurs<br />
-- Bob Troyer of Ohio, George Casale of New<br />
York, Steve Oldford of Michigan, Scott Woogen<br />
of Virginia and Howie Gelfand of Ontario -- will<br />
take on a young and relatively inexperienced<br />
West crew of Sabrina Shaw, Susan Boyce, Jason<br />
Maier and Rick Bertrand. TrackMaster’s David<br />
Siegel, prime mover of the event and a successful<br />
amateur driver himself, says, “We are lucky<br />
to have horsemen who clearly understand<br />
both short and long-term benefits of a<br />
solid amateur program.<br />
SHED A TEAR FOR A FAVORITE<br />
For those who raced and worked at Sportsman’s<br />
Park in Chicago -- the editor included -- this<br />
week’s news brought sentimental reflections.<br />
The town of Cicero, where the track actually was<br />
located, announced the winner in the bidding to<br />
build an outdoor festival park featuring water<br />
fountains and a band. The project will occupy<br />
10 acres of the 89 acres of former Sportsman’s<br />
property, extending from Laramie Avenue to Cicero<br />
Avenue, which is how old Sportsman’s got<br />
its name as Chicago’s Intown Track. The other<br />
79 acres of the property will be transformed into<br />
retail stores and a reconfigured parking lot. Cicero<br />
bought the Sportsman’s property for $18<br />
million in 2003, and will receive $28 million from<br />
the John Buck company of Chicago, which will<br />
oversee the entire project.<br />
BAD NEWS FOR GOV. PATRICK<br />
Unless he pulls a political rabbit out of a hat, it<br />
appears Gov. Deval Patrick’s magic has failed<br />
in Boston, as House Speaker Sal DiMasi’s organized<br />
opposition appears to have doomed the<br />
governor’s three-casino plan. The defeat could<br />
provide another legislative opportunity for discussion<br />
of slots at HTA’s Plainridge Racecourse,<br />
although one bill proposing that died in committee<br />
yesterday. Another bill that would give<br />
Plainridge slots awaits a hearing, hopefully in<br />
the next two weeks. Its sponsor, House Speaker<br />
David Flynn, said he had convinced the House to<br />
consider it, despite this week’s deadline for committee<br />
reports.<br />
MAGNA MAY NOT OK MD SLOTS<br />
In his first major assignment as executive vice<br />
president of racing for Magna Entertainment,<br />
former Ohio racing commissioner Scott Borgemenke<br />
told the Maryland racing commission<br />
that Magna had not yet decided whether it will<br />
support proposed slots legislation. Joe De-<br />
Francis may be trying to rebuy Laurel.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
March 20, 2008<br />
GARY GETS THE CREDIT<br />
Unless the full House rejects a committee recommendation<br />
today, Gov. Deval Patrick’s casino<br />
solution is dead, and the man who killed it<br />
gave credit yesterday to Plainridge Racecourse<br />
president and CEO Gary Piontkowski. Richard<br />
Ross, one of the few Republicans in the Massachusetts<br />
legislature, sealed the doom of the Patrick<br />
proposal late yesterday afternoon when he<br />
switched his vote from yes to no. Proponents of<br />
the bill blamed House Speaker Sal DiMasi for<br />
pressuring Ross into switching, but Ross said he<br />
was most influenced by the arguments presented<br />
to him by Piontkowski, who is a constituent,<br />
Ross representing Plainridge’s district. Prior<br />
to Ross changing his vote, the measure was tied<br />
9-9 in the legislature’s Joint Committee on Economic<br />
Development. His switch made it 10-8<br />
against the proposal, which all in sight, including<br />
the governor, concluded would send it to<br />
defeat today on the House floor. After what the<br />
Boston Herald called “a bizarre chain of events<br />
in which committee leaders extended voting by<br />
four hours, from noon to 4 p.m., allowing fierce<br />
lobbying to continue,” Ross switched his vote<br />
and administered the death blow minutes before<br />
the 4 p.m. deadline. Ross, facing a battalion of<br />
television cameras, told reporters, “Ultimately, I<br />
started to hear from constituents I represent and<br />
the tracks that I represent. It’s about doing the<br />
right thing for the people I represent. At the end<br />
of the day, that’s what it boils down to.” Asked<br />
if Speaker DiMasi pressured him into switching<br />
the vote, Ross replied that he had met with<br />
DiMasi and Rep. Dan Bosley, chairman of the<br />
economic development committee, in the closing<br />
hours of the debate, but said, “I know the<br />
speaker would have taken wherever I went on<br />
this. I am a minority party member. There is<br />
not a lot the Speaker has over me in terms<br />
of influence.” The House was expected to<br />
consider the matter around 1 p.m. EDT.<br />
OHIO KENO FACES PROBLEMS<br />
Another governor has run into trouble with a<br />
bill he supports. Ohio’s Gov. Ted Strickland<br />
had his financial control of the Ohio Lottery<br />
Commission stripped from him by the Republican<br />
legislature, and that body then entertained<br />
legislation that could lead to public hearings on<br />
the keno gaming expansion bill, and perhaps ultimately<br />
kill it. Strickland told reporters, “I’m<br />
not deliriously happy about it,” and called keno<br />
a way of addressing projected budget shortfalls<br />
without raising taxes. Under the administration<br />
proposal, Ohio tracks would be included in operating<br />
keno, with new pools every four minutes.<br />
OTHER INTERESTING DOINGS<br />
AT CAL-EXPO, a $57,000 superfecta, created<br />
by a $52 winner, a 58-1 place horse, a 13-1 show<br />
horse and a 9-2 fourth place finisher.<br />
IN ALBANY, NY, after 10 buses carried 1,500<br />
New York City OTB employees to its doorstep,<br />
the state Senate was giving consideration to a<br />
budget proposal from its majority leader, Joe<br />
Bruno, that would defer NYCOTB payments<br />
totaling $2 million for April and May, hopefully<br />
satisfying Mayor Michael Bloomberg and allowing<br />
OTB to escape his June closing date. OTB<br />
was not thrilled, however, with legislative affairs<br />
director Dan Wray saying, “It doesn’t save any<br />
money for OTB, it defers it.”<br />
IN MICHIGAN, a group called Post It Stables<br />
was granted a license for a 63-day thoroughbred<br />
meeting this year in Romulus, near Detroit’s Metropolitan<br />
Airport, to be raced with a temporary<br />
stand seating 2,000. Part owner Jerry Campbell<br />
said plans for a permanent grandstand seating<br />
6,000 and a 120-day to 160-day meeting were in<br />
the works for 2009. Michigan was threatened<br />
with no thoroughbred racing for the first time<br />
since 1933 when Great Lakes Downs announced<br />
its 2007 meeting was its last.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
March 21, 2008<br />
KILLED IN COLD BLOOD<br />
The pundits and vote counters in Massachusetts<br />
were right. Gov. Deval Patrick’s slots bill calling<br />
for three casinos but no racinos, which was<br />
effectively killed in committee Wednesday after<br />
furious lobbying, arrived dead on arrival on the<br />
full House floor yesterday. Final rites were pronounced<br />
in a 106-48 vote. The defeat was a huge<br />
victory for House Speaker Sal DiMasi, who sank<br />
the governor’s legislation almost single-handedly<br />
with his lobbying, and reaped final success with<br />
a final hour vote switch of Rep. Richard Ross,<br />
who represents Plainridge Racecourse’s district.<br />
Ross bided his time before his critical last<br />
minute switch, according to the Boston Globe’s<br />
Boston.com, “eating from a bin full of red licorice.”<br />
The color red continued when he switched<br />
to break a 9-9 tie, making the committee vote<br />
10-8 against the governor’s bill and sending it<br />
to bloody execution by the full house after six<br />
months of consideration and debate. The Globe<br />
called it a foregone conclusion, reporting, “Most<br />
lawmakers leaned back in their chairs during six<br />
hours of testimony, nodding off, attempting to<br />
finish crossword puzzles, and writing text messages<br />
on their cellphones.” Law, like baloney, is<br />
something you don’t want to watch being made.<br />
So where to from here? Rep. David Flynn, the<br />
longest-serving member of the House, has introduced<br />
a bill for slots at the state’s four tracks,<br />
with each getting 2,500, but Speaker DiMasi has<br />
in the past been vehemently opposed to the idea.<br />
Gary Piontkowski, president and CEO of Plainridge<br />
who was credited with changing Ross’<br />
mind on his decisive vote, said, “I’m hoping we<br />
can all get together now and the governor can say<br />
‘I need the revenue now because I lost casinos,’<br />
and DiMasi will agree too. Am I optimistic? I’m<br />
not doing cartwheels that I think we’re going to<br />
get this, but I know one thing. We won’t<br />
be mudded by the casinos and the casino<br />
culture arguments.”<br />
SNOW WHITE OUT <strong>OF</strong> ACTION<br />
Snow White, the phenomenal champion 2-yearold<br />
trotting filly who was first choice in this<br />
year’s Experimental Championship Ratings for<br />
3-year-olds, has undergone throat surgery by Dr.<br />
Michael Ross at New Bolton Center in Pennsylvania<br />
and will miss early stakes action. The filly<br />
will require stall rest for two weeks, then start<br />
light training, and trainer Kevin Lare says he<br />
hopes the surgery is a success. The success date,<br />
according to Dr. Normand Ducharme of Cornell<br />
University, is 60%.<br />
MILLHOAN RITES MONDAY<br />
Funeral services for William (Bill) Millhoan,<br />
the 65-year-old past president of the Delaware<br />
County Fair and a member and strong supporter<br />
of the Little Brown Jug society, will be held<br />
Monday at the Rodman Neeper funeral home in<br />
Delaware. Millhoan oversaw construction of the<br />
Jug Barn and was responsible for the design of<br />
the Jugette Barn at the Fairgrounds where the<br />
Jug is presented annually as an American racing<br />
classic.<br />
YOU LOST MONEY OVERNIGHT<br />
If you were one of three winners of the Cal-Expo<br />
dime superfecta who went to collect the $57,000<br />
that appeared on the screen and in the race<br />
chart -- and in a Cal-Expo release quoted here<br />
yesterday -- our simultaneous congratulations<br />
and regrets. Bets under a dollar apparently can<br />
generate problems for tote systems, which in this<br />
case interpreted the payoff as 10 times its actual<br />
value.<br />
NEW POST TIME FOR DAN<br />
Simon & Schuster, the publisher of Charlie Leershen’s<br />
Crazy Good: The True Story of Dan Patch,<br />
has moved the publication date from June 3 to<br />
May 20, the day after a 6,000-word excerpt<br />
will appear in Sports Illustrated.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor March 24, 2008<br />
MASSACHUSETTS AFTERMATH<br />
In the wake of the resounding defeat of Gov. Deval<br />
Patrick’s three-casino bill with no racinos, Massachusetts<br />
legislators and the governor must now<br />
figure out how to pay their bills. A study done by<br />
Clyde Barrow of the University of Massachusetts<br />
Dartmouth Center for Policy Analysis doesn’t<br />
help matters. It says that 2007 marked the fifth<br />
straight year where Massachusetts residents bet<br />
more than a billion dollars at casinos in Rhode<br />
Island and Connecticut, and made 8 million trips<br />
to do it. Barrow says that the legislature will have<br />
to consider gaming in Massachusetts to meet the<br />
crisis. “We are moving into a new phase of the<br />
debate,” he told the press, saying “As long as<br />
Foxwoods and Mohegan Sun are sitting over there,<br />
this will never end.” Barrows says the Massachusetts<br />
play at Foxwoods and Mohegan Sun last<br />
year totaled $846 million, and they bet another<br />
$195 million at the Newport Grand casino in Rhode<br />
Island. Those numbers, he says, generated $233<br />
million in taxes for the two states, with $117 million<br />
going to Rhode Island and Connecticut getting<br />
$117 million. Opponents of casinos in Massachusetts<br />
dispute Barrows’ methods, according<br />
to the Boston Globe’s Boston.com. Barrows uses<br />
Massachusetts license plates counted during a<br />
five-day survey as a measuring tool, and estimates<br />
the individual play of the passengers of those cars.<br />
Rep. Dan Bosley, a key player in the defeat of<br />
governor Patrick’s proposal for three casinos,<br />
said, “We haven’t put much stock in Dr. Barrow’s<br />
numbers in the past,” and he didn’t know how they<br />
would hold up in the current difficult financial times.<br />
Entertainment, owners of Pimlico and Laurel, in<br />
saying they were uncertain about supporting the<br />
campaign for a slot vote in November. The two<br />
questioned the need for active support of the campaign,<br />
which could cost as high as $15 million, saying<br />
he felt the battle may already be won, with a<br />
majority of Marylanders indicating support of the<br />
idea in polls. “It’s going to take a lot of bad press<br />
to turn public opinion around,” Rickman said.<br />
Reports in Maryland were that Ocean Downs and<br />
Laurel, but not Pimlico and Rosecroft, would get<br />
slots, but that could change in the eight months<br />
until November. Borgemenke made that point,<br />
saying, “It’s awfully early to decide whether this<br />
thing has a chance or not.” Gerard Evans, a lobbyist<br />
for Maryland’s thoroughbred horsemen, said,<br />
“This is going to be a very expensive campaign.<br />
Without the full financial participation of all the<br />
stakeholders, we simply won’t have the money to<br />
do the job.”<br />
A QUEBEC EXODUS?<br />
Canadian harness racing journalist and editor<br />
Harold Howe, writing in the Hamilton, Ontario,<br />
Spectator, says harness racing in Quebec is in<br />
crisis mode, and the horse population in the province<br />
may shift in significant numbers to Ontario.<br />
Tying his article to the cutback in racing dates<br />
and operations of Paul Massicotte’s four Attractions<br />
Hippiques tracks, including one in Montreal<br />
and another in Quebec City, thinks Flamboro<br />
Downs will get many of the top Montreal stables,<br />
and lower class horses may head for Rideau<br />
Carleton in Ottawa.<br />
RICKMAN ON MD SLOTS<br />
William Rickman, the owner of Ocean Downs in<br />
Maryland, has told the Washington Post<br />
that he is undecided as to whether he will<br />
support legislation for slots. Rickman<br />
joined Scott Borgemenke of Magna<br />
RECENT JOB DOINGS<br />
Pete Savage now is president and GM at Tioga<br />
Downs and Vernon Downs and Jason Bluhm has<br />
been named director of racing for both<br />
tracks. Jim Beviglia has been named race<br />
announcer at Mohegan Sun at Pocono<br />
Downs.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
March 25, 2008<br />
TWO DAYS LEFT FOR KY SLOTS<br />
As Kentucky House Speaker Jody Richards announced<br />
that a constitutional amendment vote to<br />
legalize slots in the Bluegrass had only two days<br />
to pass in this session, the bill’s principal proponent,<br />
Gov. Steve Beshear, called House Democrats<br />
together for a last gasp final push for the<br />
measure. Beshear told them if they could muster<br />
the 60 votes necessary for passage, it would put<br />
“an extreme amount of pressure on the Senate to<br />
step up and consider this amendment.” Speaker<br />
Richards said he didn’t think Beshear changed<br />
anyone’s mind, but that a budget passed Monday<br />
by the Senate would help the slots cause<br />
because “I don’t think we can live with that.”<br />
Track operators met privately with Beshear in<br />
his office yesterday, but the prospects of passage<br />
are dim. John-Mark Hack, the leader of a group<br />
called Say No to Casinos, told the Lexington Herald-Leader’s<br />
Janet Patton, “I can’t imagine the<br />
circumstances in which they think they have a<br />
chance to get this out of the House.” The governor<br />
still is 10 votes short, with only 48 hours<br />
to go for passage of the amendment vote. Eight<br />
days remain in the legislative session, but Speaker<br />
Richards, a Democrat, says the measure will<br />
be dead if not passed by tomorrow.<br />
GOV. PATRICK FIGHTS ON<br />
The slots voting is over in Massachusetts, where<br />
another governor went down to defeat. Deval<br />
Patrick is still fighting, however, not canceling a<br />
$189,000 study with Spectrum Gaming of New<br />
Jersey hoping to prove his contentions about the<br />
benefits of his three-casino, no-racino plan. Senator<br />
Mark Montigney, chairman of the Bonding<br />
Committee, questioned the wisdom of the survey.<br />
“My sense is once a bill is dead for the year,” he<br />
said, “cut the spigot off, because consultants will<br />
always continue to bill hours and keep the<br />
clock running.” They also turn to trade<br />
associations like HTA to obtain figures.<br />
BEACH IN DELAWARE (OHIO)<br />
Somebeachsomewhere, the undefeated 2-yearold<br />
pacing champion of last season and top-rated<br />
in this year’s Experimental Championship Ratings,<br />
heads a list of 144 3-year-old pacing colts<br />
and geldings currently eligible for the 2008 Little<br />
Brown Jug classic. The colt’s co-owner, manager<br />
and new trainer, Brent MacGrath, says in an<br />
interview in The Harness Edge that the Schooner<br />
Stable star out of Truro, Nova Scotia, may or<br />
may not skip the Jug and its heat-racing format.<br />
The first eight colts in the USTA Experimental<br />
Handicap, compiled by this editor for the last 43<br />
years, are nominated for the Ohio spectacle in<br />
August.<br />
PUMP 100,000 GALLONS MORE<br />
That may have been the command of Sheikh<br />
Mohammed bin Rashid-al-Maktoum to his supernumeraries<br />
this week, after he spent somewhere<br />
between $418 million and $600 million<br />
(the reports differ wildly) to buy one of Australia’s<br />
biggest horse farms for his Darley Stud.<br />
The seller, Bog Ingham, owns Woodlands Stud in<br />
New South Wales. The Sydney Morning Herald<br />
quoted Ingham as saying he had not been contemplating<br />
selling his vast thoroughbred holdings,<br />
but “once approached by Darley, I decided<br />
it was an opportunity that I should accept.” Are<br />
you sure, Bob? Ingham, a major part of the Australian<br />
racing scene for 40 years, says the deal<br />
includes his stables in Sydney and Melbourne,<br />
two stud farms, two pre-training complexes, and<br />
more than 1,000 horses. Ingham says he will<br />
continue racing horses.<br />
RCI, RMTC MEET IN TEXAS<br />
The Association of Racing Commissioners International’s<br />
four-day conference gets underway in<br />
Austin, Texas, today, and the Racing Medication<br />
and Testing Consortium also meets there. Brody<br />
Johnson is representing HTA at both meetings.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
DOVER DOWNS: VEGAS EAST<br />
HTA member Dover Downs, where the blessings<br />
of slots properly used are producing some of the<br />
highest purses in the sport, is about to add a major<br />
first to racing. Come late summer, Dover will<br />
open a 70,000-square foot Colonnade, taking a<br />
cue from Las Vegas. The facility will bring high<br />
end shopping -- Gucci purses and Godiva chocolates<br />
among them -- to the nation’s largest racetrack<br />
in terms of capacity. Dover’s auto racing<br />
stands hold 150,000 or more, and many of those<br />
racegoers, along with visitors to its slots, stay at<br />
Dover’s own hotel for long weekends. The new<br />
Colonnade will have 500 slots of its own, three<br />
new restaurants, and a circular bar with special<br />
lighting effects and a small stage for added live<br />
entertainment. Eric Ruth, writing a highly favorable<br />
story in the Wilmington News Journal,<br />
reported, “By broadening the diversity of its attractions<br />
-- and committing enough capital to<br />
give it all the appropriate glitz -- Dover Downs<br />
hopes to keep pace in a market that is becoming<br />
far more competitive just over the line in Pennsylvania,<br />
and which holds potential of establishing<br />
itself in Maryland.” Visually, the Colonnade<br />
is designed to fit in with the casino while simultaneously<br />
setting itself apart. Curving surfaces<br />
and arched architectural details soar above the<br />
intricate patterns of the tiled floors. At the center<br />
of the new Fire and Ice Lounge, a crystal<br />
sculpture will combine images of flame and melting<br />
ice, and comfy sofas and curtains will aim to<br />
foster intimacy. Each restaurant and shop will<br />
be located near an entrance, and -- unlike Vegas<br />
-- customers won’t have to walk through the<br />
crowded Dover casino to get to the attractions.<br />
The contractor’s supervisor told Ruth, “As far<br />
as a geometric project, it’s the most complex I’ve<br />
ever been involved in.” Dover’s senior director<br />
of design and construction, Rich Wertz,<br />
says the new bar’s metalflake-enhanced<br />
terrazzo floor “is going to shine like ice.”<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
March 26, 2008<br />
It’s not surprising. Dover’s casino reflects the<br />
leadership of Ed Sutor, the 6-foot-8 former basketball<br />
player for St. Peters in New Jersey who<br />
got his training at Caesars, and the new project<br />
sounds like Caesars East.<br />
SMOKE GETS IN YOUR EYES<br />
Atlantic City’s casinos, flexing their bulging<br />
muscles again in New Jersey, have won another<br />
round. They have convinced the Atlantic City<br />
Council to modify a full-court no-smoking ban<br />
in a compromise where it will apply only if the<br />
casinos do not construct airport-like smoking<br />
lounges within 90 days. In a frank announcement<br />
of the amended rules, councilman George<br />
Tibbitt told the Press of Atlantic City, “We will<br />
not sacrifice the health of our casinos’ workers<br />
any longer. But I pushed for this because I<br />
don’t want to hurt the casinos.” Of course not,<br />
George. New Jersey’s Department of Community<br />
Affairs, the state agency that oversees Atlantic<br />
City casino construction, says the 11 AC casinos<br />
have been slow to respond to its questions, and<br />
not one of the 11 has received approval to begin<br />
building the smoking lounges as of now.<br />
Here in Arizona, where Indian casinos took in<br />
revenue of $1.94 billion last year, the Tohono<br />
O’odham tribe’s new Desert Diamond casinohotel<br />
is a model for all. Arizona’s biggest, it cost<br />
the tribe $125 million, and opened last October<br />
with opulence, including cascading waterfalls<br />
over pebbled walls. A mile or so from the Tucson<br />
International Airport, it features whirlpools and<br />
flat screen TVs in the hotel rooms, and smoke-free<br />
slots, poker rooms and restaurants. The casino is<br />
considered an economic engine for Tucson, and<br />
has 100,000 members in its players’ club, which<br />
tracks play with state-of-the-art equipment. The<br />
facility has 1,089 slots, a 270-seat bingo hall, 29<br />
poker tables, 23 blackjack tables, and an air filtering<br />
system that replaces stale air with<br />
fresh every 10 minutes.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
March 27, 2008<br />
THE SHADOW ON THE WALL<br />
what will erode that revenue stream,” he said.<br />
The betting exchange Betfair, still battling and In other Australian racing states, New South<br />
struggling for every foothold it can gain, won a Wales racing chief Peter V’Landys said following<br />
the decision that Betfair “should be given the<br />
major victory yesterday and sent shock waves<br />
through Australia when the nation’s High Court opportunity to make applications like any other<br />
ruled against Western Australian rules that wagering operator, and if it meets the criteria it<br />
banned local residents from placing bets using can field on New South Wales events.” But he<br />
the exchange. Originated in England and with noted that in the past Betfair wanted to pay a<br />
a Down Under base in Tasmania, across the Tasman<br />
Sea from Australia, Betfair had infiltrated Victoria, racing said it would await advice from<br />
smaller fee to racing than any other parties. In<br />
Western Australia until the state banned the service.<br />
The High Court ruled that the action con-<br />
the decision on racing legislation. An online<br />
the state government concerning the impact of<br />
travened the constitution by imposing protectionist<br />
burdens on interstate trade. Backed by High Court decision “a step forward in opening<br />
sportsbook operator, Con Kafataris, called the<br />
the hugely wealthy Packer family in the southern<br />
hemisphere, Betfair operates on matching ern Australia online news agency ran a headline,<br />
up the national wagering market.” One West-<br />
bets, and allows betting on horses to lose as well “Betfair could cripple WA racing industry.”<br />
as win. Ted van Heernst, chairman of racing in More will be heard on this in the months ahead.<br />
Perth, Western Australia’s largest city, said Betfair<br />
“undermines the financial viability of racing<br />
long term,” and many in racing agree with<br />
ARTHUR SPEAKS FORCEFULLY<br />
Dr. Rick Arthur, the California veterinarian who<br />
his view. “The economic model that Betfair operates<br />
under does not compensate the industry<br />
gave up a lucrative veterinary practice to become<br />
a major force in the administration of medication<br />
rules and regulations in the US, spoke up<br />
for putting on the show,” van Heernst said. The<br />
gaming minister of Western Australia, Ljiljanna<br />
strongly at the Racing Commissioners International<br />
conference in Austin, Texas, yesterday.<br />
Ravlich, agreed, saying, “The big loser out of the<br />
decision is the Western Australia racing industry.”<br />
The decision said the anti-Betfair legislation<br />
He disputed the testimony of Dr. Don Catlin, the<br />
much publicized former head of the Anti-Doping<br />
Research Institute at UCLA, who said horse<br />
was discriminatory and protectionist because,<br />
instead of providing for a neutral contribution<br />
racing is not ready to regulate steroids. Arthur<br />
to persons conducting Western Australian races,<br />
said he disputed Dr. Catlin’s knowledge of drug<br />
“it had a tendency to exclude Betfair.” One racing<br />
official said, “If it looks like something the<br />
testing in America, said steroid testing is not a<br />
difficult rule to administer, and urged state racing<br />
commissions to adopt the Racing Medication<br />
public embraces, we’ll set up our own service,<br />
similar to Betfair.” In Queensland, on Australia’s<br />
opposite eastern coast, the chief of racing<br />
and Testing Consortium’s rules on steroids. The<br />
RMTC’s home state, Kentucky, where horsemen<br />
operations, Malcolm Tuttle, said the racing industry<br />
might approach the state government to<br />
hold a powerful sway, announced it would wait<br />
a while. The RMTC recommended that all state<br />
amend laws to protect wagering growth. “Our<br />
jurisdictions follow its guidelines, but that a<br />
major revenue streams come through wagering<br />
with Unitab (off track betting),<br />
90-day grace period be invoked to inform horsemen<br />
of the rule and consequences of its violation.<br />
Dr. Scot Waterman of RMTC says<br />
so we won’t be making any decisions on<br />
25 states are moving to adopt the rule.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
March 28, 2008<br />
JOBS OPEN IN TIGHT MARKET<br />
Things are tight in racing, as in everything else,<br />
these days, but two attractive jobs are open. The<br />
Meadowlands is looking for a Director of Properties<br />
and Tracks for both harness and thoroughbred<br />
racing, to oversee track maintenance<br />
and work closely with race secretaries, horsemen<br />
and officials to assure top quality racing surfaces.<br />
The job entails overall control of equipment,<br />
preparing operating and capital budgets, planning<br />
and directing preventative building maintenance<br />
and repairs for barns and backstretch<br />
buildings, managing Meadowlands horse sales,<br />
overseeing daily operation of the Carpentry<br />
Shop, and overseeing vehicle maintenance, the<br />
stall office, equine hospital and recreation hall.<br />
Five to eight years experience in track maintenance<br />
is a requirement, as is landscaping and<br />
ground maintenance and familiarity with vehicle<br />
maintenance procedures. If interested, fax your<br />
resume to Donna Hazelgreen at 201-935-4262,<br />
e-mail dhazelgreen@njsea.com, or write her at<br />
The Meadowlands Racetrack, 50 State Route<br />
120, East Rutherford, NJ 07073.<br />
A year-round job as Parimutuel Manager, with<br />
competitive wages, health and other benefits,<br />
and a 401K plan, is available at Tioga Downs. E-<br />
mail resume and salary requirements to jason@<br />
tiogadowns.com, or write to Jason Settlemoir,<br />
vice president, Tioga Downs, 2384 River Road,<br />
P.O. Box 509, Nichols, NY 13812.<br />
SLOTS <strong>OF</strong>FICIALLY DEAD IN KY<br />
The governor of Kentucky, Steve Beshear, announced<br />
yesterday that his slots plan, a major<br />
plank in his election campaign, had failed and<br />
was dead for this year’s session of the legislature.<br />
Needing 60 votes to send it to a public vote on<br />
constitutional amendment next November,<br />
the measure stalled in the low 50s, and<br />
Beshear confirmed yesterday that the<br />
votes were not there and not obtainable.<br />
AUSSIE RACING THREATENED<br />
The betting exchange Betfair, which began operations<br />
Down Under in Tasmania and then grabbed<br />
a foothold in Perth in Western Australia and<br />
won an Australian High Court victory this week,<br />
now can offer bets in the entire nation, including<br />
Australia’s two biggest eastern cities, Sydney<br />
in New South Wales and Melbourne in Victoria.<br />
The development threatens the billion dollar wagering<br />
businesses of Tabcorp and Tatts Group,<br />
which have enjoyed monopoly status, and puts<br />
heavy pressure on state taxes nationwide. The<br />
head of New South Wales’ government review<br />
into Betfair, Alan Cameron, said yesterday the<br />
High Court decision puts “significant obstacles”<br />
in preventing Betfair from operating. A Tabcorp<br />
spokesman, Bruce Tobin, said the High Court’s<br />
decision puts funding for racing in Australia at<br />
risk, with “state governments rapidly losing control<br />
over their wagering markets.” The decision,<br />
mandating equal treatment for all betting entities,<br />
also likely means that bookmakers now will<br />
be able to advertise their services in both Sydney<br />
and Melbourne and everywhere else in the<br />
country. That would impact both ontrack and<br />
TAB handle, but the main danger comes from<br />
Betfair itself, which has proposed paying New<br />
South Wales, for example, 27 cents of every $100<br />
bet, compared to the bookmakers paying $1 and<br />
the TAB paying $5.<br />
WANT TO BUILD A TRACK?<br />
Here’s what to expect. Centaur had its Pennsylvania<br />
Valley View plans approved by a township<br />
planning commission. Now it faces 11 conditions,<br />
including state approval, county conservation<br />
district approval, wetland provisions, sewer<br />
construction, storm water plans, erosion control,<br />
light and sign variances, and building elevation<br />
variances. The township engineer said of the<br />
project, “A development this big is something<br />
you would hope for but no one expects.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
NO VOTE LIKELY IN MASS<br />
It now appears that voters in Massachusetts will<br />
not get to express an opinion in November on casino<br />
gaming in the state. Following the defeat<br />
of Gov. Deval Patrick’s three-casino-no-racino<br />
plan, there was an initial push for a November<br />
referendum, but the enthusiasm has cooled. To<br />
make the ballot, a referendum motion would<br />
have to pass in both state Senate and House, and<br />
there seems to be no inclination on the part of<br />
legislators in either body to push for the idea.<br />
State senator Steven Panagiotakos, who suggested<br />
the referendum, now says there is hesitation,<br />
even from people who are supportive of the idea,<br />
and he doubts the House would approve. Panagiotakos<br />
says if they change their minds, the state<br />
has until June to get the issue on the ballot, and<br />
even then it would be non-binding. He thinks a<br />
referendum vote will have a better chance then,<br />
when the Massachusetts budget crunch is likely<br />
to be even more severe than now.<br />
MDI RESTRUCTURING POSSIBLE<br />
A proposal has surfaced for MI Developments<br />
Inc. (MID), the real estate holding company that<br />
is the controlling shareholder in Magna Entertainment<br />
Corp. (MEC), to sell off its interest in<br />
the racetrack and gaming company. The proposed<br />
restructuring of the two companies, each<br />
of which is controlled by Frank Stronach, involves<br />
MID selling its 59 percent stake in MEC<br />
to an unidentified third party for $25 million.<br />
The proposal comes amid pressure from shareholders<br />
for MID to refrain from acting as banker<br />
of last resort for financially troubled MEC.<br />
According to SEC documents, the objectives of<br />
the proposal are to make a substantial cash disbursement<br />
to shareholders of MDI and to create<br />
a focused real estate company that will distribute<br />
up to 80 percent of its cash flow. The<br />
deal is conditional upon auto parts giant<br />
Magna International Inc. providing financial<br />
support for a new real estate com-<br />
March 31, 2008<br />
pany with $1 billion in loans. MID owns the land<br />
under many of Magna’s auto parts factories and<br />
hold majority interest in MEC.<br />
In other news from MEC, the company filed a<br />
proxy statement last Friday seeking shareholder<br />
approval for a reverse stock split. The proposal<br />
would consolidate shares with a ratio on the reverse<br />
split of between 1 to 10 and 1 to 20 shares<br />
in an effort to boost the firm’s share price, which<br />
has hovered for several weeks near a price of 30<br />
cents per share.<br />
<strong>TRACKS</strong> GET NJ PROTECTION<br />
When New Jersey’s government shut down for<br />
three days two years ago over a budget stalemate,<br />
tracks and casinos had to shut down because<br />
state investigators were idled. Losses ran<br />
in the millions, both to the tracks and casinos<br />
and the state. A budget crisis is imminent again,<br />
and this time legislators are scurrying to make<br />
sure their Atlantic City darlings are protected.<br />
The tracks happily are included in their plans.<br />
State senator Jeff Van Drew, leading the effort,<br />
told the Newark Star-Ledger, “To close the casinos<br />
only intensfies and exacerbates these budget<br />
problems. The gambling halls lost about $55 million<br />
of their own and the state $3 million in state<br />
revenue when they closed in 2006.” Fifty-five<br />
million in three days? Try multiplying that number<br />
and it’s hard to generate compassion, but it’s<br />
nice the legislators are at least thinking of letting<br />
us ride along with anti-shutdown protection.<br />
INDOOR RACING HAS PROBLEM<br />
Michigan lawyer Wallace Parker, who wants to<br />
put horse racing inside the Pontiac Silverdome,<br />
has a small problem. There are no licenses available<br />
now that the third and last one under Michigan<br />
law has been issued for a running track near<br />
the Detroit airport. Parker’s present option is<br />
to get the law changed or get an Indian casino,<br />
both involving formidable problems.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
FRANK NOT FOOLING AROUND<br />
It may be April’s Fool Day, but Rep. Barney<br />
Frank of Massachusetts is dead serious in his<br />
efforts to legalize online gambling in the United<br />
States. He was to appear in his role as chairman<br />
of the House Committee on Financial Services<br />
today before another Congressional committee<br />
-- the Subcommittee on Domestic and International<br />
Monetary Policy -- to push his message<br />
that the federal ban against online gambling is<br />
“one of the stupidest things” he has ever seen.<br />
Frank says he wants to show not that the regulations<br />
of the Unlawful Internet Gambling Enforcement<br />
Act weren’t done well, but that they<br />
can’t be done well given the inherent nature of<br />
online betting. That act was passed as part of the<br />
Port Securities Act two years ago, and if Frank<br />
has his way his new bill, the Internet Gambling<br />
Regulation and Enforcement Act, would replace<br />
it and allow Americans to wager online.<br />
Frank also is waging war against the secrecy of<br />
the federal government in its dealings with foreign<br />
governments in a trade agreement negotiated<br />
to compensate them for the U.S. withdrawing<br />
from its GATS gambling commitments in<br />
order to deny online gambling operators access<br />
to the American market. He sent a letter March<br />
14 to U.S. Trade Representative Susan Schwab<br />
asking for details of the agreements negotiated<br />
last December with the European Union, Japan<br />
and Canada. Frank complained that no dollar<br />
amounts have been revealed, and objected to the<br />
government’s contention that they were because<br />
of “national security implications.” Frank’s letter<br />
said, “If this is merely an attempt to avoid<br />
revealing the cost of these trade concessions, either<br />
because they would be viewed as too costly<br />
by the United States or not costly enough by the<br />
negotiating countries, the denial on the<br />
grounds of ‘national security’ would appear<br />
to be a misuse of the process.”<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 1, 2008<br />
Coincidentally, yesterday marked a deadline for<br />
the U.S. to put forward a proposal to settle its<br />
long running international gambling dispute<br />
with Antigua and Barbuda. The U.S. handled<br />
the deadline by ignoring it, the latest in a series<br />
of delays and missed deadlines.<br />
CASINO STRIKE IN WEST VA<br />
More than 200 employees of the Mountaineer<br />
Casino, Racetrack & Resort in Chester, West<br />
Virginia, walked off the job Saturday to protest<br />
an expired labor contract. Mountaineer managers,<br />
supervisors and other employees filled in as<br />
slot technicians, cashiers and mutuel room workers,<br />
according to the Pittsburgh Post-Gazette.<br />
The casino told the newspaper it was operating<br />
“seamlessly” and had its second highest Saturday<br />
of the month in slots play. The union had<br />
a different version, calling operations “absolute<br />
chaos.” The Meadows near Pittsburgh, meanwhile,<br />
had what a spokesman called “an extraordinary<br />
weekend,” but said it was difficult to tell<br />
what effect the West Virginia strike had because<br />
the Meadows had a special weekend promotion<br />
in which its best customers received $200 free<br />
play for the night.<br />
CALLAHAN HONORED IN NE<br />
Ed Callahan, vice president and general manager<br />
of Rockingham Park and the track’s alternate<br />
director on the HTA board, has been named<br />
to the New England Harness Writers’ Hall of<br />
Fame. Driver Bruce Ranger and the late horseman<br />
Harry Brucie also were elected to the honor.<br />
Callahan, who also is a director of the United<br />
States Trotting Association, has been involved in<br />
harness racing for more than 30 years and is one<br />
of New England’s most popular figures in the<br />
sport. The New England writers’ chapter also<br />
nominated owner David McDuffie for consideration<br />
for the Living Hall of Fame in Goshen, and<br />
nominated trainer-driver Don Richards to<br />
the senior Hall of Fame category.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 2, 2008<br />
GRIGNOLA GETS 2 1/2 YEARS<br />
Bernard Grignola, a figure on the U.S. harness<br />
racing scene as groom and trainer for more<br />
than 30 years, has been suspended for 913 days<br />
-- from April 1 thru September 30, 2010 -- and<br />
fined $7,500 for fraudulent acts against racing.<br />
The penalty, handed down by the New Jersey<br />
Racing Commission, was the result of an offense<br />
committed far too often in racing: acting<br />
as a front for a suspended trainer. In Grignola’s<br />
case, the alleged offense was fronting for Robert<br />
Greenwood, a trainer suspended last November<br />
at Freehold Raceway for possession of needles,<br />
syringes, and injectable drugs. The Horseman’s<br />
harnessracing.com obtained the ruling from the<br />
New Jersey commission, and it read, in part,<br />
“Mr. Grignola did interfere with an investigation<br />
being conducted by members of the New<br />
Jersey Racing Commission investigative staff.<br />
He did engage in conspiracy related to racing by<br />
agreeing to be listed as the programmed trainer<br />
of certain horses that, by his own admission, he<br />
was not the trainer of, and were in fact trained<br />
by an individual who has been denied a New<br />
Jersey Racing Commission license. By acting<br />
as a ‘front,’ Mr. Grignola knowingly and willfully<br />
enabled this individual to circumvent the<br />
licensing requirements of the New Jersey Racing<br />
Commission. In addition to these horses having<br />
raced in other jurisdictions, Mr. Grignola attempted<br />
to enter at least one of these horses to<br />
race at the Meadowlands on Feb. 28, 2008, by<br />
providing false and inaccurate information upon<br />
declaration.” Greenwood, the trainer for whom<br />
Grignola fronted, received a positive test on one<br />
of his horses at Harrah’s Chester in Pennsylvania<br />
a week after he received a stay on a sixmonth<br />
suspension in New Jersey. The stay was<br />
revoked, but Greenwood continued to train and<br />
allegedly entered the horses to race under<br />
Grignola’s name as trainer. It is heartening<br />
to see strong action in the case.<br />
MAGNA, YOUBET TURBULENCE<br />
Problems persist for Magna Entertainment and<br />
Youbet. Frank Stronach stepped in to quell disquiet<br />
at Magna, announcing he plans to buy the<br />
59% stake in MEC held by his MI Developments.<br />
Stronach predicted the move would lead to profitability<br />
within two or three years, Stronach<br />
told the Toronto Globe and Mail in a telephone<br />
interview from his European headquarters in<br />
Vienna, saying, “It’s the interest rate that’s killing<br />
us.” He also said his company needs greater<br />
dates latitude at its California, Florida, Texas<br />
and Maryland tracks, saying the current restrictions<br />
are like telling a chef he can operate his<br />
restaurant only between the hours of 2 a.m. and<br />
5 a.m. “Racing is not free enterprise,” he said.<br />
“We’ve got to be able to be open when we think<br />
we have the most customers.” Stronach told the<br />
newspaper the $247 million in MEC debt that is<br />
being transferred out of MI Developments needs<br />
to be converted to equity if Magna Entertainment<br />
is going to be turned around. As Stronach<br />
talked Financial Post published a story saying<br />
his statement last summer that the quick departure<br />
of three independent directors from Magna<br />
International was “a coincidence” was nothing<br />
of the sort. The story quoted “a source close to<br />
the situation” as saying the directors left because<br />
they objected to plans being discussed for other<br />
Magna sources to financially bail out Magna Entertainment.<br />
Magna International has $2.2 billion<br />
in cash.<br />
Youbet.com, meanwhile, announced a $27.3 million<br />
loss for 2007, triggered by two writeoffs totaling<br />
$17.9 million and non-recurring charges<br />
of $5.2 million, leaving an operating loss of $4.4<br />
million, more than twice the 2006 loss. CEO<br />
Gary Sproule told financial analysts yesterday<br />
he expected 2008 to be a turnaround year, and he<br />
was “looking forward to getting back to basics,<br />
steering customers to high-yield signals.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 3, 2008<br />
BARNEY PICKS UP STEAM<br />
Rep. Barney Frank’s determined drive to repeal<br />
the Internet gambling ban pushed through<br />
with a port security bill two years ago by then<br />
Majority Leader Bill Frist (you remember him,<br />
don’t you?) gained ground this week. Expert<br />
witnesses appearing before Frank’s House Financial<br />
Services Committee blasted the bill as<br />
poorly drafted, vaguely written and ambiguous.<br />
Louise Roseman, head of the Federal Reserve’s<br />
bank operations division, told the committee,<br />
“The challenge we have is interpreting something,<br />
particularly federal laws, that Congress<br />
itself isn’t sure what they mean. I think it is very<br />
difficult (to implement) without having a bright<br />
line about what is intended to be unlawful Internet<br />
gambling.” Wayne Abernathy of the American<br />
Bankers Association told the subcommittee<br />
considering the law, that “it makes financial institutions<br />
the police, prosecutors and judges in<br />
place of real law enforcement officers.” A New<br />
York Times story yesterday said, “Regulations<br />
proposed by the U.S. Treasury and the Federal<br />
Reserve last fall would apply to the gambling<br />
business’ bank -- generally not to the gambler’s<br />
bank -- and require it to use due diligence to ascertain<br />
the nature of its customer’s business and<br />
ensure it is not processing illegal Internet gambling<br />
payments. The regulation doesn’t attempt<br />
a definition of illegal online gambling, since Congress<br />
didn’t give one.” The Times said, “The regulations<br />
have drawn numerous comments from<br />
agitated bankers, poker players and others. Officials<br />
from Treasury and the Fed both testified<br />
Wednesday to challenges in finalizing the regulations.”<br />
Frank said, “Almost every sector affected<br />
by the law complains about it.” Objecting to<br />
Frank’s efforts to repeal the Internet gambling<br />
ban is Rep. Spencer Bachus of Alabama. He<br />
helped write Frist’s law, and he called Internet<br />
gambling “a scourge on our society”<br />
that leads to addiction and crime.<br />
STRONACH PLAN CHALLENGED<br />
Frank Stronach’s plan to reorganize his nonautomotive<br />
holdings ran into quick opposition<br />
yesterday, when two of the three largest shareholders<br />
in MI Developments said they would<br />
vote to block the deal, and the Toronto Globe<br />
and Mail said they hold enough shares to do<br />
so. The paper says Hotchkis and Wiley Capital<br />
Management and Greenlight Capital Inc. each<br />
hold more than 10% of the subordinated voting<br />
shares of MI Developments, and explained<br />
that the Stronach plan cannot be completed if<br />
dissent rights are exercised by more than 10%<br />
of the class A shares. Both companies have indicated<br />
they intend to exercise those rights to<br />
prevent MI Developments from selling its stake<br />
in Magna Entertainment, Stronach’s racing<br />
arm, to Stronach for $25 million and creating<br />
a new real estate company. The proposed complex<br />
three-way deal calls for MI Developments<br />
to transfer $150 million in cash, $247 million<br />
in loans still due from MEC, and $50 million in<br />
real estate in Aurora, Ontario, the company’s<br />
headquarters, to a new company controlled by<br />
Stronach. He would own 10% of the new company,<br />
along with another 10% to be owned by<br />
Magna International, of which he is chairman,<br />
and existing shareholders of MI Development --<br />
which includes Hotchkis and Wiley Capital and<br />
Greenlight Capital -- would own 80%, according<br />
to the Globe and Mail. David Green, a principal<br />
and portfolio manager for Hotchkis and Wiley,<br />
which holds 11.9% of MI Developments class A<br />
shares, said, “We do not understand how this<br />
deal can be justified.” Green said the structural<br />
elements of the plan make sense, and were rejected<br />
by MI Developments in 2005, “but the<br />
transfer of approximately $300 million, greater<br />
than 20% of the stock’s current market cap, to<br />
Frank Stronach in order for him to now support<br />
the deal is appalling. We strongly object<br />
and intend to vote our shares against it.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
NEW ERA BEGINS IN ONTARIO<br />
As Kentucky faces a regulatory crisis, Ontario<br />
moves into new waters with the opening of<br />
Woodbine’s major league thoroughbred meeting<br />
tomorrow. The track will be operating under recently<br />
passed Ontario Racing Commission rules<br />
calling for owner responsibility on illegal<br />
medication issues. Horses testing positive<br />
for class 1, 2 or 3 violations will automatically<br />
be ineligible to race for 90 days.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 4, 2008<br />
KY AUTHORITY FACES CUTS Nick Eaves, Woodbine’s 39-year-old president<br />
The legislators of the commonwealth of Kentucky,<br />
who recently rejected the wishes of their Form writer Bill Fallon, in a long and wide-<br />
and chief operating officer, told Daily Racing<br />
governor on allowing racinos and casinos in the ranging interview, that Woodbine is fully supportive<br />
of the new rule, saying “owner account-<br />
state, now have taken another step indicating<br />
their low esteem of racing, or at least the state ability is fundamentally fair, and should result in<br />
body designated to regulate it. They approved a the bettor being more confident of our product.”<br />
budget this week that cuts the operating funds of Eaves also expressed satisfaction that the Canadian<br />
government has indicated it understands<br />
Kentucky’s Racing Authority so sharply that the<br />
Authority faces the loss of as many as 20 employees<br />
who supervise racing in the state. Mark York, to do something about it. He said, “I would cer-<br />
the seriousness of pirating of signals, and intends<br />
the state official who oversees the Authority, says tainly consider it one of the key issues that we<br />
there is a concern that it will not be able to fulfill face; it hasn’t gone anywhere. We feel strongly<br />
its mandatory regulatory functions. Authority it’s illegal for residents of Canada to bet over<br />
member Tom Ludt told the Louisville Courier- the Internet in an unlicensed jurisdiction. But<br />
Journal, the cuts are an integrity issue that could we have a government that isn’t enforcing those<br />
result in “tempting people to cheat” by lessening laws, and until recently wasn’t even suggesting<br />
the Authority’s ability to oversee racing. Ludt that was something they were considering. At<br />
said unless governor Steve Beshear vetoes the least they’ve now come out and said that they’re<br />
measure the Authority would have to rely on the getting the sense that this issue is larger than<br />
tracks to monitor themselves, which he considers<br />
a conflict of interest. Buried deeply in the plans to do more for its big bettors, and is back-<br />
they once thought.” Eaves also said Woodbine<br />
budget bill, the racing item pares only $60,000 ing up those plans by annexing part of its media<br />
from the state’s $500,000 allocation, but also effectively<br />
cuts almost a million from the $1.4 mil-<br />
a private and luxurious sanctuary for one for-<br />
communications office and remodeling it into<br />
lion tracks pay for its services, exempting smaller<br />
tracks like the Red Mile and leaving Churchill Woodbine also will be constructing a new $12<br />
mer heavy hitter. During the upcoming meeting<br />
Downs and Keeneland to split the balance. The million, 142-stall receiving barn for its harness<br />
first vice chairman of the House budget committee,<br />
Rep. Robin Webb, said the Authority issue quarantine facility. The existing harness facility<br />
horses and a 32-stall dual breed detention and<br />
was not a major concern, and she called the Authority<br />
“pretty rich.”<br />
completion of the new barn to make room for<br />
adjacent to the grandstand will be torn down on<br />
part of the huge Woodbine Live! entertainment<br />
and retail complex being built on 25 acres of<br />
Woodbine’s vast racing property.<br />
WANT TO SELL YOUR TRACK?<br />
If so, the man to talk to is Lonny Powell, former<br />
president of Racing Commissioners International<br />
and now senior executive and advisor of Gaming<br />
and Pari-Mutuel Racing Consulting. He<br />
has buyers at 859-321-2168 and his email<br />
is imdgotoguy@yahoo.com. No kidding.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
ARNEAULT LEAVING MTR<br />
The Wheeling, WVA, News-Register reports that<br />
Ted Arneault, chairman and CEO of Mountaineer<br />
Gaming Group for the last 13 years, may be<br />
leaving the company at the end of the year. The<br />
paper quoted the company’s annual report to<br />
the SEC which included the notation, “We have<br />
entered into employment agreements with Mr.<br />
Arneault which will expire on Dec. 31, 2008. Mr.<br />
Arneault has advised us that after 13 years as<br />
CEO, he does not intend to enter a new employment<br />
agreement, but would remain for a reasonable<br />
period if required for a smooth transition.”<br />
MTR also reported losses of $11.35 million, including<br />
losses from discontinued operations for<br />
2007. The news comes as 200 members of the<br />
United Food and Commercial workers continue<br />
their strike at Mountaineer Casino, Racetrack<br />
and Resort in Chester, demanding better health<br />
care benefits. Mountaineer has obtained a temporary<br />
restraining order that limits the number<br />
of pickets at the site and prohibits them from using<br />
a bullhorn while demonstrating. Effective for<br />
10 days, the TRO also prohibits striking union<br />
members from trespassing on company premises<br />
at the casino or its administrative office building<br />
in Newell, and from encouraging or participating<br />
in obstructive picketing and from placing vehicles,<br />
barricades, tents or obstructions of<br />
any kind at or near the casino entrances.<br />
There were no plans for further talks.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 7, 2008<br />
ANOTHER GOOD JOB OPENING The News-Register printed a letter from a reader<br />
An HTA member track with year-round racing saying a private East coast group is buying into<br />
has an opening for a Simulcasting/PR Coordinator.<br />
The applicant must have knowledge of both the largest shareholder, and claiming that if the<br />
Mountaineer, in which Jacobs Entertainment is<br />
harness and thoroughbred racing and strong stock should go to $15 or $20, which the writer<br />
computer skills, with Excel and Statistics. The called “probable,” Arneault “can sell his 6 million<br />
shares and retire on 100 million or so at 60.”<br />
job offers full benefits, relocation allowance, and<br />
a salary to match experience. If interested, send Another writer said “shares now selling for $7<br />
a resume and salary requirements to HTA, e-mail may be worth as much as $20 by fall.” Please<br />
info@harnesstracks.com, or fax 520-529-3235. note this is not an endorsement.<br />
BIG PLANS, BIG GAMBLE<br />
Speculative or not, the market for track building<br />
is brisk, but not all efforts are meeting with<br />
joy. In Michigan, where Wayne county gave tentative<br />
approval for the transfer of 320 acres of<br />
prime, publicly owned development land for $1<br />
to a group that plans a track near Detroit Metropolitan<br />
Airport, the Detroit News has raised a<br />
hue and cry. The paper noted that when Wayne<br />
county began buying up land for the 800-acre<br />
Pinnacle Park, of which the track land is part,<br />
“it envisioned leveraging the proximity to the<br />
airport to attract manufacturing plants, warehouses<br />
and transportation businesses. Those<br />
plans never materialized. Now the county wants<br />
to devote roughly a third of the park to an entertainment<br />
complex. Entertainment jobs are not<br />
what the county promised when it created Pinnacle<br />
Park.” The newspaper does not explain<br />
why a failed project with no jobs is preferable to<br />
an entertainment complex with 1,100 or more,<br />
but it objects to using a huge taxpayer subsidy<br />
to do it. The deal with developers of Pinnacle<br />
Race Course, as it will be known, is that they will<br />
pay $16 million, or $50,000 an acre, if they don’t<br />
create those jobs in six years. They also will pay<br />
Huron Township $700,000 a year to defray road,<br />
sewer and other improvements. Michigan has<br />
no racinos, and seemingly little chance of getting<br />
them, given strong casino opposition. The Pinnacle<br />
developers are brave, or foolish. We<br />
wish them well.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 8, 2008<br />
WHAT’S UP IN THE CATSKILLS?<br />
We’re not sure how a developer “guarantees”<br />
his venture will not cost a state money, but that’s<br />
what Westchester, NY, developer Louis Capelli<br />
has told the editorial board of the Middletown<br />
Times Herald-Record about the $600 to $900 million<br />
“capital reimbursement” project he is seeking<br />
from the state of New York to relocate Monticello<br />
Raceway to the site of the famed Concord<br />
Hotel. Capelli, whose Concord Associates owns<br />
2.5 million shares of Empire Resorts, and who<br />
is buying another 12% worth some $5.2 million,<br />
is seeking what amounts to a 30-year loan from<br />
the state at 4% annual interest to tear down the<br />
Concord, build a new hotel, and install a yearround<br />
$700 million entertainment complex with<br />
a hotel, 100,000 square-foot gambling area, convention<br />
center, restaurants and an indoor water<br />
park. In describing his plans to the newspaper<br />
yesterday, Capelli said names like Donald<br />
Trump, Ritz-Carlton and Steve Wynn would be<br />
interested in his project if it receives state approval,<br />
and he said he did not see how the state<br />
can say no. A story on the paper’s Web site,<br />
however, said the Capelli plan will not be part of<br />
the New York state budget, with two legislators<br />
who support the Capelli plan saying that is not<br />
going to happen. Rep. John Bonacic said, “The<br />
Assembly has said they don’t want to put it on<br />
the table for discussion, so it is not going to happen,<br />
at least as part of the budget.” He said the<br />
fate of the proposal will depend on whether new<br />
governor Paterson and Assembly leader Sheldon<br />
Silver approve it. Capelli said his proposal is not<br />
a subsidy because “the project will be generating<br />
billions and billions of additional revenue for the<br />
state.” Frank Mauro, executive director of the<br />
Fiscal Policy Institute in Albany, had a different<br />
view. He called the proposal “extremely generous”<br />
and said the state would become<br />
“like a silent partner, but a dumb silent<br />
partner.”<br />
SPEAKING <strong>OF</strong> TEARING DOWN<br />
Harnessracing.com quotes reports in the Newport<br />
News Daily Press in Virginia that Colonial<br />
Downs, up for sale for three months, could be<br />
sold to a developer and torn down to make way<br />
for a housing development. The track, owned by<br />
Jacobs Entertainment, encompasses 600 acres of<br />
highly desirable land between Richmond and<br />
historic Williamsburg, and new housing has been<br />
built nearby since the track opened. Colonial<br />
has lost money in each of the last four years, and<br />
its fate as a track appears to rest on a bill, stalled<br />
in the legislature, that would allow up to 10,000<br />
gaming machines showing recorded races, as has<br />
been done successfully at Oaklawn Park in Arkansas.<br />
Ian Stewart, Colonial Downs’ president,<br />
says if that happened “it would solidify Colonial<br />
Downs and propel Virginia racing into probably<br />
one of the top five states in the country.”<br />
MOUNTAINEER STRIKE OVER<br />
Mountaineer Casino and Racetrack president<br />
Ted Arneault announced yesterday afternoon<br />
that he has reached a tentative deal with union<br />
slot machine technicians and money room employees<br />
to end their week-long strike. He said<br />
verbal agreements have been worked out, lawyers<br />
have agreed on contract language, and union<br />
members would vote on the proposal tomorrow.<br />
Also in West Virginia, Wheeling Island Casino-Racetrack<br />
made the New York Times with a<br />
promotion giving away a tank truck of gasoline<br />
holding some 9,000 gallons, or $15,000 in cash,<br />
on April 18. With gas selling for $3.41 a gallon<br />
in West Virginia, the tanker load could be worth<br />
more than $30,000 and would get you around the<br />
world eight times if your car averaged 22 miles<br />
a gallon. The track said you wouldn’t have to<br />
park the truck. It will provide coupons.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
HTA-STYLE MEET IN CANADA<br />
In a good old remake of HTA-style annual meetings,<br />
complete with catchy subject titles and<br />
a past HTA keynote speaker, Standardbred<br />
Canada is presenting an interesting three-day<br />
Standardbred Wagering Conference in Montreal<br />
Tuesday, Wednesday and Thursday, April<br />
29-May 1. The first two days offer general presentations<br />
on how to stem the drastic drop in<br />
Canadian pari-mutuel wagering, dramatically<br />
shown graphically in the meeting announcement<br />
as down 40% since 2002. First day subjects include<br />
Turning the Ship, reversing the downward<br />
trend; Betting at Your Corner Store, the future of<br />
off-track betting and new technology; Wake Up<br />
and Smell the Coffee, asking if the product has<br />
to change for betting to improve, and if so how;<br />
and Hitting the Home Run, asking if Canadian<br />
Standardbred racing can replicate the V75 in<br />
packaging and selling a unique Canadian racing<br />
product. The luncheon and keynote speaker will<br />
be MGM Mirage CEO Terry Lanni, who spoke<br />
at the last HTA/TRA/USTA Racing Congress in<br />
Las Vegas.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 9, 2008<br />
Hotel reservations for the Conference can be<br />
made at the Hyatt Regency Montreal, the convention<br />
site, 1-800-514-9614 or 416-962-2727,<br />
fax 1-800-617-7587, or thru info@destinationplus.ca,<br />
or www.montreal.hyatt.com. The convention<br />
rate is $169 a night. Accomodations<br />
also are available at Embassy Suites, Montreal,<br />
1-888-561-7666, www.embassysuites.com, at<br />
$189. To register for the Conference visit www.<br />
canadiangamingsummit.com.<br />
RACING DOWN, GAMING UP<br />
While racing handle declines in Canada, the Canadian<br />
Gaming Association reports gambling<br />
revenues have grown 127% since 1995, and that<br />
85% of Canadians gamble in some form. The<br />
CGA says it was surprised by the magnitude of<br />
the numbers in its study, which show that one<br />
third of Canada’s gaming revenue -- $5.8 billion<br />
-- comes from Ontario’s 11 casinos, 18 racetracks<br />
(17 with slots) more than 70 bingo halls<br />
and more than 10,800 lottery retailers. Gaming<br />
accounted for 102,200 jobs and $4.6 billion in<br />
wages, according to the report.<br />
The second day will offer The Customer is King,<br />
covering reward programs, incentives and loyalty<br />
programs; Wagering’s New Frontier, discussing<br />
new bets and regulatory changes; and<br />
industry group meetings and a Canadian Gaming<br />
Summit, followed by an evening of racing at<br />
Hippodrome de Montreal.<br />
Concerning the replication of the V75, a project<br />
under serious study by HTA, we respectfully suggest<br />
any such plan, to have any chance of success<br />
in numbers, should be considered in the context<br />
of North American cooperation. It could be difficult<br />
for Canadian betting to generate significant<br />
payoffs, unless it is able to utilize lottery<br />
retailers, but a continent-wide cooperative<br />
effort could succeed in doing so.<br />
SMOKE STILL A MAJOR ISSUE<br />
Control of smoke and bans on smoking continue<br />
to be a major issue in racing and gaming. The<br />
Atlantic City Council is expected to consider a<br />
total ban on smoking in casinos today, a year after<br />
a partial ban known as the 75-25 rule was<br />
implemented. The total ban would apply to casinos<br />
that do not build special enclosed lounges<br />
similar to those found in some airports. Illinois<br />
recently enacted a full smoking ban, and<br />
in Connecticut, where it is a big issue, theday.<br />
com columnist David Collins had a suggestion.<br />
“I think,” he wrote, “that as Gov. M. Jodi Rell<br />
considers whether to intervene on behalf of the<br />
casinos in their campaign to protect smoking<br />
rights, someone should chain her to her<br />
desk and blow smoke in her face.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 10, 2008<br />
IT WILL STILL BE HARRAH’S<br />
Although Harrah’s Entertainment’s board of<br />
directors voted yesterday to change the corporate<br />
name to Caesars Entertainment to capitalize<br />
on the high international recognition enjoyed<br />
by that brand name, don’t look for its shiny new<br />
Pennsylvania racetrack and casino to change<br />
names. Harrah’s president and CEO Gary<br />
Loveman said Harrah’s will continue to be one<br />
of three name brands used, along with Caesars<br />
and Horseshoe, and director of racing operations<br />
Mike Tanner says the Chester operation<br />
will still be Harrah’s. Loveman also announced<br />
the appointment of four new directors, one being<br />
Chuck Atwood, who spoke so entertainingly<br />
at the HTA/TRA meeting in March, and another<br />
being Lynn Swann, the former All-American at<br />
Southern Cal and later the All-Pro wide receiver<br />
for the Pittsburgh Steelers and ABC sports commentator.<br />
Swann has become a major success<br />
as a businessman, operating Swann Inc., a marketing<br />
and communications consulting firm, and<br />
serving as managing director of Diamond Edge<br />
Capital Partners, a New York-based finance<br />
company, and H. J. Heinz and Hershey Resorts,<br />
two of Pennsylvania’s best known companies.<br />
He also ran for governor of Pennsylvania, losing<br />
to Ed Rendell. Jeanne Jackson, former CEO of<br />
Walmart and Banana Republic, and a director<br />
of Nike and McDonald’s, and financier Christopher<br />
Williams also were added to Harrah’s<br />
board.<br />
SMOKE BAN IN ATLANTIC CITY<br />
The Atlantic City Council yesterday voted unanimously,<br />
9-0, to prohibit smoking on all casino<br />
floors in the city’s 11 casinos for the first time in<br />
their 30 years of operation. The American Cancer<br />
Society hailed the move as a forward step in<br />
protecting the health of customers and<br />
the casino workforce. The Council gave<br />
the casinos until Oct. 15 to build enclosed<br />
smoking lounges.<br />
KENO FOES GATHER IN OHIO<br />
Legislators and other opponents of Keno in Ohio<br />
held a press conference yesterday to support<br />
House Bill 514, which would prohibit the state<br />
lottery from offering Keno or similar electronic<br />
games. State representative Jay Hottinger<br />
led the charge, calling Keno “highly addictive”<br />
and said placing it in establishments that serve<br />
liquor, including Ohio’s tracks, would increase<br />
chances the game will be used irresponsibly.<br />
“Government should get its revenue from the<br />
people’s strengths, not their weaknesses,” he<br />
said. Gov. Ted Strickland, who made the Keno<br />
proposal, continues to support it to raise $73 million<br />
a year. The legislature’s Joint Committee on<br />
Agency Rule Review will consider the issue on<br />
April 21.<br />
AND A SURPRISE IN FLORIDA<br />
A move to allow 24-hour operation of slots in<br />
Broward county in Florida has drawn fire from<br />
the biggest track in the county, Gulfstream Park.<br />
The track opposes the idea, sought by its rival,<br />
dog track Mardi Gras Racetrack and Gaming,<br />
two miles away, which contends it is entitled to<br />
operate nonstop because it holds two licenses.<br />
The slots law in Broward limits operation to 12<br />
hours for each permit. Mardi Gras claims it<br />
needs round-the-clock operation to meet competition<br />
from the Seminole’s Hard Rock casino in<br />
Hollywood and another in Coconut Creek. HTA<br />
member the isle casino & racing at pompano<br />
park has not been involved in the dispute.<br />
IS THIS GUY FOR REAL?<br />
A Manhattan councilman named Robert Jackson,<br />
speaking on the potential OTB closure yesterday,<br />
said the city should stop paying tracks<br />
and the state their shares of OTB revenue.<br />
“Make them sue for it,” he said, calling tracks,<br />
“pigs feeding on our corn.” You’ve got it<br />
ass backwards, Jackson.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
RUNNING ACES OPENS TONITE<br />
The nation’s newest harness track and HTA’s<br />
newest member -- Running Aces in Columbus,<br />
Minnesota, just north of the Twin Cities<br />
-- launches its inaugural season tonight, just off<br />
highway I-35. Admission and general parking<br />
are free, and the track will operate on Fridays,<br />
Saturdays and Mondays with a 6 p.m. post time<br />
and on Sunday starting at 3 p.m., offering simulcasting<br />
seven days a week from 11 a.m. to 11 p.m.<br />
Costing $62 million, Running Aces has a fiveeighths<br />
mile track, and has borrowed veteran<br />
Northfield Park racing secretary Gregg Keidel<br />
for its opening meeting. Running Aces will have<br />
a poker club, but under Minnesota law Running<br />
Aces cannot open the card room until it has raced<br />
50 days of live racing. The club is scheduled to<br />
open in early July with 25 poker tables and 25<br />
casino game tables. The new track is the culmination<br />
of a dream for Minnesota horsemen, who<br />
have waited years for their own home base.<br />
PAYDAY FOR PA BREEDERS<br />
Minnesota is not the only harness location celebrating<br />
the culmination of a dream. The first<br />
checks of the Pennsylvania Breeders Fund derived<br />
from slots play are being received by Pennsylvania<br />
horse breeders, with Hanover Shoe<br />
Farms, a major driver of the slots program,<br />
rightfully receiving the largest reward, an initial<br />
payment of $1.1 million. Both state residents and<br />
out-of-staters who used Pennsylvania stallions<br />
as sires share 90% of revenues, or $5.8 million<br />
in awards, from 2007 operations, with stallion<br />
owners getting 10%, or almost $600,000. The<br />
awards are divided in proportion to the money<br />
won by eligible horses at Pennsylvania tracks.<br />
Horses bred by 38 entities earned over $100,000<br />
last year. This year’s distribution will change,<br />
with 70% of the 90% going to breeders<br />
who keep their mares in Pennsylvania for<br />
six months, with 20% going to non-resident<br />
breeders.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 11, 2008<br />
In addition to the Breeders Fund money, slots<br />
revenue will boost Pennsylvania overnight purses<br />
and those for Pennsylvania Sires Stakes. The<br />
program is likely to vault the Keystone State into<br />
preeminence as a national racing power.<br />
AND THERE’S STILL MORE<br />
The bounty that has begun flowing in Pennsylvania<br />
will be boosted substantially with news<br />
that HTA member The Meadows Racetrack and<br />
Casino, near Pittsburgh, has received approval<br />
from the Pennsylvania Gaming Control Board<br />
to enlarge its slots inventory by 40%. Already<br />
one of the most successful operations in the state<br />
(and country) The Meadows now will be able to<br />
offer 4,200 slot machines, instead of the 3,000 it<br />
originally planned for its new racino. The Control<br />
Board also approved a 1,050-car parking<br />
garage, which The Meadows will build instead<br />
of the hotel and spa originally planned. The expansion<br />
of the casino floor space in the facility<br />
now under construction, and scheduled to open<br />
in June 2009 at a cost of $155 million, will enable<br />
The Meadows to offer table games if those are<br />
legalized in the future. As it is, spokesman David<br />
La Torre said, “We’re involved in an intense<br />
competitive situation with West Virginia casinos<br />
that are only minutes away, so expanding our<br />
floor and adding additional machines is going<br />
to provide our visitors with more entertainment<br />
options.” The Meadows’ purse structure will<br />
zoom with the new machines next year, turning<br />
the track into a major racing power in the east.<br />
New Jersey legislators please note.<br />
JERSEY SLOTS FEEL PINCH<br />
Pennsylvania competition already has impacted<br />
Atlantic City casinos. The 11 in the beach resort<br />
reported a 9.9% decrease in play in March from<br />
a year ago. For the first quarter of 2008, they are<br />
down 6.4% from 2007. Everything is relative, of<br />
course. They still won $1.1 billion, so shed<br />
no tears for the AC boys.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 14, 2008<br />
RUNNING ACES <strong>OF</strong>F AND RUNNING Kuebler, who retired this winter, as promised,<br />
Running Aces Harness Park, the sport’s and when he equaled his hero Joe O’Brien’s 4,284<br />
HTA’s newest member, completed its first three victories, was California’s dominant driver for<br />
days of racing and simulcasting operations over years, winning 23 driving titles. Sacramento Bee<br />
the weekend, with an ingredient lacking in most racing writer Debbie Arrington reports that the<br />
locations nationwide: people. Large and enthusiastic<br />
crowds turned out, and the issue is not how second career as a screenwriter.<br />
personable and popular Kuebler has begun a<br />
much they bet. No one expects a high per capita<br />
in a new area, but the track has received solid OHHA WANTS INTERCESSION<br />
publicity in Minneapolis-St. Paul, and opened The Ontario Harness Horse Association has<br />
to a capacity crowd. Racing secretary Gregg asked the Ontario Racing Commission to help<br />
Keidel, on leave from Northfield Park, was able solve the problem of deterioration of racing<br />
to fill his first weekend eight-race programs, and at Windsor Raceway. OHHA members voted<br />
even paused to interview a distinguished local unanimously to ask the commission to sit in on<br />
guest and harness horse owner: former Minnesota<br />
Twins manager Tom Kelly. Bob Farinella, racing sliding down the tubes at the track across<br />
a public meeting to see what can be done about<br />
former general manager at Prairie Meadows and the river from Detroit. Windsor recently proposed<br />
reducing live dates from previously low-<br />
Vernon and Tioga Downs, is running the new operation,<br />
which opened with huge murals of the ered levels, and OHHA chief operations officer<br />
Minnesota-based racing hero of a century ago, John Walzak says, “Every meeting that we attend<br />
in Windsor I can sense the frustration and<br />
Dan Patch, a handsome interior decor, and a full<br />
service restaurant that won immediate praise for disappointment” of horsemen. One of them, the<br />
both food and service. The track, co-owned by veteran Mark Williams, was quoted in The Harness<br />
Edge as saying, “I couldn’t imagine that<br />
Southwest Casino Corporation and MTR Gaming,<br />
will have a card room with 50 gaming tables we would be racing for less total purse money<br />
after it completes 50 live days of racing. Running<br />
Aces will race through July 6.<br />
Something has got to change.” OHHA president<br />
now than we competed for before we had slots.<br />
Jim Whelan says he hopes the racing commission<br />
will attend an upcoming meeting “so that it<br />
can hear firsthand” from those affected.<br />
ARNOLD, KEUBLER HONORED<br />
Owner and former track operator Lloyd Arnold<br />
and trainer Rick Kuebler -- two men who played<br />
leading roles in modern California harness racing<br />
-- were inducted yesterday into the California<br />
Harness Racing Hall of Fame. Arnold has owned<br />
more than 2,500 pacers and trotters, including<br />
two world champions, and told the horsemen<br />
assembled at the ceremony in Sacramento that<br />
his greatest thrill there, where he ran the Cal<br />
Expo meeting some years ago, was giving away<br />
seven gold Cadillacs and a year’s supply<br />
of groceries. “We were a class B track,<br />
but I don’t think there ever was another<br />
track that tried that kind of promotion.”<br />
WHAT’S GOING ON HERE?<br />
That question, asked weekly in a featured column<br />
in The Blood-Horse, seems particularly appropriate<br />
now that century-old Fasig-Tipton sales<br />
company is being sold to Sheikh Mohammed bin<br />
Rashid’s Synergy Investments. The question becomes<br />
what happens to rival Keeneland’s major<br />
sales, where the Maktoums have been the principal<br />
customers? And will the combined Kentucky<br />
harness yearling sale be affected? Probably<br />
not. Bucks are bucks, even in Dubai.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
SILVER LINING FOR NYC OTB?<br />
The layoff notices have gone out, fulfilling the legal<br />
60-day notice to almost 1,500 New York City<br />
OTB employees that face losing their jobs June<br />
15. More than that, their president, Raymond<br />
Casey, has told them there is not enough cash in<br />
the cookie jar to pay accrued leave if they are<br />
fired. So it comes down, as it so often does in<br />
the state of New York, to the White Knight, Sheldon<br />
Silver, riding in at the last minute and rescuing<br />
the embattled troops. Silver is the majority<br />
leader of the New York Assembly, a very powerful<br />
man who reportedly is not a fan of New York<br />
City mayor Michael Bloomberg. If that is true,<br />
he can be expected to prolong the agony, but<br />
reports out of Albany say he does plan to meet<br />
with governor David Paterson soon to discuss<br />
the situation. One interesting possible solution,<br />
reported by Rick Karlin on the Albany Times<br />
Union’s timesunion.com, is to have NYC OTB<br />
pay the state and the New York Racing Association<br />
from net rather than gross profits.<br />
NEW YORK IS NOT ALONE<br />
New York is not the only gambling operation being<br />
negatively impacted by the nation’s business<br />
malaise. MGM Mirage is reported to be preparing<br />
to fire 440 management employees at both<br />
property and corporate levels, part of a process<br />
that MGM Mirage president and COO Jim<br />
Murren told the Las Vegas Review Journal would<br />
save the company $75 million a year. Those affected<br />
were notified of the layoffs yesterday, the<br />
paper said. Murren said business was improving,<br />
but “this was something, irrespective of the<br />
economy, that we needed to do.” He acknowledged<br />
there was “a parallel path occurring with<br />
the economy,” but said the management cutbacks<br />
amounted to less than a third of the total<br />
savings, the rest coming from cutbacks in<br />
contracts with outside consultants and<br />
vendors, including advertising.”<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 15, 2008<br />
Daily room rates are down an average 19% from<br />
a year ago on the Vegas Strip, and a Bear Stearns<br />
gaming analyst says he sees no early change, certainly<br />
not before the end of summer.<br />
Back east, Foxwoods Resort Casino reported a<br />
net slot win in March of $60.8 million, down $8.3<br />
million from a year ago. Foxwoods attributed<br />
the sharp drop to higher gas prices and concerns<br />
of a recession. It’s here, boys.<br />
BUT THE ISLE FLIES HIGH<br />
Things may be tough all over, but there are reasons<br />
to celebrate at The Isle, Pompano Park. After<br />
its first year, the Pompano racino is the most<br />
lucrative in Broward county, with yesterday<br />
marking the first anniversary of operation. The<br />
state reported it had more slots revenue than the<br />
other two racinos combined, the Florida Division<br />
of Pari-Mutuel Wagering listing the Isle with $99<br />
million, the Mardi Gras racino $62 million and<br />
Gulfstream Park with $30 million. One loyal patron,<br />
81-year-old Anna Hogan, was interviewed<br />
on the occasion of the anniversary, and provided<br />
a verbal commercial and endorsement for Pompano.<br />
“The movies have gotten too dirty and<br />
the beach can give you skin cancer, so I play the<br />
slots.”<br />
BUY THE BOOK AND PROMOTE<br />
This week’s Track Topics announces an HTA<br />
group purchasing plan for member tracks,<br />
where the association will purchase a quantity<br />
of copies of Charlie Leerhsen’s new book on Dan<br />
Patch, titled Crazy Good, the True Story of Dan<br />
Patch, the Most Famous Horse in America, and<br />
pass substantial savings on to members. The<br />
books then can be sold at track gift shops for the<br />
cover price, providing not only solid promotion<br />
for the sport but hopefully a little profit for<br />
the kitty.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 16, 2008<br />
BOOK <strong>OF</strong>FER TO HTA <strong>TRACKS</strong><br />
Charlie Leerhsen’s Crazy Good: The True Story<br />
of Dan Patch, the Most Famous Horse in America,<br />
will be released for sale by Simon & Schuster<br />
May 20. The book is a hardback with a cover<br />
price of $26. As a service to member tracks of<br />
HTA, and as a promotion for the sport nationally,<br />
HTA has acquired a supply of copies and<br />
is making them available to member tracks at<br />
$17, shipping included. We urge our members<br />
to avail themselves of this special offer by buying<br />
copies for your gift shops or general sale. We<br />
have read the book and it is superbly researched<br />
and written in Leerhsen’s breezy, entertaining<br />
style. He was a great writer when he worked<br />
for USTA 30 years ago, and his skills have increased<br />
over the years with his career as a writer<br />
and editor at Newsweek, People, US , author of<br />
popular books on major news figures including<br />
Donald Trump and test pilot Chuck Yeager, and<br />
of course in his present role as executive editor<br />
of Sports Illustrated. You can promote the book<br />
on your closed circuit television and in your advertising,<br />
and give harness racing and yourself<br />
the benefit of offering the most significant book<br />
published on the sport in modern times. Our<br />
skilled operators will be available to take your<br />
orders during every business day, although not<br />
24 hours a day as the mail cataloguers love to<br />
say. We will accept orders from HTA tracks by<br />
phone 520-529-2525, fax 520-529-3235, e-mail<br />
info@harnesstracks.com, or good old fashioned<br />
snail mail.<br />
ANOTHER VERNON ORDEAL<br />
Vernon Downs management was scheduled for<br />
another hearing today before the New York<br />
State Racing and Wagering Board, this time reportedly<br />
to discuss a $2,500 fine for demolishing<br />
a barn “without written approval of the<br />
board.” Micromanaging continues to be<br />
a pastime for racing boards and commissions,<br />
in New York and elsewhere.<br />
HOMEOWNERS SLOT REWARDS<br />
Reduction in school property taxes, one of the<br />
platform promises that enabled Pennsylvania<br />
governor Ed Rendell to get the slots bill passed<br />
four years ago, became a reality today. The<br />
state’s budget secretary, Michael Masch, says<br />
reductions of 10% will be reflected in the first<br />
state distribution of slots-funded tax relief this<br />
year. Masch says the exact amounts will vary by<br />
school districts, but will average $169 per household<br />
statewide, based on $661.4 million in slots<br />
revenue that he certified yesterday as available<br />
for tax relief. Part of the revenue available for<br />
this year’s tax reductions comes from the $50 million<br />
fee that 11 casinos paid to get their gaming<br />
licenses, and the rest from Pennsylvania’s 34%<br />
share of gaming revenues. Masch predicted the<br />
figure will reach $1 billion in 2012-13.<br />
MAJOR CASINOS SHARES FALL<br />
Share prices in major casino stocks fell yesterday,<br />
one day after MGM Mirage announced it<br />
was laying off 440 managerial and supervisory<br />
employees. The Las Vegas reviewjournal.com reported<br />
the gaming revenues on the Vegas Strip<br />
had fallen in three of the last four months. In<br />
Connecticut Foxwoods Resort Casino, also hit by<br />
the slump, announced it was retiring its 16-yearold<br />
Wampum Rewards Program and replacing<br />
it with a new one called the Dream Card, which<br />
will act as a debit card and provide points for<br />
playing slots, poker, keno, bingo and the race<br />
book at Foxwoods. The points can be redeemed<br />
for rooms, tickets to entertainment events, dining,<br />
spa treatments and merchandise at both<br />
Foxwoods and the MGM Grand in Las Vegas.<br />
EDDIE WHEELER DEAD AT 76<br />
Harnessracing.com reports the death of veteran<br />
trainer-driver Eddie Wheeler, 76. One of the first<br />
of the catch drivers, he drove stars like Cardigan<br />
Bay, Meadow Skipper and Duke Rodney.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
BIG PLANS FOR TIOGA DOWNS<br />
Tioga Downs, preparing for its third season that<br />
gets under way May 3, Derby Day, has an ambitious<br />
schedule of events planned. It will open<br />
a Summer Concert series on May 25 featuring<br />
Chubby Checker, with monthly concerts following.<br />
With the tax break that principal Jeff Gural<br />
worked so assiduously to get passed now in place,<br />
Tioga is again planning to go forward with its $45<br />
million, 100-room, six-story hotel, and according<br />
to general manager Pete Savage also is considering<br />
expansion of its casino if the New York state<br />
lottery commission approves. A covered parking<br />
garage, sewage treatment plant and convention<br />
center also are included in the track’s ambitious<br />
planning. “Financing in this economy is tough,”<br />
Savage told the Ithaca Journal. “It’s tough to<br />
find the money, but I’m confident that we will.”<br />
The track is holding a job fair today to interview<br />
full time and seasonal employees, and expects to<br />
raise the number from 260 to 300.<br />
WORK BEGINS IN MICHIGAN<br />
The first shovel has hit dirt in Michigan, where<br />
businessman and banker Jerry Campbell<br />
held a ground breaking ceremony for his<br />
dollar down, $142 million Pinnacle Race<br />
Track and retail development project.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 17, 2008<br />
ANOTHER BONUS ON BOOKS Wayne county sold Campbell and his associates<br />
Thanks to Ellen Harvey at Harness Racing Communications,<br />
HTA can offer an additional bonus land near Detroit’s Metropolitan airport for $1,<br />
more than a third of their 800 acres of prime<br />
on book orders for Charlie Leerhsen’s Crazy with a clause that if the track does not employ at<br />
Good: the True Story of Dan Patch, the Most Famous<br />
Horse in America. In addition to the dis-<br />
$50,000 an acre. Michigan does not allow raci-<br />
least 1,100 people by 2014 it will pay a penalty of<br />
counted price of $17 (cover price is $26) we will nos, and Campbell dismissed that lightly, saying<br />
provide free posters and Dan Patch bookmarks “I’m a horseman, not a casino guy. Putting in<br />
with all orders. The price break is offered to slots is not the objective here, and I can make it<br />
HTA member tracks only. Order your books without them.” He also plans a $5 million bonus<br />
for the owner of any thoroughbred that wins<br />
today from HTA for your gift shops or general<br />
sale, promote the sport, and make a few bucks his proposed Michigan Derby in April and Kentucky<br />
Derby in May. Campbell expects to open<br />
doing it.<br />
a temporary facility to return thoroughbred racing<br />
to Michigan July 18, with permanent seating<br />
next year.<br />
LOUD NO’S ON WIDE FRONT<br />
Legislatures and other governing bodies said no<br />
to gaming on a wide geographic front this week.<br />
In Alabama, the House refused to consider legislation<br />
to allow electronic gaming machines<br />
at dog tracks in Birmingham and Mobile. The<br />
proposed constitutional amendment lost a procedural<br />
vote before it could reach full debate.<br />
Proponents said they would try again.<br />
In Maine, the House failed to override a veto by<br />
Gov. John Baldacci of a bill that would have allowed<br />
the Penobscot tribe to operate 100 slots at<br />
a casino on their Indian Island reservation near<br />
Old Town. The House vote fell short of the twothirds<br />
needed to override the veto, with 94 members<br />
opposing and only 49 favoring override. The<br />
Penobscots, hit hard by Penn National’s nearby<br />
Hollywood Casino in Bangor, immediately announced<br />
they were severing relationships with<br />
the state and would operate as a sovereign nation.<br />
In Illinois, the Senate rejected, 35-15, a bill that<br />
would have exempted riverboat casinos<br />
from the state’s smoking ban.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 18, 2008<br />
HTA SELLS OUT, ORDERS MORE<br />
It took only two days for HTA to sell out of its<br />
initial group order of Charlie Leerhsen’s Crazy<br />
Good: the True Story of Dan Patch, the Most<br />
Famous Horse in America. We have reordered<br />
a far larger quantity and will receive all of the<br />
books at HTA on May 22, two days after the<br />
book is released by Simon and Schuster, and<br />
reship the $26 cover price hardcover to HTA<br />
tracks the same day or next, at $17 a book, free<br />
of shipping charges. Harness Racing Communications,<br />
meanwhile, will send free Crazy Good<br />
Dan Patch posters and bookmarks, immediately<br />
to all HTA tracks ordering the book. If you have<br />
not yet ordered your supply for your gift shops or<br />
special promotions, do so at your earliest opportunity.<br />
The book is strongly written and tough.<br />
Marion W. Savage, usually depicted as a hero in<br />
the Dan Patch story, is far from one in Leerhsen’s<br />
carefully researched work, and the horse’s<br />
best known driver, Myron McHenry, comes off<br />
as a drinking, arrogant, self-aggrandizing villain,<br />
who put his own profit far ahead of the national<br />
hero horse’s welfare. Dan Patch’s greatness<br />
rises above all around him, and Leerhsen,<br />
who spent two years traveling and studying the<br />
Dan Patch saga, and was caught up in it himself,<br />
tells how the amazingly durable pacer, brilliantly<br />
fast a century before others duplicated his<br />
times, became a national traveling attraction.<br />
The book is a fascinating narrative. It is likely<br />
to be controversial, but Leerhsen’s presentation<br />
of the facts, and skillful arrangement of them in<br />
well-written prose, will be hard to refute.<br />
TIGERAMA LAKE ERIE CHOICE<br />
Tigerama, a winner of $1.8 million and five<br />
straight in his native Canada, and Bono Bests,<br />
winner of five of his last six races, head a high<br />
quality field in tomorrow night’s $100,000 battle<br />
of Lake Erie at Northfield Park. Also in<br />
the field of eight are millionaire Western<br />
Ace, Booze Cruizin and KF St. Patrick.<br />
THE SECOND COMING<br />
Dan Patch has been dead almost a hundred years,<br />
but there were eerie echoes of him yesterday in<br />
Ontario, where the undefeated Somebeachsomewhere<br />
arrived from his Nova Scotia home, having<br />
trained in 2:02 so far in preparation for a return<br />
to the wars as harness racing’s potential savior.<br />
His principal owner and first and once-again<br />
trainer, Brent MacGrath, sounded remarkably<br />
like Dan Messner, Dan Patch’s original owner, as<br />
portrayed in Leerhsen’s Crazy Good, attributing<br />
human reactions “he was mentally prepared<br />
for the move and loves his work” and predicting<br />
the horse’s greatness. Photographers, cameramen<br />
and reporters were on hand, and if the<br />
colt remains as good as he was last year at two,<br />
or improves, harness racing may have its greatest<br />
hero since Niatross and Bret Hanover. One<br />
thing is certain: there is no more physically imposing<br />
horse in world harness racing today. Big<br />
and powerful, last year’s 2-year-old champion,<br />
with $773,296 on his card already, gleamed yesterday<br />
as photographers recorded his first sophomore<br />
shots. Whether he remains the unchallenged<br />
champion he was at two remains to be<br />
seen, but the public and sport will not have long<br />
to wait to find out. MacGrath plans to qualify<br />
next Friday at Mohawk, make his first start May<br />
17, and aim for the million dollar North America<br />
Cup in June. MacGrath called his colt “a true<br />
professional that never has had a bad day,” and<br />
says he thinks Somebeachsomewhere “is going<br />
to give the industry a boost.” He could be right.<br />
FREEHOLD BOOSTS PURSES<br />
New Jersey horsemen, already heartened by the<br />
3-year extension of the Atlantic City casino support<br />
bill signed into law by their governor, got<br />
more good news yesterday. Freehold general<br />
manager Don Codey announced a 5% acrossthe-board<br />
purse increase, even before the supplemental<br />
slot money becomes available.<br />
The boost starts next week.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
DON’T CELEBRATE JUST YET<br />
It appears that Michael Bloomberg, the mayor<br />
of New York, is not only a hugely successful media<br />
mogul but a sharp poker player as well. He<br />
played his Albany hand to perfection, and when<br />
he sent out 60-day potential dismissal notices<br />
recently to 1,500 New York City OTB employees,<br />
New York governor David Paterson, Senate<br />
majority leader Joe Bruno and Assembly<br />
speaker Sheldon Silver tossed in their cards, deciding<br />
Bloomberg wasn’t bluffing after all. They<br />
quickly began serious talks to give financial relief<br />
to the financially strapped NYCOTB. Bruno<br />
pushed a plan to have OTB defer its payments<br />
of $1 million a month to the state this month<br />
and next, relieving the pressure, and meanwhile<br />
hammer out a plan “that should include an alignment<br />
of the economic interests of the tracks and<br />
the OTBs in order to succeed.” The tracks can<br />
only hope he means what he says, and prevails,<br />
because that is not what New York City OTB is<br />
thinking. They want the alignment altered, so<br />
that they get more and the tracks get less. While<br />
concern was expressed for the OTB employees,<br />
nothing was said about those thousands whose<br />
livings depend in whole or in part on racing.<br />
The governor talked about “those 1,500 families<br />
and the broader economy” and about stabilizing<br />
OTB operations and “making them more profitable<br />
and productive” statewide. He also talked<br />
about “the cooperation of all affected parties.”<br />
We hope we’re wrong, but that sounds like political<br />
shorthand for “get it from the tracks.”<br />
KEEP BOOK ORDERS COMING<br />
HTA still has a supply of Charlie Leerhsen’s<br />
forthcoming book on Dan Patch ordered and<br />
available for late May delivery, at $17 each, including<br />
shipping. Let us know how many you<br />
want and we’ll earmark them for you and<br />
fire them out as soon as Simon & Schuster<br />
releases the book May 20.<br />
April 21, 2008<br />
HUSELIUS PICKS UP A MILLION<br />
The Harness Edge reports that Kristian Huselius,<br />
the forward for the Calgary Flames of the NHL,<br />
picked up a million bucks over the weekend,<br />
with two winning tickets on the V75 in his native<br />
Sweden. Huselius, who owns harness horses in<br />
Sweden, said he called his trainer, Bjorn Goop,<br />
Friday, and Goop told him one of the stable trotters,<br />
Global Investment, would race without<br />
shoes this weekend. Huselius liked the idea and<br />
built V75 tickets around the horse. There were<br />
seven winners on the giant pool, and Huselius<br />
held two of them, worth around a million U.S.<br />
Not a bad global investment.<br />
FIXED ODDS BACK IN NEWS<br />
We don’t like the name -- we far prefer our own<br />
designation of permanent odds -- but we like the<br />
concept, and have ever since the late Richard<br />
Carter, better known as author Tom Ainslie, told<br />
us 30 years ago that it was the bet of the future,<br />
and was doable. Australia has experimented with<br />
it, and yesterday the Hong Kong Jockey Club introduced<br />
the idea with its popular Jockey Challenge<br />
at Happy Valley. The Jockey Club says<br />
it has been working on the idea for a year, has<br />
tested it, and is confident the new concept will<br />
work and be accepted quickly by the huge racing<br />
crowds in Hong Kong. Jockeys are as popular<br />
as the horses in Hong Kong, and the Jockey<br />
Challenge offers 11 individual jockeys with fixed<br />
odds for the day’s program, and a 12th category<br />
for “Others.” If any jockey other than the<br />
11 named wins the challenge, based on a 12-6-4<br />
point award for first, second and third during<br />
the day, players backing the “Others” category<br />
win. Last week at Sha Tin, a hypothetical Challenge<br />
winner was listed at 15-1. Hong Kong’s<br />
leading jockey, Douglas Whyte, would have been<br />
favored yesterday, but was sidelined by a suspension<br />
for careless riding. In 57 previous hypothetical<br />
Challenges, Whyte would have<br />
won 21 times.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 22, 2008<br />
PALONE WINS 11 AT MEADOWS<br />
Dave Palone, who rules the drivers’ colony at<br />
The Meadows with an iron hand, and has won<br />
four HTA driving championships doing it -- in<br />
1999, 2000, 2003 and 2004 -- raised the bar to<br />
new heights yesterday at the western Pennsylvania<br />
track. Palone won 11 races on the 14-race<br />
Meadows card, the accomplishment hailed as<br />
the most ever on a single pari-mutuel race program.<br />
All 11 were under 2 minutes.<br />
KENO OK IN OHIO COMMITTEE<br />
The Ohio legislature’s 10-man Joint Committee<br />
on Agency Rule Review yesterday approved,<br />
without objection, requesting some $18 million<br />
for equipment to operate Keno games statewide.<br />
The stamp of approval came to Gov. Ted Strickland’s<br />
proposal to allow the machines wherever<br />
liquor is served -- including tracks -- an ironic<br />
development since Strickland ordered similar<br />
games removed from bars and elsewhere last<br />
winter and then led the successful fight to kill<br />
slots at Ohio’s racetracks.<br />
THE VERDICT: NO DEAL<br />
Georgia’s Supreme Court yesterday ended the<br />
quest of a group seeking to recover money from<br />
NBC for money they had spent on the network’s<br />
hit show “Deal or No Deal.” The losers had filed<br />
suit in federal court alleging that NBC’s Lucky<br />
Case Game, in which viewers were given the<br />
chance to join studio contestants in picking 1 of<br />
26 sealed suitcases containing money sums, up<br />
to a million dollars, violated state anti-gambling<br />
laws. The plaintiffs wanted NBC to reimburse<br />
them for multiple 99-cent text message calls.<br />
The court, in a unanimous decision, rejected the<br />
argument, saying there was no gambling consideration<br />
involved in the issue. A U.S. District<br />
Judge had asked the high court to help<br />
him interpret the statute. The decision is<br />
posted on HTA’s Web site.<br />
KEEP AN EYE ON DERBY ADW<br />
The stalled negotiations between the relatively<br />
new Thoroughbred Horsemen’s Group, representing<br />
18 racetracks, and TrackNet Media,<br />
representing Churchill Downs’ Twinspires.com<br />
and Magna Entertainment’s XpressBet, deserve<br />
serious attention from all of racing. THG wants<br />
one-third of all advanced deposit wagering in return<br />
for horsemen’s approval of ADW. Churchill<br />
Downs contends horsemen already gave their<br />
approval to the track selling ADW signals for the<br />
Kentucky Oaks, Kentucky Derby and Woodford<br />
Reserve Turf Classic Derby Day in an agreement<br />
negotiated in October, 2006. Churchill president<br />
Steve Sexton, faced with the upcoming Derby<br />
May 3, has asked the horsemen to honor those<br />
obligations “given the gravity and urgency of the<br />
situation.” The THG yesterday said it is seeking<br />
a special licensing agreement that would allow<br />
ADW signals for the Oaks and Derby, “with resulting<br />
proceeds shared fairly among horsemen,<br />
racetracks and account wagering providers.”<br />
The president of the THG, Bob Reeves, said such<br />
an agreement “would triple, at the very least, the<br />
expected account wagering handle and revenue<br />
for Churchill Downs and Kentucky horsemen.”<br />
Churchill also has problems with its Calder<br />
Race Course operation’s relationship with the<br />
Florida HBPA, which is withholding approval<br />
of Calder signals outside Florida. Sexton called<br />
that action “unfortunate” prior to settlement of<br />
the ADW issue. The president of the Kentucky<br />
HBPA, Rick Hiles, denied that horsemen would<br />
use “America’s most popular racing events as leverage.”<br />
The resolution of this dispute can have<br />
long range implications for racing.<br />
JIM SIMPSON ON HTA “WORLD”<br />
Jim Simpson, president of Hanover Shoe Farms,<br />
is the latest and current guest on HTA’s World in<br />
Harness Internet show on the HTA Web site,<br />
wwww.harnesstracks.com
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 23, 2008<br />
FACING BAN, PURSES CUT<br />
Calder Race Course, Churchill Downs’ Florida<br />
property, has announced that the refusal of the<br />
Florida HBPA to allow out-of-state simulcasting<br />
has forced the track to cut purses by 30%.<br />
Churchill’s executive vice president Steve Sexton<br />
said, “The Florida horsemen’s refusal to allow<br />
out-of-state wagering on Calder’s races has<br />
left us with no option but to cut purses now in<br />
order to offset the amount of handle both Florida<br />
horsemen and Calder will lose every day that<br />
Florida horsemen refuse to send Calder’s signal<br />
out of state.” Sexton said Churchill found the action<br />
hard to understand “when TrackNet Media<br />
Group, which negotiates simulcast sales for both<br />
Churchill Downs and Magna-owned racetracks,<br />
has nearly doubled the ADW host fee rate paid<br />
to horsemen in Florida compared to last year.”<br />
The Florida HBPA gave its permission to New<br />
York OTB facilities to carry Calder, but blocked<br />
all other betting on Calder outside of Florida.<br />
LET’S MOVE THE RACETRACK<br />
That’s what the owners of Monticello Raceway<br />
and New York developer Louis Capelli plan to<br />
do with Monticello Raceway, and this week they<br />
received the final community permission they<br />
need. The town board of Thompson, New York,<br />
approved the relocation of the track from Monticello<br />
to Thompson, the home of the storied old<br />
Concord Hotel, which Capelli and Empire Resorts,<br />
the owners of Monticello, plan to demolish<br />
and rebuild as part of a one billion dollar entertainment<br />
complex. Thompson town approval<br />
was necessary because “no one ever dreamed<br />
of putting a racetrack there, so that had to be<br />
amended to the site plan at the Concord Resort,”<br />
according to Thomson town supervisor Anthony<br />
Cellini. Capelli, meanwhile, upped his plan<br />
from a half-billion to a billion dollar project.<br />
The Concord site comprises 1,735 acres,<br />
so there is room for the track.<br />
SAVING THE AUTHORITY<br />
Restoring the regulatory mission of the Kentucky<br />
Horse Racing Authority, and finding a<br />
way to fund it, is getting a lot of attention in the<br />
Bluegrass. Governor Steve Beshear, foiled by<br />
his legislature in his plans for slots at tracks, introduced<br />
a budget that included a provision that<br />
would have prohibited the Authority from getting<br />
its money from the state’s smaller tracks,<br />
presumably including HTA member The Red<br />
Mile. Authority executive director Lisa Underwood<br />
announced there were no plans to do that<br />
in any event, saying, “We are very mindful some<br />
of the smaller tracks in particular are having<br />
budget difficulties, and we will definitely take<br />
that into account going forward.” Underwood<br />
said the governor has appointed a task force to<br />
provide long term solutions by December. Republican<br />
state senator Damon Thayer, however,<br />
says a task force is not needed since he plans to<br />
introduce legislation that would use a portion of<br />
pari-mutuel taxes to provide permanent funding<br />
for the Authority.<br />
GELLER KEEPS ON TRYING<br />
Steve Geller, racing’s point man in the Florida<br />
legislature who currently is minority leader of<br />
the state Senate, has guided a bill allowing round<br />
the clock poker on weekends and 18 hours a day<br />
on weekdays through the Senate. The measure<br />
also would allow Florida card rooms to host two<br />
televised high stakes poker tournaments a year.<br />
Geller says it makes no sense for slot machines to<br />
be open longer than card rooms. Senate approval<br />
by no means assures passage of the Geller bill,<br />
however, house speaker Marco Rubio, who opposes<br />
any gambling expansion, has not allowed<br />
the measure to go anywhere in his chamber. The<br />
Democratic sponsor of the bill in the House, Joe<br />
Gibbons, concedes that chances of the bill getting<br />
through the House are slim, given the<br />
speaker’s strong opposition.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 24, 2008<br />
MORGAN WINS 12,000TH RACE<br />
Tony Morgan, a four-time winner of Harness<br />
Tracks of America’s Driver of the Year award,<br />
added another milestone to his career last night<br />
when he won his 12,000th victory in the second<br />
race at Harrah’s Chester. Morgan drove a pacer<br />
named Fox Valley Impulse to join Herve Filion,<br />
Cat Manzi and Dave Palone as the only drivers<br />
to reach the lofty heights of 12,000 driving wins.<br />
Morgan dismissed the event lightly, calling it<br />
“another day at the office.” Another four-time<br />
HTA driving champion, Dave Palone, always<br />
a rampaging force at The Meadows in western<br />
Pennsylvania, won 11 races there on the 14-race<br />
card Monday night.<br />
BARACK, HILARY NOT ALONE<br />
Barack Obama and Hilary Clinton are not the<br />
only Democrats fighting tooth and nail. Maryland<br />
has its own set, in Gov. Martin O’Malley<br />
vs. state comptroller Peter Franchot. They share<br />
party affiliation, but hold widely different views<br />
on gaming. O’Malley wants slots, Franchot does<br />
not, and Franchot has toured the state like the<br />
presidential candidates did in Pennsylvania,<br />
seeking to defeat the slots referendum that goes<br />
before Maryland voters in November. The Baltimore<br />
Sun, commenting on the feud, said, “The<br />
public struggle could weaken the Democrats and<br />
embolden Republicans, who historically have<br />
fared best when the Democrats are split,” citing<br />
Spiro Agnew’s victory as governor in 1966. You<br />
do remember Spiro Agnew, don’t you? The Sun<br />
called the O’Malley-Franchot battle over slots<br />
“More than a split. You have a rupture.” For<br />
HTA’s Rosecroft Raceway, the November vote is<br />
critical. Rosecroft is not slated to get slots under<br />
the proposal, but obviously that could change<br />
later on. First, however, Maryland voters will<br />
have to make their wishes known, and the<br />
pugnacious Democrats, who apparently<br />
do not fear self destruction, fight on.<br />
MASS SLOTS HOPES NOT DEAD<br />
It’s a very long longshot, but Massachusetts<br />
tracks, particularly HTA member Plainridge<br />
Racecourse, still have a glimmer of hope at reversing<br />
the “no” decision engineered by House<br />
speaker Sal DiMasi. Their main hope lies in the<br />
efforts of the dean of the House, David L. Flynn,<br />
who wants racinos and is working hard to get<br />
them. An opponent, Richard Young, has used the<br />
old saw, “The tracks are dying anyway, unable<br />
to attract younger gamblers.” People need to<br />
question those statements and not allow them to<br />
go unchallenged, and one way of doing it would<br />
be to take Boston editors and writers and Young,<br />
DiMasi and other opponents on a trek to Pennsylvania,<br />
to see firsthand what is happening at<br />
Mohegan Sun at Pocono, Harrah’s Chester Casino<br />
and Racetrack, and The Meadows. While<br />
there, a trip to Harrington Raceway in Delaware<br />
would be worth the effort.<br />
BARNEY FRANK AS ALWAYS<br />
To make sure the Board of Governors of the<br />
Federal Reserve understand his concerns and<br />
plans, Rep. Barney Frank and three likeminded<br />
Congressional committee leaders fired off a letter<br />
to Ben S. Bernanke, chairman of the Federal<br />
Reserve. The letter concerned implementation of<br />
the Unlawful Internet Gaming Enforcement Act<br />
(UIGEA). A key paragraph reads, “Your agency<br />
and the Treasury have been struggling to issue<br />
these regulations, but as the hearing (of Frank’s<br />
Committee on Financial Services) made clear,<br />
the underlying statute makes your job extremely<br />
difficult, if not impossible. Given the many other<br />
priorities that are pending at your agencies, including<br />
the mortgage crisis, HOEPA, and UDAP<br />
rulewriting and many other issues, we believe it<br />
would be imprudent for you to devote additional<br />
agency resources to this Sisyphean task, especially<br />
as we intend to vigorously pursue legislation<br />
to prevent their implementation.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
CHURCHILL SUES HBPA, THG<br />
Churchill Downs, facing boycotts by horsemen’s<br />
groups as the Kentucky Derby approaches, has<br />
filed a federal lawsuit in the U.S. District Court<br />
for the Western District of Kentucky against<br />
the recently formed Thoroughbred Horsemen’s<br />
Group, and the Florida division of the Horsemen’s<br />
Benevolent and Protective Association. The suit<br />
charges violation of the Sherman Antitrust Act,<br />
and conspiracy in the case of the Florida HBPA,<br />
specifically in withholding consent for Churchill<br />
tracks sending signals to other tracks and OTBs<br />
out of the state of Florida. Churchill says the<br />
two groups have conspired to raise the price of<br />
simulcast signals and force acceptance of their<br />
demands by a joint boycott of sellers of signals. It<br />
is expected that Churchill will seek a temporary<br />
restraining order from the court prohibiting the<br />
THG, which says it represents 18 tracks, from<br />
interfering with simulcasts from Churchill to account<br />
wagering operators. Churchill president<br />
Steve Sexton says the company filed the suit, involving<br />
Churchill’s Calder Race Course operations<br />
in Florida and in the case of THG on a far<br />
broader stage, to protect the rights of interested<br />
parties. Sexton says the Florida HBPA and THG<br />
have acted despite Churchill’s doubling the host<br />
fee paid to the Florida horsemen who, through<br />
THG, are seeking one-third of revenues from account<br />
wagering betting. Churchill filed the suit<br />
unilaterally, although the boycott of signals affects<br />
its TrackNet operation and the Xpressbet<br />
operation of its TrackNet partner, Magna Entertainment.<br />
Signals from Magna’s Lone Star Park<br />
in Texas also have been blocked.<br />
CONDREN AT $100 MILLION<br />
Veteran Canadian driving star Steve Condren<br />
reached another milestone last night, going over<br />
$100 million in career earnings to become<br />
the eighth driver to do so.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 25, 2008<br />
The others are John Campbell, Mike Lachance,<br />
Ron Pierce, Catello Manzi, Jack Moiseyev, Luc<br />
Ouellette and David Miller.<br />
A BUCK GROWS TO $41.6 MIL<br />
We’re not planning to build a racetrack, but we<br />
are impressed by Jerry Campbell, the Michigan<br />
banker and thoroughbred owner who is. First<br />
he got Michigan racing commissioner Christine<br />
White to grant him a license, then got Wayne<br />
county to sell him 240 acres near Detroit Metropolitan<br />
Airport for $1 dollar. Now Michigan<br />
governor Jennifer Granholm has announced<br />
approval of $41.6 million in state and local “tax<br />
capture” to be used by the county’s development<br />
authority to help build the $72 million track. The<br />
largest portion of the tax capture will come from<br />
Wayne county which will be investing some $28<br />
million in public infrastructure funds for track<br />
and other developments in its long moribund<br />
Pinnacle Aeropark project. Campbell is the<br />
founder and former chairman of Republic Bancorp<br />
and now is chairman of Citizens Republic<br />
Bancorp, the largest bank headquartered in<br />
Michigan. He is developing the new track, Pinnacle<br />
Race Course, through his Post It Stables,<br />
having promised 2,300 construction jobs, 1,400<br />
new track jobs, and $1.5 billion in annual economic<br />
investment.<br />
PEOPLE IN RACING NEWS<br />
Youbet.com has announced the replacement of<br />
its interim CEO Gary Sproule, who is resigning,<br />
with its chairman, 40-year-old Michael Brodsky.<br />
Brodsky joined Youbet 10 months ago, became<br />
chairman in February, and now moves to CEO<br />
as well. In another development, Chris Tully,<br />
son of the late Phil Tully, has received the Chancellor’s<br />
Award from the State University of New<br />
York. Chris is graduating from Sullivan County<br />
Community College May 17 with high honors --<br />
a perfect 4.0 grade average -- and President’s<br />
List recognition. Congratulations!
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 28, 2008<br />
QUICK ACTION IN MINNESOTA<br />
Running Aces Harness Park, the nation’s newest<br />
racetrack, has received a warm welcome from<br />
the public and a generous reception from the<br />
media. Now it got a hug from the state legislature<br />
and governor of the state, Tim Pawlenty,<br />
with passage and signing of a new law allowing<br />
the track to offer simulcasts of all breeds. Still to<br />
come is approval of a simulcasting schedule by<br />
the Minnesota Racing Commission, which has<br />
so far extended nothing but a cordial welcome<br />
to the new track. Jim Druck, CEO of co-owner<br />
Southwest Casino Corporation, says, “We look<br />
forward to adding these additional races to the<br />
Running Aces entertainment package as soon<br />
as we can complete the approval process.” The<br />
track currently is offering live harness racing<br />
Friday, Saturday and Monday nights, starting at<br />
6 p.m., and Sundays at 3 p.m., and will add two<br />
Tuesdays in June to its April 11-July 6 run.<br />
IS THIS A TREND? HOPE SO<br />
HTA member Indiana Downs, embarking on its<br />
spring and summer thoroughbred meeting, has<br />
received healthy support from the betting public.<br />
Jon Schuster called the opening night crowd<br />
“unbelievable,” with good cause since total handle<br />
was up 45% from a year ago. The numbers<br />
follow on the heels of a very strong first quarter<br />
meeting at New Jersey’s Meadowlands, where<br />
all-source handle in March rose 18% over last<br />
year’s numbers and betting on the Meadowlands’<br />
harness product is up 10.4%. Total wagering on<br />
live Meadowlands racing is up 4.3%, including<br />
bets made at Monmouth Park and the NJSEA’s<br />
operating OTB in Woodbridge and through New<br />
Jersey account wagering. Another New Jersey<br />
OTB facility, in Toms River, opened last week.<br />
Back home in Indiana, HTA member Hoosier<br />
Park is gearing up for its eagerly awaited<br />
June opening of its glittering racino.<br />
NEW HTA DIRECTORY IS READY<br />
Harness Tracks of America’s 2008 World Racing<br />
Directory, the most comprehensive source of information<br />
of its kind, is off the presses and will be in<br />
the mail to HTA directors and officials this week. As<br />
usual, each member track also will receive extra copies<br />
for switchboard operators, secretaries and others<br />
needing information on tracks and racing agencies<br />
worldwide. Jennifer Foley compiled the new Directory<br />
from start to finish, a remarkable solo job, and<br />
Jen urges any corrections or late changes be sent to<br />
her at HTA.<br />
BLOOMBERG GROWLS AGAIN<br />
Making certain that it was loud enough to be<br />
heard in Albany, New York City mayor Michael<br />
Bloomberg reminded state legislators that he’s<br />
serious about closing down the city’s 50 or so<br />
OTB parlors by June 16. The New York Post<br />
reported that the OTB branch in the heart of<br />
the financial district at 17 John Street would be<br />
shuttered after Saturday’s Kentucky Derby, and<br />
next Sunday the branch at 333 Graham Ave. in<br />
Brooklyn will be closed after 34 years of operation.<br />
The John Street OTB handled $5.9 million<br />
last year, the Brooklyn location $5.3 million.<br />
THINK YOU HAVE TROUBLE?<br />
Track owners and operators learn quickly that<br />
trouble comes in all shapes and sizes, but Isle<br />
of Capri encountered something a little different<br />
this week. It closed its casino in Davenport,<br />
Iowa, yesterday afternoon as rain to the north<br />
sent the Mississippi River to flood heights dangerous<br />
to the Isle’s guests and staff alike. The<br />
Isle was continuing to offer gaming at its casino<br />
and hotel in Bettendorf, Iowa, which was not affected<br />
by flooding, and said it had adequate insurance<br />
to cover closing of the Davenport site.<br />
In Florida, a mini-rebellion against casino traffic<br />
by neighbors of the Hard Rock hotel, who are<br />
asking Dania Beach officials to close a VIP<br />
access road to the big Indian hotel/casino.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 29, 2008<br />
LEAVITT ON KY AUTHORITY<br />
Alan Leavitt, master of Walnut Hall Ltd., president<br />
of the Kentucky Standardbred Breeders Association,<br />
and one of harness racing’s most prominent<br />
and brightest activists, has been named to<br />
the Kentucky Racing Authority by Gov. Steve<br />
Beshear. Three other men and one woman have<br />
been appointed to fill vacancies or expired terms.<br />
Ned Bonnie, one of the most knowledgeable racing<br />
lawyers in America, will be joined by attorney<br />
Robert Beck Jr., breeder Elizabeth Lavin,<br />
and veterinarian Foster Northrop. Leavitt and<br />
Bonnie were appointed for three years, with their<br />
terms expiring Jan. 6, 2011.<br />
VERNON GETS OK, AND A FINE<br />
The New York State Racing and Wagering<br />
Board approved Vernon Downs’ racing season<br />
yesterday, and fined the track $20,000 for shutting<br />
down four days early last fall. The board<br />
claimed “blatant disregard for the rules of racing”<br />
and promised fines against individuals if a<br />
similar action occurred again. The attorney for<br />
the designated horsemen’s association of central<br />
New York was on hand, and said he would have<br />
liked a larger fine, which was the biggest the racing<br />
board could levy under existing law. The<br />
horsemen’s attorney said he would work to get<br />
the maximum fine raised.<br />
PALM BEACH NOT SO LUCKY<br />
The Florida Senate rose in expressed indignation<br />
yesterday, one member calling a proposal for a<br />
card room at the Palm Beach Kennel Club “disgusting<br />
and nauseating” with the body soundly<br />
rejecting the idea. It was not clear what triggered<br />
the dissent, but it sounded from this distance<br />
similar to the kind of personal spite problems<br />
that have plagued Vernon Downs. The senator<br />
who proposed the bill, which included a $360,000<br />
tax break, said after the vote, “There’s a<br />
lot of things nauseating around here, but<br />
my bill isn’t one of them.”<br />
HOPE YOU WEREN’T SHUT OUT<br />
If, after reading here yesterday that the Toms<br />
River OTB in New Jersey opened last week, you<br />
rushed down to place a bet last night, our apologies.<br />
It opened -- sort of -- last night, with the<br />
official opening to the general public at 11 this<br />
morning. Last night’s VIP opening was for some<br />
300 invited guests, of whom 200 or so showed<br />
up, according to the Asbury Park Press’s APP.<br />
com. Among those on hand were Don Codey,<br />
who runs Freehold Raceway, which operates<br />
the new facility; Assemblyman Ronald Dancer;<br />
and racing commissioner Anthony Abbatiello.<br />
Codey, pleased that he made good by five days<br />
on his vow to open Toms River before the Kentucky<br />
Derby, likened the event “to giving birth.”<br />
Some may have challenged his qualifications to<br />
comment on that, but he justified his remarks,<br />
saying, “You have this long wait, and finally you<br />
have something living and breathing and making<br />
people smile.” We’ll buy that, Don.<br />
AND SPEAKING <strong>OF</strong> WAITING...<br />
Those who have grown old waiting for politicians<br />
in New York to do something besides talk<br />
about a racino at Aqueduct Racetrack apparently<br />
will have something to show for it in their sunset<br />
years. The franchise for the slots at the Big<br />
A, separate from the racing, supposedly will be<br />
chosen by Gov. David A. Paterson and legislative<br />
leaders after two weeks of reviewing the applications.<br />
Those applying to run the racino include<br />
Australia’s Capital Play in partnership with the<br />
Mohegan Sun casino; Aqueduct Gaming, which<br />
includes Saratoga Harness Racing, Delaware<br />
North and Entertainment of Buffalo; and SL<br />
Green Realty of New York City, which plans to<br />
build a Hard Rock entertainment facility at the<br />
Queens site. In another development, the Racing<br />
and Wagering Board yesterday approved<br />
phone and Internet betting for tracks and<br />
OTB facilities.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
April 30, 2008<br />
THE CANADIAN CONFERENCE<br />
Another session of Standardbred Canada’s Wagering<br />
Conference was held yesterday in Montreal,<br />
with new faces but old refrains. Professional<br />
gamblers talked about high takeout and<br />
past posting, and about Betfair being the way to<br />
go, but Chuck Keeling, VP of racing operations<br />
for Great Canadian, tempered their usual plaintive<br />
cries by acknowledging problems with both<br />
but emphasizing they were a part of the problem,<br />
along with many other issues.<br />
One of them, integrity, or the lack thereof, threw<br />
a shadow over the proceedings from Ontario,<br />
where hard-hitting executive director John<br />
Blakney of the Ontario Racing Commission<br />
handed trainer Evzan Pindur a 10-year suspension<br />
and $40,000 fine for positive tests for darbepoetin-alfa,<br />
a potent, long-lasting form of Erythropoietin,<br />
better known as EPO. Also suspended,<br />
for an indefinite period of time while an investigation<br />
continues, is veteran Ontario trainer Bill<br />
Elliott, for a darbepoetin-alfa positive on the top<br />
flight performer Michelle’s Power, a winner of<br />
$1,107,201 with a mile mark of 1:50.1 owned and<br />
bred by Jeffrey Snyder of New York, and driven<br />
almost exclusively of late by Jody Jamieson.<br />
Blakney says that he may take additional action<br />
as the investigation unfolds. Both positives were<br />
discovered in out-of-competition testing, and<br />
both will result in the horses involved being suspended<br />
for 90 days under Ontario’s newly enacted<br />
drug rules.<br />
NEW CEO AT SCI GAMES.<br />
Joseph R. Wright Jr., chairman of Intelsat, an international<br />
provider of fixed satellite services, is<br />
leaving that post May 1 to join Scientific Games,<br />
and will become CEO when A. Lorne Weil<br />
retires from the post Dec. 30.<br />
KENN CHRISTOPHER RETIRES<br />
Kenn Christopher, the voice of the Office of Racing<br />
Commissioner in Michigan for 32 years, is retiring.<br />
Kenn, currently head of special projects<br />
and track liaison, has served for nine racing commissioners.<br />
After starting with Michigan tracks,<br />
he was hired Oct. 27, 1975 by then commissioner<br />
Fidele Fauri, and has served since under Frederick<br />
S. Van Tiem, Bill Ballenger, Bill Cahalan,<br />
Luke Quinn, Nelson Westrin, Annette Bacola, R.<br />
Robert Geake and the present Michigan racing<br />
commissioner, Christine White. Christopher will<br />
leave his post “in the next month or so,” and will<br />
be missed by media that he served candidly and<br />
faithfully for more than three decades. Always<br />
up, and rarely serious, he said in his retirement<br />
announcement that he was lucky to have had as<br />
much fun as he had and been paid for it, and that<br />
his announcement “was met with little reaction<br />
from ORC leadership and staff who couldn’t<br />
quite recall what Christopher did for the ORC.”<br />
Those who covered Michigan racing could recall,<br />
however, and HTA wishes Kenn the best of<br />
all things, including spending time with his kids<br />
and grandkids, beginning in June. When he was<br />
asked about other future plans, he couldn’t help<br />
resorting to the keenest sense of humor in the<br />
game. He mumbled something about, “A greeter<br />
at Wal-Mart.” Come to think of it, he would be<br />
terrific!<br />
CHRIS ROBERTS MOVES UP<br />
Chris Roberts, who has been Director of Operations<br />
at Georgian Downs in Innisfil, Ontario, has<br />
been promoted to Director, Racing Operations<br />
Ontario, by Great Canadian Gaming Corporation.<br />
Chris will oversee all racing and business<br />
development at Georgian Downs and Flamboro<br />
Downs, Great Canadian’s Ontario tracks. The<br />
company also operates Fraser Downs, Hastings<br />
Racecourse and Sandown Park in British<br />
Columbia.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
May 1, 2008<br />
NJ <strong>TRACKS</strong> ASK FOR SHOW LIMIT A SWAP MEET IN CANADA<br />
New Jersey track operators asked the state’s Standardbred Canada, concerned about deep<br />
racing commission yesterday to place a $10,000 drops in betting north of the border, has named<br />
limit on show bets, and gained permission to increase<br />
admission and parking fees at Monmouth SC will gather the input of speakers at its suc-<br />
five committees to address key issues in racing.<br />
Park’s upcoming summer meeting. Vice president<br />
Bob Kulina, speaking for the New Jersey the committees in their work. The five commitcessful<br />
Wagering Conference this week to help<br />
Sports and Exposition Authority, told the commission,<br />
“Costs have escalated. We’re trying to<br />
tees and their assigned chores are:<br />
RESEARCH: To initiate a national and international<br />
fact finding mission of studies already<br />
do the best we can, keep up and over our costs.<br />
We still have the most reasonable entertainment<br />
undertaken to isolate who the customer and potential<br />
customer is, and establish what he/she re-<br />
venue prices in the state,” a fact supported by<br />
a recent HTA survey of prices of other major<br />
quires from the racing industry. (Ed. note: Better<br />
sports. On the show bet limit, Freehold Raceway<br />
include past customers who no longer patronize racing.)<br />
requested a $10,000 ceiling to curb minus pools<br />
DISTRIBUTION: To look at new models for the<br />
arising from big bettors’ action, particularly in<br />
exponential growth of distribution channels that<br />
fields with prohibitive favorites. NJSEA senior<br />
could potentially offer Canadian harness racing<br />
vice president, Dennis Dowd, told his former<br />
betting products to the public.<br />
commission colleagues that tracks have to “reallocate<br />
as much as $25,000 to pay off winning<br />
NATIONAL POOLS AND PRODUCT DEVEL-<br />
OPMENT: To look at a comprehensive model<br />
show bets on such occasions,” and Freehold racing<br />
secretary Peter Koch said the track “often in<br />
aimed at creating wagering opportunities that<br />
utilize Canadian racetracks. (Ed. note: As mentioned<br />
the past has been victimized by extremely large before, the committee better think in broader terms, working<br />
with U.S. tracks, if it has a chance of accomplishing its<br />
show bets that adversely affect us and purse accounts.”<br />
He said he did not think it possible to objective on this one.)<br />
catch all situations where this might occur, and CANADIAN BETTING EXCHANGE: To explore<br />
potentially offering Canadian Standard-<br />
that Freehold would prefer having a limit. The<br />
board indicated it would work on relief. bred horse wagering through a betting exchange<br />
TAKING ON A BUREAUCRAT<br />
Jeff Gural, the main man at Vernon Downs and<br />
Tioga Downs, is unhappy with New York Racing<br />
and Wagering Board chairman Daniel Hogan.<br />
Gural says Hogan insulted him personally<br />
in announcing a $20,000 fine for closing his<br />
Vernon meeting four days early last fall. Gural<br />
told the Utica Observer-Dispatch, “I’m proud of<br />
the fact that we reopened Vernon and contributed<br />
$25 million to the state for education, and I<br />
don’t need to be lectured by Dan Hogan.”<br />
Gural said Hogan “made it sound like we<br />
did this because we’re a bunch of crooks.<br />
I’m very angry and personally insulted.”<br />
program.<br />
RACING PRODUCT DEVELOPMENT: To<br />
look at the on-track product and explore areas<br />
of potential development on a national scale.<br />
In a release explaining this ambitious program,<br />
SC acknowledged, “The Standardbred Wagering<br />
Action Plan requires active participation<br />
from all segments of the industry, and this<br />
week’s conference offers great encouragement<br />
that real change can occur for the future of racing<br />
in this country.” We add more, by saying<br />
Harness Tracks of America, on behalf of its Canadian<br />
members, will be happy to join the<br />
effort.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
SPORT GETS ANOTHER BOOST<br />
On the eve of release of Charlie Leerhsen’s Crazy<br />
Good: the True Story of Dan Patch, the Most<br />
Famous Horse in America, comes another media<br />
development that will bring further recognition<br />
to harness racing. The Public Broadcasting<br />
Services is going national with a three-part<br />
documentary produced by WGBY, its affiliate in<br />
Springfield, Massachusetts, on Currier & Ives<br />
lithographs. The station produced the documentary<br />
following news coverage in the Boston Globe<br />
and New York Times of Sid and Lennee Alpert’s<br />
decision to have their Currier & Ives collection<br />
remain on permanent display in the Springfield<br />
Museum. The Alperts began collecting Currier<br />
& Ives in 1965, after Mr. Alpert, then doing video<br />
work for Maywood Park in Chicago, contacted<br />
Stan Bergstein with an inquiry: are Currier &<br />
Ives prints worth collecting? He had found one<br />
in an antique shop near the HTA office, and Stan<br />
told him, “Buy it, and if you don’t want it bring<br />
it here.” Alpert bought it, but kept it, and added<br />
almost 1,400 more over the years, most but not<br />
all trotting prints, before exhibiting a small display<br />
at the Harness Racing Museum in Goshen<br />
and sending the huge collection to a permanent<br />
home in Springfield. Because the prints depict<br />
a half-century of the development of American<br />
history, the Alperts feel they have preserved a<br />
unique slice of Americana for posterity.<br />
NOT BETTER THAN PHILLY<br />
We’re not sure if it is true, but an oft-repeated<br />
report is that the old comic actor W. C. Fields<br />
had his tombstone engraved with, “Better Here<br />
Than Philadelphia.” There is room for argument<br />
now, as burghers in Benjamin Franklin’s<br />
town begin receiving $613 million in property tax<br />
relief from slots at the state’s five tracks. Homeowners<br />
in the Philadelphia suburbs will receive<br />
another $139.2 in tax reductions. The average<br />
property tax reduction in the Philadelphia<br />
area from this first distribution<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
May 2, 2008<br />
of slots benefits will be $254, ranging from $623<br />
in Chester Upland in Delaware county to $75 in<br />
Upper Merion in Montgomery county. In addition,<br />
there will be a reduction of $86.5 million<br />
in wage-tax relief for Philadelphia, 37 suburban<br />
Philadelphia school districts will get an additional<br />
$17 million to make up for wage taxes their<br />
residents pay in Philadelphia. No one in Philadelphia<br />
is calling slots evil. One school board<br />
member told the Philadelphia Inquirer, “Maybe<br />
we can put it together with the federal tax rebate<br />
and we’ll be able to fill our gas tanks for a couple<br />
of months.”<br />
JUSTICE PREVAILS IN ILLINOIS<br />
A year and a half after the fact, it turns out<br />
that the late pacing star Holborn Hanover and<br />
Jereme’s Jet, both million dollar pacing winners,<br />
tested positive for pyrilamine after victories<br />
in major races in Chicago. harnessracing.<br />
com reports that a hearing is to be held May 13<br />
on the matter, and that Holborn Hanover’s victory<br />
positive in the $203,000 American-National<br />
at Balmoral Park Aug. 26, 2006, was followed by<br />
a redistribution of the purse, with Lis Mara declared<br />
the official race winner, and a $2,500 fine<br />
for trainer Brett Robinson. Owners John Fielding,<br />
Doug Hyatt and Albert Imbroglio lost the<br />
$97,440 winner’s share briefly won by Holborn<br />
Hanover. Veteran Chicago trainer Tom Harmer<br />
also was fined $2,500 for a pyrilamine positive on<br />
Jereme’s Jet in the $250,000 Windy City Pace of<br />
Nov. 17, 2006. USTA records do not reflect any<br />
purse redistribution, according to harnessracing.<br />
com the Web site of The Horseman weekly.<br />
BET DERBY, BUT NOT HERE<br />
That was the word put out by TwinSpires.com.<br />
Churchill Downs’ ADW wagering site, yesterday.<br />
The service notified customers to bet elsewhere<br />
after horsemen refused to allow Churchill<br />
to send signals today and tomorrow.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
May 5, 2008<br />
THE ONCE-A-YEAR MORALISTS<br />
The boys and girls who write about horse racing<br />
once a year, for big papers and small, with<br />
knowledge or without, were in full-throated cry<br />
this past weekend over the accident and death<br />
of the filly Eight Belles, who outran 18 colts and<br />
then stumbled after the finish and fractured<br />
both front ankles in the Kentucky Derby. PETA<br />
-- People for the Ethical Treatment of Animals<br />
-- wanted the filly’s jockey, Gabriel Saez, suspended,<br />
saying Eight Belles was “doubtlessly<br />
injured before the finish.” Her trainer, Larry<br />
Jones, noted that she crossed the finish line with<br />
ears pricked, hardly the sign of a horse in distress.<br />
The mournful dirge swept from coast to<br />
coast, the contention being that the filly had run<br />
herself to death finishing second in America’s<br />
greatest race. Had she not stumbled, she would<br />
have been heralded as an equine heroine, with<br />
young girls everywhere writing notes and sending<br />
flowers. We wait impatiently for the columns<br />
on the martial arts, the most disgraceful display<br />
of legalized human behavior, or on professional<br />
boxing, or for that matter on professional football<br />
and the permanent injuries it produces. We<br />
have owned horses that fractured ankles, and<br />
with other assorted injuries, and as tragic as they<br />
are they occur as the result of accidents, not as<br />
an integral part of the sport, as in the full contact<br />
games humans play. If the same remorse were<br />
shown over hockey goons battering one another<br />
over the head or gouging one another with sticks<br />
or knocking one another the rails, it might carry<br />
some legitimate weight. There obviously have<br />
been too many catastrophic injuries in major<br />
races televised nationally -- the game has been<br />
lucky getting charismatic horses like Big Brown<br />
but dismally unlucky with its full view track disasters<br />
-- but to lash out at the sport and all in it<br />
for the kind of accidents that send skiers<br />
to crutches seems not only unfair but illogical.<br />
A REAL CONCERN UNCHECKED<br />
Nick Zito, who represents the absolute best in<br />
thoroughbred racing as a trainer and a person,<br />
spoke out last week about flawed characters in<br />
his game. We have shared that deep concern in<br />
ours, and in our view things are getting worse,<br />
not better. Last week it was learned that two of<br />
the sport’s top horses, the late Holcomb Hanover<br />
and Jereme’s Jet, both millionaire winners, had<br />
won major races in Chicago and then tested positive<br />
for a banned substance. One of Canada’s<br />
best known trainers, Bill Elliott, was barred<br />
from Woodbine’s tracks last week after a positive<br />
finding by the Ontario Racing Commission.<br />
Zito commented on this, saying it is imperative<br />
to improve testing not only to punish the guilty<br />
but “to prevent reputations from being ruined<br />
and careers tarnished.” Racing will have to bite<br />
the bullet on the cost of testing. Either that, or<br />
face the music when the major scandal hits. And<br />
it will, sooner or later.<br />
NORTHVILLE SUES STATE<br />
Northville Downs, along with other racing interests<br />
facing sharp declines in betting in Michigan,<br />
have sued the governor and state attorney,<br />
charging that state restrictions on video lottery<br />
terminals at tracks, while allowing them at casinos,<br />
violates the U.S. Constitution. Phillip Maxwell,<br />
the attorney for the plaintiffs, told the Detroit<br />
News, “Without legislative relief, you will<br />
see the end of horse racing in Michigan within<br />
three years.” Gov. Jennifer Granholm’s office<br />
said the governor had not been served with the<br />
suit as yet and could not comment. Attorney<br />
General Mike Cox’s office said they are reviewing<br />
the lawsuit.<br />
QUINELLA, MUSTARD ON DOG<br />
MTR Gaming’s Presque Isle Downs raised the<br />
bar Saturday, introducing drive-thru betting at<br />
the track from 10 a.m. to 6 p.m. on Derby<br />
Day.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
May 6, 2008<br />
NOW ITS OTB VS. RACING BD<br />
The six regional OTBs in New York State are unhappy<br />
with the Racing and Wagering Board for<br />
allowing advance deposit customers to do business<br />
with out-of-state operators. The policy was<br />
granted by the racing board after the New York<br />
Racing Association had asked for it, requesting<br />
approval for Youbet and Twin Spires to carry<br />
their signal as well as TVG. Racing board chairman<br />
Daniel Hogan said at the time of approval<br />
in January that people liked the NYRA signals<br />
and NYRA wished to maximize its simulcasting<br />
revenue. The OTBs contend the opening of outof-state<br />
accounts has distorted the “level playing<br />
field” which plagues all of racing these days.<br />
FLORIDA REJECTS SLOT BILLS<br />
Bloodhorse.com reports that hopes for more betting<br />
in Florida were dashed in the legislature,<br />
which adjourned for the year after the Senate<br />
passed two bills that would have done that, but<br />
the House ignored the legislation during the twomonth<br />
session. Marco Rubio, the anti-gambling<br />
Speaker of the House, never placed the bills on<br />
the calendar, despite state revenue shortfalls.<br />
One of the bills would have reduced taxes on slots<br />
from 50% to 35%, in Miami and Broward counties.<br />
The other would have allowed electronic<br />
video slots at tracks throughout the state. The<br />
legislature also declined to toughen rules that<br />
would have imposed more stringent conditions<br />
on operation of quarter horse tracks. Frank<br />
Stronach’s Magna Entertainment plans a quarter<br />
horse facility near Orlando, one of six applicants<br />
for such licenses. Florida exempts quarter<br />
horse racing from distance requirements from<br />
other tracks in any county where pari-mutuel<br />
racing is legal, and provides them with live racing<br />
only once a year, a requirement that enables<br />
them to operate year-round card rooms.<br />
The last quarter horse racing in Florida<br />
was a 1990s meeting at Pompano Park.<br />
UNITED REIMBURSES OTB<br />
An operator error in programing by Youbet’s<br />
United Tote resulted in a betting glitch at Capital<br />
OTB on Kentucky Derby day, and United president<br />
Jeff True says the company will reimburse<br />
Capital for the shortfall created by the inability<br />
of patrons to bet. Capital president and HTA director<br />
John Signor says “any number that would<br />
have been generated on a typical Kentucky Derby<br />
day will be made up, and the counties will get<br />
their money.” Signor says some $2.6 million had<br />
been bet at the time the computer crashed, and<br />
that a normal Derby day handle would hit $3<br />
million or $3.1 million. True said United would<br />
“look at a comparable day, do the calculation<br />
and settle on a number” that it would reimburse<br />
Capital. To soothe savage beasts, Capital will issue<br />
free Daily Racing Forms, which sell for $5.50<br />
a crack, to its patrons on Preakness Day. United<br />
also has the contract for NYRA and Churchill<br />
Downs, and served 150,000 customers without<br />
incident at the track on Derby Day. True said the<br />
Capital mishap “was operator error in failing to<br />
completely prepare for that day.”<br />
PENN NATIONAL IN KANSAS<br />
Penn National Gaming has expanded its holdings<br />
once again, gaining approval from the Kansas<br />
Lottery to build the first casino in the state.<br />
The approval is for the southeast zone of the state<br />
only -- rivals are fighting over three other zones<br />
-- and the lottery approval still must be ratified<br />
by a special casino selection committee in Topeka.<br />
Penn National plans to build a $225 million<br />
casino with 900 slots, expandable to 1,500, and<br />
some 30 table games. A 225-seat buffet will be<br />
built immediately, along with a coffee shop, bar<br />
and gift shop. Future plans call for a possible<br />
200-room hotel, a car museum and a 1,750-seat<br />
events center. Projected opening date is May,<br />
2010.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
AN AUSPICIOUS BEGINNING<br />
The foremost weapon in the fight against illegal<br />
medication in this country to date is out-of-competition<br />
testing, where horses can be tested anywhere,<br />
anytime, not merely in the confines of a<br />
racetrack. It began in New Jersey late last year,<br />
and in Delaware, and yesterday the New Jersey<br />
Attorney General, Anne Milgram, and executive<br />
director of the racing commission, Frank Zanzuccki,<br />
announced the first hammer had fallen.<br />
Racing commission investigators visited Winner’s<br />
International Farm in Chesterfield, Burlington<br />
county, and drew fluids from six horses<br />
trained by one Ernest Adam and owned by Dr.<br />
Stephen C. Slender, a veterinarian who some<br />
months ago was asked to leave the Sacramento<br />
Harness Assn. meeting at Cal-Expo on the west<br />
coast. The six horses -- Art Maker, Jeremy’s Successor,<br />
Jovial Joker N, JW Dutch Treat, Pacific<br />
Playboy and Western Mac -- had been racing recently<br />
at Harrah’s Chester, Freehold, the Meadowlands,<br />
Saratoga and Empire City at Yonkers,<br />
and all reportedly tested positive for the performance<br />
enhancer Erythropoietin-Human, or<br />
EPO. They have been declared ineligible to race<br />
in New Jersey, and Adam and Slender are being<br />
issued Notices of Hearing that list their alleged<br />
rule violations. Violations of New Jersey testing<br />
rules are punishable by a 10-year suspension<br />
and $50,000 fine.<br />
THE END FOR HAROLD PARK<br />
Historic Harold Park, the century-old harness<br />
track that has been part of the racing scene in<br />
Sydney, Australia’s largest city, since 1902, appears<br />
to have reached the end of the line. Located<br />
on highly desirable and very valuable land<br />
in central Sydney, its value as real estate is estimated<br />
at more than $150 million, and an independent<br />
report commissioned by the New<br />
South Wales Harness Racing Commission<br />
has overwhelmingly advised the sale.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
May 7, 2008<br />
If the 700 members of the Harold Park club approve<br />
the sale in July after three informational<br />
seminars, the track at Glebe could be sold in August.<br />
Training miles began this week at a new,<br />
1,400-meter world class facility at Menangle<br />
Park, and was greeted with enthusiasm by trainers,<br />
drivers, administrators and bettors, who<br />
think it has a chance to boost New South Wales<br />
racing to a new position of preeminence in Australia.<br />
Rex Horne, chairman of Harness Racing<br />
New South Wales, thinks purses will double if<br />
Harold Park’s sale is approved. “If your average<br />
race is worth $15,000, it would go to $30,000, and<br />
the Derby would go from $100,000 to $200,000.”<br />
Trainer and former race caller Johnny Tapp<br />
called the new Menangle Park track “unlike<br />
anything I have experienced in decades in harness<br />
racing,” saying he was “absolutely bowled<br />
over by it...it is wonderful and the sooner we are<br />
here full-time the better.” The new track will<br />
open officially on June 27, offering seven Group<br />
One races and more than $700,000 in purses.<br />
MORE ON PBS CURRIER SHOW<br />
The documentary produced by WGBY-TV in<br />
Springfield, Massachusetts, has won overwhelming<br />
approval from American Public Television’s<br />
member exchange service, and will be seen nationally<br />
“from Topeka to Tucson, Seattle to<br />
Syracuse,” this summer. WGBY’s general manager<br />
Russell J. Peotter, explained, “If you get a<br />
minimum of 25 votes from affiliates it warrants<br />
being shown nationwide, and American Public<br />
Television puts it up on the satellite. We got 90,<br />
including New York and Boston.” Stations in<br />
other large markets, including Los Angeles and<br />
Philadelphia, also have agreed to show the documentary,<br />
called “Currier and Ives: Perspectives<br />
on America.” The hour and a half show, in three<br />
half-hour segments, highlights the huge collection<br />
of former harness racing video producer<br />
Sid Alpert and his wife Lenore, which was<br />
sold to the Springfield Museum.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
May 8, 2008<br />
BIG NEWS AND BIG NUMBERS<br />
New Zealand’s greatest superstar pacer since<br />
Cardigan Bay -- the brilliant 3-year-old pacing<br />
colt Auckland Reactor, undefeated in 11 starts --<br />
has been sold to North American interests for a<br />
figure between $3.2 million and $4 million. A son<br />
of Mach Three, the same sire that has produced<br />
North America’s undefeated Somebeachsomewhere,<br />
Auckland Reactor will race the remainder<br />
of this season Down Under, and then will be<br />
shipped to North America for campaigning as<br />
a 4-year-old in major events for older horses.<br />
Should the two Mach Three offspring continue<br />
on their present course, it will provide a dramatic<br />
backdrop for the entire 2009 racing calendar.<br />
The new owners are a syndicate of nine owners,<br />
including of course Jerry Silva, who has been buying<br />
into seemingly every top horse in the sport.<br />
Others in the partnership are Canadians R. Peter<br />
Heffering, Dr. Michael Wilson, Tom Kryon,<br />
Bill Loyens, Doug Millard and Irving Storfer,<br />
and American Carol Beneke and Australian<br />
Gary Lyons. John Curtin, managing director of<br />
J. S. International, brokered the sale, the largest<br />
amount ever paid for a racing 3-year-old. In<br />
his last start, on April 26, Auckland Reactor won<br />
the mile and three-quarter Southern Supremcy<br />
Stakes in Invercargill with a dazzling final half<br />
in 54 seconds and last quarter in 25.9 seconds.<br />
Trained by standout trainers Mark Purdon and<br />
Grant Payne, the colt was sold by his breeders,<br />
Tony and Anne Parker. Purdon and Payne will<br />
train him through the ending of the New Zealand<br />
season the 31st of this month, then will pick<br />
him up until he returns to the track in October.<br />
Down Under seasons, of course, are the opposite<br />
of North America’s racing calendar. His connections<br />
hope to race him in the InterDominion<br />
series in March of 2009, then ship him to North<br />
America for major stakes engagements at<br />
the Meadowlands and Woodbine before<br />
retiring him to stud.<br />
KEN HORNICK IN TROUBLE<br />
Ken Hornick, a familiar name in Ontario harness<br />
racing and a former employee of both<br />
Woodbine Entertainment and Standardbred<br />
Canada, has been charged with 13 counts of possession<br />
and sale of controlled substances to participants<br />
in racing. The Ontario Racing Commission’s<br />
industry-funded Equine Medication<br />
Control and Drug Task Force, comprising commission<br />
investigators, members of the Ontario<br />
Police Illegal Gambling Unit, and Peel Regional<br />
Police Service, raided Hornick’s home in Mississauga<br />
last December and confiscated quantities<br />
of controlled drugs and adulterated, unlabeled<br />
substances. After months of follow-up investigation<br />
and drug testing and analysis, it has been<br />
confirmed that a number of the items seized<br />
are in fact illegal substances. Racing commission<br />
deputy director Rob McKinney, commenting<br />
on the bust, said, “Regrettably, some few<br />
individuals, motivated by greed and a mistaken<br />
belief they can escape justice, not only break<br />
the rules of racing but cause harm to the horse<br />
and tarnish the reputation of thousands of hard<br />
working people who play by the rules every day.<br />
Through the support of the Task Force, that<br />
community wants to work together to solve and<br />
prevent these problems, to root out, expose and<br />
punish those individuals.” Task force members<br />
are continuing their investigation into the activities<br />
of Mr. Hornick and any known associates<br />
in racing, and further regulatory action may be<br />
taken. Hornick is to appear in Provincial Court<br />
in Brampton, Ontario, to face the charges June<br />
5. This is not the first time Hornick has been in<br />
trouble. He was in the news four years ago during<br />
a commission hearing about positive drug<br />
tests on horses trained by Bill Robinson, when<br />
Hornick admitted he had hacked into the personal<br />
e-mail of Hugh Mitchell, then a Woodbine<br />
official and now chief operating officer of<br />
Western Fair and president of HTA.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
May 9, 2008<br />
LET THE GAMES BEGIN<br />
The harness racing stakes season gets underway<br />
in earnest tomorrow with the $185,000 Dexter<br />
Cup for 3-year-old trotters at Freehold Raceway<br />
and the $215,000 Berry’s Creek for 3-yearold<br />
pacers at the Meadowlands. Trainer Jimmy<br />
Takter sends out the favored Holiday Credit in<br />
the Dexter, a race that in the past has sent out<br />
future standouts such as Hambletonian winners<br />
Armbro Goal and American Winner and the<br />
top performer and sire SJ’s Caviar. The Berry’s<br />
Creek, which has produced star winners<br />
like Cams Card Shark, Mach Three and Artistic<br />
Fella in past editions, has an interesting full field<br />
that includes Mucho Sleazy, Bullville Powerful,<br />
Art Official and Pro Art. In a $40,000 open trot<br />
at Harrah’s Chester with international implications,<br />
Peter Kleinhans’ Enough Talk cruised to a<br />
1:53.2 victory for Tim Tetrick and set the stage<br />
for a possible trip to Stockholm for the Solvalla<br />
Elitlopp, one of world trotting’s great races, at<br />
the end of the month.<br />
THE TIDE BEGINS TO TURN<br />
The ranting and raving over the death of Eight<br />
Belles in the Kentucky Derby continues, the latest<br />
blast being a Michigan Public Radio tirade<br />
calling for the end of racing. Some writers<br />
who know the game, however, are rebelling at<br />
the once-a-year moralists. Jeremy Plonk, writing<br />
for ESPN, called them the “cup-of-coffee”<br />
crowd, and today Ray Kerrison of the New York<br />
Post lowered his powerful guns on them. In a<br />
column titled “Filly’s Phony Friends,” Kerrison<br />
called the media treatment of the Eight Belles<br />
story and “the blanket condemnation of everyone<br />
and everything associated with her so unjust<br />
it amounts to a high tech lynching.” Kerrison<br />
notes that there is “not a speck of evidence, visual<br />
or veterinary,” to support the contention<br />
of PETA that she was injured before the<br />
finish line. “In fact, she ran to the wire,<br />
full of vigor.”<br />
IT’S A JUNGLE OUT THERE<br />
Economists can call it what they will, a downturn<br />
or adjustment or just plain recession, but<br />
times are tough in the gambling industry. First<br />
quarter reports from major casino companies<br />
are uniformly down. Trump Casinos reported<br />
a loss of $18.6 million, or 59 cents a share, on<br />
its three Atlantic City properties, with revenues<br />
down 3%. EBITA -- Earnings before interest,<br />
taxes, depreciation and amortization -- dropped<br />
29.5%. Slots revenue was down 2.9%, which<br />
Trump spokesmen called encouraging since their<br />
competitors in Atlantic City were down 9.9%.<br />
The company said its quaintly named Chairman<br />
Tower, named for guess who?, which offers penthouse<br />
suites, was “exceeding expectations.” In<br />
an interesting sidebar, the company said a spate<br />
of bad luck at the tables cost it $5.3 million in<br />
revenue in table games. Other casinos fared no<br />
better. MGM Mirage in Vegas suffered a 30%<br />
decline in first quarter profit. Harrah’s Entertainment<br />
saw revenues slip 2.1% from the first<br />
quarter a year ago, with property EBITA declining<br />
6.9%. Ameristar lost $77.1 million during<br />
the first quarter, largely from $129 million<br />
in charges related to its purchase of a riverboat<br />
casino in East Chicago, Indiana. Mohegan Sun<br />
announced a double digit drop in first quarter<br />
earnings. CFO Leo Chupaska reported, “Business<br />
is soft, especially with slots.”<br />
THE CONCORD COMES DOWN<br />
Thousands of lovers, or those seeking love, are<br />
suffering withdrawal symptoms this week as developer<br />
Louis Capelli finally is making good on<br />
his promises to tear down the storied Concord<br />
Hotel at Kiamesha Lake, New York, for years<br />
the heart of the Catskills. No one has slept in its<br />
1,300 rooms for more than 10 years, but Capelli,<br />
now in partnership with Empire Resorts, owners<br />
of Monticello Raceway, has begun actual demolition<br />
and is finalizing plans to move the<br />
racetrack to his new entertainment site.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor May 12, 2008<br />
In a statewide Massachusetts poll commissioned<br />
by Citizens for Limited Taxation and conducted<br />
among 500 likely November 2008 voters by the<br />
Virginia polling firm of Fabrizio, McLaughlin<br />
and Associates, 71% responded they would prefer<br />
cutting spending over raising taxes in order<br />
to close the state’s budget gap; 77% opposed<br />
increasing the gasoline tax to pay for road repair<br />
and construction; and 72% said they would vote<br />
no on any measure to raise property taxes in their<br />
local communities. Seems the climate is right for<br />
a vote on slots at tracks.<br />
STILL HOPE FOR MASS SLOTS<br />
Deval Patrick, the governor of Massachusetts<br />
who saw his slots proposal shot down brutally<br />
two months ago, told reporter Steve DeCosta of<br />
SouthCoastToday.com that slots will be coming<br />
back on the legislative agenda, but probably not<br />
this session. Speaking of slots at tracks, the governor<br />
said, “As practical matter, it’s off the table<br />
for this session. But also as a practical matter,<br />
it’s going to come back in one form or another<br />
because, if for nothing else, the Wampanoags<br />
are still pushing forward, so we’re going to have<br />
to deal with the question of expanded gambling<br />
whether it’s in the form that I proposed or not.<br />
The proponents of slots at the track, which is<br />
not something I have supported, have some hope<br />
that they may be heard this session. There’s so<br />
much business to get done before the end of this<br />
session that I’m doubtful. There’s also interest<br />
among folks who supported the resort casino idea<br />
to use a slots-at-the-track bill as an opportunity<br />
to amend, and we’re open to some kind of compromise....We<br />
never got the opportunity to get in<br />
and negotiate an outcome that’s natural in any<br />
piece of legislation, and that may yet come. I<br />
just don’t think it’s going to come in this legislative<br />
session.” Patrick told the news service that<br />
the recent troubles of House Speaker Salvatore<br />
DiMasi, who led the defeat of the governor’s bill<br />
on the casino initiative, won’t figure in any decision<br />
to revive the issue. DiMasi is the subject of<br />
several ethics complaints by Republican legislators.<br />
Gov. Patrick downplayed the reports of<br />
personal animosity between himself and DiMasi.<br />
“I’m fond of the speaker,” he said, “and we’ve<br />
worked very well on a bunch of things. It’s been<br />
interesting to me how much has been made of the<br />
supposed conflict. We’re going to have differences<br />
and occasionally those differences<br />
will be sharp, but we’re professionals.”<br />
Massachusetts tracks, including HTA<br />
member Plainridge Racecourse, fight on.<br />
HORNICK HIT WITH 15 YEARS<br />
Ken Hornick, a former track and Standardbred<br />
Canada employee charged with 13 counts of possession<br />
and trafficking of controlled substances,<br />
has had all racing privileges suspended for 15<br />
years, and been fined $60,000, for the offenses.<br />
Ontario Racing Deputy Director Rob McKinney<br />
said the severity of the suspension and fine<br />
reflects the serious nature of the charges of being<br />
an illegal supplier of drugs to the horse industry,<br />
and the ORC will not tolerate the use, possession,<br />
acquisition of illegal substances, or of those supplying<br />
them to horse racing. Hornick was caught<br />
through the joint efforts of Ontario’s Equine<br />
Medication Control and Drug Task Force, working<br />
with provincial and local police.<br />
IT FOLLOWS AS NIGHT TO DAY<br />
The Pennsylvania House has approved a revamping<br />
of the state’s bingo laws, voting to allow more<br />
nights of bingo a week, permit bigger payoffs, remove<br />
advertising restrictions and legalize handheld<br />
electronic bingo devices. Rep. Don Walko, a<br />
Pittsburgh Democrat, said the bill, which passed<br />
the House 180-18, would help volunteer fire companies<br />
and other charitable organizations with<br />
funding challenges. The bill now moves to<br />
the Senate, where its fate is unknown.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
In Maryland, a Circuit Court judge has overturned<br />
the state Attorney General’s ruling that<br />
slot-like electronic wagering machines in St.<br />
Mary’s county were illegal. Judge Karen Abrams<br />
granted a motion for injunctive relief that two<br />
local county charities and a liquor store owner<br />
with 50 machines requested against the state.<br />
The popularity of the machines in St. Mary’s<br />
was spreading to other counties, and state officials<br />
were alarmed. They still will have the final<br />
word, for a law passed in the final hours of the<br />
state legislative session outlawed the machines as<br />
of July 1. In her decision, Judge Abrams ruled<br />
that the machines differed from slots in that they<br />
used a computer cartridge with a pre-set number<br />
of wins, rather than a random number generator<br />
like slots, to determine winners. She said since<br />
they do not operate on random chance and a victory<br />
is guaranteed eventually, they were lawful.<br />
The liquor store operator told the court that his<br />
business received $172,000 in rent from the machines<br />
in several months of operation, with the<br />
vendor, Impact Innovations of Nevada, receiving<br />
50% of the proceeds. The machines were intended<br />
originally to benefit charities, but it was<br />
charged the charities received minimal amounts.<br />
The judge ruled that other profits did not “take<br />
away from the fact that the charities were<br />
the beneficiaries.” Come July 1, the argument<br />
is moot.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
May 13, 2008<br />
LEGISLATIVE, JUDICIAL BEAT In Harrisburg, PA, Gov. Ed Rendell announced<br />
In California, the state Senate has passed legislation<br />
barring Gov. Arnold Schwarzenegger from ban smoking in public places statewide if it would<br />
he would veto any legislation that attempted to<br />
negotiating compacts with Indian tribes whose weaken Philadelphia’s existing no smoking law.<br />
casinos would be located on land not federally Philadelphia has had such a law for almost two<br />
recognized. The action followed negotiations by years, and the governor said, “Philadelphia has<br />
Schwarzenegger to allow Indian casinos in areas taken a strong stand to support the health of its<br />
other than their approved reservations. One of residents, and I will not backtrack on that. If the<br />
the proposals was rejected by the U.S. Department<br />
of the Interior. Another is under federal Philadelphia’s ban, then it won’t go into law.”<br />
legislature proposes a plan that would preempt<br />
consideration.<br />
The subject of the governor’s ire is a bill being<br />
considered by a joint House and Senate committee<br />
that would preempt all local ordinances, including<br />
Philadelphia’s, but would provide some<br />
exemptions for private clubs, cigar bars and<br />
casinos. As proposed, whatever the committee<br />
agreed upon would go to the House and Senate<br />
without any provision for change, and require a<br />
straight up or down vote.<br />
AND ON THE POLITICAL BEAT<br />
The Speaker of the Massachusetts House, Sal<br />
DiMasi, has been under heavy Republican fire<br />
since he led the successful obliteration of Gov.<br />
Deval Patrick’s proposals for slots at three casino<br />
locations in the state. DiMasi is facing ethics<br />
charges, and yesterday he sent a two-page letter<br />
to all House members expressing his outrage<br />
“that my reputation, my integrity and my good<br />
name have been called into question.” DiMasi<br />
denied he took any actions that were not entirely<br />
appropriate, and called newspaper suggestions<br />
otherwise “baseless.” In a statement that his opponents<br />
undoubtedly will find humorous, given<br />
his powerful influence in the legislature, DiMasi<br />
wrote, “Like any of us, I do not control the conduct<br />
or actions of others. As elected officials, we<br />
in the Legislature are all subject to the unfortunate<br />
inclination of others to use our names without<br />
our knowledge or authorization. It is something<br />
that those of us in public service are<br />
exposed to and must guard against.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
TURBULENT WORLD <strong>OF</strong> RAC-<br />
ING<br />
It’s a volcano out there.<br />
In Maryland, Chris Dragone has been fired by<br />
Magna Entertainment after less than six months<br />
as president of the Maryland Jockey Club, the<br />
week of its biggest race, the Preakness, and replaced<br />
by Tom Chuckas, who served for 11 years<br />
as president of Rosecroft Raceway. Dragone had<br />
replaced the popular Lou Raffetto in the job.<br />
Reached in Moscow, where his new business<br />
partner Oleg Deripaska is located, Stronach said,<br />
“Dragone, he was a nice fella, but we thought it<br />
might have been maybe too much for him. The<br />
other fella had more experience. We have in mind<br />
he will play a greater role. It happened he was<br />
available.” Dragone apparently caught the brunt<br />
of blame for the precipitous 24.7% drop in business<br />
at the MJC’s Laurel Park meeting that ended<br />
April 13 with betting down from $291.7 million to<br />
$219.8 million, and Magna Entertainment suffering<br />
a $46.5 million loss in the first quarter of this<br />
year and $406.3 million in the past three years.<br />
With the Preakness coming up Saturday, Dragone<br />
told the Washington Post, “Right now, I’m president<br />
of the Maryland Jockey Club, and my focus<br />
is 100% on the Preakness. That’s my position. I<br />
am not going to have this event hijacked by a story<br />
that isn’t focused on this weekend. Nothing was<br />
planned to be announced until after the<br />
Preakness.” Chuckas, an HTA director during<br />
his Rosecroft years, played a key role in creating<br />
the important revenue sharing agreement with the<br />
Maryland Jockey Club in the late 1990s that led<br />
to a 15-year “memorandum of understanding”<br />
between harness and thoroughbred racing in<br />
Maryland, allowing the continuation of crossbreed<br />
simulcasting in Maryland and outof-state<br />
racing at Maryland tracks and<br />
OTB. The Maryland Racing Commission<br />
chairman called Chuckas “a cool customer.”<br />
May 14, 2008<br />
In Indiana, racing secretary Kevin Mack has<br />
been temporarily suspended by Hoosier Park’s<br />
owner, Centaur Inc., pending “a review of racing<br />
office procedures.” The problem reportedly involved<br />
irregularities in entries of a major Indiana<br />
trainer. Scott Peine, who has been on loan to Running<br />
Aces in Minnesota, is returning to Hoosier to<br />
replace Mack in the racing secretary’s office. In<br />
another Indiana development, racing commission<br />
executive director Joe Gorajec has extended the<br />
grace period in which anabolic steroid positives<br />
will not be penalized through the remainder of Indiana<br />
Downs thoroughbred meeting July 8. The<br />
grace period was to have ended 45 days after April<br />
1, but it has been extended to 90 days.<br />
In Illinois, one step forward and two backwards.<br />
Harnessracing.com obtained Illinois Racing Board<br />
meeting minutes which reveal that the board has<br />
vacated stewards’ rulings in the drug positives of<br />
Holborn Hanover and Jereme’s Jet in major Illinois<br />
stakes, the $250,000 Windy City Pace at<br />
Maywood and the $203,000 American National at<br />
Balmoral, in 2006. The board reportedly decided<br />
that since the drug level rules were changed<br />
on May 1 this year, the violations two years ago<br />
should not be considered violations in hearings<br />
conducted in 2008.<br />
In Kentucky, thoroughbred trainer Patrick<br />
Biancone, serving a one-year suspension, has<br />
gone to court seeking an injunction to prevent<br />
the Racing Authority from holding a hearing<br />
Monday to determine if he violated the terms of<br />
his agreement with the Authority.<br />
Also in Kentucky, thoroughbred horsemen took<br />
a strong militant stand following a meeting at<br />
which more than 150 were exhorted by speakers<br />
to “hold the line” and decide “when and if<br />
we want to race.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
May 15, 2008<br />
ANTI-TRUST CHARGES FILED<br />
Churchill Downs has filed an amended complaint<br />
in its lawsuit against various thoroughbred organizations<br />
and individuals, charging violations of<br />
the Sherman Anti-Trust Act. The purpose of the<br />
suit is “to terminate a contract, combination and<br />
conspiracy to fix prices and orchestrate a joint<br />
boycott carried out by organizations (horsemen’s<br />
groups) purporting to represent the owners<br />
and trainers of thoroughbred horses. In a<br />
per se violation of Section 1 of the Sherman Act,<br />
various horsemen’s groups have contracted,<br />
combined and conspired to raise the amounts<br />
they receive from advanced deposit wagering,<br />
the fastest growing form of off-track betting on<br />
horse races. Furthermore, in order to achieve<br />
their unlawful objective, the conspirators have<br />
threatened to, and are carrying out, an unlawful<br />
group boycott of racetrack operators that do not<br />
knuckle under to their demands.” The suit was<br />
filed in the United States District Court for the<br />
Western District of Kentucky in Louisville. The<br />
amended suit is the latest move in a bitter dispute<br />
that so far has brought no resolution.<br />
UNIQUE GAMING CHALLENGE<br />
The seven justices of the Kansas Supreme Court<br />
heard arguments yesterday afternoon on a<br />
unique challenge to four casinos approved by<br />
the state. The Court agreed to hear an appeal<br />
of a February decision by a Shawnee county<br />
district court judge that upheld the law expanding<br />
gambling in the state. Multi-millions are at<br />
stake for Kansas. If the court declares the law<br />
constitutional, four casinos and slots at Kansas<br />
tracks can move ahead. The law in question was<br />
passed four years ago, allowing the state lottery<br />
to contract with developers to build and operate<br />
the casinos, stipulating that they are state-owned<br />
and operated. Gov. Kathleen Sebelius, who favors<br />
the plan, thinks the law is constitutional<br />
and asked her attorney general to seek affirmation<br />
from the state’s high court, believing that<br />
otherwise developers would be reluctant to move<br />
ahead. The lottery commission has approved a<br />
15-year agreement with Penn National Gaming<br />
to operate a hotel and casino complex in Cherokee<br />
county. The court’s next date for announcing<br />
opinions is June 27.<br />
<strong>TRACKS</strong> ROLL THEIR OWN<br />
Taking track security in their own hands under<br />
track imposed rules, Tioga Downs and Vernon<br />
Downs have announced their own programs of<br />
random out-of-competition testing. The program<br />
will be organized and supervised by Art<br />
Gray, the former New York racing judge who<br />
also invented the safety reins now gaining widespread<br />
use in both harness and thoroughbred<br />
racing. Gray also led Tioga’s earlier efforts<br />
that resulted in the apprehension of medication<br />
violators at rest stops on roads leading to the<br />
track. The new program already is underway,<br />
and owner Jeff Gural said, “In light of the recent<br />
industry-wide bad news we are happy to<br />
say all samples drawn showed no indication<br />
of foreign substances.”<br />
MASS SENATE DIES HARD<br />
Even though governor Deval Patrick has acknowledged<br />
that there is virtually no chance of<br />
passage in this legislative session, the Massachusetts<br />
Senate refuses to let his soundly beaten casino<br />
plan die. The Senate minority leader, Republican<br />
Richard Tisei, has defiantly announced,<br />
“With all due respect to House speaker Sal Di-<br />
Masi, there are two branches of the legislature.<br />
The state needs money right now, and the Senate<br />
should have a chance to vote on this.” Tisei plans<br />
to push for the Patrick three-casino idea through<br />
an amendment to the Senate’s $28 million budget<br />
proposal, released by its ways and means committee<br />
yesterday. A Democratic House member,<br />
Marty Walsh, said, “This is a lot of money<br />
to be turning away right now.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
May 16, 2008<br />
AN OMINOUS START<br />
The bad luck plaguing the thoroughbred sport --<br />
vast media coverage of the death of Eight Belles<br />
accompanying every mention of the final two legs<br />
of the Triple Crown -- is throwing shadows across<br />
the bright promise of the heart of the 2008 harness<br />
racing season. Last year’s most sensational<br />
2-year-olds -- the trotting filly Snow White and<br />
pacing colt Somebeachsomewhere -- both are out<br />
of action as the major stakes get underway. The<br />
filly was sidelined by a throat operation, and yesterday<br />
owner and now trainer Brent MacGrath<br />
announced his colt had suffered a bone bruise in<br />
his right front foot and would miss his scheduled<br />
season opener. MacGrath called the injury “minor”<br />
and called the scratch precautionary, saying<br />
the world’s fastest 2-year-old still is being pointed<br />
toward the Burlington stakes at Mohawk Raceway<br />
May 31, and the $1 million North America<br />
Cup in mid June.<br />
YES VIRGINIA, THE EPA EXISTS<br />
The Environmental Protection Agency has been<br />
relatively quiet in recent months, but it resurfaced<br />
this week with warnings and orders to Suffolk<br />
Downs in East Boston, Massachusetts, to correct<br />
track pollutants washing into an adjacent creek<br />
that feeds into Boston Harbor. Because Suffolk<br />
has more than 500 horses stabled at the track for<br />
more than 45 days a year, it is classified as a Concentrated<br />
Animal Feeding Operation under EPA<br />
rules, and the federal agency ordered the track<br />
to take immediate action and “make all practicable<br />
efforts” to stop discharging pollutants into<br />
its storm drain system and Sales Creek. The EPA<br />
found that horse manure, bedding material, and<br />
stable wash water were discharged repeatedly<br />
into Suffolk’s storm drain during dry weather,<br />
and inspectors saw storm water contaminated<br />
with “highly turbid, brown runoff.” Samples<br />
showed bacterial and solid waste being<br />
discharged into the creek in both dry<br />
and wet weather. Fair warning.<br />
AROUND THE CIRCUIT......<br />
Tomorrow’s Preakness will be picketed by PETA,<br />
the People for Ethical Treatment of Animals,<br />
and NBC, yielding to the media outcry, will have<br />
Bob Costas doing a feature on Eight Belles as<br />
part of the Preakness telecast from Pimlico. The<br />
media onslaught continues unabated, with papers<br />
coast to coast rehashing every aspect of the<br />
Eight Belles disaster. The New York Daily News,<br />
contributing its share, ran a long story quoting<br />
Big Brown trainer Rick Dutrow saying, “I give<br />
all my horses Winstrol,” one of the four steroids<br />
racing permits, on the 15th of every month.<br />
“If the authorities say I can’t use it anymore, I<br />
won’t,” said Dutrow, who has 72 rules violations,<br />
including a number of drug infractions, on his<br />
record. A necropsy of Eight Belles, incidentally,<br />
showed no pre-existing bone abnormalities, nor<br />
any disease of the cardiovascular or pulmonary<br />
system.<br />
Windsor Raceway’s leading driver for the past<br />
two years, Allan Cullen, has been suspended for<br />
a year by the Ontario Racing Commission for<br />
multiple positive tests, his, not his horses.<br />
Sweden’s V64 pick six, a national bet that takes<br />
place each Wednesday and is available in the<br />
U.S. at the Meadowlands, Monmouth Park,<br />
Freehold Raceway, Saratoga Harness and Delaware<br />
Park, will have a carryover of $3.84 million<br />
U.S. next Wednesday.<br />
The Little Brown Jug Fantasy Stable contest, allowing<br />
contestants free entry to select their own<br />
stable of 10 Jug eligible 3-year-old pacers, began<br />
yesterday. Seventeen races lead up to the Sept.,<br />
18 Jug, with players receiving points if their<br />
horses are among the top five finishers in each<br />
of the scheduled races. The tournament races<br />
begin May 31 with the Burlington Stakes<br />
at Mohawk Racetrack.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
May 19, 2008<br />
IN NJ, ANYTHING BUT RACING<br />
As Pennsylvania racing zooms past to new<br />
heights, legislators in New Jersey, and its governor<br />
Jon Corzine, turn away from racing to keno<br />
and sports betting, leaving a major agricultural<br />
industry to wither on the vine. NJ.com reports<br />
this morning that “Searching for new sources of<br />
cash, the Corzine administration is taking a fresh<br />
look at an old idea: setting up keno games in bars,<br />
restaurants and other places where patrons can<br />
bet on numbers drawn every few minutes.” The<br />
news service also reported that the Senate Wagering,<br />
Tourism and Historic Preservation Committee<br />
was meeting today to hear testimony on a<br />
bill that would permit sports betting in casinos,<br />
or a second bill that would permit it in casinos or<br />
racetracks, this despite the fact that it is against<br />
federal law. The committee also is to consider a<br />
resolution to ask Congress to lift the federal ban.<br />
The bill sponsor, Democrat Raymond Lesniak,<br />
wants New Jersey to go farther. He has asked<br />
the Corzine administration to file a lawsuit challenging<br />
the 1992 federal ban, and said if it does<br />
not do so he will file the suit himself. All of this<br />
takes place in a state with the world’s foremost<br />
harness track, the Meadowlands, which with its<br />
sister track Monmouth Park and Freehold Raceway<br />
could provide hundreds of millions to the<br />
state if allowed to have slots. New Jersey’s shadow<br />
government, Atlantic City casinos, do not<br />
want that to happen, and in New Jersey what the<br />
casinos want the casinos get. As to keno, the Lottery<br />
Commission already has rules in effect to<br />
regulate keno in bars and restaurants if they are<br />
approved, but the casinos do not want them. Atlantic<br />
City’s former mayor and now state senator<br />
Jim Whelan has registered strong opposition,<br />
saying keno could have a “devastating effect” on<br />
the multibillion dollar casino industry by creating<br />
state-wide competition. No one within<br />
earshot in Trenton mentioned the devastating<br />
effect on New Jersey racing.<br />
NEW TV SHOW DEBUTS IN PA<br />
A half-hour news and feature television show on<br />
harness racing, to be available to more than three<br />
million viewers in eastern Pennsylvania on Comcast<br />
SportsNet, will debut this coming Saturday,<br />
May 24. Two-time Emmy award winner and<br />
former ESPN host and producer Bruce Casella<br />
will produce the show, which will be co-hosted<br />
by Steve Ross and Shannon DiAntonio. Ross is a<br />
veteran broadcaster and Ms. DiAntonio is on-air<br />
analyst for Harrah’s Chester Racetrack and Casino.<br />
Harrah’s and Mohegan Sun at Pocono are<br />
joining the Pennsylvania Harness Horsemen’s<br />
Association in producing the show, to be called<br />
PA Harness Week. It will feature highlights of<br />
the week, newsworthy harness events, profiles of<br />
owners, trainers and drivers, and historic footage<br />
from old races at long-gone and lamented Liberty<br />
Bell Park and Brandywine Raceway. Viewers<br />
in the Philadelphia, Harrisburg, Allentown,<br />
Wilkes-Barre/Scranton and Wilmington, Delaware,<br />
markets will be able to access the show on<br />
Comcast SportsNet from Saturday weekly until<br />
August 23. Earl Beal Jr., president of the sponsoring<br />
Pennsylvania Harness Horsemen’s Association,<br />
said that PHHA is “constantly in search<br />
of innovative new promotional vehicles,” and the<br />
show will offer a stage for Pennsylvania’s new<br />
found status as a slots-fueled major power in the<br />
sport.<br />
SNELL BACK IN FIGHT IN MD<br />
Ted Snell, who served as an HTA director at Rosecroft,<br />
Ocean Downs, Atlantic City, and Pompano<br />
during his many years as a harness racing track<br />
president and general manager, now is coming out of<br />
retirement to lead the charge for slots in Maryland.<br />
Snell will take over as chief executive officer at Rosecroft<br />
June 1 and use his long political experience as a<br />
harness, thoroughbred and greyhound general manager<br />
and political savant to work toward passage<br />
of slots legislation that could mean millions in<br />
revenue sharing to the Cloverleaf track.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
May 20, 2008<br />
CANADIAN HALL <strong>OF</strong> FAMERS<br />
The Canadian Horse Racing Hall of Fame announced<br />
its 2008 inductees today, and four<br />
harness racing greats got the call. The late allaround<br />
star and hugely popular Cliff Chapman<br />
and breeder Pierre Levesque are the humans,<br />
trotter Peaceful Way and pacer Real Desire are<br />
the latest horses to be honored. On the human<br />
side for thoroughbred racing are multiple Sovereign<br />
Award winning trainer Robert Tiller and<br />
Woodbine Entertainment archivist, historian,<br />
journalist and author Louis E. Cauz, managing<br />
director of the Hall of Fame. Cliff Chapman,<br />
a racing secretary, auction bid-spotter extraordinare,<br />
and former owner and publisher of the<br />
Canadian Sportsman, was one of the friendliest<br />
men in North American harness racing, always<br />
smiling and bubbling over with good cheer and<br />
optimism. He was the first racing secretary at<br />
HTA member Western Fair Raceway when that<br />
track opened in 1961. Pierre Levesque, founder,<br />
owner and operator of Angus Farms, home<br />
of hundreds of top horses including the super<br />
broodmare Amour Angus, dam of Andover Hall,<br />
Angus Hall, Conway Hall, Emilie Cas El, and<br />
cumulative winners of more than $3.5 million.<br />
Her son Angus Hall sired new inductee Peaceful<br />
Way, the richest Canadian trotter of all time,<br />
who defeated top fillies and males, and Canada’s<br />
2006 Horse of the Year, Majestic Son. Real Desire,<br />
a winner of $3.1 million and now sire of the<br />
winners of more than $7.1 million, was a multiple<br />
Breeders’ Crown winner, won the $1 million<br />
Meadowlands Pace and Hoosier Cup, and paced<br />
in 1:48.2 as a 4-year-old. New horse inductees<br />
on the thoroughbred side of the Hall of Fame are<br />
two outstanding runners of the 1990s from Sam-<br />
Son Farms, Wilderness Song and Smart Strike,<br />
sire of the thoroughbred Horse of the Year Curlin<br />
and Breeders’ Cup champion English<br />
Channel, and now standing at Lanes End<br />
Farm in Kentucky.<br />
SCIOTO CELEBRATES BIG 50TH<br />
HTA member Scioto Downs is pulling out all the<br />
stops to celebrate its 50th anniversary season this<br />
coming Saturday night. Ohio Harness Racing<br />
Hall of Famers and other dignitaries, including<br />
Howard Beissinger, Laverne Hill and Jim Ewart<br />
will present trophies and Communications Hall<br />
of Famer and Ohio Hall of Famer Roger Huston<br />
will call the races. One exceptionally nice<br />
touch will be the presentation of the first trophy<br />
of the night by Sara and Ann Short, daughters of<br />
trainer-driver Forrest Short, who won Scioto’s<br />
first race on October 9, 1959. Sara is the US-<br />
TA’s longest serving employee, having worked at<br />
the association’s Columbus headquarters for 54<br />
years. She started in 1954, a month before Barbara<br />
Brooks, who still serves as assistant registrar,<br />
and the pair are two of the association’s<br />
most valued employees.<br />
A LOVELY DAY FOR SPORTS<br />
Readers of this morning’s New York Times could<br />
be excused if they thought they had picked up<br />
copies of the old Police Gazette. The paper had a<br />
story about the National Basketball Association<br />
vehemently denying charges by John Lauro, an<br />
attorney for disgraced former NBA referee Tim<br />
Donaghy, that NBA games had been influenced<br />
by relationships among referees, coaches and<br />
players. The charges were included in a sentencing<br />
memorandum sent to the U.S. district judge<br />
who will sentence Donaghy July 14, suggesting<br />
the NBA might have “pressured” the U.S. attorney’s<br />
office “into shutting down this prosecution<br />
to avoid the disclosure of information unrelated<br />
to Tim’s conduct.” The NBA called the charges<br />
“an assortment of lies and unfounded facts.”<br />
Other stories today included Charles Barkley’s<br />
assertion that he had paid a $400,000 gambling<br />
debt owed to Wynn Resorts and was quitting<br />
gambling, and a report calling for investigation<br />
of possible fixes in 45 pro tennis matches<br />
played in the last five years.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
May 21, 2008<br />
CAL ACTS, KY PONDERS<br />
What a difference a coast makes.<br />
While the California Horse Racing Board decided<br />
yesterday to adopt the recommendations<br />
on steroids of the Kentucky-based Racing Medication<br />
and Testing Consortium, the Kentucky<br />
Horse Racing Authority decided to appoint subcommittees.<br />
Authority member Connie Whitfield,<br />
chairwoman of the Kentucky Equine Drug<br />
Research Council that advises the Authority,<br />
said, “We don’t want to be rushed to judgment<br />
and make a decision we’ll regret later. We need<br />
to get it right.” Pressure from Kentucky thoroughbred<br />
horsemen, who want more research<br />
which will delay any decision on steroids, obviously<br />
played a role in the decision. There are<br />
ironies in the development, in that U.S. Congressman<br />
Ed Whitfield, Connie Whitfield’s husband,<br />
is advocating federal control. Kentucky<br />
state senator Damon Thayer, the legislature’s<br />
most interested and vocal voice on racing and<br />
a member of the equine research panel, understands<br />
what is at stake, particularly in view of the<br />
Eight Belles uproar, despite the fact that steroids<br />
were not involved. “I don’t think the public is<br />
going to be very patient with us on this,” Thayer<br />
told the Associated Press. “We can’t committee<br />
this to death. We can’t symposium it to death.<br />
We can’t talk it to death. We’ve got to do something.”<br />
The primary “something” Kentucky has<br />
done to date is hire Dr. Mary Scollay, the track<br />
vet at Calder Race Course and Gulfstream Park,<br />
who has done a study of breakdowns and other<br />
safety issues, to be the first equine medical director.<br />
The Louisville Courier-Journal reports<br />
Dr. Scollay will work with Kentucky Racing<br />
Authority chairman Bob Beck and his newly appointed<br />
safety and welfare committee while the<br />
Authority awaits RMTC summer research at the<br />
University of Florida. We are haunted by<br />
remembrance of the old, old line that “a<br />
camel is a horse built by a committee.”<br />
WIDENING CAL INVESTIGATION<br />
Steroids are not the only concern of the California<br />
Horse Racing Board. It is investigating<br />
the circumstances that forced it to call a halt to<br />
all Quick-Pick betting in the state. The problem<br />
involves the apparent omission of some<br />
numbers from the random computer selection<br />
process of the Quick-Pick that came to light after<br />
Big Brown’s victory in the Kentucky Derby<br />
racing as number 20. CHRB executive director<br />
Kirk Breed issued a post-Derby order to Scientific<br />
Games, which provides all tote equipment<br />
to California tracks, to cease Quick-Pick betting<br />
until it can correct the issue, and then appointed<br />
his assistant Richard Bon Smith to discover<br />
whether Sci Games had been previously aware of<br />
the software malfunction. Racing board chairman<br />
Richard Shapiro, concerned that the same<br />
programming failure might exist in other racing<br />
jurisdictions, advised Racing Commissioners International<br />
president Ed Martin that California<br />
had “discovered a potentially serious issue.”<br />
10 GRAND FOR A MILLION<br />
United Parcel Service, which has received a<br />
million dollars worth of free publicity with the<br />
roaring coverage of its nickname namesake Big<br />
Brown, and will receive several million more<br />
with the upcoming Belmont Stakes and beyond,<br />
has decided to have its UPS Foundation contribute<br />
to Thoroughbred Charities of America, not in<br />
honor of Big Brown but in honor of the departed<br />
Eight Belles. The contribution? $10,000. That<br />
is what is known on the street as ROI, or return<br />
on investment. Or perhaps non-investment.<br />
ONEIDAS GET 13,004 ACRES<br />
In a move that UticaOD.com says could have<br />
“enormous implications” for central New York,<br />
Vernon Downs’ home, the U.S. Department of the<br />
Interior is placing 13,004 acres of land in trust<br />
for the Oneida Indian Nation, exempting it<br />
from local and state taxation and laws.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
May 22, 2008<br />
HIPPIQUES “ON ROPES”<br />
Attractions Hippiques, the racing venture<br />
launched two years ago with unbridled optimism<br />
by Quebec senator and business executive<br />
Paul Massicotte, is “on the ropes,” according to<br />
a headline in this morning’s Montreal Gazette.<br />
The lead of writer Kevin Dougherty’s story<br />
reads, “Attractions Hippiques, the company controlled<br />
by Senator Paul Massicotte, winner in the<br />
privatization of Quebec’s four horse-race tracks,<br />
could declare bankruptcy, Finance Minister Monique<br />
Jerome-Forget said yesterday.” In a move<br />
last year to pump $36 million into the privatized<br />
tracks, Loto-Quebec transferred lottery terminals<br />
from bars to ‘ludoplexes’ or racinos at Hippodrome<br />
de Montreal and Massicotte tracks in<br />
Quebec City, Trois-Rivieres and Aylmer, but the<br />
tracks 22% cut of revenues produced only $8.6<br />
million last year. Ms. Forget, asked about continued<br />
support, said she was not eager to bail out<br />
the industry again, and said, “There is a possibility<br />
Mr. Massicotte will declare bankruptcy. It is<br />
as simple as that. He is losing money.” SONACC,<br />
the Quebec group that administers racing, notified<br />
Massicotte that its lawyers believe his reduction<br />
in number of races and downsizing of purses<br />
are violations of his 2006 agreement of sale.<br />
FUN AND GAMES IN BOSTON<br />
Massachusetts House speaker Sal DiMasi, the<br />
man who engineered the crushing defeat of Gov.<br />
Deval Patrick’s proposal for three casinos in the<br />
state, caught his political allies and enemies by<br />
surprise yesterday, suggesting the state conduct<br />
a nonbinding, statewide referendum on the issue<br />
this fall. Although some legislators regarded the<br />
idea as “a door opening,” the governor’s office<br />
immediately denounced it, saying Massachusetts<br />
voters already had expressed their support of<br />
the casino idea. The secretary of economic<br />
development called the DiMasi proposal<br />
“not the best course of action at this<br />
time.”<br />
DEVELOPMENTS AT YOUBET<br />
Good news for Youbet.com. The online betting<br />
service was notified it has regained compliance<br />
with Nasdaq rules requiring 10 consecutive days<br />
of trading above $1 a share, and has avoided delisting<br />
by the exchange. Its stock, reached a<br />
52-week low of 65 cents in late April, rose above<br />
$1 in early May and has remained there since,<br />
currently trading at $1.47. Three directors --<br />
Michael Sands, Jack Liebau and Michael Brodsky<br />
-- buoyed prices with big acquisitions, Sands<br />
buying 22,500 shares at $1.36, Liebau 120,000<br />
shares at between $1.35 and $1.50, and CEO<br />
Brodsky awarded 1.4 million shares at $1.63 a<br />
share. The company also gained approval for an<br />
advanced deposit wagering license in Virginia<br />
after almost five years during which it refused to<br />
pay license fees. The state was taken to federal<br />
court by Colonial Downs and the Virginia HBPA<br />
last September, and settled in February, in part<br />
by agreeing to pay $150,000 in back fees in time<br />
for Colonial Downs opening June 9. The track<br />
also settled with Virginia harness horsemen on<br />
purses for their meeting, thus satisfying a contingency<br />
clause in its contract with thoroughbred<br />
horsemen, who supported the harness action in a<br />
rare and happy show of interbreed cooperation.<br />
NEW POST FOR VIC HARRISON<br />
Vic Harrison, a veteran of 20 years in racing, 9<br />
of them with the Florida Division of Pari-Mutuel<br />
Wagering, 10 as director of North American sales<br />
for United Tote, and the last 10 months as assistant<br />
GM at Vernon Downs, is the new executive<br />
secretary of the Virginia Racing Commission.<br />
Vic, long a close friend of HTA, has been named<br />
to succeed Stan Bowker, who is retiring from the<br />
post after 9 years of service. Racing commission<br />
chairman Peter Burnett said Harrison will begin<br />
his duties May 30 and officially take over Sept. 2<br />
after working with Bowker in a transition<br />
period this summer.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
May 23, 2008<br />
CENTAUR WINS HANDS DOWN<br />
Centaur’s Valley View Downs won unanimous<br />
local approval last night from the Mahoning<br />
Township Zoning Board, which approved all six<br />
variances needed for the project to move forward.<br />
Bill Changoway, chairman of the zoning<br />
board, said, “The requests were done in a very<br />
systematic fashion and the variances granted<br />
were in character with the project and the welfare<br />
in the area.” In an earlier hearing conducted<br />
a week ago by the Pennsylvania Gaming Control<br />
Board some 300 local residents turned out, and<br />
three dozen of them, including a Roman Catholic<br />
priest, addressed the board and endorsed<br />
the project. Last night’s Mahoning Valley action<br />
leaves two final obstacles before construction<br />
can begin on the $428 million facility. One<br />
is licensing by the Gaming Control Board, which<br />
meets June 11, and which is critical to the last<br />
step, approval of financing. A June 15 deadline<br />
has been set by investors, so the Board, which<br />
has been conducting background checks on Centaur<br />
executives, holds the future of the project in<br />
its hands. Delay in a decision could endanger the<br />
project, with credit now tight, but it would seem<br />
if any project could win credit approval a racino<br />
three miles from the Ohio border and nine miles<br />
from industrial Youngstown would qualify.<br />
HORSEMEN LOBBY RACINOS<br />
Members of six horsemen’s organizations in Illinois<br />
gathered in Springfield this week to lobby<br />
legislators for slots at Illinois tracks. Representing<br />
all three horse racing breeds -- harness, thoroughbred<br />
and quarter horse -- those gathered<br />
told legislators that slots at tracks could provide<br />
enough revenue to finance a $20 billion capital<br />
improvement program for state infrastrucure issues<br />
like roads, schools and other projects affecting<br />
the general welfare. They also said racinos<br />
could save the horse industry, one<br />
of Illinois’ leading agribusinesses.<br />
SUMMER ARRIVES WITH BOOM<br />
As if to underscore the Illinois horsemen’s contention<br />
as to what slots can mean to racing, summer<br />
arrived with a sonic boom of major stakes<br />
at harness tracks either already fueled by slots<br />
or soon to get them. They included:<br />
In neighboring Indiana, Hoosier Park is presenting<br />
the $200,000 Dan Patch pace, with a classy<br />
field of older pacers including Artistic Fella,<br />
Booze Cruizin, Bono Bests and Artists View.<br />
At Mohegan Sun at Pocono, the $301,072 Max<br />
Hempt for 3-year-old pacing colts, with a field<br />
headed by Badlands Nitro and Blueridge Western.<br />
At Tioga Downs Sunday, the $270,635 Empire<br />
Breeders Classic for 3-year-old pacing fillies,<br />
with First Drew the favorite, and the $242,275<br />
colt division, headed by Bullville Powerful and<br />
Riggins.<br />
At Harrah’s Chester Racetrack and Casino,<br />
the $250,000 Maxie Lee for older trotters, with<br />
elimination winners Buck I St. Pat and Before<br />
He Cheats squaring off.<br />
AROUND THE CIRCUIT.....<br />
Rockingham Park kicks off its 102nd season of<br />
racing tomorrow, with every paid admission receiving<br />
a free season pass.....Veteran racing official<br />
John Mooney has returned to Delaware<br />
Park as executive director of racing.....Australia<br />
has banned the popular but expensive new Evolution<br />
carbon-fibre sulky wheels after nine reported<br />
fractures of the wheels in two weeks......<br />
HTA scholarship winner Jo Proctor has graduated<br />
from the College of Southern Maryland with<br />
highest honors, receiving an award for academic<br />
excellence and the school’s Departmental<br />
Award.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
May 27, 2008<br />
BIG BROTHER IS WATCHING<br />
Events in racing have not escaped notice of the<br />
House of Representatives, and a subcommittee<br />
on Commerce, Trade and Consumer Protection<br />
of the House Energy and Commerce Committee<br />
has sent a letter to Racing Commissioners International<br />
asking for information on trainers’ drug<br />
violations, breakdowns and breeding, and requesting<br />
a response by next Monday. Congressman<br />
Bobby Rush, an Illinois Democrat, chairs<br />
the subcommittee. Its ranking Republican is Ed<br />
Whitfield of Kentucky, the leading Congressional<br />
proponent for federal intervention in racing.<br />
A Whitfield spokesperson said that the subcommittee<br />
may hold hearings on the matters, following<br />
up hearings held by Mr. Whitfield on jockeys’<br />
insurance and steroids. More ominously, Whitfield<br />
has suggested that legislation to amend the<br />
Interstate Horseracing Act of 1978 might be necessary<br />
to address the problems of racing. The<br />
American Horse Council is monitoring developments<br />
closely.<br />
MAGNA EXTENDS ITS CREDIT<br />
Magna Entertainment Corporation has arranged<br />
the extension of a number of its credit<br />
arrangements, as it moves toward an announced<br />
year-end goal of eliminating debt. The company<br />
extended the maturity date of a $40 million senior<br />
secured revolving credit facility with a Canadian<br />
chartered bank from May 23 to July 30;<br />
extended the maturity date of a bridge loan from<br />
its parent MI Developments Inc. from May 31 to<br />
August 31; and extended the due date of a $100<br />
million repayment requirement under its Gulfstream<br />
Park project with its MID lender from<br />
May 31 to August 31. MEC announced the sale<br />
of assets contemplated under its debt elimination<br />
plan is taking longer than expected, and said the<br />
Dec. 31 elimination goal is not assured.<br />
MEC says it will file a material change<br />
report as soon as practicable.<br />
CALIFORNIA STEROID Q AND A<br />
California Horse Racing Board chairman Richard<br />
Shapiro has made abundantly clear where<br />
he stands on steroids, announcing, “This is an<br />
easy one. Anabolic steroids have no place in<br />
competition sports, including horse racing. Period!<br />
End!” Acknowledging the need to convince<br />
others, primarily horsemen, of that premise, the<br />
board has issued a lengthy question and answer<br />
paper pertaining to its new rules bringing it into<br />
conformity with the Racing Medication and<br />
Testing Consortium recommendations. Among<br />
the paper’s interesting answers are these:<br />
A warning period about the new regulations on<br />
the four permitted steroids will end, and complaints<br />
begin, “probably in September.”<br />
All class 2 and 3 steroid violations will result in<br />
purse redistributions and a minimum 30-day<br />
suspension for first time offenders.<br />
Veterinarians still can have and administer anabolic<br />
steroids on the track, but they cannot be<br />
found in post-race tests except at threshold levels<br />
established by the board.<br />
In answer to why any anabolic steroids are allowed<br />
at all, the memorandum said all are totally<br />
banned except the four allowed under RMTC<br />
guidelines. Noting that its level for stanolzolol<br />
(Winstrol), one of the four allowed on race day,<br />
was below the detection procedures in most racing<br />
labs around the world, the paper said, “This<br />
level was not set to be permissive, but rather to<br />
promote uniform national policies for anabolic<br />
steroids. Uniform rules do no good without uniform<br />
reporting levels.”<br />
Asked what trainers can do to protect themselves<br />
from a positive, the paper said, “The simplest<br />
answer is to not use anabolic steroids beyond<br />
this point.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
May 28, 2008<br />
C’MON NOW, GET SERIOUS<br />
We now are 18 days away from New York mayor<br />
Michael Bloomberg’s deadline for shutting down<br />
New York City OTB. No one really believes this<br />
will happen, and -- accustomed to New York<br />
state’s way of letting crises develop to the last<br />
possible second before acting -- everyone expects<br />
accommodation from Albany in the waning moments<br />
before the deadline. To date nothing of<br />
significance in negotiations has been reported,<br />
but the silly season has set in. OTB is advertising<br />
in New York newspapers today for an auctioneer<br />
to liquidate its assets, including leases<br />
on 62 OTB parlors, its warehouse and storage<br />
depot, a printing operation and a repair facility.<br />
The mayor, governor, and legislative leaders Joe<br />
Bruno and Sheldon Silver announced six weeks<br />
ago that they were committed to saving OTB and<br />
its 1,500 jobs, but nothing has been announced<br />
since and one source told the New York Post that<br />
“They’re not close to consensus.” Another “insider”<br />
was quoted as saying, “Everybody thinks<br />
this is going to go to the 11th hour, 59th minute.”<br />
So what else is new?<br />
WHITFIELD PLANS HEARINGS<br />
Congressman Ed Whitfield, the Republican<br />
ranking member of the House Subcommittee<br />
on Commerce, Trade and Consumer Protection,<br />
plans on hearings in mid-June on the state of the<br />
horse racing industry. Whitfield, who has been<br />
leading the charge for federal intervention into<br />
racing, and has suggested amendments may be<br />
needed to the Interstate Horseracing Act, told the<br />
Wall Street Journal, “This hearing is being precipitated<br />
by so many breeders and owners saying<br />
that this sport is really in trouble and that it<br />
lacks transparency.” Whitfield sent letters May<br />
22 to Bob Evans of Churchill Downs, Charles<br />
Hayward of NYRA, Ed Martin of RCI, Ogden<br />
Phipps of the Jockey Club, and Frank<br />
Stronach of Magna Entertainment, asking<br />
for responses on racing issues by next<br />
Monday, June 2.<br />
A FED SUIT ON PURSE CUTS<br />
The Kentucky HBPA has filed a countersuit<br />
against Churchill Downs, seeking to halt the<br />
20% purse cut invoked by Churchill tracks.<br />
Thoroughbred Times reported yesterday the suit<br />
was filed in the U.S. court in Louisville, alleging<br />
the Churchill purse cuts constituted “contractual<br />
and statutory violations” and asking for injunctive<br />
relief. Churchill filed an anti-trust action<br />
April 24, charging violations of the Sherman<br />
Act and conspiracy.<br />
EGADS! WE’RE REMEMBERED<br />
Many journalists today, when writing about<br />
horse racing, think of it as thoroughbred racing<br />
alone. It was refreshing and encouraging, therefore,<br />
to read a most interesting feature on the history<br />
of racing on Long Island by John Jeansonne<br />
on Newsday.com, the online service of New York<br />
Newsday. Jeansonne started at the beginning, in<br />
1665, when Richard Nicolls, the English governor<br />
of New York, brought thoroughbred racing<br />
to America on the Hempstead Plains, now Garden<br />
City, Long Island. Most writers would skip<br />
some important intervening Long Island harness<br />
racing developments between then and the Belmont<br />
Stakes and Big Brown. Jeansonne did not,<br />
reporting on both Messenger’s life and death on<br />
the island and on the doings there of Lady Suffolk,<br />
trotting’s Old Gray Mare of song and legend.<br />
Good job, journalistically and historically.<br />
STAND UP AND BE COUNTED<br />
The California Horse Racing Board has, letting<br />
Administrative Law Judge David L. Benjamin<br />
know what it thought of his decision that the<br />
board’s 30-day suspension and $5,000 fine of<br />
trainer Christopher Vienna was “not warranted”<br />
after a hearing last December. Under law<br />
existing then the board could not modify that<br />
decision. Under new law it can, but the board<br />
went on record by taking the token action<br />
of declining to accept the judge’s decision.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
May 29, 2008<br />
SHARBAUGH LEAVING USTA<br />
Eric Sharbaugh, executive vice president of the<br />
United States Trotting Association, is leaving his<br />
post at the end of June. Eric has been a cooperative<br />
partner and good friend of HTA during<br />
his tenure, and we thank him for his friendship<br />
and cooperation and wish him well. Now comes<br />
a new task for the USTA selection committee,<br />
which has erred before, notably when it was<br />
deeply impressed with the Washington resume<br />
of Frank Ready some years ago. While government<br />
service or business skills might impress,<br />
there must be candidates who know the sport of<br />
harness racing and its problems, who are successful<br />
businessmen, and who don’t need transition<br />
periods or indoctrination in the current evolving<br />
issues facing owners, breeders, trainers, drivers<br />
and tracks. It may be appealing to choose<br />
an outsider, given that he or she could take over<br />
without prejudice or preconceived notions from<br />
within the sport. But there also are strong executive<br />
type candidates in the sport that the committee<br />
could consider, and this time it might be<br />
prudent to do so.<br />
NEWSWEEK COVERAGE? WOW!<br />
When was the last time you can recall a harness<br />
racing story in Newsweek? Neither can we. But<br />
there one was, a full column and a half, in the<br />
current June 2 issue. Titled “The NASCAR of<br />
the Age of Ragtime,” it is Tony Dokouph’s review<br />
of Crazy Good, Charlie Leerhsen’s true story of<br />
Dan Patch. Dokouph wrote, in his long review,<br />
“It was like the NASCAR of the ragtime era: a<br />
chance to cheer for a faster version of something<br />
you have at home. Dan Patch in his prime -- he<br />
raced from 1900 to 1909 -- was the fastest, most<br />
electrifying form of transportation available.<br />
With wit and a winking charm, Leerhsen, an executive<br />
editor at Sports Illustrated, makes<br />
sure this handsome brown stallion resonates”<br />
for readers.<br />
DID HE THINK HE’D ESCAPE?<br />
We’re not sure how long Michael Iavarone<br />
thought he would escape detection, but the media<br />
roof fell on him today revealing the much publicized<br />
co-owner of Triple Crown candidate Big<br />
Brown to have what newspapers and television<br />
and radio love to call “a checkered and dubious<br />
past.” It turns out that the Keeneland sales in<br />
Lexington won a half-million dollar judgment<br />
against him for horses he bought and didn’t pay<br />
for; that he never went to UCLA, as claimed in a<br />
story; that he never worked for Goldman Sachs,<br />
as he also claimed; that he was censured, fined<br />
and suspended for selling stock without the owners’<br />
permission; that his former trainer, Greg<br />
Martin, was charged with race fixing at Aqueduct<br />
with a horse Iavarone owned; that “someone<br />
took out a marker in my name, illegally,” at<br />
the Showboat Casino in Atlantic City, where Iavarone<br />
reportedly wrote a bad check for $20,000<br />
and was sued; and that the IRS put a $130,000<br />
lien against him for unpaid taxes four years ago.<br />
Iavarone had answers for all this, of course, and<br />
told Newsday, “I’m just a regular guy from Long<br />
Island.”<br />
SUPPORT IN NJ, FROM TWO<br />
We reported last week, after hearings on keno<br />
in New Jersey, that no one in sight in Trenton<br />
was heard from speaking up for harness racing.<br />
We were talking about legislators, of course, not<br />
lobbyists, but the SBOA of New Jersey’s lobbyist,<br />
Leon Zimmerman, took offense, citing his<br />
speeches to legislative committees on behalf of<br />
the sport. Now, happily, two legislators have<br />
turned up, reaffirming support for their racing<br />
constituents. State senator Jennifer Beck and<br />
Assemblywoman Caroline Casagranda, who<br />
represent District 12, which includes many of<br />
Monmouth county’s horse farms, met with directors<br />
of the SBOANJ and said they would<br />
continue their efforts on racing’s behalf.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
May 30, 2008<br />
CHUCKAS MD MAGNA BOSS<br />
Magna Entertainment made it official yesterday,<br />
naming former Rosecroft Raceway chief Tom<br />
Chuckas president and COO of its Laurel Park<br />
and Pimlico operations. Tom takes over officially<br />
Sunday from Chris Dragone, who had taken<br />
over late last year to replace Lou Raffetto. Scott<br />
Borgemenke, Magna’s executive vice president<br />
for racing, said Chuckas “has solid relationships<br />
with horsemen and knows all the players in Annapolis,”<br />
both important considerations since<br />
Raffetto’s departure was not well received by the<br />
former and the latter will be key to the push for<br />
slots in Maryland. Ted Snell, who comes out of<br />
retirement to return to Rosecroft Raceway, will<br />
be carrying the freight for the Cloverleaf operation<br />
as its point man in Annapolis.<br />
AN UNHAPPY SANTA ANITA<br />
The Los Angeles Turf Club, operators of Santa<br />
Anita Park, has filed a federal lawsuit against<br />
Cushion Track Footing USA, the builder of its<br />
synthetic track, according to bloodhorse.com.<br />
The news service reports the suit charges breach<br />
of contract, breach of express warranty, breach<br />
of implied warranty, negligent work and defective<br />
materials and fraud. Other than that, everything<br />
is okay. The complaint, as reported by<br />
writer Ryan Conley, says Cushion Track failed<br />
to produce a track “identical” to its installation<br />
at Hollywood Park, and defendants “knew or<br />
should have known that the formula used for the<br />
track material...was unsuitable as a synthetic<br />
surface at Santa Anita race track.” Santa Anita<br />
lost 11 days of racing and says it spent $5.2<br />
million during its recent meet in April alone for<br />
20,000 tons of Cushion Track material, nearly<br />
$1.4 million on earlier repairs, and an additional<br />
$1.8 million when it called in Australian track<br />
builders Pro-Ride in a futile attempt to correct<br />
the problems. Santa Anita has been<br />
named as host for the Breeders’ Cups this<br />
year and next.<br />
EXCITING TIMES IN INDIANA<br />
A new era for racing in Indiana gets underway<br />
Monday morning when Hoosier Park in Anderson<br />
opens its lavish racino, and Indiana Downs<br />
in Shelbyville prepares for its racino opening later<br />
in the month. Both HTA tracks have spared<br />
no expense in building, and the folks back home<br />
in Indiana will be shocked to find they have full<br />
blown Las Vegas style operations right in the<br />
heart of their state. Hoosier invited 4,000 VIP<br />
guests, including friends and families of employees,<br />
for its regulatory test yesterday. Jim<br />
Brown, the track’s general manager for gaming,<br />
explained the numbers to the Chicago Tribune,<br />
saying, “It’s a regulatory imperative that we go<br />
through a test day, so we thought we’d have some<br />
fun with it and let some special folks preview the<br />
facility.” Brown also noted that he thought having<br />
to operate under battle conditions would be<br />
helpful, since “we’re in a training mode now, and<br />
our team members could use the interaction with<br />
customers, so that gives us a chance to improve<br />
our products and service.” Indiana Downs will<br />
open later in the month in a 70,000 square-foot<br />
temporary structure, but continues work on a<br />
mammoth 270,000 square-foot permanent racino<br />
it plans to open next year.<br />
INVESTIGATION WIDENS IN DE<br />
You probably have heard the beginning of the<br />
investigation of the six-month suspension and<br />
$7,500 fine of trainer Trevor Warwick and disqualification<br />
of the undefeated $100,000 Delaware<br />
stakes winner Tug River Princess by the<br />
Delaware Harness Racing Commission, but you<br />
haven’t heard the end of it. Warwick was listed<br />
as trainer of the previously unbeaten filly in her<br />
Delaware race, but admitted he did not train her<br />
or even know her whereabouts for two weeks<br />
before the race. She has been trained in New<br />
Jersey by Ross Croghan, and the Delaware commission<br />
plans to continue investigation of<br />
the matter.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
June 2, 2008<br />
SLOTS ERA OPENS IN INDIANA<br />
The lines waiting to get in at 9 a.m. wound from<br />
the entrance around the parking lots, and after<br />
the ceremonial ribbon cutting those waiting patiently<br />
got their wish on time. Hoosier Park’s<br />
92,000 square-foot racino opened this morning,<br />
with 2,000 gleaming new slots at the ready, a big<br />
crowd of Hoosiers waiting to use them, and a<br />
new era getting underway for harness and thoroughbred<br />
racing in Indiana. When contacted at<br />
noon eastern time, the crowd was beginning to<br />
utilize the nine restaurants now located in the racino<br />
and track for the first day’s lunch break....<br />
at least those willing to give up their seats at the<br />
slots. For Jeff Smith, Hoosier’s managing director<br />
of gaming, and his colleagues including general<br />
manager of racing Rick Moore, the opening<br />
marked the end of 11 years of hard work and<br />
dedication to reaching this day. Jeff said the new<br />
facility was extremely well received, with numerous<br />
compliments. “We started talking about this<br />
in 1997, when the first proposals to do away with<br />
the riverboat subsidies surfaced. Things will<br />
continue as they are for the coming year, but as<br />
of June 30, 2009, the subsidies will be a thing of<br />
the past and the slots will take their place.”<br />
Smith also is deeply involved with Centaur’s<br />
proposal to build Valley View Downs in far western<br />
Pennsylvania, near the Ohio border and less<br />
than nine miles from Youngstown. The Pennsylvania<br />
Gaming Control board, which has been<br />
conducting background checks, meets June 11,<br />
and hopefully might issue Centaur a gaming license<br />
by then, although its chairwoman has indicated<br />
a decision may not be reached until fall.<br />
Indiana Downs, meanwhile, is rushing its big<br />
temporary racino to completion, and it should<br />
be operational before the harness meeting<br />
gets underway July 16. Its huge permanent<br />
racino will not be ready until 2009.<br />
$50,000 TROT HANDICAPPING<br />
The Meadowlands has announced registration is<br />
open for the 2008 National Harness Handicapping<br />
Championship, presented by FigIsBig. It is<br />
billed as the only tournament for harness players<br />
with a $50,000 guaranteed first prize, and players<br />
who do not earn entry through a qualifying<br />
tournament can buy in for $1,000. Six hundred<br />
dollars of that is the non-refundable entry fee,<br />
and $400 the required tournament bankroll. The<br />
buy-in includes an invitation for the player and a<br />
guest to an NHHC cocktail reception in Pegasus<br />
at the Meadowlands on deadline day, June 20.<br />
The registration period ends that day at 5 p.m.,<br />
when all entries -- either personally submitted or<br />
by mail -- must be in. Contestants must bet 10<br />
races, two pre-designated mandatory races from<br />
Cal-Expo in California and Balmoral in Illinois,<br />
plus eight races of the player’s choosing from<br />
the Meadowlands. The minimum bet is $40 a<br />
race, the maximum $100. Qualifying tournaments<br />
will be held at harness tracks around the<br />
country. Last year they were held at Balmoral<br />
Park, Buffalo Raceway, Cal-Expo, Capital OTB,<br />
Harrington Raceway, Maywood Park, Mohegan<br />
Sun and its Pocono Downs, Penn National<br />
OTW, Twin Spires, Western Regional OTB/Batavia<br />
Downs, and YouBet.com. For additional information,<br />
contact Amy Silver in Meadowlands<br />
publicity (asilver@njsea.com) or Rachel Ryan<br />
(raryan@njsea.com.)<br />
AROUND THE CIRCUIT......<br />
Gail Cunard, director of the Harness Racing<br />
Museum and Hall of Fame, has been named<br />
Lady Pace honoree for this year’s Little Brown<br />
Jug....Red hot driver George Brennan has been<br />
sidelined indefinitely with a broken wrist, suffered<br />
in a four-horse spill at Mohegan Sun at Pocono<br />
Saturday afternoon. It was Brennan’s only<br />
mount of the day....A fight arrest in a bar at a<br />
Kansas City casino turned into a riot, with<br />
450 fighting each other and the police.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
WE’RE EDITORIAL PAGE NOW<br />
No more mere sports pages for racing. We’ve<br />
graduated to the editorial pages, or at least we<br />
did this morning. In New York, the Times told<br />
readers of its editorials that when they watched<br />
Big Brown in the Belmont this coming Saturday,<br />
they would be “watching a horse that is running<br />
on steroids.” The piece said some veterinarians<br />
administer steroids to help horses “stand the<br />
wear and tear of the racing circuit..and keep<br />
weight on a horse that will not eat.” The Times<br />
solution: “A horse that won’t eat is trying to tell<br />
its trainer something, and steroids are not the<br />
answer.” The editorial mentioned the views of its<br />
racing feature writer Bill Finley, and concluded<br />
that “Big Brown’s run for history will look a little<br />
less inspiring” because of trainer Rick Dutrow’s<br />
policy of regular steroid use.<br />
Further west, another editorial, this one in more<br />
positive tones. It appeared this morning in the<br />
Anderson, Indiana, Herald Bulletin, commenting<br />
on yesterday’s rousing opener of Hoosier Park’s<br />
shiny new racino. “With the combination of slot<br />
machines and the ability to line up big-name<br />
performers,” the editorial said, “Hoosier Park<br />
clearly has the power to draw massive crowds.<br />
Racino officials promise to use that power to do<br />
so much more.” They announced that Aretha<br />
Franklin, Davy Jones and the Monkees, and Joan<br />
Jett and the Blackhearts will appear as future<br />
casino attractions. Yesterday, they announced a<br />
donation of $25,000 to the United Way of Madison<br />
county and $10,000 to help with tornado relief<br />
in Indianapolis. The editorial noted that more<br />
than 500 people have been hired to work in the<br />
racino, which will operate 24 hours a day, 365<br />
days a year, and said, “With sound management<br />
and shrewd marketing, Hoosier Park is<br />
well positioned to withstand competition<br />
from riverboats, Indiana Downs (where<br />
a racino will open later this month) and a<br />
host of other entertainment venues.”<br />
June 3, 2008<br />
‘CRAZY’ GETS GREAT PRESS<br />
If the reading public shares the enthusiasm of<br />
book reviewers, author Charlie Leerhsen and<br />
Simon & Schuster have a winner with Crazy<br />
Good, The True Story of Dan Patch, the Most Famous<br />
Horse in America. Reviews have been uniformly<br />
glowing, the latest being high praise from<br />
reviewer Deirdre Donahue in yesterday’s USA<br />
Today. Ms. Donahue wrote a lengthy and highly<br />
favorable review, calling the book “a terrific look<br />
at a legendary if now forgotten equine superstar<br />
named Dan Patch. Leerhsen does for early 20th<br />
century American harness racing what Laura<br />
Hillenbrand’s Seabiscuit did for depression-era<br />
thoroughbred racing.” HTA still has supplies of<br />
the book available to member tracks at a sharply<br />
discounted price.<br />
OTB TO CREW: YOU’RE FIRED<br />
The New York Daily News reported this morning<br />
that New York City OTB has sent out formal<br />
layoff notices to 1,200 employees. The letter,<br />
dated May 30, and signed by NYC OTB president<br />
Raymond Casey, said in part, “Your employment<br />
will be terminated as of the close of business on<br />
June 15, 2008.” Three hundred staffers needed to<br />
help shut down OTB’s 62 parlors did not receive<br />
the notice.....at least for the moment. They are<br />
playing this one to the hilt in New York, with a last<br />
minute compromise in Albany most likely and<br />
cancellation of the dismissal notices. Confirming<br />
that, Assembly sources are quoted as saying<br />
they are “cautiously optimistic” that Gov. David<br />
Paterson and legislative powers Joe Bruno and<br />
Sheldon Silver will reach into the hat and pull out<br />
a rabbit before June 15 rolls around.<br />
MEADOWS VET TO BEIJING<br />
Dr. Heather Stone, a Pennsylvania state vet working<br />
at The Meadows, has been named to<br />
the Olympic equine vet team by Chinese<br />
Olympic authorities.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
ISLE SUES TO HALT INDIANS<br />
Three weeks before the Seminole Indians are<br />
scheduled to begin blackjack and other card<br />
games at their Hard Rock Casino near Pompano<br />
Park, the Isle at Pompano has sued in federal<br />
court, asking the government to halt the advent<br />
of the new games. The Isle filed its suit in the<br />
Northern District of Florida against Gov. Charlie<br />
Crist and U.S. Secretary of the Interior Dirk<br />
Kempthorne, saying a compact signed by Crist<br />
with the Seminoles back in November of 2007<br />
violated the Indian Gaming Regulatory Act.<br />
The Isle says that blackjack and other “banked”<br />
games, in which players play against the house<br />
and not each other, are illegal in Florida and if<br />
allowed at Hard Rock they would inflict “irreparable<br />
injury to the Isle’s business, competitive<br />
standing and consumer base.” Jill Haynes, an<br />
Isle spokeswoman, said the Seminoles operate<br />
six facilities close to Pompano, and noted that if<br />
the Isle were to offer the same table games the<br />
Seminoles are planning to introduce, it would<br />
face a possible fine, imprisonment, and loss of<br />
its gaming license. The challenge currently is<br />
before the Florida Supreme Court, in a suit filed<br />
by House speaker Marco Rubio and heard January<br />
30, but no decision has been forthcoming.<br />
A Seminole attorney said the Isle did not sue<br />
the tribe, only the governor and secretary of the<br />
Interior, and added that he did not know if the<br />
case can proceed without the Seminoles involved<br />
since they are “an indispensable party.”<br />
THE BISHOP SPEAKS ON SLOTS<br />
The bishop of the Baltimore-Washington conference<br />
of the United Methodist Church is asking his<br />
members to vote against Maryland slots in November<br />
for Christ’s sake. Bishop John R. Schol<br />
says he wants his flock to become “extreme<br />
disciples” of Christ, meaning believers<br />
who are willing to risk everything for a<br />
“kingdom adventure,” without slots.<br />
June 4, 2008<br />
A 193-YEAR-OLD TRIFECTA<br />
What this game needs is a few more records. We<br />
have them, of course, for both gaits, at every distance<br />
and in between. Now comes HTA’s member<br />
Northfield Park with a new challenge: try to beat<br />
our aged trifecta record. Regular readers know<br />
this corner’s strong objections to calling our older<br />
horses aged, since the term signifies decrepit and<br />
feeble in many people’s minds. But aged is the<br />
right word for a Northfield trifecta on Monday<br />
night of this week, when drivers Bob Eidens,<br />
age 47, driving Fortune King, and Ben Miller,<br />
64, piloting Wesley’s Fortune, were joined in a<br />
winning tri by Eldon Spearman, driving his own<br />
3-year-old trotter Boy Meets Grill (not a typo.)<br />
Mr. Spearman is 82, the oldest driver ever to<br />
win a race at Northfield, this mile in 2:03.3 for a<br />
$244.60 payoff, 193 years in the making.<br />
ANOTHER DELAY FOR CALGARY<br />
Construction of the $260 million super track<br />
planned near the Calgary airport in Alberta in<br />
western Canada has been delayed again. David<br />
Reid, chairman and CEO of Horse Racing Alberta,<br />
said delays in obtaining a water license<br />
and the effect of sub-prime mortgages on North<br />
American banks were major problems with the<br />
project. When announced four years ago the<br />
principal backers of the track, United Horsemen<br />
of Alberta, said it would cost $80 million<br />
to build the dual breed harness-thoroughbred<br />
plant. While that number tripled, money became<br />
scarce, and long term financing continues to be<br />
the critical issue. Reid said he was hoping that<br />
the Calgary Stampede would agree to host another<br />
thoroughbred meeting next spring, which<br />
would allow HTA member Northlands Park in<br />
Edmonton to conduct its harness racing meeting<br />
at the same time. The new track had hoped to<br />
race in 2009, but now the earliest projected<br />
date for a meeting is 2010.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
June 5, 2008<br />
MAJOR CHANGES AT BIG M<br />
The New Jersey Sports and Exposition Authority<br />
has announced two major changes in top level<br />
personnel. Dennis Dowd, Senior Vice President<br />
of Racing for the Meadowlands and Monmouth<br />
Park, will assume a new post as Senior Vice President<br />
of Legal and Governmental Affairs. His<br />
racing vice presidency will be taken over in August<br />
by Lennon Register, currently Chief Financial<br />
Officer for Pennwood Racing, operators of<br />
Freehold Raceway. Register has been responsible<br />
for financial, management, profitability, and<br />
project management and staff development during<br />
his nine years as Freehold’s and Pennwood’s<br />
CFO. Register is a Meadowlands graduate,<br />
having worked with NJSEA president and CEO<br />
Dennis Robinson during an earlier 13-year stint<br />
at the Big M which concluded with his serving<br />
as Assistant Vice President of Financial Operations.<br />
Robinson said of Register’s appointment,<br />
“Lennon is one of the most highly respected racing<br />
and financial management executives in the<br />
business. He comes back to us at a most critical<br />
time in the history of Meadowlands Racetrack<br />
and Monmouth Park.” NJSEA chairman Carl<br />
Goldbert, commenting on Dennis Dowd’s new<br />
post, said Dowd’s “unique combination of legal,<br />
governmental and racing experience make him<br />
the perfect choice for this important Authority<br />
post.” He said that Dowd’s highest priorities<br />
will be selecting sites and opening the remaining<br />
NJSEA off-track wagering locations.<br />
A SUGGESTED NAME CHANGE<br />
Today’s press announcement that Hooters has<br />
joined United Parcel Service in some sort of sponsorship<br />
arrangement for the Belmont Stakes and<br />
that “if Big Brown makes it to the winner’s circle<br />
he will be greeted by busty Hooter girls in tight<br />
fitting T-shirts” prompts a new name for t h e<br />
classic race. How about The UPS Belmont,<br />
presented by the Hooters Girls. Yum.<br />
9 MILLIONAIRES AT CHESTER<br />
The two $50,000 eliminations this coming Sunday<br />
for the $500,000 Ben Franklin Pace at Harrah’s<br />
Chester Casino and Racetrack have drawn<br />
17 of harness racing’s brightest older stars. Nine<br />
of the 17 entered have won a million dollars or<br />
more, and the entire field, to race in two eliminations,<br />
has won a combined $19 million. The first<br />
division includes Mr. Feelgood, Mypanmar, Mister<br />
Big, Total Truth and Boulder Creek, Palone<br />
Ranger, Won the West and Spin Rate complete<br />
the field. The second elimination’s four millionaires<br />
are Artistic Fella, Southwind Lynx,<br />
Western Ace and Special Report, racing against<br />
Ghee’s House, Sharky Osborne, Took Hanover,<br />
Tivoli Hanover and Radar Installed N. That’s a<br />
gratifying response to offering a $500,000 race.<br />
VERNON, TIOGA JOB <strong>OF</strong>FERS<br />
Jeff Gural’s Vernon Downs and Tioga Downs are<br />
looking for two qualified officials with experience<br />
for major jobs at the combined tracks. They are<br />
seeking a Racing Marketing Manager, who will<br />
be responsible for coordinating and managing<br />
all marketing functions at the two properties, including<br />
marketing, advertising, promotions and<br />
press releases, and a Controller, responsible for<br />
coordinating and managing all functions pertaining<br />
to general ledger, revenue, payroll, accounts<br />
receivable and gaming cage operations.<br />
Applicants with bachelor degrees from four-year<br />
colleges in their specialties, or four to six years<br />
experience and/or training are sought. The Marketing<br />
Manager should possess excellent communication,<br />
organizational and promotional<br />
and marketing skills, and strong writing skills.<br />
The Controller must possess excellent analytical<br />
skills in all phases of accounting procedure, and<br />
be extremely numbers oriented and computer<br />
literate. Send resumes, applications and salary<br />
requirements to jpalmer@vernondowns.<br />
com.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
June 6, 2008<br />
RACING WINS BIG IN ILLINOIS<br />
In what the Chicago Tribune called “a $70 million<br />
victory,” Illinois tracks and horsemen will<br />
receive that escrowed amount after the Illinois<br />
Supreme Court overturned by unanimous vote<br />
a county court ruling that had declared proceeds<br />
to racing from taxes on riverboat casinos<br />
unconstitutional. The victory took two years,<br />
during which the state’s four richest casinos had<br />
placed the 3% tax on their adjusted gross revenue<br />
in escrow while testing the legislation that<br />
was passed in 2006. That law has now expired,<br />
and John Johnston, president of Balmoral Park,<br />
said “circumstances haven’t changed in two<br />
years” and racing needs the law to be renewed.<br />
The president of the Illinois Casino and Gaming<br />
Assn. Tom Swoik, called the Supreme Court’s<br />
unanimous decision “a sad day for business in<br />
the state of Illinois.” We surely don’t agree with<br />
that conclusion, and it certainly is a happy one<br />
for racing in the state.<br />
UNHAPPINESS OVER NYCOTB<br />
New York City mayor Michael Bloomberg may<br />
get a last minute legislative compromise reprise<br />
on off-track betting, but it is not likely to be<br />
welcomed by the state’s thoroughbred horsemen.<br />
Their association is not supporting any<br />
action that would reduce the amount OTB pays<br />
to purses, and in a more tangible response the<br />
city’s OTB workers are rebelling, objecting, one<br />
source says, to being “used as pawns” in the negotiations.<br />
The New York Daily News reported<br />
yesterday that some of the OTB workers are<br />
considering calling in sick for tomorrow’s Belmont,<br />
which figures to be the biggest betting day<br />
of the year in the city. The meeting of Big Brown<br />
and his royally American-bred, Japanese-owned<br />
challenger Casino Drive is certain to draw the<br />
biggest New York crowd of the year, after a<br />
zillion words of Rick Dutrow and Michael<br />
Iavarone spouting and being reported as<br />
gospel.<br />
HOOTERS PROMO A BIG BUST<br />
The news reported here yesterday about Hooters<br />
girls being featured in the winner’s circle if Big<br />
Brown wins the Belmont gained Hooters the publicity<br />
it was seeking, but it didn’t gain approval from<br />
the folks who run the track. The New York Racing<br />
Association told newsmen, “NYRA has certain<br />
restrictions that pertain to proper attire and it is<br />
doubtful that the Hooters uniform or outfit would<br />
be considered proper attire.” That did not prevent<br />
a bevy of the busty young ladies from showing up<br />
in the stable area for a photo shoot with Big Brown,<br />
with Rick Dutrow chiming in by saying Big Brown<br />
was “so cool” that he walked right up to the front<br />
of his stall and stuck his head in the middle of the<br />
shot and kept it there until the cameras stopped<br />
clicking. NYRA, however, reminded everyone in<br />
hearing range, including the Hooters girls, that<br />
women attending the track on Belmont day are<br />
encouraged to wear “dresses, skirts or pantsuits,<br />
with no jeans, shorts or abbreviated wear permitted.”<br />
Late yesterday, NYRA announced that it had<br />
denied Hooters’ request to use Big Brown for advertising<br />
purposes tomorrow. We’ll see. Also check<br />
to see if Kent Desormeaux wears the Hooters logo<br />
on his riding pants.<br />
At least two major racing writers--incidentally<br />
Dick Jerardi of Philly.com and, perhaps more surprisingly,<br />
Joe Drape of the New York Times--both<br />
refused to climb on the Rick Dutrow-Michael Iavarone<br />
bandwagon, and both picked Casino Drive<br />
to win and give his dam, Better Than Honour, an<br />
unprecedented three Belmonts in a row. She produced<br />
the 2006 winner, Jazil, and last year’s victor,<br />
the only filly ever to win in 102 years, Rags to<br />
Riches. One final blurb: Suffolk Downs in Boston<br />
says it will offer a $5 million purse for the Massachusetts<br />
Handicap which includes a $1 million participation<br />
bonus to the connections of Big Brown<br />
and Curlin if they both start in the race and remain<br />
unbeaten between now and then. The bonus<br />
will be reduced to $500,000 if either suffers a<br />
defeat before the Sept. 20 race.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
June 9, 2008<br />
DON’T FIX IT, JUST TINKER<br />
That seems to be the sentiment in the New Jersey<br />
legislature, where everyone agrees racing is in<br />
trouble but few want to take the step that would<br />
cure it by allowing slots at the state’s tracks.<br />
The latest proposal, from Ronnie Dancer of New<br />
Jersey’s most famous harness racing clan, now<br />
a state legislator, and his fellow Assemblyman<br />
John Burzichelli, is to let private enterprise operate<br />
off-track betting. Their proposal passed<br />
the Assembly Tourism and Gaming Committee<br />
last Thursday, and was called “wildly exciting”<br />
by Burzichelli, who said it would “introduce a<br />
whole new group of people to horse racing who<br />
presently aren’t interested in going to tracks or to<br />
other facilities that act like tracks.” He charged<br />
that the tracks have not been aggressive enough<br />
in building new sites, with only 3 opened of 15<br />
that are allowed. Dennis Dowd, senior vice president<br />
of legal & government affairs at the Meadowlands,<br />
objected to the proposal in testimony to<br />
the Assembly committee last week, saying those<br />
not in racing should not profit from “the gravy”<br />
of the tracks. Don Codey of Freehold also objected,<br />
saying, “To allow non-permit holders who<br />
have no investment in racing to open an OTW<br />
cannot help solve the problems of racing in New<br />
Jersey.” Don’s brother Richard, former governor<br />
of the state, currently is president of the Senate.<br />
Burzichelli called his legislation a search for<br />
“fresh eyes and fresh ideas,” and an effort to “repackage”<br />
the racing industry. “We’re interested<br />
in horse racing flourishing, finding a new audience.<br />
There’s a generational gap in fans,” Burzichelli<br />
said. Currently only the state’s licensed<br />
tracks can operate OTBs, and they have made<br />
slow progress in finding desirable sites in cities<br />
and towns that favor the idea. The legislature,<br />
meanwhile, fearful of offending the casino power<br />
bloc, has been tinkering and talking of legalizing<br />
sports betting, currently prohibited<br />
in New Jersey by federal law.<br />
RMTC EXPLAINS ITS MISSION<br />
Annoyed at being depicted as merely an antisteroid<br />
agency, the Racing Medication and Testing<br />
Consortium fought back last weekend. <strong>Executive</strong><br />
director Dr. Scot Waterman, the driving<br />
force of the RMTC, wrote a letter to the sports<br />
editor of the New York Times, saying two articles<br />
on horses and steroids, one an editorial, “seemed<br />
to imply that the Racing Medication and Testing<br />
Consortium was formed as a response to the<br />
issue of anabolic steroids and the threat of federal<br />
intervention. In fact, it was formed in 2001<br />
with the goal of tackling all issues relating to the<br />
medication and post-race testing of racehorses,<br />
five years before any government threats. The<br />
Consortium helps to strengthen the integrity of<br />
racing not only through our model rule on steroids,<br />
which has been adopted by 10 states and<br />
is in the process of adoption by many others, but<br />
also through research and educational programs<br />
aimed to ensure the health and welfare of racehorses<br />
and participants.” The letter was published<br />
in yesterday’s editions of the Times.<br />
$100 MILLION; PLEASE HELP<br />
The principals who own Big Brown, and who<br />
have misrepresented themselves in the past as<br />
Wall Street financiers, recently sold breeding<br />
rights to the horse for a reported $60 million to<br />
Robert Clay’s Three Chimney Farms, and are<br />
chasing a $100 million horse investment fund.<br />
Those big numbers have not prevented them,<br />
however, from asking Hempstead, Long Island,<br />
for a $1 million tax break to help build a new<br />
equine hospital near Belmont Park, a $17 million<br />
project. A local Industrial Development<br />
Agency is considering the request, with a public<br />
hearing scheduled for June 25. Nassau county<br />
tax assessor Harvey Levinson says he objects to<br />
a tax break for owners who are already wealthy,<br />
saying the proposed three-year moratorium on<br />
property taxes would provide the investors<br />
with at least a million in tax breaks.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
INDIANA DOWNS CASINO OPENS<br />
Indiana Downs opened its temporary Indiana<br />
Live! casino on Monday. The casino<br />
features 1,900 slot machines and electronic<br />
gaming devices and will be replaced by a<br />
permanent 223,000 square foot facility sometime<br />
in 2009. For now patrons are lining up<br />
to enjoy the many special events and giveaways<br />
scheduled for opening week.<br />
EVERYTHING IS RELATIVE<br />
For openers, the word big is a good example.<br />
Folks around Belmont Park are excited<br />
about a $1,186,625 carryover for tomorrow’s<br />
Pick Six. In Sweden, the national V75 bet<br />
had no payout last Saturday for 5 correct because<br />
the payout did not meet the minimum<br />
threshold imposed by the government. As<br />
a result, this week’s carryover for the jackpot<br />
pool will be $15,800,000. Advance betting<br />
begins tomorrow for Saturday’s weekly<br />
V75 races, and remains open until the close<br />
of business Friday. Winning the jackpot requires<br />
selecting the winners of seven races<br />
-- a Pick Seven -- with consolation payouts<br />
to those who pick six or five winners. The<br />
government sets a minimum payout, and if<br />
the V75 fails to reach it, the entire pool is carried<br />
over. V75 accounts for 40% of total betting<br />
in Sweden, and the pool has grown at an<br />
annual rate of 10% in the last five years. It<br />
can be bet in the U.S. at the Meadowlands,<br />
Monmouth Park and Freehold in New Jersey,<br />
at Delaware Park in Delaware, and at<br />
Saratoga Gaming and Raceway in Saratoga<br />
Springs, New York. In Sweden, the bet is<br />
administered by ATG, which operates<br />
the country’s 37 tracks, and it can be<br />
bet not only at the tracks, but at 2,030<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
June 10, 2008<br />
OTB shops, through 3,800 cash register terminals<br />
in supermarkets, via the ATG Web<br />
site and it is bet throughout Scandinavia and<br />
Europe Total handle last year exceeded $1.8<br />
billion U.S.<br />
MARY MIDKIFF SPEAKS UP<br />
With all the garrulous guys speaking up during<br />
the run up to Big Brown’s downfall, New<br />
York’s Newsday asked author Mary Midkiff<br />
to tell the woman’s side of the story. Never<br />
shy to talk racing, Mary wrote a very long<br />
story, which Newsday headlined, “Sport of<br />
kings needs some queens.” It should be of<br />
interest to track management everywhere.<br />
Ms. Midkiff, author of She Flies Without<br />
Wings: How Horses Touch a Woman’s Soul,<br />
wrote, in part, “One observation seems very<br />
timely. The boardrooms, executive suites and<br />
grandstands of the sport remain persistently<br />
and conspicuously lacking in women. Racing<br />
would do well to embrace and promote<br />
women’s influence throughout its structure,<br />
as virtually all other equestrian sports have<br />
in recent years. While such a huge imbalance<br />
between men and women almost always<br />
signals big trouble wherever it is found, racing’s<br />
gender gap -- so powerfully counter to<br />
the trend in other horse sports -- is an alarm<br />
bell that can no longer be ignored.” Penny<br />
Chenery, owner of Secretariat, delivered this<br />
same message at an HTA meeting some years<br />
ago, but it was not heeded. Hopefully Ms.<br />
Midkiff’s plea will result in more positive action<br />
toward marketing toward women. Ms.<br />
Midkiff, incidentally, may be better known to<br />
those in racing as Mrs. Tom Aronson, wife of<br />
the former HTA executive and now a vice<br />
president of Churchill Downs.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
June 11, 2008<br />
LEADERS “WORKING ON” OTB<br />
In his strongest statement yet on closing down<br />
New York City OTB this coming Sunday, Mayor<br />
Michael Bloomberg said that while it’s sad that<br />
jobs will be lost, OTB does not really support the<br />
city and the state. Asked if a temporary agreement<br />
could keep OTB alive, Bloomberg bristled<br />
and replied, “No. What letter in the word ‘no’<br />
do you not understand? It is a permanent solution.<br />
We’re closing it down. New York City is<br />
not going to lay off one cop, one firefighter, or<br />
one teacher, so that we can support a bookie operation.<br />
Period. End of story.” Bloomberg did<br />
add that if the state wants to take over the OTB<br />
he would not object, and that if the state changes<br />
the formula for revenue sharing (translate that<br />
to mean “more for OTB, less for the tracks”) the<br />
city then might consider continuing operation.<br />
i nsteadinstea<br />
So the stage now is set for Republican Senate Majority<br />
Leader Joe Bruno and Democratic House<br />
Speaker Sheldon Silver to come out of their offices<br />
in the next three days and announce they<br />
have resolved the situation in a bipartisan effort,<br />
and give Bloomberg what he wants. If they do<br />
not, OTB indeed may be gone, but don’t bet on<br />
it. It’s time for histrionics again, and both Bruno<br />
and Silver said yesterday they were “working<br />
towards a solution.”<br />
MASS GOVERNOR’S END RUN<br />
The governor of Massachusetts, Deval Patrick,<br />
is not a novice. Defeated by House Speaker Sal<br />
DiMasi in trying to run off tackle with his threecasino<br />
proposal, he has tried an end-around instead,<br />
saying he is beginning negotiations with<br />
the Mashpee Wampanoag tribe on a compact<br />
for a huge casino in Middleboro, MA. “We are<br />
prepared to negotiate within the parameters we<br />
have under existing law,” Patrick says. DiMasi<br />
points out that the governor could do it,<br />
but will have to first get U.S. approval to<br />
declare Middleboro a reservation.<br />
A MAJOR LEAGUE SWINDLE<br />
Tyner and Hartman, the tough pair that run Hazel<br />
Park Harness, two other tracks and 33 apartment<br />
complexes in the Detroit area, have charged<br />
an accounts payable supervisor with embezzling<br />
$4.6 million by “signing, initiating, or approving<br />
phony work orders or altered legitimate purchase<br />
orders and invoices for services never performed.”<br />
If the lady did it, she was pretty good<br />
at it, getting away with it for seven years, from<br />
late 2000 until August of 2007, when anonymous<br />
letters tipped off Tyner and Hartman to the possible<br />
embezzlement. It must be great to have so<br />
much dough that you don’t notice $4.6 million<br />
missing for seven years.<br />
USTA SELECTION COMMITTEE<br />
United States Trotting Association president Phil<br />
Langley has appointed his selection committee<br />
to make recommendations to the USTA executive<br />
committee for a new executive vice president.<br />
The members are, in addition to Langley,<br />
USTA chairman Ivan Axelrod, former chairman<br />
Joe Faraldo and Paul Fontaine, Richard Brandt,<br />
Peter Koch, Sam Beegle, Alan Leavitt, Pat Quaglietta,<br />
Jeff Gregory, John Campbell and Ebby<br />
Gerry.<br />
A “MATRIX BET” AT CHURCHILL<br />
Churchill Downs vice president Tom Aronson has<br />
announced a new bet, making its debut today on<br />
a limited test basis by the Louisville track. Called<br />
the Matrix, it allows patrons to select three horses<br />
for a minimum $9 bet that will pay off if one<br />
of the three wins, two form an exacta, or three<br />
constitute a trifecta. According to Daily Racing<br />
Form’s Matt Hegarty, the bet in effect provides<br />
a 60-cent win bet on each of the three choices,<br />
a 60-cent exacta box and a 60-cent trifecta box,<br />
for a total of 15 combinations. Standard takeout<br />
rates will apply, and payoffs will be based on<br />
the fractional price of the bet. The current<br />
minimum for boxed exotics is $1.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
LOTS <strong>OF</strong> NEWS, NOT ALL GOOD<br />
The bad news first:<br />
CLARENCE WALTERS, an employee in the<br />
Dave Palone stable at The Meadows, was killed<br />
yesterday when kicked in the chest by a horse he<br />
was working on. Walters, a popular figure at the<br />
track, has two sons who are trainers, was working<br />
at the stable, where he was kicked around<br />
7:30 a.m. and died at 9:05 in Washington Hospital.<br />
DELAWARE LEGISLATORS are now clamoring<br />
for a larger share of slots money. They are<br />
seeking a 50% split of slots revenues from Dover<br />
Downs, Harrington Raceway and Delaware<br />
Park, and Rep. Deborah Hudson, a Wilmington<br />
Republican, called for the legislature to “go to<br />
our business partners, the three racinos, and split<br />
the revenue with them.” The specific proposal<br />
is to phase in a new revenue sharing plan over<br />
three years, with the state of Delaware likely to<br />
receive an additional $12.7 million the first year,<br />
$25.7 million the second, and $38.1 million annually<br />
after that, based on fiscal 2007 revenues.<br />
Ed Sutor, the Dover Downs’ president and CEO,<br />
said such a change could affect the racinos’ ability<br />
to compete with Pennsylvania and, presumably,<br />
Maryland next year.<br />
A CONGRESSIONAL HEARING on racing has<br />
been called for June 19 in Washington, and racing,<br />
which could avoid all this stuff if it had the<br />
backbone to ban all steroids in racing, will again<br />
have to play dodge and duck. The usual suspects<br />
are being invited by the House Subcommittee on<br />
Commerce, Trade and Consumer Protection,<br />
with the subject, “Breeding, Drugs, and Breakdowns:<br />
the State of Thoroughbred Horseracing<br />
and the Welfare of the Thoroughbred Racehorse.”<br />
Rep. Bobby Rush, the Illinois Democrat<br />
who chairs the subcommittee, is joined by<br />
Kentucky Republican Ed Whitfield in<br />
leading the charge for federal oversight.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
June 12, 2008<br />
And now for the good news, such as it is:<br />
SNOW WHITE, on whom the hopes and fears of<br />
all the years fall for harness racing publicity this<br />
year, returned from her spring throat surgery<br />
in powerful fashion, winning a qualifier at the<br />
Meadowlands this morning in 1:56.3.<br />
The drumbeat of publicity against trainer RICK<br />
DUTROW and the IEAH MAJOR OWNERS<br />
<strong>OF</strong> BIG BROWN continues. The fiery Sally<br />
Jenkins, writing in the Washington Post, called<br />
Dutrow “a graceless loudmouth and chronic<br />
doper.” She called the IEAH crowd “irretrievably<br />
crummy.” Why not tell us how you really<br />
feel, Sally?<br />
Longtime racing columnist PAUL MORAN,<br />
writing on Big Brown, said in his blog a few<br />
days ago that “a knowledgeable source in Lexington<br />
claims that Three Chimneys Farm, where<br />
Big Brown will stand at stud, purchased a 10%<br />
interest in the horse for $5 million, which may<br />
have technically established his total worth of<br />
$50 million, but like all things IEAH, is not what<br />
it seems.”<br />
And news either good or bad; take your pick:<br />
GOV. DAVID PATERSON of New York yesterday<br />
suggested that the state may take over New<br />
York City OTB, rather than let its 1,500 employees<br />
become unemployed Monday. Asked if that<br />
were a possibility after 37 years of city operation,<br />
Paterson said, “Because of the urgency of the situation,<br />
there is no option that I won’t explore at<br />
this point. That’s how difficult it is.” NYCOTB<br />
employees, finally taking Mayor Bloomberg at<br />
his word, staged a noisy but very late protest<br />
yesterday. Leonard Allen, their union president,<br />
criticized Bloomberg for calling OTB “a bookie<br />
operation.” We wrote here months ago New<br />
York City OTB would not close, and we feel certain<br />
of it now, three days before D-Day. Or<br />
should we say B-Day, for Bloomberg.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
The $1.5 million North America Cup at Mohawk<br />
for 3-year-olds in Ontario, the richest pacing<br />
event of all, with unbeaten Somebeachsomewhere<br />
the favorite.<br />
The $733,031 Fan Hanover for 3-year-old pacing<br />
fillies, at Mohawk, with unbeaten Tug River<br />
Princess and A & G’s Confusion heading the<br />
field.<br />
The $588,706 Elegantimage for 3-year-old trotting<br />
fillies at Mohawk, with the European-bred<br />
Lantern Kronos the favorite.<br />
The $500,000 Ben Franklin for older pacers at<br />
Harrah’s Chester Downs in Pennsylvania, with<br />
a truly all-star field headed by Artistic Fella, Mr.<br />
Feelgood, Special Report and Mister Big.<br />
The $279,786 Goodtimes for 3-year-old trotting<br />
colts at Mohawk, with Moon Dreamer the morning<br />
line choice and Windsong Espoit the major<br />
challenger.<br />
The $250,792 Jim Lynch for 3-year-old filly pacers<br />
at Mohegan Sun at Pocono, with Ideal Newton<br />
and Native Bride the ones to beat.<br />
The $250,000 Lady Liberty for pacing mares at<br />
the Meadowlands, another exceptionally outstanding<br />
field, with Southwind Tempo, Darlin’s<br />
Delight, and Moving Pictures the top choices.<br />
The $175,000 Western Canada Pacing<br />
Derby, with Bigmzndrstanding the even<br />
money favorite.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
June 13, 2008<br />
MONEY, MONEY EVERYWHERE Maywood hosts the $100,000 Maywood Pace and<br />
For a sport that racing journalists and non-racing<br />
journalists keep referring to as “dying,” har-<br />
the $70,000 Alberta Rose and $70,000 Prairie<br />
Maywood Filly Pace for 3-year-olds tonight, and<br />
ness racing seems pretty vital and healthy this Gold finals also are at Northlands this weekend,<br />
weekend. On the menu are:<br />
as is the $50,000 New Hampshire Sweepstakes<br />
Final at Rockingham and four $75,000 Prix de<br />
Quebec finals at Hippodrome de Montreal.<br />
The dying patient is holding his own.<br />
THE GOV HOLDS HIS HEAD<br />
A picture of Gov. David Paterson of New York<br />
burying his face in his hands in frustration at political<br />
gridlock, while Joe Bruno smiles broadly,<br />
tells you all you need to know about New York<br />
state politics. But they know how to make deadlines.<br />
With 48 hours to go, the pols in Albany<br />
have reached an agreement for the state to take<br />
over New York City OTB, which will give Mayor<br />
Michael Bloomberg his wish to get out from<br />
under it, save 1,500 jobs, and solve another political<br />
problem by naming Sen. John Sabini as<br />
chairman of the New York Racing and Wagering<br />
Board or as senior advisor to Gov. Paterson<br />
on racing matters (reports differ, but it could be<br />
both) thus saving him from a possible election<br />
defeat in an upcoming tough primary.<br />
A LOOK AT THE FUTURE<br />
Microsoft and Harrah’s Entertainment have<br />
joined hands to give the public a look at the face<br />
of the future. Harrah’s introduced six rectangular<br />
tables with built-in 30-inch screens using<br />
Microsoft Surface technology in a lounge at its<br />
Rio All-Suite Hotel & Casino in Las Vegas. The<br />
tables are high-tech interactive bar tables, where<br />
customers can play touch screen games built into<br />
the devices, watch YouTube videos, or flirt with<br />
one another at different tables. Tim Stanley,<br />
chief information officer of Harrah’s, said, “Of<br />
all the goodies up our sleeves lately, this is one<br />
of the most dramatic.” Microsoft said the<br />
tables sold for a base price of $10,000.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
June 16, 2008<br />
WELL, <strong>OF</strong> COURSE THEY DID<br />
You didn’t think any self-respecting politician<br />
would let 1,500 jobs go down the drain, did you?<br />
After two months of yakking about it, the governor<br />
of New York, David Paterson, and his cogovernors<br />
Joe Bruno, Majority Leader of the<br />
Senate, and Sheldon Silver, Speaker of the Assembly,<br />
got off their duffs and announced the<br />
state of New York would take over New York<br />
City OTB. They made the announcement Friday<br />
without consulting Mayor Michael Bloomberg<br />
of New York, who said, in effect on hearing their<br />
plan, “Like hell you will, not on those terms.”<br />
So the Albany Big Three went back to the drawing<br />
board and announced yesterday that the city<br />
would keep surcharges amounting to some $4.5<br />
million a year, and the legislature would pass<br />
legislation, probably today, making everything<br />
legal by creating a new state entity to run New<br />
York City OTB. Bloomberg thanked the Albany<br />
boys, congratulated OTB president Ray Casey<br />
for doing a good job, and stepped away from<br />
the “bookie operation” he refused to support<br />
any longer. Putting the best possible light on the<br />
way things turned out, Bloomberg said, utilizing<br />
despised racing terms, “Although the negotiations<br />
went down to the wire, they produced an<br />
agreement that truly belongs in the winner’s<br />
circle.” The New York Post, unable to stomach<br />
the platitudes, ran an “exclusive” claiming the<br />
governor said Bloomberg “appears to be selfdestructing,”<br />
and said of his city administration,<br />
“There’s some kind of destabilization over<br />
there.” The paper also reported that Paterson<br />
said Bloomberg misrepresented the facts and was<br />
untrustworthy, and quoted him as saying, “He<br />
has the same kind of anger that reminds you of<br />
Spitzer,” the disgraced former governor forced<br />
out in a call girl scandal. “I think he’s starting<br />
to be concerned that he can’t get anything<br />
done,” Paterson said. Maybe, but he got<br />
the OTB done, basically on his terms.”<br />
NJ SHOWS GUTS AND RESOLVE<br />
Armed with its newfound powers of out-of-competition<br />
testing, the state of New Jersey took bold<br />
action last week in fining two alleged chemists<br />
$68,000, banning them from racing in the state<br />
for 13 1/2 years, and barring six of their horses<br />
from competing until September, when they will<br />
have to pass testing. The objects of their wrath<br />
were trainer Ernest Adam and California veterinarian<br />
Stephen C. Slender, owner of the horses<br />
trained by Adams. The antics of both had been<br />
the subject of much discussion among horsemen<br />
in New Jersey and elsewhere. Acting on a<br />
tip and using their recently legalized powers to<br />
test off-track, the state searched Adams’ stable<br />
at Winner’s International Farm in Chesterfield,<br />
NJ, and found six horses that tested positive for<br />
EPO. Howard Taylor, a Philadelphia lawyer<br />
and harness horse owner who has represented<br />
a number of offenders in the game, is representing<br />
Slender and is seeking a stay of the penalties<br />
in advance of an appeal. The pair was fined<br />
$56,000 each, plus $12,000 each for state testing<br />
fees. Slender earlier had been asked to leave<br />
Cal-Expo in Sacramento, California, where his<br />
entries were refused.<br />
RACING HYSTERIA IN CANADA<br />
No, not Big Brown. Somebeachsomewhere, harness<br />
racing’s new undefeated idol of the masses.<br />
The 3-year-old pacer, unbeaten in six starts last<br />
year, ran his unbeaten string to nine Saturday<br />
night as he humbled a field of the best of the division<br />
in harness racing’s richest pace, the $1.5<br />
million North America Cup at Mohawk Raceway.<br />
One of his five owners called him, with<br />
considerable justification, “Canada’s horse,” after<br />
a wildly cheering crowd of 10,000 at Mohawk<br />
roared as he sailed down the stretch, and gave<br />
him a standing ovation when he returned to the<br />
winner’s circle. He will start next on July 12 in<br />
his first U.S. appearance, eliminations for<br />
the $1 million Meadowlands Pace.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
June 17, 2008<br />
TEAGUE, PECK; WHO’S NEXT?<br />
The news that Total Truth and Palone Ranger, two<br />
stalwarts of the top pacing ranks, tested positive<br />
for steroids at Harrah’s Chester Downs should<br />
surprise no one. Total Truth was scratched out<br />
of the $500,000 Ben Franklin as a result. What<br />
was more surprising was Teague’s voluntary<br />
scratching of three other horses from his stable<br />
-- Meadowlands Pace winner Southwind Lynx,<br />
2006 runner-up Mr. Apples, and the pacer Allamerican<br />
Karnak. That action would indicate<br />
they too were racing on steroids. Teague did<br />
not deny that Total Truth was positive for high<br />
levels of stanozolol (Winstrol) which is bothersome<br />
given the fact the horse has won almost $2<br />
million presumably racing on them and aided by<br />
them -- but he complained bitterly that he and<br />
his veterinarian “misinterpreted” the rules. He<br />
charged that “I do not race there often enough<br />
to get the warning and did not understand the<br />
terminology. Certain people were privileged to<br />
get a verbal conversation about this test and I<br />
wasn’t in that conversation.” This is an argument<br />
ill becoming a trainer who in four short<br />
years vaulted from relative obscurity to the top<br />
ranks of the sport, sending out hordes of low to<br />
mid-priced horses to become major stakes winners.<br />
He is not alone in that category, of course,<br />
and there is only one satisfactory answer, which<br />
the recently appointed Thoroughbred Safety<br />
Committee recommended in a press conference<br />
today. It is to eliminate steroids in training and<br />
racing. If American racing of all breeds is not<br />
ready to face this daunting prospect, it deserves<br />
whatever bad press it receives. The latest was<br />
a story in The Guardian in England, headlined<br />
“Poisonous steroids should be flushed from our<br />
system,” with a subhead, “Zero tolerance may<br />
not be easy, but it’s the only way to protect innocent<br />
trainers being tarred along with the<br />
guilty.” It called the problem American<br />
racing’s “desperate situation.”<br />
WHEN IN DOUBT, GO FOR PR<br />
The Kentucky Horse Racing Authority found itself<br />
in a not unusual position of uncomfortable<br />
yesterday, facing a crime that was not a crime,<br />
but was a broken rule for which it could find no<br />
one individual responsible. What to do? For<br />
one thing, fine Churchill Downs $15,000 while<br />
announcing “no evidence of inappropriate behavior.”<br />
Churchill, for its part, seemed happy to<br />
pay the fine to escape further proceedings on the<br />
matter, and the Authority accepted its pleas of no<br />
wrongdoing. The bizarre events involved trainer<br />
Steve Asmussen, no stranger to controversy,<br />
who apparently asked for, and received, the services<br />
of assistant starter Clinton Beck in loading<br />
Pyro into the gate for the Kentucky Derby. This<br />
breach of the rules admittedly is a tempest in a<br />
teapot, but the Authority said piously that it is<br />
“charged with maintaining the integrity of horse<br />
racing in Kentucky,” and Churchill said, “We<br />
believe this agreement is an acceptable resolution<br />
for both the KHRA and Churchill Downs.”<br />
Mrs. Ed Whitfield, speaking for the Authority,<br />
and explaining that normally no one knows who<br />
is assigned to load what horse until the last minute,<br />
said, “We’re trying to have the sport look<br />
as clean as possible.” Now for a bigger try at<br />
that, getting Kentucky to stand up to its thoroughbred<br />
horsemen and adopt the rules of the<br />
Kentucky-based Racing Medication and Testing<br />
Consortium. Not doing so is hardly making the<br />
sport look as clean as possible, Mrs. Whitfield.<br />
SPEAKING <strong>OF</strong> PR<br />
The U.S. Supreme Court yesterday declined to<br />
hear an appeal from Cavel International concerning<br />
the closing of its horse slaughtering plant<br />
in Illinois, which killed 40,000 to 60,000 horses a<br />
year for foreign meat consumption. Apparently<br />
even Supreme Court justices react with nausea<br />
to disgusting events, and the decision<br />
should end U.S. horse slaughter.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
June 18, 2008<br />
POCONO OPENING JULY 17<br />
HTA member Mohegan Sun at Pocono Downs<br />
has set July 17 for the opening of its 300,000<br />
square-foot, $200 million racino expansion, adding<br />
restaurants, retail outlets and more than<br />
1,300 slot machines to its operation. The new<br />
facility comes at an appropriate time, countering<br />
inroads from competition at the nearby<br />
Mount Airy Casino Resort. A Ruth’s Chris<br />
Steak House, Rustic Kitchen Bistro and Bar, Bar<br />
Louie and Pearl Sushi Bar, pubs Sunburst Bar<br />
and Breakers, and Brookstone, Marshall Rousso<br />
and Misura shops will open with the new addition<br />
next month. Mohegan Sun announced that<br />
if interest warrants, a hotel, spa, convention and<br />
meeting space could be added at the track.<br />
CASINO $$ BOOST CHI PURSES<br />
Purses at Chicago’s Maywood Park and Balmoral<br />
Park have jumped 23% across the board,<br />
thanks to the Illinois Supreme Court decision<br />
freeing monies held in escrow while the court<br />
deliberated a lower court decision saying the<br />
state’s riverboat casinos did not have to make<br />
payments to the tracks mandated by law. The<br />
Supreme Court overruled the lower court decision<br />
and freed the $70 million for distribution,<br />
and the tracks began paying the monies in increased<br />
purses June 10.<br />
DOGS COULD FACE NOV. VOTE<br />
Opponents of dog racing in Massachusetts again<br />
have collected enough petition signatures to get<br />
a ban on dog racing on the November statewide<br />
ballot. It is not the first time they have done<br />
this, and the last effort was shot down by dog<br />
track lawyers on grounds that it was aimed at<br />
the state’s two dog tracks. The legal challenge<br />
will resume, and it is by no means certain that<br />
the issue will reach a public vote. They<br />
did get a statewide vote in 2000, which<br />
resulted in a narrow track victory.<br />
DANGER CALLS FOR ACTION<br />
The New York Times headline writer had it right<br />
this morning, with a major story carrying the<br />
banner, “Horsemen Make Move to Stay Ahead of<br />
Congress.” That was the motivation, of course,<br />
for a public announcement that the newly formed<br />
Thoroughbred Safety Committee’s first action<br />
was to recommend the banning of steroids, as already<br />
recommended by the Racing Medication<br />
and Testing Consortium. The announcement<br />
received wide press coverage, and hopefully will<br />
dampen some of the fire and brimstone certain<br />
to surface in Thursday’s Congressional hearing<br />
led by the bipartisan efforts of Democrat Bobby<br />
Rush of Illinois and Republican Ed Whitfield of<br />
Kentucky. Proposals of federal control are likely<br />
to be issued, but the biggest danger by far is<br />
reopening of the Interstate Horseracing Act of<br />
1978. If that law, the linchpin of racing’s present<br />
legal status on Internet betting, is opened for politicizing<br />
in Washington, the entire structure of<br />
simulcasting could be endangered. The hearing<br />
of the Subcommittee on Commerce, Trade and<br />
Consumer Protection deserves the full attention<br />
it is receiving.<br />
FAIR WARNING ON VEGAS AIR<br />
Major airlines have announced their intentions<br />
of sharply cutting service to Las Vegas in the fall.<br />
We suggest that you not wait into the winter to<br />
make reservations for the fifth Racing Congress<br />
at Bellagio. No need to do so now, since cuts<br />
could eliminate current flights, but don’t wait<br />
until the last minute next winter.<br />
A LOVELY LADY LEAVES US<br />
It is with deep sadness that we announce the<br />
death of Norma Campbell, who for years was<br />
the leading lady in the executive offices of the<br />
Meadowlands. She died early yesterday after<br />
numerous hospitalizations. Lovely, gracious and<br />
hugely efficient, we grieve her passing, as<br />
will the thousands who knew her.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
June 19, 2008<br />
THE STAR COPS OUT<br />
The Congressional hearing on the problems of<br />
thoroughbred racing got underway in Washington<br />
today, but the star was a no-show. Whether<br />
he opted out on his own or responded to suggestions<br />
from a higher authority is not known, but<br />
Rick Dutrow cancelled, saying, “I would go in<br />
a minute, but I just don’t feel well. To go down<br />
there when I’m not on top of my game would not<br />
be right.” Ed Whitfield, ranking member of the<br />
House Subcommittee on Commerce, Trade and<br />
Consumer Protection was deeply disappointed<br />
with the defection of his star witness, always<br />
good for black type headlines. “I’m sorry he’s<br />
not here,” Whitfield said, “We had a lot of questions<br />
for him.” I guess. Whitfield said racing “is<br />
more than pretty hats and horses on a sunny day.<br />
It has a huge economic impact on the country,<br />
and it has a bad side to it. I think it’s important<br />
we get it out on the table.” One thing Whitfield<br />
would like to get on the table is the Interstate<br />
Horseracing Act, which he wants to reopen.<br />
Whatever else he is told today, he should be told<br />
in the strongest terms that is an idea racing will<br />
not support. It could be disastrous for American<br />
racing, regulating as it does a finely tuned balance<br />
that has worked for 30 years, and being<br />
the enabling provision that has given horseracing<br />
its exemption from the ban on Internet betting.<br />
Whitfield acknowledged the suggestions of<br />
the Thoroughbred Safety Committee to ban steroids<br />
and modify shoeing and whip regulations,<br />
but tempered his satisfaction by calling the move<br />
“encouraging that they have come up with these<br />
regulations, but sadly, the (sponsoring) Jockey<br />
Club doesn’t have the authority to do anything.”<br />
One group that does is the Kentucky Racing Authority,<br />
on which Whitfield’s wife is a key member.<br />
The Authority has not yet been able to bring<br />
itself to support the recommendations of<br />
the Kentucky based Racing Medication<br />
and Testing Consortium.<br />
WANTED: FACILITIES CHIEF<br />
Tioga Downs is looking for a Regional Senior<br />
Director of Facilities. The candidate would be<br />
responsible for ensuring that all maintenance<br />
and EVS systems are in place and operating efficiently.<br />
The position calls for interaction with<br />
project departments, city, county and state agencies,<br />
and selection, training and supervision of<br />
maintenance/EVS employees. A four-year degree<br />
or four to six years experience is desired,<br />
along with oral, written and organizational skills.<br />
Send cover letter, resumes and inquiries to HR@<br />
tiogadowns.com, or fax 607-699-0497.<br />
AROUND THE CIRCUIT......<br />
PHIL TERRY has been named interim manager<br />
of the Delaware County Fair, effective July1.<br />
He will continue to serve as marketing director<br />
for the Fair and the Little Brown Jug......PAM<br />
FROSTAD has been appointed by the government<br />
of Ontario to the Ontario Racing Commission,<br />
and DR. BERNARD BRENNAN, DVM,<br />
has been reappointed to the commission for a<br />
one year term.....A hearing before the Kentucky<br />
Racing Authority for thoroughbred trainer PAT-<br />
RICK BIANCONE, set for two days ago to determine<br />
if he violated terms of his one-year suspension,<br />
has quietly been postponed indefinitely.....<br />
CAN ANYONE OUT THERE BEAT THIS? Guy<br />
Gets Girl, a trotter in the Bruce Ranger stable,<br />
won its 45th career victory at Pompano Park in<br />
a $12,000 featured trot. The 9-year-old gelding<br />
won in 1:58 to send its lifetime earnings to<br />
$370,000.....SCIOTO DOWNS, bolstered by a<br />
new simulcasting schedule that included betting<br />
on thoroughbred racing’s Triple Crown, was up<br />
117.2% over last year’s figures after a month of<br />
racing.....The new MENANGLE PARK in Sydney,<br />
Australia, has been named as the site of the<br />
inaugural racing of the $1 million World Cup of<br />
pacing. The event is scheduled for April 19,<br />
2009, and North American horses will be<br />
invited.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
June 20, 2008<br />
ROUGH GOING FOR JC, NTRA<br />
The witness list was carefully selected, of course,<br />
with the views of those chosen known, and the<br />
questioning produced no surprises at yesterday’s<br />
Congressional subcommittee hearing on thoroughbred<br />
racing. Some of the answers did, however.<br />
When the witnesses were asked if they believed<br />
in a national body, yes or no, all answered<br />
“yes” except for Alex Marzelli, president of the<br />
Jockey Club, who said he believed racing could<br />
clean itself up without federal assistance. Asked<br />
why he believed that, Marzelli said, “For starters,<br />
I’m an optimist,” to which Rep. Jan Schakowsky,<br />
an Illinois Democrat and former thoroughbred<br />
owner who played a surprise leading<br />
role in the proceedings, immediately shot back,<br />
“Based on what?” Jess Jackson, owner of Horse<br />
of the Year Curlin, added to the fire, calling the<br />
Jockey Club “a fiefdom.” Breeder Arthur Hancock<br />
complained, “No one is in charge. We’re a<br />
rudderless ship,” and when Marzelli was asked<br />
by Rep. Ed Whitfield of Kentucky, “What can<br />
you do?” Marzelli said, “We have the power of<br />
persuasion and consensus building.” Whitfield<br />
replied, “I don’t think you even have that.”<br />
Alex Waldrop, president of the National Thoroughbred<br />
Racing Association, also invoked the<br />
role of the NTRA as “a consensus builder,” but<br />
Whitfield later told reporters he thought it was<br />
apparent that neither Marzelli nor Waldrop<br />
“has the authority to do anything.” And then he<br />
dropped the hammer, saying, “I think we can use<br />
the Interstate Horseracing Act” to put together<br />
legislation to set out minimum standards for racing.<br />
This was after Richard Shapiro, chairman<br />
of the California Horse Racing Board, declared<br />
that, “Over the years, we’ve traded the timetested<br />
regimen of hay, oats and water for a virtual<br />
phamacopoeia....we have created a chemical<br />
horse.” Shapiro said, “Our structure<br />
is dysfunctional. I submit we need a national<br />
racing commission.”<br />
JUG HONORS OUR BIG BROWN<br />
Harness racing has its own Big Brown, and I<br />
don’t mean Somebeachsomewhere. Our Big<br />
Brown is Dr. Glen Brown, 6 feet 4 or whatever,<br />
big and burly and smart, and a longtime major<br />
figure in our game, formerly as farm manager<br />
and veterinarian for Armstrong Brothers,<br />
breeders of Jug winners Armbro Omaha and<br />
Armstrong Operative and two winners of the<br />
Jugette, Armbro Feather and Armbro Romance.<br />
Dr. Brown also owned Fan Hanover, the only filly<br />
ever to win the Jug and Harness Horse of the<br />
Year in 1981. Yesterday the Little Brown Jug<br />
announced Dr. Brown is its honoree for 2008,<br />
and will be recognized at the annual Mayor’s<br />
Breakfast on Sept. 17 in the Hospitality Pavilion<br />
at the Jug fairgrounds. Dr. Brown is the sixth<br />
Canadian to receive the Jug Honoree award. He<br />
already is a member of the U. S. and Canadian<br />
harness racing halls of fame.<br />
IN CASE YOU MISSED IT: MOXIE<br />
Just what New York state needs: another new<br />
video betting game as competition for its ailing<br />
horse racing industry. The chief lawyer for<br />
the state’s Liquor Authority recently approved<br />
Moxie, an arcade game with worse odds than<br />
Las Vegas slots, and the Atlanta manufactures of<br />
the game, Pace-O-Matic, already have been hustling<br />
it as “Moxie Mania” to potential bar and<br />
tavern customers in the Empire State. The game<br />
had a three-year run in Ohio before being outlawed<br />
there as a game of chance. The company<br />
says Moxie is a game of skill, similar to the number<br />
puzzle game Sudoku, and that “if a player<br />
is really good, of which there are very few, he<br />
will never lose.” Pace-O-Matic says it is working<br />
with Betson Enterprises of Carlstadt, NJ, in<br />
marketing the game. Oh, we almost forgot. Park<br />
Strategies, the lobbying firm run by former New<br />
York Senator Alphonse D’Amato, is associated<br />
with Pace-O-Matic. Any questions?
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
June 23, 2008<br />
FRANK BILL MOVES FORWARD<br />
Congressman Barney Frank’s effort to open<br />
the way to Internet wagering for all reaches the<br />
markup stage tomorrow or Wednesday, according<br />
to the American Horse Council. The bill,<br />
HR 5767, the Payments System Protection Act,<br />
is designed to prohibit the Treasury Department<br />
and Federal Reserve Board from implementing<br />
regulations that were proposed last fall in the<br />
Unlawful Internet Gambling Enforcement Act.<br />
Those regulations are now being reviewed by the<br />
agencies mandated to impose them, Frank and<br />
Ron Paul introduced the bill in April, claiming<br />
“it is clear...the regulations are unworkable for<br />
the financial services industry, and this bill would<br />
therefore prohibit their implementation.” The<br />
Horse Council says the markup is scheduled for<br />
tomorrow in the House Financial Services Committee,<br />
but could be held over until Wednesday<br />
because there are six bills before it for consideration,<br />
several of which are complex. The AHC<br />
notes that the bill “is another effort by Mr. Frank<br />
to roll back the passage of the Unlawful Internet<br />
Gambling Enforcement Act of 2006, which effectively<br />
prohibits ‘unlawful Internet gambling’ by<br />
requiring the U.S. financial services to block financial<br />
transactions used to effectuate unlawful<br />
Internet gambling.” The AHC points out that the<br />
definition of ‘unlawful Internet gambling’ in the<br />
UIGEA specifically excludes “any activity that is<br />
allowed under the Interstate Horseracing Act.”<br />
This is the key provision that enables Internet<br />
betting on horse races, and it also is endangered<br />
by the House Subcommittee on commerce, trade<br />
and consumer protection’s determination to reopen<br />
the Horseracing Act to provide for uniform<br />
regulations on steroids and other illicit medications.<br />
That possibility was stressed by Reps. Ed<br />
Whitfield of Kentucky, Jan Schakowsky of Illinois,<br />
and other subcommittee members in<br />
last week’s hearing on drugs and breakdowns<br />
in thoroughbreds.<br />
SEARCH FOR RESPECTABILITY<br />
The principal owner of Big Brown, winner of the<br />
Kentucky Derby and Preakness but humbled in<br />
the Belmont Stakes, has gotten religion where<br />
steroids are concerned. Michael Iavarone got<br />
heavy ink this morning announcing none of the<br />
50 or so horses in his International Equine Acquisitions<br />
Holdings “need this stuff to win,” and<br />
the entire stable would be drug free by Oct. 1.<br />
Iavarone says he will pay for tests administered<br />
by state or track veterinarians before and after<br />
each start by an IEAH horse to prove they are<br />
drug free. The stable will not give up Lasix, however,<br />
another scourge of the sport. Iavarone said<br />
he was “moved by the (Congressional) hearing<br />
last week and I saw one witness after another say<br />
they wanted zero tolerance on drugs. Someone<br />
has to take the first step. We want other owners<br />
to join us immediately. Racing can’t wait for<br />
state laws or House rules or Congress. What we<br />
have to do to get this done is the integrity of the<br />
people involved in the sport.” So now, with a<br />
new leader, let us march ahead. Go forth, Big<br />
Brown, steroid free.<br />
‘SUPER TRACK’ CHRISTENED<br />
Australia’s new ‘super track,’ Menangle Park<br />
in Sydney, was christened in highly publicized<br />
ceremonies. The first race, a 2,300 meter test<br />
for 2-year-olds, is called “The Menangle Park,<br />
Where Horses Fly Pace.” Brian Hancock, a<br />
legendary figure Down Under and a multiple<br />
winner of the Interdominions, Australia’s most<br />
important harness race, told the Sydney Daily<br />
Telegraph the track was “the greatest thing to<br />
happen to harness racing” in his 40 years in the<br />
sport. Hancock has driven all over the world,<br />
and he called Menangle “the best track I have<br />
seen.” John Dumesny, CEO of the track, called<br />
it “a new beginning for our sport. It’s a revolution.<br />
Harness people can’t stop talking about<br />
it and are walking a little bit higher.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
June 24, 2008<br />
BRUNO LEAVING NY SENATE<br />
The story of the day, stunning the New York legislature<br />
and the entire infrastructure of government<br />
in the Empire State, was that the emperor<br />
was quitting after 32 years, and would not run<br />
for re-election. Joe Bruno has been perhaps<br />
the most powerful state legislator in America,<br />
and nothing happened in New York without his<br />
stamp of approval. Even his strong counterpart<br />
in the Assembly, Sheldon Silver, did not know<br />
the majority leader of the Senate was stepping<br />
down, and he told reporters, “I didn’t see it coming.”<br />
He said Bruno had called him last night<br />
to let him know, and Silver said, “An era ends<br />
with Joe Bruno leaving.” It surely does, and his<br />
oars as helmsman will be heavy cargo for anyone<br />
to pick up. Bruno had battled former governor<br />
Elliot Spitzer and a federal investigation of his<br />
many business interests, and at 79 obviously had<br />
wearied of the fights. “Politics is a tough ballgame,”<br />
he said, “tougher now than it has ever<br />
been.” At least four senators with aspirations to<br />
succeed Bruno already have surfaced, but none<br />
has much chance of commanding the powerful<br />
presence that he leaves behind. Governor David<br />
Paterson said Bruno’s departure was “a sad day<br />
for Albany, and for me.” If there was any joy at<br />
the news, it was on the opposite side of the political<br />
aisle, where Democrats realized that Bruno<br />
may take some senior legislators with him into<br />
retirement. If he does, the slender Senate Republican<br />
majority of 32-30 is in jeopardy, with<br />
Democrats already holding the governorship and<br />
comfortable control of the Assembly, where they<br />
outnumber Republicans 106 to 42. State Democratic<br />
chairwoman June O’Neill said, “There is<br />
no better gambler in this business than Joe Bruno...and<br />
he looked across the table and saw we<br />
had a royal flush.” She said “We’ll be curious<br />
to see who else decides to join him in the<br />
retired legislators section at the Saratoga<br />
racetrack.”<br />
HOW SWEET IT IS<br />
One constituent who will grieve Bruno’s departure,<br />
but will do so in deep clover, is developer<br />
Louis Capelli. Bruno announced that the<br />
Paterson administration and the governor had<br />
worked out a three-way deal, and the Senate<br />
passed it yesterday, clearing the way for Capelli<br />
to move Monticello Raceway 2.5 miles to the<br />
town of Thompson, complete with its racino,<br />
where Capelli will build a $1 billion resort including<br />
a new Concord hotel. Bruno said the<br />
deal, as reported by the Albany Times Union,<br />
will result in the employment of 2,000, a reasonable<br />
estimate for a complex the size of the new<br />
project. The Assembly is expected to give quick<br />
approval to the package, which will give Empire<br />
Resorts, owners of Monticello with Capelli holding<br />
a major stake, a boost in VLT revenues from<br />
the present 42% to 75%. The state will get 25%<br />
or a guaranteed $38 million a year, whichever is<br />
larger. In return Capelli must prove, by audited<br />
financial statements, that he has invested $1 billion<br />
in resort improvements, including the track<br />
and its racino, the hotel and convention center,<br />
and golf course and other amenities. If he does<br />
he has a 40-year deal; if he does not, and does<br />
not employee 2,000, the deal will be scaled back<br />
in proportion.<br />
ROCK POKER ACES TO VEGAS<br />
Team Rockingham -- five poker players who<br />
earned $10,000 seats into the World Series of<br />
Poker -- will head for Las Vegas and the World<br />
Series of Poker at the Rio hotel on the weekend of<br />
July 4. Awaiting them, or someone, is a jackpot<br />
that last year was $8.5 million, but to get it the<br />
New Hampshire aces, or someone, will have to<br />
outplay thousands of others entered in the multimillion<br />
dollar tournament. Most of the Rockingham<br />
team have announced they will retire<br />
from their current jobs if they win. A word of<br />
advice, from the current pacer of the same<br />
name: Dontquityourdayjob.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
SADINSKY REPORT SURFACES<br />
The Ontario government yesterday released the<br />
Industry Review Panel report, commissioned<br />
last summer and prepared by a three-man team<br />
headed by former Ontario Racing Commission<br />
chairman and law professor Stanley Sadinsky.<br />
The 80-page report will be posted on HTA’s Web<br />
site in its entirety, but here are the summarized<br />
recommendations, in abbreviated and slightly<br />
edited form:<br />
1. Develop and implement a comprehensive<br />
gaming strategy for the province, including<br />
horse racing and breeding.<br />
2. Reconstitute the Ontario Horse Racing Industry<br />
Association (OHRIA) into Horse Racing<br />
Ontario, HRO, an all-encompassing board that<br />
would decide all economic issues and disputes<br />
among stakes holders.<br />
3. That the horse racing and breeding industry<br />
fund HRO immediately.<br />
4. That the Ontario Racing Commission consult<br />
with HRO on issues of integrity, including promulgation<br />
of rules and regulations, and participate<br />
in any horse racing and breeding advisory<br />
committee that the Gaming Secretariat may establish.<br />
5. That the HRO undertake the annual collection<br />
and analysis of data and reporting of results<br />
against standard benchmarks, which would<br />
not require collection of confidential data. This<br />
would include a wide statistical base, including<br />
live wagering and total wagering by tracks.<br />
6. An alternative to introducing the new program,<br />
leading to full implementing by Jan. 1,<br />
2012.<br />
7. Whenever the new program comes into effect,<br />
all funds payable to the industry from slot machines<br />
be pooled, with the total amount payable<br />
to the Slot Funding Pool in the first three years<br />
to be 20% of all slot revenue generated at<br />
all tracks. The amount payable would be<br />
reviewed after three years.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
June 25, 2008<br />
Out of the pooled fund, 25% would be paid to<br />
tracks and 25% to horsemen for purses, the remainder<br />
to the HRO for administrative operating<br />
costs and research and marketing.<br />
8. HRO set an aggressive timeline for the development<br />
and implementation of innovative wagering<br />
products, new and improved methods of<br />
delivery, races and partnerships, and engage the<br />
Gaming Secretariat in considering the legalization<br />
and regulation of Internet betting on horse<br />
racing.<br />
9. That HRO initially establish a budget for<br />
research and education of at least $2 million a<br />
year, with that amount increasing as slot funds<br />
become available.<br />
10. That HRO support organizations that arrange<br />
for adoption of racehorses after their careers<br />
have ended.<br />
11. That HRO work with the Gaming Secretariat<br />
to insure proper problem gambling programs<br />
are developed and made available.<br />
Concerning recommendation 5, we proudly<br />
point to Brody Johnson’s May HTA report for<br />
directors, “Purse Distribution Analysis at HTA<br />
Tracks, 2006.” It analyzes 40,000 races with detailed<br />
charts and graphs, and is not only fascinating<br />
reading but another example of HTA services<br />
not available elsewhere.<br />
O’BRIEN AWARD REVOKED<br />
Standardbred Canada reported today that its<br />
Board of Directors has voted to revoke the 2007<br />
O’Brien award, emblematic of divisional championships,<br />
that had been presented to owner Jeffrey<br />
Snyder of New York for Michelles Power as<br />
3-year-old pacing filly of the year. She turned up<br />
with a positive and Standardbred Canada, like<br />
HTA, has a policy that horses failing drug tests<br />
are not eligible for rewards. SC’s rule specifies<br />
that any horse testing positive for a class 1, 2 or 3<br />
drug is not eligible for an award, outstanding<br />
appeals and/or stays notwithstanding.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
June 26, 2008<br />
WEG DOES NOT LIKE REPORT<br />
It took 80 pages to wade through the Sadinsky<br />
report on Leadership Strategic Vision and Direction<br />
for the Ontario Horse Racing and Breeding<br />
Industry, but it took Woodbine Entertainment<br />
Group only three strong paragraphs to tell what<br />
it thinks of it, which is little. Here are the three<br />
in full, and they speak volumes:<br />
A healthy horse racing industry is dependent,<br />
first and foremost, on the financial viability of<br />
racetracks which provide the venue for the racing<br />
product. With respect to the report, Woodbine<br />
Entertainment Group believes that while<br />
there are some interesting and thought-provoking<br />
suggestions, its recommendations are entirely<br />
impractical, unrealistic and unworkable from a<br />
financial perspective. Racetracks simply would<br />
not be able to internally finance their operations<br />
or obtain bank financing.<br />
“The report recognized WEG’s flagship role in<br />
the Ontario horse racing industry,” stated David<br />
Willmot, chair and CEO. “Ironically, if the recommendations<br />
were implemented, WEG would<br />
immediately lapse into a substantial loss position.<br />
As a not-for-profit company financed entirely<br />
by debt, WEG would breach its banking<br />
covenants and would not be able to obtain future<br />
financing. Notwithstanding that the report<br />
is well intentioned in attempting to provide a<br />
strategic direction for the Ontario Horse Racing<br />
and Breeding Industry, the effect of its recommendations<br />
would devastate the second largest<br />
agricultural sector in the Province, which generates<br />
55,000 jobs.<br />
“WEG trusts that the Province will recognize the<br />
shortcomings of the report and looks forward to<br />
working with the government on strategies<br />
which will ensure the long-term viability<br />
of this significant industry.”<br />
FRANK BILL FAILS THIS TIME<br />
The House of Representatives Financial Services<br />
Committee voted down Rep. Barney Frank’s<br />
attempt to scuttle the Unlawful Internet Gambling<br />
Enforcement Act yesterday afternoon, on<br />
sharply divided party lines. Interactive Gaming<br />
News quoted Steven W. Adamske, a spokesman<br />
for Frank’s office, as saying, “The traditional<br />
‘family-values’ Republicans defeated a common<br />
sense measure that had nothing to do with the<br />
underlying issue of whether American adults<br />
should be allowed to freely gamble with their<br />
own money.” The bill would have prevented<br />
the Treasury Department and Federal Reserve<br />
Board from finalizing the proposed regulations<br />
for the Internet betting ban, from which horse<br />
racing is exempt under the Interstate Horseracing<br />
Act. Interactive Gaming News reported that<br />
“It’s a bit early to speculate on prospects for this<br />
legislation moving forward, but the display of<br />
partisanship might suggest that the bill would<br />
stand a better chance if Democrats strengthen<br />
their majority in Congress.”<br />
AROUND THE CIRCUIT.....<br />
The Albion Park track in Brisbane, Queensland,<br />
where Australia’s biggest harness racing event,<br />
the Inter Dominion, will be held next March,<br />
has been closed indefinitely because of safety<br />
concerns over its main grandstand after an engineering<br />
study. The harness and greyhound<br />
track had planned rebuilding next year....Rod<br />
Pollack, the progressive chief executive officer of<br />
Harness Racing Australia, plans to retire at the<br />
end of August.....Mary Lib Miller, widow of Delvin<br />
Miller, who suffered a broken hip in a home<br />
fall recently, has had the hip replaced and will<br />
be moved in a few days to a recuperation center.<br />
She presently is in Room 749, Orlando Regional<br />
Medical Center, 1414 Kuhl Avenue, Orlando,<br />
Florida, 32806, but her new hospital address<br />
will be Lucerne Hospital, 818 Main Lane,<br />
Orlando, Florida, 32801.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
June 27, 2008<br />
HOW SMART IS RACING?<br />
Not too smart, judging from its stumbling steps<br />
to end illegal medication, improve public perception,<br />
and severely penalize the misdeeds of<br />
leading figures in the sport. The main stories of<br />
the day are not about the horses, but about the<br />
people who train and own them. The new suspensions<br />
of Rick Dutrow and Steve Asmussen in<br />
thoroughbred racing and the 10 year suspension<br />
and $40,000 fine handed to well-known harness<br />
racing trainer Bill Elliott in Ontario, and the stupid<br />
injuring of a horse by jockey Jeremy Rose in<br />
damaging the eye of a mount with his whip not<br />
only provide fuel for the foes of racing, but add<br />
to the din of negative publicity, certain to receive<br />
far more coverage than racing’s halting efforts<br />
to face the issue squarely and ban all race day<br />
medications and impose meaningful penalties.<br />
Ontario has led the way, but even that progressive<br />
commission has backed away from a real solution:<br />
discouraging owners from using known<br />
offenders to train their horses. That aspect also<br />
made headlines today, as Michael Iavarone and<br />
his IEAH group, desperately seeking better PR,<br />
hinted they may take their 50 or so horses, including<br />
Big Brown, away from Dutrow. In view<br />
of their pious pronouncement of having their<br />
stable “drug free by October 1,” they face new<br />
tests of their sincerity now. And why not July<br />
1? In Ontario, Woodbine Entertainment is challenging<br />
the Ontario Racing Commission decision<br />
not to allow it to bar the horses of owners using<br />
Elliott’s services. Veteran racing writer Paul<br />
Moran put the issue in perspective today with a<br />
column that began, “Have we had enough yet?”<br />
and ended, “The current malaise will not lighten<br />
until there is an imposition of accountability,<br />
proper and reasonable punishment, a ban on all<br />
race-day medication and a zero tolerance policy<br />
enforced vigorously in every jurisdiction<br />
by a central -- or if necessary, federal authority.<br />
You asked for it.”<br />
AT LEAST SOME GOOD NEWS<br />
It is not all dark. The Meadows near Pittsburgh<br />
put out a casting call this week for trainers, drivers<br />
and horses for the upcoming filming there<br />
of Shannons Rainbow, a full length theatrical<br />
film about a grieving teen estranged from her<br />
mother who learns valuable life lessons by caring<br />
for an injured trotter. Shooting has begun in<br />
western Pennsylvania and will take place at the<br />
track July 16 and again from July 23 through 26.<br />
Daryl Hannah leads the list of known Hollywood<br />
names, which include cinematographer Dean<br />
Cundey, whose credits include Jurassic Park,<br />
Apollo 13, and all three Back to the Future features.<br />
The story was conceived some years ago<br />
by actor/writer John Mowod after watching his<br />
brother, former trainer Joe Mowod, nurse a harness<br />
horse back to the races. Producers Summit<br />
Works Films and Supernova Media hope for a<br />
2009 release and Meadows vice president of racing<br />
John Marshall feels there will be excellent<br />
tie-in promotional opportunities for the industry.<br />
BANGOR SLOTS TO NEW HOME<br />
It opened almost three years ago in a converted<br />
restaurant, but after a highly successful run in<br />
those temporary quarters, the Hollywood Slots<br />
Hotel and Raceway will open for business next<br />
Tuesday in a $132 million new home just up the<br />
street. Now owned by Penn National, the old<br />
operation will shut down Sunday, hold an invitation-only<br />
grand opening celebration Monday<br />
night, and then open its doors the next morning<br />
on an eight-acre plot that was the site of a Holiday<br />
Inn, with 1,000 of its potential 1,500 slots<br />
ready for business. The new edition includes a<br />
250-seat restaurant, a snack bar, a gift shop and a<br />
stage with live entertainment on weekends, with<br />
a 1920s and 1930s Hollywood theme. It could<br />
offer prizes for customers who can identify the<br />
blowups of Charles Boyer, Norma Shearer,<br />
Doug Fairbanks Jr. and Ann Sheridan.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
June 30, 2008<br />
CRISES IN THE NORTH<br />
How and if harness horsemen in the province of<br />
Alberta and the city of Montreal will survive is a<br />
question today, following the double body blows<br />
of last week in the west and east of Canada. In<br />
Edmonton, Alberta, Northlands Park announced<br />
it was going to become an exclusively thoroughbred<br />
race track, abandoning the harness sport.<br />
In Montreal, Hippodrome de Montreal was<br />
closed as its owner, Paul Massicotte, sought and<br />
received court protection from creditors.<br />
With a new super track at least two years and<br />
perhaps more away in Calgary, Alberta horsemen<br />
are left without a viable pari-mutuel option.<br />
The same is true in Montreal, although the geography<br />
problem is not quite as severe. Massicotte,<br />
who had glowing plans for his Attractions<br />
Hippiques two short years ago, reported losses of<br />
$750,000 a month, and has been having difficulty<br />
finding a site north of Montreal to relocate Hippodrome<br />
de Montreal, his flagship track of four<br />
under the Attractions Hippiques banner. It estimates<br />
a revenue loss of $20 million a year, and<br />
under the terms of its deal with the government<br />
of Quebec that granted it the sole racing rights,<br />
it was supposed to pay purses of $24 million this<br />
year. Attractions Hippiques is seeking compensation<br />
and redress from the government, saying<br />
Loto-Quebec, which runs Quebec’s racinos, has<br />
created the problem with the absence of a gaming<br />
hall at the new racetrack that Massicotte was<br />
hoping to build. He says the 22% commission on<br />
1,100 video lottery terminals that Loto-Quebec<br />
would have operated there could have averted<br />
the financial disaster. Horsemen, meanwhile,<br />
call the situation drastic, asking that someone<br />
live up to contractual obligations to save the<br />
livelihoods of hundreds. Rick Karper, a former<br />
head of the horsemen’s association, says<br />
he hopes somebody will continue the racing,<br />
but no savior is in sight.<br />
HAPPY DAYS AT BIG M WEST<br />
It wasn’t exactly like the Meadowlands opening<br />
32 years ago, for those who can remember,<br />
but it was a very good imitation. The opening<br />
of Australia’s new 1,400-meter super track,<br />
Menangle Park, in Sydney, yesterday, drew an<br />
excited crowd of 15,764 and backed up traffic<br />
for miles. It was, one racegoer said, “like rush<br />
hour traffic only worse,” but he added, “I didn’t<br />
mind waiting.” New records went into the book<br />
with almost every race on the all-star card, and<br />
American trackman Dan Coon, who designed the<br />
racing strip, pronounced it “the best of its kind<br />
in the world.” So did the horsemen who were<br />
ecstatic in their praise. Australia’s champion<br />
woman driver Natalie Rasmussen, who won one<br />
of the features on the card, called Coon’s work<br />
“a touch of genius.” John Dumesny, CEO of the<br />
New South Wales Racing Club, summed it all<br />
up, saying, “Everything was magic; the crowd<br />
enjoyed it, we had no problems with catering,<br />
and everyone went away happy.” It’s nice to see<br />
someone happy in racing’s tumultuous world.<br />
PATIENCE IS ITS OWN REWARD<br />
Another feel-good story in the news. The trotter<br />
You’re Next, a winner of 13 straight races<br />
at Pompano Park in 2006 and 2007, went lame<br />
last year. His owner, Andrew Sassen of Coral<br />
Springs, took trainer Fred Cohen’s advice and<br />
turned the horse out to pasture. Last Wednesday<br />
night -- one year to the day from when he<br />
was scratched lame -- he returned and won for<br />
driver Wally Hennessey in a 1:56.2 mile. Owner<br />
Sassen’s grandmother, 91-year-old Ruth Dunay,<br />
was trackside for You’re Next’s victory. “I have<br />
never missed one of his races,” she said proudly,<br />
“I’m his good luck charm.”<br />
CORRECTION<br />
Friday’s <strong>Executive</strong> News reported thoroughbred<br />
trainer Steve Asmussen being suspended...<br />
again. Not yet. His hearing is July 18.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
July 1, 2008<br />
HOW ‘BRUNO BONUS’ WORKS<br />
In an interesting interview in the Middletown,<br />
NY, Times Herald Record, developer Louis Cappelli<br />
told reporter Victor Whitman how he will<br />
move Monticello Raceway and build a new billion<br />
dollar entertainment complex, thanks to remarkable<br />
legislation that cleared the New York<br />
Senate with the final blessing of Majority Leader<br />
Joe Bruno, who is retiring. No billion dollar bill<br />
could have passed without Bruno’s benediction,<br />
since it raised revenues from the video slots from<br />
42% to 75% for the new management. Billed as<br />
an economic boon for the Catskill area, which<br />
it undoubtedly will be, the legislation requires<br />
Cappelli to show proof he created 2,000 jobs and<br />
returns 38 million a year to the state. Cappelli<br />
says he will open the new facility two years from<br />
now, and will finance it with $300 million of equity<br />
in “mezzanine financing” and $750 million<br />
in actual bank debt. He says he has term sheets<br />
for that bank financing, and hopes to close on<br />
the deal in 60 days. Demolition has begun on<br />
the old Concord, and new foundations will be<br />
laid as each section of the demolition progresses.<br />
Cappelli says phase one of the project calls for<br />
a new 750-room hotel, a convention center and<br />
casino, with a new track to be built in two years.<br />
Cappelli is planning a casino, not a racino, and<br />
also will build a golf clubhouse and begin construction<br />
of 487 estate homes for an additional<br />
$150 million. Asked if Donald Trump will be<br />
involved, Cappelli told Whitman, “Not yet. He<br />
is a good friend and business partner. We are<br />
going to talk to Donald.” Cappelli said demolition<br />
is on schedule for completion the end of this<br />
month, with steel coming in October.<br />
V75 AT $16.5 MILLION<br />
Sweden’s V75 wager had no payout last week,<br />
and this week’s prize is a carry-over jackpot<br />
pool of $16.5 million U.S. on this coming<br />
Saturday’s races.<br />
NEW ERA AT RUNNING ACES<br />
HTA member Running Aces in Minnesota<br />
reached its 50-day trigger date for card room operation<br />
last night, and opened the 425-seat facility<br />
with every seat filled and its largest Monday<br />
night crowd of the meeting. At 1:30 this morning<br />
a large crowd was still on hand in the gaming<br />
facility, which includes 25 poker tables and<br />
25 table games including black jack, 3 & 4 card<br />
poker, Pai Gow and Ultimate Texas Hold-em.<br />
General Manager Bob Farinella said the opening<br />
went “smooth as butter” and called the event “a<br />
great night for harness racing in Minnesota and<br />
an overall even greater night of entertainment<br />
value providing jobs and free time options for<br />
our community.” The card room opened after<br />
the eighth race on the card and the 9,000 squarefoot<br />
facility, which was packed with new fans,<br />
many of whom took in the racing card first, will<br />
remain open 24 hours a day with simulcasting<br />
after the live meeting closes this weekend. The<br />
opening marked an exciting time for the Running<br />
Aces team and the track ownership group<br />
at Southwest Casino Corporation and Mountaineer.<br />
SPILLOVER IN INDIANA, TOO<br />
Rick Moore and Jon Schuster, HTA’s directors<br />
at Hoosier Park and Indiana Downs, reported to<br />
the state yesterday on initial gaming operations,<br />
and both indicated positive spillover to their harness<br />
racing operations from their racinos. Moore<br />
reported Hoosier was “right where we expected<br />
to be,” and Schuster said Indiana Downs’ 1,911<br />
machines produced $252 a day during opening<br />
week.<br />
RISING YOUNG DRIVING STAR<br />
Jordan Stratton, Monticello Raceway’s leading<br />
driver, celebrated his 21st birthday at the track<br />
last night by winning six consecutive races. He<br />
is seventh in U.S. wins in North American<br />
standings in races won with 269.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
July 2, 2008<br />
NO VOTE ON SPORTS BETTING<br />
Sports betting in Delaware, approved by the<br />
House of Representatives in May, failed to make<br />
it in the Senate last night, the final night of the<br />
legislative session. The Senate did not vote on<br />
the issue, in part presumably because of a report<br />
issued last month by two University of Delaware<br />
economics professors who challenged estimates<br />
on state revenue and said it could be at most $3.3<br />
million and perhaps as low as $1 million. A Governor’s<br />
Task Force report had said sports betting<br />
could add between $22.5 million and $30.6<br />
million annually to state revenue, badly needed<br />
as Delaware tries to balance a $217 million budget<br />
deficit. A separate report, released by Delaware’s<br />
gaming industry, claimed sports betting<br />
could produce as much as $71 million for the<br />
state. The task force report’s projections included<br />
“crossover effect,” monies that would be bet at<br />
racinos at HTA’s Dover Downs and Harrington<br />
Raceway and Delaware Park by players betting<br />
on sports. The two professors, James Butkiewicz<br />
and Bill Latham, took their lead from University<br />
of Nevada-Reno professor Bill Eadington, who<br />
reported that sports betting in that state amounted<br />
to just 1.3% of total betting of $12.8 billion bet<br />
last year. The Delaware professors contend that<br />
sports bettors have little in common with slots<br />
players and the crossover effects would be negligible.<br />
Gov. Ruth Ann Minner, who has promised<br />
to veto any sports betting bill, leaves office at the<br />
end of the year, opening the possibility of a new<br />
look at the issue next year.<br />
BIG BANG IN BANGOR<br />
They lined up at 7:30 a.m. for a 10 a.m. opening<br />
yesterday at Penn National’s new $132 million<br />
Hollywood Slots facility in Bangor, Maine,<br />
and by 10 there were an estimated 1,100 in line.<br />
They came early and stayed late to play the 1,000<br />
slots. A 152-room hotel, part of the complex,<br />
will open this month or next.<br />
ILLINOIS CASINOS APPEAL<br />
The four Illinois riverboat casinos affected by<br />
a state mandate to pay some $76 million to the<br />
state’s tracks to offset damaging impact are asking<br />
the state Supreme Court, which upheld the<br />
measure June 5, to reconsider it. The 2006 law<br />
requires the four top-grossing riverboats in Aurora,<br />
Elgin and two in Joliet, all on the Fox River<br />
west of Chicago, to pay 3% of their revenues to<br />
horse racing. If the Illinois high court refuses to<br />
reconsider, the riverboats either can seek a reversal<br />
of the legislation, up for renewal later this<br />
year, or appeal to the U.S. Supreme Court.<br />
IDLED HORSEMEN DESPERATE<br />
Harness horsemen in Montreal are desperately<br />
seeking a savior. Quebec is home for thousands<br />
of horsemen and supporting businesses, and<br />
suddenly, after 101 years, its biggest city has no<br />
live racing. Not only no racing, but the trustee<br />
for Hippodrome de Montreal says the stable<br />
area will be closed as well as the shuttered track.<br />
Jacques Hebert, one of the best known of the<br />
Montreal horsemen, told Paul Delean of The<br />
Gazette that three of his grooms, one with the<br />
stable for 33 years and two others with him for<br />
20 years, had nowhere to turn. “What’s going to<br />
happen to these people,” and others like them,<br />
he asked. Top horses have been sent to Mohawk<br />
in Ontario, and it takes $150 for gasoline to ship<br />
to Rideau Carleton in Ottawa, with grooms getting<br />
back at 3 o’clock in the morning and due<br />
to report for work at 6:30. Feed sellers, blacksmiths,<br />
veterinarians and farms all are feeling<br />
immediate impact. Some will move, but others,<br />
like 66-year-old Hebert and 61-year old Marcel<br />
Barrieau, said they are too old for that option.<br />
Hebert, a Hall of Fame horseman based at Hippodrome<br />
-- and Blue Bonnets before it -- for virtually<br />
his entire career, says he may disperse his<br />
13-horse stable and quit. “These are the<br />
worst few days of my life,” he said.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
July 3, 2008<br />
ONTARIO EYES SPORTS BETS<br />
The Toronto Star reports this morning that the<br />
Canadian federal and Ontario provincial governments<br />
are moving toward allowing Las Vegas<br />
style sports betting in provincial casinos. The<br />
story says high gas prices and sagging revenues<br />
have plagued Windsor and Niagara Falls casinos,<br />
and the high Canadian dollar and increased<br />
border security also have diminished the number<br />
of American bettors. Ontario already has a<br />
sports betting parlay combining results of three<br />
or more games, but the new proposal, the paper<br />
says, would allow bets on individual football,<br />
baseball, hockey, basketball, soccer and other<br />
games as well. Any legal changes made, the Star<br />
says, would have to allow such betting at Woodbine<br />
as well as Windsor and Niagara Falls. The<br />
plan requires changes in the Canadian criminal<br />
code that could face strong political opposition.<br />
PENN NATIONAL SALE NO GO<br />
Penn National Gaming announced this morning<br />
that its sales agreement with PNG Acquisition<br />
Company for purchase at $67 a share is being<br />
terminated, with highly favorable results for<br />
Penn National. The company will receive a $225<br />
million cash termination fee, and the purchase<br />
of $1.25 billion of Penn National’s redeemable<br />
preferred equity due in 2015, by affiliates of Fortress<br />
Investment Group and Centerbridge Partners,<br />
with Wachovia and Deutsche Banks, which<br />
had originally agreed to make indirect minority<br />
co-investments if the measure had closed, to purchase<br />
$45 million of that amount. The preferred<br />
equity carries no voting rights, and the interest<br />
free investment can be repaid in cash or company<br />
stock. Penn National says it will use the<br />
settlement to pursue a wide array of strategic<br />
opportunities, to repay debt, or for stock repurchases.<br />
It said one “strategic opportunity”<br />
might be purchase of land for a possible<br />
casino site in Maryland, and support of<br />
slots legislation in November there.<br />
OWNER SHUTS DOWN ELLIS PK<br />
Ellis Park in Henderson, KY, has been closed<br />
down by its owner, Ron Geary, after a federal<br />
judge denied his request for an injunction<br />
against thoroughbred horsemen’s refusal to offer<br />
the track’s signals to national account wagering<br />
services. Geary said his decision to close the<br />
86-year-old track, which was to open its 2008<br />
meeting tomorrow, was permanent. “I don’t<br />
have any plans on opening it again as a racetrack.<br />
That’s for sure,” he told the Louisville<br />
Courier Journal. The horsemen were seeking a<br />
larger share of simulcast betting revenue, and<br />
Rick Hiles, president of the Kentucky HBPA,<br />
called Geary’s decision “rash.” He said Geary<br />
was planning to close the track even without the<br />
dispute. Lisa Underwood, executive secretary<br />
of the Kentucky Horse Racing Authority, said<br />
Geary had notified her yesterday that he would<br />
not open the meeting, and that it was “sad for<br />
the industry, but I am not surprised.” Geary<br />
said in a prepared statement that the HBPA “has<br />
an ongoing dispute with ADWs and Ellis Park<br />
is caught in the crossfire. It is shocking to think<br />
that the KHBPA would choose to close down Ellis<br />
Park rather than take advantage of the additional<br />
revenue already negotiated with the<br />
ADWs for 2008. They know it and they don’t<br />
care. I have invested millions...and it was going<br />
to be a spectacular year. I love this track and I<br />
love racing. I am not, however, in the business to<br />
continue to spend millions per year keeping her<br />
going to have the Kentucky HBPA pull the rug<br />
out from underneath us. It is a tragedy.”<br />
SPEAKING <strong>OF</strong> TRAGEDIES<br />
Reports from Montreal, where horsemen are left<br />
without a racetrack with the closing of Hippodrome<br />
de Montreal, say Lucien Remillard, who<br />
lost his bid two years ago to Paul Massicotte to<br />
take over racing in Quebec, is discussing<br />
options with the bankruptcy referee.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Paul J. Estok, Editor<br />
July 7, 2008<br />
GOVERNOR LOSES IN FLORIDA<br />
The Florida Supreme Court last Thursday<br />
overturned the compact Gov. Charlie Crist<br />
signed with the Seminole Tribe to expand<br />
gambling at its casinos, holding that Crist<br />
had no right to allow forms of gambling that<br />
are illegal elsewhere in the state. The opinion,<br />
which is available on the HTA Web site<br />
at www.harnesstracks.com, didn’t take issue<br />
with the slot machines approved of in the<br />
deal, and which are also legal at Broward and<br />
Miami-Dade county pari-mutuel venues, but<br />
rather with card games such as blackjack<br />
and baccarat. The opinion clearly stated the<br />
Court’s assessment of Crist’s authority, saying,<br />
“The governor does not have the authority<br />
to legalize in some parts of the state, or<br />
for some persons, conduct that is otherwise<br />
illegal throughout the state.... What is legal<br />
in Florida is legal on tribal lands, and what<br />
is illegal in Florida is illegal there. Absent<br />
a compact, any gambling prohibited in the<br />
state is prohibited on tribal land.” Crist’s<br />
now-discredited compact with the tribe gave<br />
the Seminoles exclusive rights to offer card<br />
games such as blackjack in exchange for an<br />
up-front fee of $50 million, as well as subsequent<br />
payments of at least $100 million a year<br />
for the 25 years of the compact term. The<br />
suit against Crist was filed by the Speaker of<br />
the Florida House, who asserted the governor<br />
exceeded his authority. The result is not unexpected,<br />
as five other state supreme courts,<br />
Kansas, New Mexico, New York, Rhode Island<br />
and Wisconsin, have held their governors<br />
needed legislative approval to finalize<br />
gaming agreements with Indians. It is<br />
unclear whether Crist or the tribe will<br />
appeal the Court’s ruling.<br />
KY AUTHORITY NOW COMMISSION<br />
Kentucky Gov. Steve Beshear has signed an<br />
executive order reorganizing the Kentucky<br />
Racing Authority and renaming it the Kentucky<br />
Racing Commission. Beshear’s predecessor,<br />
Ernie Fletcher, replaced the “Commission”<br />
with the “Authority” in 2004. The<br />
governor named as new Commission members<br />
Robert Beck, chair; Tracy Farmer, vice<br />
chair; Ned Bonnie; Francis Thomas Conway;<br />
John Ward; Frank Jones, Jr.; Burr Travis II;<br />
Michael Pitino; Jerry Yon; Thomas Gaines;<br />
Elizabeth Lavin; Foster Northrop; Tom Ludt;<br />
Alan Leavitt; and Wade Houston. Prominent<br />
among those not named to the reconstituted<br />
Commission was Connie Whitfield, wife of<br />
U.S. Rep. Ed Whitfield. In the press release<br />
announcing the restructuring, Beshear said,<br />
“Kentucky’s signature industry is in crisis<br />
and immediate, aggressive action is necessary<br />
to preserve its integrity.... The actions I<br />
have taken today reflect my continued commitment<br />
to strengthening horseracing in the<br />
Commonwealth.”<br />
MAGNA REVERSE SPLIT SET<br />
Magna Entertainment announced late last<br />
week that its board approved a reverse<br />
stock split that will give shareholders of<br />
the racetrack operator one share for every<br />
20 shares they currently own. A company<br />
release said the reverse split will be effective<br />
on or about July 22 and affects all shares of<br />
common stock, stock options and convertible<br />
securities of the company, and that the board<br />
of directors had approved the split “to allow<br />
the Company to regain compliance with the<br />
NASDAQ $1.00 minimum bid price<br />
continued listing requirement.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
CALDER & HBPA REACH ACCORD<br />
Officials of Churchill Downs, owner of Calder<br />
Race Course, and representatives of the Florida<br />
HBPA have come to agreements on a 2008 purse<br />
contract and on a contract for the distribution<br />
of slot machine revenue, according to a release<br />
by Churchill, but failed to reach an agreement<br />
on distribution of the Calder signal to national<br />
account wagering platforms. The agreements<br />
pave the way for Calder to resume sending its<br />
signal to other racetracks and OTB facilities<br />
beginning Thursday, July 10. Under the terms<br />
of the slots agreement, horsemen are guaranteed<br />
$14.375 million for purses in the first three full<br />
years of the slots operation and 6.75 percent of<br />
slots revenue for the remainder of the 10-year<br />
term of the contract. Churchill officials also<br />
announced that the company has agreed to<br />
dismiss without prejudice the lawsuit filed<br />
against the Florida HBPA and its officers in April<br />
alleging violations of the Sherman Antitrust Act;<br />
the lawsuit will continue against the remaining<br />
parties to the action.<br />
POSSIBLE PAST-POSTING PROBLEM<br />
Ray Paulick, the former editor in chief of The<br />
Blood-Horse who has returned to daily coverage<br />
of the racing industry with a Web site called the<br />
Paulick Report (www.paulickreport.com) yesterday<br />
reported another incident of late betting<br />
(http://www.paulickreport.com/blog/free-money-past-post-betting/).<br />
It seems that one or more<br />
players at Tampa Bay Downs made several thousand<br />
dollars worth of winning bets on the fourth<br />
race at Philadelphia Park on June 28 after the<br />
horses had crossed the finish line. Paulick quoted<br />
Curtis Linnell, director of wagering analysis<br />
for the Thoroughbred Racing and Protective<br />
Bureau as saying that they were “aware of the<br />
situation,” that it looked like the incident<br />
“may have been isolated to Tampa” and<br />
“didn’t look like it was widespread.”<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Paul J. Estok, Editor<br />
July 8, 2008<br />
Linnell told Paulick that the circumstances are<br />
under review. The Pennsylvania Horse Racing<br />
Commission said it was investigating as well.<br />
THREAT IN NM TO MOVE TRACK<br />
R.D. Hubbard, owner of Ruidoso Downs in New<br />
Mexico, is threatening to move the race meet<br />
away from the world-famous quarter horse venue<br />
in the mountains because of the failure of a<br />
tax break Hubbard wanted from the New Mexico<br />
legislature. Ruidoso Downs President and General<br />
Manager Ann McGovern told the Las Cruces<br />
Sun-News that the racino is losing money and<br />
the moving it is “one of the options on the table.”<br />
The track currently faces competition from two<br />
tribal casinos in the area. The legislation Hubbard<br />
asked for would make Ruidoso Downs racino<br />
more competitive with tribal operations, according<br />
to track officials, by reducing the tax rate<br />
on the first $10 million of net casino win from 26<br />
to 10 percent; the track would continue to pay 26<br />
percent on net win above the $10 million level.<br />
The bill passed in the New Mexico house of representatives<br />
but died in the state senate. McGovern<br />
said Hubbard has looked at property in Las<br />
Cruces, about 115 miles southwest of Ruidoso.<br />
Any proposed move would have to be approved<br />
by the state racing commission, which recently<br />
approved the relocation of the Downs at Albuquerque<br />
to the town of Moriarty.<br />
AND SPEAKING <strong>OF</strong> RACINOS...<br />
Merriam-Webster has added more than 100<br />
new entries to the latest edition of its famous<br />
Collegiate Dictionary, including one familiar to<br />
those in the racing industry. The term “racino”<br />
now can be found in the dictionary, defined as a<br />
“racetrack at which slot machines are available<br />
for gamblers.” Other words that made the cut<br />
in the new edition include “dirty bomb,” “Texas<br />
Hold’em,” “mental health day,” and “Webinar.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
July 9, 2008<br />
A ROONEY FAMILY SPLIT?<br />
Following a Wall Street Journal story Monday,<br />
the New York Times this morning reports the<br />
storied Rooney sports family sired by the late<br />
and legendary Art Rooney is experiencing some<br />
wrenching times. According to the story, the five<br />
brothers -- Art Jr. and Dan, who run the Pittsburgh<br />
Steelers, and Tim, Pat and John, who run<br />
the family’s racing interests, including Yonkers<br />
Raceway and the Palm Beach Kennel Club -- are<br />
in deep disagreement over an edict handed down<br />
by commissioner Roger Goodell of the National<br />
Football League. The NFL, on whose teams millions<br />
are bet each year, has piously decided to<br />
enforce its rules against team owners with gambling<br />
interests. That hypocrisy aside, the NFL<br />
stand reportedly has created a cleft between the<br />
Steelers side of the family, which includes Dan<br />
Rooney and his son Art II, and Art Jr., and the<br />
racing side, involving the other three brothers and<br />
their extended families. Tim and twins Pat and<br />
John do not want to sell their profitable racing<br />
empire, which includes salaries for other family<br />
members, and the Times, quoting three unnamed<br />
sources “familiar with the inner workings of the<br />
club’s ownership,” said today that there was a<br />
dispute over the value of certain properties, particularly<br />
the Palm Beach dog track, and “it became<br />
apparent that the other Rooneys did not<br />
have the capital to buy out their three brothers.”<br />
According to the story, the brothers asked two<br />
investment banks to appraise the Steelers, which<br />
was valued at $929 million by Forbes magazine<br />
last year. Tim, Pat and John reportedly were not<br />
interested in selling on the installment plan, with<br />
payouts spread over several years. Dan Rooney<br />
is reported as relying on hugely wealthy Pittsburgh<br />
banker, Stanley Druckenmiller, chairman<br />
of Duquesne Capital Management, to either buy<br />
the team or buy a large share and let Dan,<br />
his son, and brother Art Jr. continue to<br />
run it.<br />
NOT TOO SHABBY A MONTH<br />
The Indiana Gaming Commission reports that<br />
HTA’s two members in the state, Hoosier Park<br />
and Indiana Downs, handled almost $311 million<br />
on slots and racino gambling in their first full<br />
month of operation, with almost 200,000 people<br />
visiting Hoosier Park for gaming and harness<br />
racing. On the gaming side, low denomination<br />
machines proved popular. Hoosier has 500 penny<br />
machines, and it collected almost $32.5 million<br />
on three and a quarter billion single-cent bets.<br />
Their 503 quarter machines averaged $90,286 in<br />
bets, good for $3,215 every day of the month.<br />
BIG QUESTIONS IN BUFFALO<br />
A federal judge in Buffalo, NY, has ruled that the<br />
Seneca Indians do not have the right to build a<br />
$333 million casino in downtown Buffalo -- one<br />
that already is under construction while a temporary<br />
one operates -- but the Senecas say they<br />
are not about to close down either project until<br />
Washington weighs in. The judge, William Skretny,<br />
said in a 127-page decision, that the land may<br />
be “Indian country,” but allowing gaming on it<br />
was “arbitrary, capricious and not in accordance<br />
with the law.” The Senecas’ chairman says the<br />
tribe will continue to operate the temporary casino<br />
and also will continue building the permanent<br />
one, but opposing lawyers said if they do<br />
they will be doing so illegally and the lawyers will<br />
file for a federal injunction. One lawyer said the<br />
Senecas can build the casino, but cannot operate<br />
gambling in it. The casino is the largest private<br />
development in Buffalo history, and represents a<br />
major threat to the welfare of Buffalo Raceway.<br />
The Senecas won National Indian Gaming Commission<br />
approval for the project a year ago, and<br />
the tribal president says, “As ‘Indian country’<br />
recognized by the United States, the nation has<br />
wide latitude over how it uses those lands now<br />
and long into the future.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
July 10, 2008<br />
ANOTHER HTA WINNER<br />
At last year’s HTA annual Board of Directors<br />
meeting, the Board unanimously approved a<br />
motion regarding collection of wagering data.<br />
The resolution provided that in order for HTA<br />
members to be aware of and be able to compare/<br />
analyze wagering trends on member tracks’ live<br />
harness races, the tracks agree to provide information<br />
on a quarterly basis, no later than 30<br />
days following each calendar quarter-end. HTA<br />
will gather and share this data among member<br />
tracks, without individual track attribution.<br />
Trends then would be discussed at the next annual<br />
board meeting.<br />
This, of course, is part and parcel of what a good<br />
trade association does, and it was extremely<br />
gratifying that all but one member of HTA provided<br />
the requested information. HTA’s <strong>Executive</strong><br />
Assistant and report compiler, Brody Johnson,<br />
then produced a superb Quarterly Handle<br />
at HTA Tracks, 2004-2007, with select Advanced<br />
Deposit Wagering handle included for comparative<br />
purposes. It is being distributed today to<br />
HTA directors only. The June report, which<br />
includes data for nine ADWs, was compiled in<br />
typical Brody Johnson style, comprehensive and<br />
accompanied by colorful graphs and charts. We<br />
are proud of the report and of Brody, and will<br />
continue working on similar reports of value to<br />
our directors.<br />
MANZI AT 13K AND COUNTING<br />
Catello (Cat) Manzi, still tearing up tracks at<br />
57, won his 13,000th career driving victory last<br />
night at the Meadowlands. The indestructible<br />
Manzi, who recently won his 20th driving title at<br />
Freehold Raceway, has been driving for 40 years,<br />
and now trails only Herve Filion in number<br />
of winning drives. Filion has won 15,174<br />
races and plans to retire next year. Happily,<br />
Cat has announced no such plans.<br />
THE ROONEY REPORT<br />
Four of the five Rooney brothers who manage the<br />
sports empire left by their father Art have hired<br />
New York’s famed investment firm Goldman,<br />
Sachs & company to assist them in establishing<br />
a pricetag on their Pittsburgh Steelers franchise,<br />
which was bought in 1933 by Art for $3,500 and<br />
now is valued at somewhere between $800 million<br />
and $1.2 billion. The four brothers -- Tim<br />
of Yonkers Raceway fame, twins John and Pat of<br />
the Palm Beach Kennel Club, and Art Jr. -- each<br />
own a reported 16% share in the Steelers, and<br />
their brother Dan, who runs the team, is trying<br />
to find a way to buy them out. So far his efforts<br />
have failed, but the Rooneys, presenting a solid<br />
front, issued a statement on their 80% ownership<br />
interest in the Steelers, saying, “These family<br />
discussions will not have any impact on the<br />
team this season or in seasons to come, and we<br />
look forward to the Rooney family’s continued<br />
involvement in the franchise.”<br />
IT PAYS TO HAVE FRIENDS<br />
The embattled greyhound tracks of Massachusetts,<br />
facing extinction at the ballot box in November,<br />
have found a powerful political friend.<br />
State Rep. David Flynn says he is drafting a proposal<br />
to save them, even if voters turn them out,<br />
by providing them carte blanche on simulcasting.<br />
Under Flynn’s proposals, both of the tracks<br />
-- Wonderland in Revere and Raynham Taunton<br />
-- would be allowed to have unlimited and unrestricted<br />
ability to simulcast whatever signals they<br />
want, from wherever they want, whenever they<br />
want. “I think we have to work out something<br />
with some sort of unlimited simulcasting,” Flynn<br />
told the Boston Herald, adding that it was no<br />
cinch that voters, who came close to banning dog<br />
racing in 2000, would not succeed this time. “I<br />
can’t tell you,” Flynn said, “that the dogs won’t<br />
lose at the ballot box. They most certainly<br />
may.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
July 11, 2008<br />
CENTAUR SUFFERS SETBACK<br />
The refusal of the Pennsylvania Gaming Control<br />
Board to license Centaur Gaming’s Valley View<br />
Downs has dealt a body blow to the huge track<br />
and entertainment project. Facing a Tuesday,<br />
July 15 licensing deadline, Centaur is fighting<br />
to hold on to its $955 million loan from Credit<br />
Suisse and other banks, with $455 million of<br />
that money set aside for construction of Valley<br />
View. The Gaming Control Board voted 7-0 not<br />
to grant approval, saying its investigation is not<br />
complete. Centaur attorneys said four months<br />
ago that “Since obtaining financing, financial<br />
markets have further deteriorated, and the likelihood<br />
of obtaining relief is very, very low, and<br />
there is no prospect of obtaining financing on<br />
the same, or possibly any, terms.” The Control<br />
Board members, claiming they had not had time<br />
(how much time is enough?) to complete their investigation,<br />
said they “regretfully” could not approve<br />
the project even though they understand<br />
the projected economic impact on the area, where<br />
there is a 5.7% unemployment rate, a half point<br />
higher than Pennsylvania as a whole. The racino<br />
was expected to add 2,000 construction jobs<br />
and 1,000 permanent positions, which would<br />
make Valley View the second largest employer<br />
in Lawrence county. A Centaur spokesperson,<br />
Susan Kilkenny, said Centaur was disappointed<br />
but encouraged that the Control Board said its<br />
investigation “was almost done,” and added that<br />
Centaur now “is focusing all our energy toward<br />
working with our lenders.” Gaming Board members<br />
said their decision does not mean the proposed<br />
track and casino is dead, it simply means<br />
the board was not yet prepared to make a decision,<br />
and had no choice but to deny Centaur’s<br />
license request until its investigation is complete,<br />
even though Centaur has passed investigations<br />
in two other states. Centaur’s deal with a<br />
consortium of banks calls for it to receive<br />
the $50 million license to move forward.<br />
ILLINOIS HOUSE SAYS NO<br />
On another battlefront, the bitter political struggle<br />
between Illinois governor Rod Blagojevich<br />
and House Speaker Michael Madigan continues,<br />
with Madigan gaining a victory in a 55-47 vote<br />
to turn down a $34 billion statewide construction<br />
program. The governor proposes a capital<br />
program to rebuild roads and bridges, update<br />
schools and make other needed infrastructure repairs,<br />
but Madigan called it “a dead issue” after<br />
the vote. He told reporters, “Under the current<br />
conditions that exist in Illinois -- the difficulty in<br />
all the parties working together -- my view is that<br />
the proposal for the expansion of gaming [which<br />
the governor proposes to pay for the rebuilding]<br />
is a dead issue” after this vote. Racing interests<br />
had hoped the state’s need for money to pay for<br />
the work would lead to legislative approval of<br />
the gaming expansion bill, but Madigan closed<br />
that door in the House. The Senate already had<br />
approved the measure, which needed 71 votes in<br />
the House and fell 24 votes short.<br />
SCI GAMES, CAL IN ACCORD<br />
Scientific Games Racing and the California<br />
Horse Racing Board have reached agreement on<br />
resolving the Quick-Pick software glitch. The<br />
company has disabled such betting “until such<br />
time, if ever, Quick-Pick betting is allowed by the<br />
CHRB.” Sci Games will pay $150,000 to racing<br />
charities and $50,000 to the CHRB for investigating<br />
expenses, and will issue refunds to bettors<br />
who placed Quick-Pick bets at the company’s<br />
BetJet terminals in California between July 1,<br />
2007 and May 17, 2008, on submission of legitimate<br />
ticket or other proof, from now until June<br />
2, 2009. CHRB chairman Richard Shapiro announced<br />
that the board “had found no evidence<br />
of intentional misconduct in the programming<br />
glitch nor do we find any effort to conceal the error<br />
from the public,” and was pleased with<br />
SGR’s cooperation in ending the matter.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
FUTURE BETS AGAIN ON JUG<br />
Three separate four-day future betting sessions<br />
have been scheduled for this year’s Little Brown<br />
Jug classic for 3-year-old pacers. The Jug itself<br />
will be raced Sept. 18 at the Delaware County<br />
fairgrounds in Ohio, but handicappers can try<br />
their hand at outsmarting the odds starting late<br />
next week. The first future bets will be taken<br />
from noon Thursday, July 24, through 11:30<br />
p.m. July 27, the weekend following the million<br />
dollar Meadowlands Pace. A second four-day<br />
future book opportunity will come a month later,<br />
from Aug. 21 thru Aug. 24, the weekend after the<br />
Battle of Brandywine at Harrah’s Chester and<br />
the week before the Cane Pace at Freehold. The<br />
final opportunity comes Sept. 14, four days before<br />
the Jug, after the post position draw on Saturday<br />
morning Sept. 13. Last year Tell All, the<br />
ultimate Jug winner, paid $18 in the first pool,<br />
$28.20 in the second, and $8.60 in the third. A $2<br />
bet the colt on Jug Day last year produced a $6<br />
winner. To increase chances for owners of Jug<br />
hopefuls, the winner of the Cane Pace final at<br />
Freehold can be supplemented to the Jug, which<br />
will be the second leg of the Triple Crown in this<br />
year’s configuration.<br />
KENO ‘COCAINE’ SET IN OHIO<br />
Ohio bars, bowling alleys, social clubs and, yes,<br />
tracks are preparing to welcome “the crack cocaine<br />
of gambling” to Ohio. Keno, supported<br />
by a governor who did not want slots at racetracks,<br />
gets underway three weeks from today,<br />
with games every four minutes. Commissions to<br />
bar owners are projected to average more than<br />
$13,000 a year, based on a 6.2% retention for<br />
the businesses that will handle them. GTech, the<br />
primary vendor, has sold $18 million worth of<br />
monitors and other keno equipment to the Ohio<br />
state lottery, which will operate the games.<br />
Not everyone is thrilled, and not all bars<br />
and taverns are jumping in initially, but<br />
the numbers game is expected to spread.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
July 14, 2008<br />
Some big chains, like T.G.I. Friday’s and Applebee’s,<br />
will not install keno, citing corporate<br />
policy, and Wal-Mart and Target do not sell lottery<br />
tickets at all, their corporate philosophy not<br />
sending them in that direction.<br />
PRAISE, THANKS FOR THE SUN<br />
Mohegan Sun at Pocono Downs, lauded with<br />
lavish praise as a solid community neighbor<br />
and driver of the local economy, opens an even<br />
bigger and brighter era this week. The eastern<br />
Pennsylvania track unveils its Project Sunrise, a<br />
$208 million expansion project that offers 2,500<br />
slot machines, 16 restaurants and food stations,<br />
retail shops and boutiques, all housed in a sparkling<br />
new 409 thousand square-foot facility. Local<br />
residents, appreciative of the track and racino’s<br />
weekly payroll for 1,200, realize 700 new<br />
hires have been added this year, chosen from<br />
5,000 who attended a job fair that was held in a<br />
Wachovia Arena in the Wilkes-Barre area. Mohegan<br />
Sun CEO and HTA director Bobby Soper,<br />
discussing the economic impact of the track, told<br />
reporters, “With 1,200 employees, that’s a lot of<br />
wages and disposable income. Our goal is to really<br />
make Northeast Pennsylvania successful in<br />
the long term, and whatever we can do to help<br />
the local businesses and local vendors, we’ll certainly<br />
strive to do that.” Merchants in the immediate<br />
track area and its access highways report<br />
an 8 to 10% increase in business. A hotel<br />
room tax of 5% produced $1.66 million last year,<br />
and through May of this year has added another<br />
$617,891. One hotel operations director, who<br />
offers package deals including shuttle busses to<br />
the track, said of the track and racino, “We love<br />
them.” When was the last time you heard that<br />
kind of talk? The Greater Wilkes-Barre Chamber<br />
of Business and Industry president Todd<br />
Vonderheid says, “Mohegan Sun is making a significant<br />
contribution to the growth and future<br />
of this entire region.” Total slot play in the<br />
state now has passed $1 billion.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
July 15, 2008<br />
BOUMA SLAMS ONTARIO PLAN<br />
Jerry Bouma, the forceful leader of Northlands<br />
Park in Edmonton who lowered the boom on<br />
harness racing in the province recently, yesterday<br />
became the second major figure in Canadian<br />
racing to speak out strongly against proposals for<br />
an Ontario “racing secretariat” and a governing<br />
body to be called Harness Racing Ontario. David<br />
Willmot, Bouma’s counterpart at Woodbine<br />
Entertainment, slammed the idea immediately<br />
when it was introduced last month. One of the<br />
proposals suggested in the plan is to cut racetracks<br />
revenues from slot machines by half, and<br />
Bouma told the Toronto Globe and Mail’s Beverley<br />
Smith that doing that could have “devastating<br />
consequences.” Bouma called it “odd” that<br />
the Ontario government apparently was following<br />
the lead of the private Horse Racing Alberta,<br />
saying that body was “not all goodness and<br />
light” and the model is not working. Bouma’s<br />
grievance is that the group usurps decisions that<br />
he feels are management prerogatives, and says<br />
HRA has no business accountability and suffers<br />
no direct consequences of its decisions.<br />
Horse Racing Alberta chairman David Reid did<br />
not take Bouma’s remarks lightly. He called<br />
them “rhetoric” and told Ms. Smith, “ While they<br />
[track operators] are busy criticizing the model<br />
and the operation, they were part of the operation<br />
and the model. They’ve been part of every<br />
decision.” Also heard from in Ms. Smith’s story<br />
was George Brookman, president and chairman<br />
of Stampede Park in Calgary, a city where plans<br />
for construction of a huge new racing complex<br />
have stalled. Speaking of the hard realities of<br />
the game and of backers of that project, he said,<br />
“Their dream is that thousands of people will<br />
come to the track and watch horses race. The<br />
reality is that a huge percentage of them don’t<br />
come to the track. They sit in betting parlors<br />
to watch a horse race.” Brookman<br />
says racing needs a new business model.<br />
ye gads! ANOTHER TETRICK!<br />
Ye gads! One has torn the sport apart, winning<br />
races at an unprecedented record rate.<br />
Now comes another, roaring out of nowhere--<br />
or more accurately out of Geff, Illinois, which<br />
is right next door to nowhere. Driver Tim Tetrick<br />
rewrote harness racing’s record books last<br />
year, driving the winners of 1,188 races. He has<br />
stormed back again this year, winning 542 races<br />
to date and standing second in national standings<br />
behind Tony Morgan’s 555. Now his 21-year-old<br />
brother Trace has become the youngest driver<br />
or jockey ever to win a championship in Hoosier<br />
Park’s 15-year-history. The youngest of three<br />
Tetrick driving brothers, Trace started with<br />
family horses, switched to catch driving, and enjoyed<br />
his first full season of driving at 18 three<br />
years ago. He moved to Chicago, then Bluegrass<br />
Downs in Kentucky, then back to the county<br />
fairs in Illinois, then to Colonial Downs in Virginia.<br />
He followed Tim’s path through Hoosier<br />
Park and Indiana Downs, first winning 26 races<br />
at Hoosier in 2006, then 65 last year, and he won<br />
the driving title this year with 116 victories. He<br />
wrapped up the 2008 Hoosier meeting winning<br />
four on closing night, including both $23,000 invitationals<br />
on trot and pace, and setting a track<br />
record for 2-year-olds of 1:52.1. His 2008 total<br />
of 212 winning drives puts him 22d in the nation.<br />
He was Indiana Downs’ leading driver last year<br />
and is at that track now defending his title.<br />
CENTAUR’S $$$ CRISIS TODAY<br />
Today is dollar day for Centaur Gaming, the<br />
deadline set by New York banks for financing the<br />
huge project to build a harness track, racino and<br />
entertainment complex in far western Pennsylvania.<br />
The state Gaming Control Board says it<br />
hasn’t had enough time to make a decision, but<br />
a Centaur lawyer told the Pittsburgh Tribune-<br />
Review, “This whole project could go up in<br />
smoke.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
July 16, 2008<br />
ROSECR<strong>OF</strong>T ENDS LIVE RACES<br />
More bad news for harness racing. With Hippodrome<br />
de Montreal now closed by bankruptcy<br />
and Northlands Park abandoning harness,<br />
Rosecroft Raceway told the Maryland Racing<br />
Commission yesterday it could not continue presenting<br />
live racing. The commission granted a<br />
request by Kelley Rogers, president of Cloverleaf<br />
Enterprises that operates the track, to end<br />
live racing but continue to offer harness and<br />
thoroughbred simulcasting at the Washington<br />
area track. Rosecroft had been racing only two<br />
nights a week since February 1, and Rogers said<br />
it could no longer continue even that schedule.<br />
“Nobody wants live racing to end in the state<br />
of Maryland, but our economics leave us no<br />
choice,” Rogers told the commission. “With Delaware,<br />
West Virginia and Pennsylvania having<br />
slots, we were getting killed.” The track plans<br />
to hold some Maryland sire stakes and breeding<br />
fund events in November and December, and its<br />
fate will be determined at the polls in November,<br />
when Maryland voters cast their ballots on<br />
the racino issue. Rosecroft was not named as a<br />
site for one, but under the Maryland proposal<br />
before voters it would share in slots proceeds if<br />
they are voted in. Racing commission chairman<br />
John Franzone, presiding at yesterday’s meeting,<br />
said, “If the referendum doesn’t pass, Rosecroft<br />
is done. If the referendum fails, Rosecroft<br />
could be an apartment complex.”<br />
William E. Miller, an old line Maryland harness<br />
horseman, founded Rosecroft 59 years ago,<br />
and first he and then his son John and grandson<br />
Bill ran it for three generations. The track, always<br />
an HTA stalwart, went through a number<br />
of ownership changes after Bill Miller sold his<br />
interest, the most recent being a unique arrangement<br />
in which the horsemen members of<br />
Cloverleaf Enterprises owned and operated<br />
the track.<br />
NEW ERA AT PENN NATIONAL<br />
Concerned about the health and welfare of its<br />
widespread horse colony, Penn National Gaming<br />
announced yesterday that it was implementing<br />
proactive new initiatives on equipment and<br />
steroids. The company, second largest owner of<br />
pari-mutuel racing facilities in North America,<br />
said it was introducing new rules on riding crops<br />
used by thoroughbred jockeys and on toe grabs<br />
worn by runners on their front feet. The moves<br />
follow recommendations for the changes by the<br />
Thoroughbred Safety Committee of The Jockey<br />
Club. Penn National vice president of racing<br />
Chris McErlean said the company “endorses and<br />
embraces The Jockey Club recommendations as<br />
sound steps toward ensuring the health and welfare<br />
of our equine participants.” McErlean said<br />
that in addition to the limiting of toe grabs and<br />
whip restrictions, Penn National would actively<br />
promote the adoption of permanent rules and<br />
regulations for those items with regulators in all<br />
jurisdictions where its tracks are located. He<br />
said Penn National had identified several other<br />
areas where information, uniformity and cooperation<br />
are needed to achieve additional results<br />
to benefit the industry, and it expects that other<br />
responsible pari-mutuel facility owners and industry<br />
leaders will follow Penn National’s actions.<br />
The leadership move is meaningful and<br />
significant, since Penn National owns and operates<br />
19 facilities in 15 jurisdictions, including<br />
Colorado, Florida, Illinois, Indiana, Iowa, Louisiana,<br />
Maine, Mississippi, Missouri, New Jersey,<br />
New Mexico, Ohio, Pennsylvania, West Virginia<br />
and Ontario. Its tracks conduct over 1,000 days<br />
of racing a year, and total wagering at its parimutuel<br />
facilities exceeded $850 million last year.<br />
Its growth has been a huge success story, starting<br />
with its flagship track near Harrisburg, Pennsylvania,<br />
14 years ago and now offering all major<br />
forms of racing in America -- harness, thoroughbred,<br />
quarter horse and greyhounds.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
July 17, 2008<br />
THE SUN ALSO RISES<br />
Mohegan Sun at Pocono Downs opened its $208<br />
million racino expansion at 10 o’clock this morning,<br />
and officials think the opening will mark a<br />
new era in entertainment and gambling in the<br />
northeast Pennsylvania resort area. The new facility<br />
contains restaurants, retail shops and slot<br />
machines -- 2,000 of them -- and CEO and HTA<br />
director Bobby Soper says he expects Mohegan<br />
Sun’s attendance, which has been averaging<br />
roughly 6,000 a day, to build to 10,000 as word<br />
of mouth spreads.<br />
Across the state, meanwhile, officials of Centaur’s<br />
Valley View Downs are keeping their fingers<br />
crossed for a quick and favorable end to the<br />
background check that has threatened financing<br />
of the company’s proposed $455 million harness<br />
track and racino near the Ohio-Pennsylvania<br />
state line. Although the deadline for financing<br />
by Credit Suisse and other banks expired yesterday,<br />
Centaur announced this morning that<br />
discussions with the lenders continue, and “additional<br />
details will be available when we have<br />
a resolution.” The Gaming Control Board said<br />
it needed more information than it has to issue<br />
a gaming license to Centaur, even though the<br />
company is licensed in Indiana and other states,<br />
and its chairwoman made clear that the rejection<br />
at a hearing last Monday did not mean the<br />
board would not ultimately license Valley View<br />
Downs. Whether it does so soon enough to save<br />
the financing remains to be seen. No mention has<br />
been made of any temporary license while the<br />
board’s investigators wrap up their work, but<br />
that would seem a logical job-saving approach<br />
and economic stimulant in the depressed area of<br />
western Pennsylvania. In Detroit, meanwhile,<br />
Jerry Campbell plans to open his unfinished Pinnacle<br />
Race Course for thoroughbred racing next<br />
to the city’s Metropolitan Airport tomorrow.<br />
A Corporate Pavilion seating 500 is<br />
the only permanent structure completed.<br />
IN MARYLAND, TOO<br />
The Maryland Racing Commission, taking a<br />
pragmatic approach, told Rosecroft Raceway<br />
this week that it can operate full time simulcasting<br />
for up to two years without conducting live<br />
racing at the suburban Washington, DC, track.<br />
Officials of Cloverleaf Enterprises say they<br />
think their chances of finishing the year in the<br />
black are good, given a half-million dollar saving<br />
in not paying purses and a million more in<br />
cutbacks in staff and operating costs. CEO Ted<br />
Snell told the racing commission that it was not<br />
economically feasible to structure a meaningful<br />
purse schedule and still meet operating expenses.<br />
The board agreed and granted Rosecroft the<br />
2-year moratorium on live racing. If slots pass<br />
in the November election, and economic conditions<br />
seem to indicate they have a good chance to<br />
do so, Rosecroft would receive a large infusion<br />
of cash under a revenue-sharing provision even<br />
though it is not the site of a proposed racino.<br />
THEN THERE’S CALIFORNIA<br />
Ah, the whirl of it all. Gov. Arnold Schwarzenegger<br />
turned the stage giddy yesterday by naming<br />
actress Bo Derek and television producer<br />
and former sports columnist David Israel to the<br />
California Horse Racing Board. Ms. Derek is a<br />
longtime animal activist and lobbyist for worthy<br />
causes, and also becomes the first former Playboy<br />
model to become a racing commissioner.<br />
The lady has a mind, having authored a book,<br />
operated an upscale pet supply business, and<br />
having been a special envoy to the U.S. Secretary<br />
of State. Elsewhere in California, TVG has<br />
ended the noble experiment of free-for-all simulcasting<br />
signals, failing to agree to terms with Del<br />
Mar and refusing to relinquish exclusivity rights.<br />
Del Mar made it clear its TVG contract will not<br />
be renewed next year. The Los Angeles Times,<br />
meanwhile, which earlier let star racing writer<br />
Bill Christine go, now has cut racing writers<br />
Larry Stewart and Bob Mieszerski.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
July 18, 2008<br />
NJSEA: WE’LL TAKE THE DEAL<br />
The New Jersey Sports and Exposition Authority<br />
voted unanimously yesterday to accept the<br />
Atlantic City casinos’ 3-year, $90 million support<br />
package in return for foregoing slots at the<br />
state’s tracks. The agreement maintains the status<br />
quo in the state, and allows the Meadowlands<br />
to maintain its stature as the sport’s anchor track<br />
worldwide.<br />
HOPE SPRINGS ETERNAL IN KY<br />
The governor of Kentucky, Steve Beshear, soundly<br />
beaten by his legislature on the issue of slots at<br />
tracks a few months ago, said yesterday he does<br />
not think the issue is dead. “I think we will be<br />
talking about it a lot more,” he told constituents<br />
in the coalfields of eastern Kentucky in the first<br />
of 13 town hall meetings he is holding around<br />
the state. The governor still thinks 12 racinos<br />
and casinos could reap $600 million a year for<br />
the state, and says he does not expect to find serious<br />
opposition to the idea in his statewide tour.<br />
“We’re going to listen to people as we go around<br />
the state,” Beshear said. “Certainly, if we find<br />
out there’s no support for it, there won’t be any<br />
reason to bring it up. I don’t think that’s what<br />
we’ll find. I think a whole lot of people want<br />
a chance to vote on it if nothing else.” As for<br />
the legislature in Frankfort, the governor said,<br />
“People are so interested in fighting each other<br />
that they can’t get together and do what’s right.<br />
It’s just been bickering back and forth, arguing<br />
back and forth, and getting nothing done.” One<br />
opponent of gambling in Virgie, the town where<br />
the governor opened his town hall tour, was the<br />
Rev. John Doug Hays, a former state senator who<br />
now, interestingly enough, is pastor of Jack’s<br />
Creek Baptist Church. He likened the governor’s<br />
proposal to the legalization of prostitution<br />
in Nevada, and said Kentuckians need<br />
“to draw a moral line in the sand.” He<br />
spoke as a minister, we presume, and not<br />
in his former role as a politician.<br />
GAS PRICES ARE NOT ALONE<br />
With the government apparently unable to stem<br />
the meteoric rise in gasoline prices, expect to see<br />
more stories about gas station thefts. And while<br />
you’re at it, keep an eye on your horse statues as<br />
well. Thieves cut off and hauled away a 12-foot<br />
high, one-ton horse statue on the site of the old<br />
Garden State racetrack last week, one of a pair<br />
that was left as a memento of the glitzy track<br />
that used to occupy what now is a major development.<br />
Police are checking on scrap metal dealers<br />
in the Cherry Hill, NJ - South Philadelphia<br />
area, where bronze currently is selling for $1.95<br />
a pound, making the stolen statue worth $4,000<br />
or more.<br />
OUELLETTE HURT, SIDELINED<br />
Luc Ouellette, one of harness racing’s leading<br />
drivers, will be out of action longer than expected<br />
from the broken arm he suffered in a driving<br />
accident at Flamboro Downs a week ago. A bone<br />
specialist told Ouellette he will need surgery to<br />
repair the arm, and that it will require him to<br />
be sidelined for a month or more. Luc is hoping<br />
to return in time for eliminations for the Metro<br />
pace, Canada’s richest event for 2-year-old pacers,<br />
late in August.<br />
RICH PRIZES THIS WEEKEND<br />
The Meadowlands Pace is America’s richest<br />
horse race this weekend with the hottest harness<br />
horse in the world, Somebeachsomewhere, oddson<br />
to win it and remain undefeated. Drivers<br />
also have a shot at big money, however, as Tioga<br />
Downs presents its second Drivers’ Championship,<br />
carrying a first prize of $25,000 and $15,000<br />
more for placings. The field includes the world’s<br />
leading single season winner, Tim Tetrick; Brian<br />
Sears; 4-time HTA driving champion Tony Morgan;<br />
Ron Pierce; Andy Miller; Canada’s Jody<br />
Jamieson; Yannick Gingras; Eric Goodall;<br />
and Tioga champion Howard Parker.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
July 21, 2008<br />
CAL BOARD CLAMPS DOWN<br />
While others talk and discuss and debate, the<br />
California Horse Racing Board last week made<br />
good on its promise to outlaw all steroids in the<br />
state. By moving up the “holy four” -- testosterone,<br />
boldenone, nandrolone and stanozolol -- that<br />
are allowed in most jurisdictions, into a higher<br />
category that provides disqualification and automatic<br />
suspension, the board moved the dialogue<br />
to a new level. With guidelines developed by the<br />
board’s equine medical director Dr. Rick Arthur<br />
and Dr. Scott Stanley of the Ken Maddy Laboratory<br />
at the University of California Davis,<br />
the board sends to the Office of Administrative<br />
Law for approval a program with very big teeth.<br />
When it becomes effective, this plan provides<br />
for disqualification of the horse and a minimum<br />
30-day suspension for its trainer. Until approval,<br />
warnings will be issued, but once approved Dr.<br />
Arthur told horsemen, “We are prepared to take<br />
the next step. It’s going to be a different ballgame<br />
in the future.” The board also outlawed<br />
heel nerving in horses, and no heel-nerved horse<br />
will be allowed to race in California. It was interesting<br />
that the Thoroughbred Owners of California<br />
opposed this rule, arguing that California<br />
should wait for a national policy. Chairman<br />
Shapiro said California had waited long enough<br />
and it was time to act, and vice chairman Harris<br />
agreed, saying, “It’s time to get this behind us<br />
and move on.” The board, continuing its crusading<br />
ways, indicated it plans to allow horses<br />
to race unshod with proper public notice, since<br />
some runners seem to perform better that way<br />
on the synthetic surfaces mandated at California’s<br />
major tracks. The board also took time<br />
to welcome its latest members, actress-activist<br />
Bo Derek and television producer and former<br />
sports writer David Israel. Their appointment<br />
by Gov. Arnold Schwarzenegger last week<br />
brought the board to its full complement<br />
of seven members.<br />
BETFAIR REARS HEAD AGAIN<br />
Guess who came to dinner at the HBPA’s summer<br />
meeting in Hershey, PA? Betfair, still seeking<br />
the crack in the American market door. Tom<br />
Lamarra, reporting on the appearance in Blood-<br />
Horse, says Betfair claims it is actively negotiating<br />
with the Thoroughbred Horsemen’s Group.<br />
THG president Bob Reeves told Lamarra there<br />
has been “ongoing dialogue,” but acknowledges<br />
that the HBPA “hasn’t been together on it<br />
because there is a lack of understanding of how<br />
Betfair operates.” Peter Probert, Betfair’s security<br />
chief, massaged the horsemen, telling them,<br />
“The company recognizes you guys put on the<br />
event. The opportunity is there. It’s down to<br />
negotiations between the company and the authorities.”<br />
No mention of where the race tracks<br />
that present the show fit into Betfair’s plans,<br />
other than mention that “a proposal on the table<br />
would compensate the U.S. racing industry for<br />
wagers made on its races in other countries.”<br />
Until Betfair offers a meaningful reimbursement<br />
plan, it is in racing’s best interest to keep it a<br />
continent or two away, preferably on the other<br />
side of the world.<br />
Don Clippinger, reporting on the HBPA meeting,<br />
wrote that its board voted yesterday to create a<br />
model rules working group “to engage in dialogue”<br />
with the Association of Racing Commissioners<br />
rulesmaking committee “to craft regulations<br />
that meet the needs of horse owners and<br />
trainers.” If it liked the way rulesmaking was<br />
going, it would help to win approval at the state<br />
level. If it did not, presumably it would oppose<br />
the rules.<br />
DOVER SEEKS RACING SECY<br />
Dover Downs is seeking applicants for its Racing<br />
Secretary’s job for the 40th anniversary season<br />
opening Oct. 26. It is a seasonal job stretching<br />
133 days until April 9, 2009. Contact John<br />
Hensley, Sr. Director of Horse Racing,<br />
at 302-857-3234, jhensley@doverdowns.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
July 22, 2008<br />
A $12 MILLION DIFFERENCE<br />
Mohegan Sun at Pocono Downs opened its sparkling<br />
new racino last Thursday, and basked in<br />
the glow of nearly 2,500 slots and shopping amenities.<br />
Play for the Friday-Sunday weekend was<br />
$32 million, up $12 million over each of the two<br />
previous weekends. CEO Bobby Soper was cautionary<br />
in his approach to the windfall. “It’s a<br />
very good start,” he said. “Of course, any time<br />
you open a new property there’s a curiosity factor.”<br />
Of course there is, but if the curious like<br />
what they see -- and Mohegan Sun’s weekend<br />
patrons were lavish in their praise for the facility<br />
-- they are likely to be back. One woman happily<br />
playing the new slots summed it up, saying, of<br />
the 300,000 square-foot permanent racino with<br />
its restaurants and shops, “This place adds a lot<br />
of class to this valley.” One new restaurant, the<br />
Tuscany themed Rustic Kitchen, averaged 500<br />
meals served on the first three days, and it and<br />
other businesses in the racino quickly convened<br />
a job fair for Thursday from 2 to 5 p.m. to hire<br />
additional help. Other slots are being moved<br />
from the temporary casino, which will remain<br />
open with some 350 slots.<br />
The new facility has impacted the nearby Mount<br />
Airy Casino Resort, which experienced a $3 million<br />
weekend drop in play, down to $25 million<br />
from $28 million the week before and $33 million<br />
on Fourth of July weekend. It also has had an<br />
impact on the Pennsylvania lottery, whose revenues<br />
have been declining, down to $928 million<br />
last year from a high of $968 million. One House<br />
Republican, Steve Miskin, called the continued<br />
drop “a huge concern,” noting that only seven<br />
casinos currently are open in the state, but 14 are<br />
permitted by law and most likely will be open<br />
in two or three years. Play habits are changing<br />
too, from terminal-based games such as<br />
Powerball to instant games, which have<br />
slightly lower profit margin for the state.<br />
A NEW SLOTS BILL FOR KY<br />
A Democratic state representative, Tom Burch,<br />
has told the Louisville Courier-Journal that he<br />
plans to file a bill in the state legislature next<br />
year that would allow up to 18,000 slot machines<br />
in the state, including racinos at Kentucky’s<br />
eight licensed racetracks. Although he has introduced<br />
VLT legislation previously, this effort<br />
will not seek an amendment of the state constitution,<br />
in part because the earliest that could be<br />
done would be November of 2010. Burch says<br />
he will present the new bill without that provision,<br />
enabling a vote by the state legislature and<br />
governor Steve Beshear. Any county that wished<br />
to have slots could do so if voters in that county<br />
approved. Burch says 6,000 of the 18,000 slots<br />
he proposes would be available to tracks, with a<br />
minimum of 500 each and more based on number<br />
of racing days. “Everyone gets a piece of the<br />
pie, and if this doesn’t pull the industry together,<br />
then there’s something wrong,” Burch said.<br />
Another influential legislator, Democrat Greg<br />
Stumbo, announced earlier that he would introduce<br />
legislation proposing slot-like machines to<br />
be introduced on a test basis at tracks to explore<br />
their long-term feasibility without amending the<br />
state constitution.<br />
HEADS YOU LOSE; TAILS TOO<br />
It didn’t take long for police in Cherry Hill, NJ,<br />
to round up four men they accused of stealing a<br />
one-ton equine statue from the grounds of what<br />
once was Garden State Park and now is a major<br />
residential complex. The four used a backhoe<br />
parked by complex employees to demolish and<br />
haul off the equestrian statue, and police correctly<br />
figured there were limited outlets for the<br />
scrap bronze. They checked, and arrested four<br />
suspects, and are looking for various parts of the<br />
bronze that have been scattered -- some buried --<br />
in the south Philadelphia area. An officer said,<br />
“Some people have no regard for anything<br />
except the dollar sign and decimal point.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
HTA ART CATALOGUE ONLINE<br />
Harness Tracks of America’s 31st annual art<br />
catalogue, featuring 200 oil paintings, watercolors,<br />
bronzes, and woodcarvings, will be posted<br />
later today on the home page of the HTA Web<br />
site, www.harnesstracks.com. The print version,<br />
40 pages in full color, will be available the second<br />
week in August, and 25,000 copies will be distributed,<br />
including those bound into the September<br />
issue of Hoof Beats magazine.<br />
This project has supported the funding of the<br />
HTA College Scholarship program for three decades.<br />
If each member track were to buy one<br />
piece of art, it would be hugely helpful to that<br />
worthy cause. Look over the catalogue and select<br />
something that you would like for your office,<br />
home or stable. The price range is from $250 to<br />
$25,000, and there are some real art treasures in<br />
this year’s show and auction. They include:<br />
A magnificent oil painting by the noted James<br />
McAuliffe of Dexter under saddle, circa 1867,<br />
the painting accompanied by a whip presented<br />
by Dexter’s owner New York publisher Robert<br />
Bonner to rider John Murphy with a sterling silver<br />
inlay.<br />
A companion oil on canvas by McAuliffe of the<br />
legendary Goldsmith Maid, regarded by historian<br />
John Hervey as “the most extraordinary of<br />
all trotting champions.”<br />
Superb bronzes, one of Ethan Allen, the first 2:30<br />
trotter, and his driver Dan Mace, the first “Wizard<br />
of the Reins,” the work of the gifted Kansas<br />
sculptor Maretta Kennedy, and an international<br />
first prize winning bronze of the early 1900s by<br />
Walter Winans called The American Trotter, ordered<br />
recast as a commissioned work by<br />
Delvin Miller for his collection of trotting<br />
art.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
July 23, 2008<br />
An incredible carved hobbled pacer, of beautiful<br />
mahogany, perfect in detail.<br />
More than 50 Currier & Ives and Haskell &<br />
Allen prints of famous horses of the 1800s, and<br />
some real rarities: American Winter Scene; A Disputed<br />
Heat; Ready for the Trot; the four seasons<br />
of An American Homestead, selling as a set; half<br />
a dozen of the best comic pairs ever published<br />
by Currier & Ives; paired prints of both Currier<br />
& Ives and Haskell & Allen’s Going to the Trot<br />
and Coming from the Trot; and the hard-to-find<br />
The Last War Whoop, a western theme Currier &<br />
Ives that sells for $7,000 on the New York market,<br />
when it can be found.<br />
Mementos, trophies and photos from the estate<br />
of the legendary Stanley Dancer, including two<br />
magnificent oil paintings of Albatross and Keystone<br />
Ore, both commissioned from famous<br />
equine artist Richard Stone Reeves.<br />
A large oil painting by internationally known<br />
New England artist Rita Guzzi, titled Dan Patch<br />
Days: An Afternoon in the Park with Dan.<br />
Work by HTA favorites like Zenon Aniszewski,<br />
the Polish cavalry officer-artist; Russian architect-painter<br />
Svetlana Gadjieva; Ohio star David<br />
Pavlak; miniaturist Jo Hodos; Joan MacIntyre;<br />
woodcarver Paul Naslund; and the final works<br />
of retired master woodcarver John Kittelson, a<br />
perennial leader in HTA auctions for 20 years.<br />
Two original works by the great George Ford<br />
Morris, one a large charcoal of Man O’ War.<br />
A stunning feature of the show is one of the most<br />
unique equine art works ever done in America.<br />
It is a large horse’s head, welded together of fabricated<br />
steel, spectacular in scope and creative<br />
vision, by Lea Ann Cogswell. It deserves the catalogue<br />
front cover that HTA bestowed.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
July 24, 2008<br />
THE PAIN AND STRAIN SHOWS<br />
The reality of the end of live racing at Rosecroft in<br />
Maryland, Hippodrome in Montreal, and Northlands<br />
in Edmonton, Alberta, now is descending<br />
on the people affected most: the horsemen who<br />
have raced at those tracks. Stories are surfacing<br />
in all three locations outlining the travails of<br />
horsemen who are either cutting back, moving<br />
to new locations, or getting out of the business.<br />
The Gazette, part of the Maryland Community<br />
Newspapers Online service, featured a story of<br />
the financial troubles of William (Bib) Roberts,<br />
one of the area’s best known trainers, and John<br />
Wagner, a perennial leader on the Maryland circuit.<br />
Roberts, 59, told the news service, “I guess,<br />
like a lot of people, I’ll have to move and sell most<br />
of my horses. I’m not sure what will happen to<br />
my place [a 21-acre farm in Brandywine that he<br />
has been trying to sell for a year in a sluggish<br />
market] although I’m sure it will be subdivided<br />
into seven or eight lots.” Wagner, who has 75<br />
or 80 horses in training at various tracks in the<br />
Mid-Atlantic area, said he planned to cut back<br />
to 30 or so and sell the rest. “They can’t make<br />
any money now,” he said. “It’s really tough for<br />
the small owners and trainers. Most of them will<br />
move or just get out of the business.”<br />
In Montreal, racing writer Paul Delean wrote a<br />
scathing article suggesting the experts at Loto-<br />
Quebec, who set up new equipment and regulations<br />
next to Attraction Hippiques tracks in<br />
Quebec City and Trois Rivieres that gamblers<br />
scorned and that returned only 30% of projections,<br />
might install that system in Montreal. “If<br />
it leaves bar operators and Loto-Quebec several<br />
million dollars short at the end of the year, so<br />
be it,” he wrote tongue in cheek. “Maybe somebody<br />
else can share the racing industry’s pain,<br />
for the greater good.”<br />
In Kansas City, Kansas, The Woodlands<br />
cancelled its fall thoroughbred meeting.<br />
BUT HARRINGTON IS HAPPY<br />
All racing clouds are not dark. In Delaware,<br />
where the slots clang ceaselessly, Harrington<br />
Raceway holds its biggest day today, offering<br />
four $100,000 Delaware Breeders Fund stakes<br />
and the $40,000 Governor’s Cup and $30,000<br />
Legislator’s Cup. Juanita, a trotting filly with 14<br />
wins in 16 starts, is one of the stars of the day.<br />
HEY, EASY ON BAD TRAINERS<br />
A New York state Supreme Court justice has<br />
overruled the state Racing and Wagering Board<br />
in a decision that rewards rather than punishes<br />
illegal behavior. The court ruled for owners<br />
who complained about alleged due process violations<br />
because their horses, drug free but trained<br />
by trainers with multiple drug infractions, had<br />
been subject to pre-race detention. The court<br />
said that was unconstitutional, and the racing<br />
board was wrong in mandating that such horses<br />
could be subject to pre-race detention. The case<br />
was brought by Sandy Goldfarb, Bob Sumner,<br />
Frank Canzone, Troy Stables, Tarek Kazal and<br />
Donna Kemming.<br />
ADIOS AT POCONO, GUYS<br />
A reminder to horsemen that the Adios moves for<br />
this year from The Meadows to Mohegan Sun at<br />
Pocono, and declarations for Adios 42 will close<br />
this Saturday morning, July 26, at 10 a.m. EDT.<br />
The race office will be open from 8 to 10 a.m.<br />
Saturday. If eliminations are necessary, they<br />
will be drawn on Tuesday, July 29, with eliminations<br />
on Friday, August 1. The Adios final goes<br />
Saturday, Aug. 9.<br />
ON THE PERSONNEL FRONT<br />
Saratoga Gaming and Raceway announced promotions<br />
this week. Rita Cox moves to Senior VP<br />
of Marketing; Don Braim to Senior VP Racing<br />
Operations; Alex Tucker to Senior VP gaming<br />
and Finance; and Skip Carlson to VP of<br />
External Affairs and customer services.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
BIG M MILLION IN CLASSICS<br />
The Meadowlands will be paying a cool one million<br />
dollars in purses tomorrow night, and that’s<br />
just for four races. The rich quartet are the four<br />
$250,000 finals of the Classic Series for older<br />
horses, and as expected, fulfilling the purpose of<br />
the series, they have attracted the sport’s best<br />
free-for-allers. The Pacing Classic, seventh race<br />
on the card, features Artistic Fella, last week’s<br />
third leg winner Eagle Luck, and Mr. Feelgood.<br />
The Classic Oaks for trotting mares, 10th race<br />
on the card, has drawn new millionairess Falls<br />
for You, a winner in the third leg in a blistering<br />
1:52.2 record mile, her stablemate Godiva Hall,<br />
and Up Front Hotsy leading the cast. The Classic<br />
Distaff, providing $250,000 for pacing mares,<br />
is race eleven, and the favorite is My Little<br />
Dragon, a winner of two preliminary legs, and<br />
her arch rival Darlins’ Delight and Enhance the<br />
Night. The $250,000 finale, for older male trotters,<br />
brings out the best in the country, led by<br />
last week’s winner, Sam Bowie’s Before He<br />
Cheats, with Arch Madness, Corleone Kosmos<br />
and Vivid Photo returning to action after three<br />
months on the sidelines with injuries. All four Classic<br />
finals will be raced at a mile and a sixteenth.<br />
Also on Saturday’s card are eliminations for the<br />
Hambletonian and Hambletonian Oaks for 3-yearolds,<br />
the first bringing out the undefeated<br />
Deweycheatumnhowe and the Oaks field led by<br />
last year’s dominant juvenile champion Snow<br />
White. Total purses for the Saturday night Meadowlands<br />
program are $1,386,500.<br />
TIOGA <strong>OF</strong>FERS $40K TO DRIVERS<br />
Tioga Downs’ second annual Drivers’ Championship<br />
will be contested in six nine-horse races Sunday,<br />
with Tim Tetrick, Brian Sears, Yannick<br />
Gingras, Andy Miller, Ron Pierce, Howard<br />
Parker and Jody Jamieson competing.<br />
The winner will receive a first prize of<br />
$25,000.<br />
July 25, 2008<br />
AN EXTENSION IN MONTREAL<br />
Attractions Hippiques, battling for its corporate<br />
life in Montreal where it has ended live racing at<br />
Hippodrome de Montreal, has been granted a 75-<br />
day extension by a Quebec court in its creditor<br />
protection plan to give it additional time to reorganize.<br />
The creditor protection program that became<br />
effective earlier this month was referred to<br />
earlier here in <strong>Executive</strong> <strong>Newsletter</strong> erroneously<br />
as bankruptcy. The company is not bankrupt, but<br />
has been granted protection under Canada’s Companies’<br />
Creditors Arrangement Act, similar to<br />
Chapter 11 proceedings in the U.S. Attractions<br />
Hippiques has suspended live racing at Hippodrome,<br />
but continues racing at its three tracks in<br />
Aylmer, Quebec City and Three Rivers and all<br />
simulcast operations, including those at Hippodrome<br />
de Montreal. We wish them well in their<br />
reorganization efforts.<br />
IMMORTAL QUEST: RIGHT NAME<br />
Harrington Raceway celebrated Governor’s Day<br />
yesterday with a $620,000 purse program, with<br />
Gov. Ruth Ann Minner and Lt. Gov. John Carney<br />
on hand as usual for the presentation. Four<br />
$100,000 Delaware Breeders Fund Stakes were<br />
featured in the program, with the 2-year-old trotting<br />
filly Juanita a highlight, winning her 15th race<br />
in 17 starts. The Governor’s Cup was won by<br />
Immortal Quest N, an iron-sided 9-year-old New<br />
Zealand gelding who was capturing his ninth victory<br />
of the year, with earnings over $200,000.<br />
THAT SINKING FEELING<br />
The Horseshoe Casino had better get a new one<br />
for good luck. Its $500 million new riverboat in<br />
Hammond, Indiana, was only 8 feet from its final<br />
mooring this week when a ramp supporting the<br />
100-ton riverboat came loose and swung into<br />
Lake Michigan. Seven construction workers<br />
on a barge jumped into the lake, and<br />
only one suffered minor injuries.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
July 28, 2008<br />
GINGRAS WINS 2ND $25K PRIZE AUSSIES GET NEW LEADER<br />
If things get tough elsewhere, driver Yannick Gingras<br />
always can make a living at Tioga Downs. tinues its talent search for a new executive vice<br />
While the United States Trotting Association con-<br />
He won the track’s second Drivers’ Championship<br />
yesterday, capturing the last three races in its man. Chairman Geoff Want announced the<br />
president, Harness Racing Australia has found<br />
the 9-race competition to turn back HTA Driver appointment today of Andrew Kelly, chief executive<br />
of Queensland Harness Racing for the last<br />
of the Year Tim Tetrick, 32 points to 23. Gingras<br />
was awarded the track’s $25,000 first prize, with two years, as the new Chief <strong>Executive</strong> Officer of<br />
$15,000 more spread among the all-star field that the nation’s top governing body. Kelly succeeds<br />
trailed him. Tetrick won $5,000 for finishing second,<br />
Andy Miller and Tioga’s top driver How-<br />
after more than 11 years as CEO. Kelly, 36, was<br />
the highly effective Rod Pollock, who is retiring<br />
ard Parker tied for third, each getting $2,500; general manager-commercial of Harness Racing<br />
and Brian Sears, Jody Jamieson, Ron Pierce, Victoria and general manager of the big Moonee<br />
Eric Goodell and Tony Morgan received $1,000 Valley track in Melbourne and at the Geelong<br />
each. Generous sponsorship helped Tioga present<br />
the classy field and rich prize money. or to that he held senior marketing roles with<br />
harness club before moving to Queensland. Pri-<br />
both the Victoria Cricket Association and the<br />
Geelong Football Club.<br />
BATAVIA OPENS 62ND SEASON<br />
HTA member Batavia Downs, which bills itself<br />
as the nations oldest lighted harness track, opens<br />
its 62nd season tonight, beginning a 60-date<br />
stand that will extend throughout the summer<br />
and fall until December 6. President and<br />
CEO Marty Basinait has scheduled racing on<br />
Mondays, Wednesdays, Fridays and Saturdays<br />
through Labor Day, after which Mondays will<br />
be dropped. Nightly post time is 7:05, with the<br />
$40,000 Robert J. Kane pace on Oct. 4 the highlight<br />
race.<br />
MEGA CASINO FOR NYCOTB?<br />
David Cornstein, back in charge of HTA associate<br />
member New York City OTB as chairman,<br />
has told the New York Post he would like to see<br />
legislation passed to legalize casinos in the corporation’s<br />
three teletheaters in New York City.<br />
He said he would like to “build a very unique<br />
entertainment center, with a cineplex in it, that<br />
would have retail shops and possibly a hotel with<br />
it.” Cornstein says he thinks the city could get an<br />
upfront fee of between $500 million and a<br />
billion dollars in development rights for<br />
the complex.<br />
NOVEL AUCTION AT SARATOGA<br />
A unique auction at HTA member Saratoga<br />
Gaming and Raceway produced a $10,100 windfall<br />
for the Saratoga Hospital Foundation at its<br />
summer benefit auction. Saratoga Springs’ former<br />
City Public Works Commissioner Tom Mc-<br />
Tygue, a longtime harness horse owner, offered<br />
a 25% share in the handsome 2-year-old pacing<br />
colt Classical Art. McTygue said he wanted to<br />
make sure he was offering a good prospect, and<br />
after the colt scored his first victory in 1:58.4 and<br />
won a $37,000 New York Sire Stakes at Saratoga,<br />
bidding was brisk. A son of the red hot young sire<br />
Art Major, a winner of $2.7 million and already<br />
sire of the winners of $5.1 million, including the<br />
Meadowlands Pace winner Art Official that upset<br />
Somebeachsomewhere in world record time<br />
of 1:47, Classical Art is eligible to multiple stakes<br />
at 2 and 3. He drew a winning bid of $10,100 for<br />
one-quarter interest, and McTygue said, “Offering<br />
partial ownership is something I knew was<br />
within my means, and something I could do to<br />
give back to the community.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
July 29, 2008<br />
IMPACT <strong>OF</strong> SLOTS IN PA<br />
Kevin Kile, Gaming Operations Liaison in<br />
Pennsylvania, has prepared a 39-page report<br />
on The Economic Impact of Slot Machines on<br />
Pennsylvania’s Pari-Mutuel Wagering Industry.<br />
Done for Melinda M. Tucker, the state Director<br />
of Racetrack Gaming, the report -- posted<br />
in full on HTA’s home page Web site, www.<br />
harnesstracks.com -- reveals no surprises, but<br />
underlines the huge growth of purses at Pennsylvania’s<br />
six tracks, three harness and three<br />
thoroughbred. Also not surprisingly, the Philadelphia<br />
area, the state’s most populous, posted<br />
the largest numbers. Philadelphia Park, with<br />
$295 million, led the way with 28% of gross terminal<br />
revenue, with Harrah’s Chester close behind<br />
at $286 million, or 27%. Mohegan Sun at<br />
Pocono accounted for $197 million, or 18%, and<br />
The Meadows, still building, added $125 million,<br />
or 12%. Total purses earned from the PA Race<br />
Horse Development Fund increased 162.3%, up<br />
from $55 million in 2006 to $144.3 million last<br />
year, an increase of $89.3 million. Purses paid<br />
during the period jumped from $62.3 million in<br />
2006 to $117.2 million in 2007, up 88.2%. Ontrack<br />
live handle appeared relatively firm, down<br />
.91% from $41.3 million in 2006 to $40.9 million<br />
last year, but actually was down substantially<br />
more because of 82 more days of racing. Telephone<br />
account betting was up 6.57%, off-track<br />
handle was down 12.15%. In-state export of<br />
signals increased by .68%, inter-state export by<br />
10.44%, up $47.6 million. Total thoroughbred<br />
handle decreased by 4.58%, total harness handle<br />
by 3.64%, with overall total handle down 4.39%.<br />
Most dramatic was the drop in percentage of<br />
purses from pari-mutuel handle. In 2006, 96.2%<br />
came from that source, in 2007 only 36%, with<br />
64% of purses generated by slots revenue. The<br />
report is intended to provide a benchmark<br />
against which to measure progress.<br />
AT LAST, RACING TALKS WHIPS<br />
Horse racing, harness and thoroughbred, has<br />
long danced on the head of a pin when it came to<br />
talking about whipping. Rules on excessive whipping<br />
are on the books almost everywhere, but<br />
are also ignored by judges almost everywhere,<br />
Indiana being a prime exception under presiding<br />
judge Tim Schmitz, a longtime foe of excessive<br />
use of the whip who keeps the practice to a minimum<br />
at Hoosier Park and Indiana Downs. A recent<br />
thoroughbred case in which a jockey slashed<br />
a horse across the face, injuring an eye, brought<br />
the case back to public attention, and thoroughbred<br />
racing’s safety committee, responding to<br />
the furor, is talking about whips and their use.<br />
Now comes the Ontario Racing Commission, “in<br />
response to calls from the horse racing community,”<br />
calling for an industry initiative to explore<br />
use of the whip in the province. <strong>Executive</strong> director<br />
John Blakney is asking representatives of the<br />
industry, including current and retired drivers<br />
and jockeys, association executives, track officials,<br />
animal welfare agencies and veterinarians<br />
to provide input, with the commission reviewing<br />
it to determine “appropriate and inappropriate<br />
use” of whips. Blakney says close examination<br />
“may lead to changes, including new rules and<br />
levels of enforcement.” The industry can only<br />
hope so, and also hope Ontario again proves to<br />
be a leading edge for the rest of racing.<br />
BACK HOME TO INDIANA<br />
Art Official, conqueror of previously invincible<br />
Somebeachsomewhere in the million dollar<br />
Meadowlands Pace, is foregoing further action<br />
in the east, returning to Indiana, scene of his first<br />
major triumph. The colt will race next in Saturday’s<br />
$150,000 estimated Monument Circle at<br />
Indiana Downs. Art Official won the $500,000<br />
Hoosier Cup at Hoosier Park to first gain national<br />
notice last month. Driver Ron Pierce will<br />
jet from the Meadowlands to Indiana late<br />
Saturday, hoping to make it for the drive.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
DEWEY TAKES THE RAIL<br />
Not that he needs it, but undefeated Deweycheatumnhowe<br />
chose the rail for his Hambletonian<br />
quest on Saturday, and promptly was installed<br />
as the odds-on favorite for the $1.5 million classic.<br />
Part owner and trainer-driver Ray Schnittker<br />
pointed out at yesterday’s press conference<br />
that the rail “still is the shortest way around the<br />
racetrack,” and he grabbed it after Frank Antonacci<br />
Jr., trainer of the blazingly fast Crazed,<br />
took post 2 as his first pick selection. Antonacci<br />
said he chose 2 because it was the preference of<br />
record-setting driver Tim Tetrick, who will drive<br />
the most likely upsetter, if there is one. So far<br />
Deweycheatumnhowe has won every start at two<br />
and three on cruise control, but Crazed posted<br />
a tick faster elimination win last week, 1:52.2<br />
against Dewey’s 1:52.3. The fastest Hambletonian<br />
ever is likely if Dewey is challenged along<br />
the way. The race is the culmination of three<br />
days of championship racing, and will be telecast<br />
on NBC in a one-hour special with Gary Seibel<br />
and Kenny Rice, two veteran harness racing<br />
commentators, hosting the show, with NBC regulars<br />
Donna Barton Brothers handling interviews<br />
from horseback, her usual role, and Mike Battaglia<br />
also on the NBC first team. The $750,000<br />
Hambletonian Oaks, with the Swedish-owned,<br />
Italian-bred and American-mothered Lantern<br />
Kronos favored to win her 9th outing in 10 starts<br />
this year, also will be shown on the telecast.<br />
JOHNSON ON HAMBO PANEL<br />
HTA’s executive assistant, Brody Johnson, will<br />
represent us at the Hambletonian, and will appear<br />
on one panel of a four-panel discussion<br />
group being sponsored by the Hambletonian Society<br />
at the Sheraton Meadowlands tomorrow.<br />
Brody’s panel, to be moderated by Gary Seibel,<br />
will discuss what the industry is doing to<br />
attract a new audience, and is scheduled<br />
for 1 to 2 p.m. Thursday.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
July 30, 2008<br />
AROUND THE CIRCUIT......<br />
The Senate Judiciary Committee was scheduled<br />
to markup up HR-2140, the Internet Gambling<br />
Study Act, this morning, but was listed tenth on<br />
a schedule that leads off with a resolution to hold<br />
Karl Rove in contempt of Congress. That should<br />
take care of the day, and any markup of the Internet<br />
study act, which calls for the National Research<br />
Council of the National Academy of Sciences<br />
to conduct a study on Internet gambling<br />
and report to Congress within a year.<br />
A Gettysburg, PA, businessman and promoter<br />
named David LeVan, who tried unsuccessfully<br />
to get a slots parlor in Pennsylvania’s Adams<br />
county two years ago, is back, invoking the name<br />
of Hanover Shoe Farm as “a perfect partner”<br />
without any apparent support or endorsement<br />
of Hanover Shoe, which had no comment. For<br />
one thing, no license currently is available, with<br />
Centaur Gaming still striving to have the state’s<br />
Gaming Control Board render a decision on its<br />
pending license. Scratch this as a non-starter.<br />
In California, Gov. Arnold Schwarzenegger’s staff<br />
and the state lottery director were busy denying<br />
that the administration was trying to return<br />
keno to the state’s gambling menu. The numbers<br />
game was banned 12 years ago by the state<br />
Supreme Court for violating state gambling<br />
laws, but Indian interests claim Schwarzenegger<br />
would propose a constitutional amendment that<br />
the tribes claim could override that decision. A<br />
Schwarzenegger spokesman said, “Whatever the<br />
final version (of a draft bill) will say, unequivocally<br />
the state will not allow keno.”<br />
The Toronto Star reports the Ontario and Canadian<br />
federal government are toying with the idea<br />
of sports betting in response to falling casino<br />
play by Americans, who are being discouraged<br />
by border security and a strong Canadian<br />
dollar.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
CRACKING WHIPS ON WHIPS<br />
Ontario Racing Commission judges are off to a<br />
flying start on the commission’s initiative to do<br />
something about excessive whipping. They have<br />
suspended Trevor Henry, the leading driver in<br />
Ontario Sires Stakes standings, for six months,<br />
effectively putting him out of action for the rest<br />
of the year, and fined him $5,000, for misconduct<br />
not in the best interest of racing at Grand River<br />
Raceway. Henry allegedly cut the pacer Lord<br />
Luck with his whip in a July 11 race. Henry has<br />
won 226 races and driven the winners of $1.7<br />
million this year. His lifetime stats show 2,983<br />
wins and $19 million in earnings. The action<br />
of the judges at Grand River hopefully will embolden<br />
others around North America to greater<br />
vigilance and discourage the overlooking of savage<br />
whipping that is displayed nightly for public<br />
consumption on racing telecasts across North<br />
America. Either the cameras are distorting the<br />
action or judges are distorting the intention of<br />
the excessive whipping rules.<br />
ALSO IN THE ORCHID PATCH<br />
While handing out bouquets, we’ll order one for<br />
Scott P. Brown, a Republican state senator in<br />
Massachusetts who was quick to answer critics<br />
yesterday who were eager to charge conflict of<br />
interest because Brown’s 17-year-old daughter is<br />
a partner in a low price claimer with Plainridge<br />
Racetrack president Gary Piontkowski. The<br />
young lady bought the horse with her own money<br />
in April with Piontkowski for $3,300 and the<br />
horse earned $1,400 last week winning at Plainridge.<br />
Brown joined a majority of senators last<br />
night backing extension of the Massachusetts<br />
simulcasting provisions that allow unlimited simulcasting<br />
at Plainridge and other state tracks.<br />
The measure passed 33 to 5, and when his daughter’s<br />
ownership was raised Brown did<br />
not run for cover. He pointed out that<br />
he had worked on behalf of Plainridge<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
July 31, 2008<br />
long before his daughter owned a horse, that she<br />
worked at the track, and that she hoped to be a<br />
veterinarian. In a response that was eloquent in<br />
its simplicity and logic, he told his tormentors,<br />
“She just loves horses. This is what she does and<br />
this is who she is.”<br />
ANOTHER VOICE IN KENTUCKY<br />
And an important one. State representative Greg<br />
Stumbo, a Democrat who was House majority<br />
leader before serving as Kentucky’s attorney<br />
general, circulated a draft of a slots bill he said he<br />
will prefile after receiving public comment over<br />
the next few weeks. The measure would provide<br />
for slot-like video lottery terminals at the state’s<br />
race tracks as part of the Kentucky lottery, and<br />
thus not requiring amendment of the state constitution,<br />
which could be done at the earliest in<br />
2110. The draft calls for between 87% and 95%<br />
to be redistributed to players, with 40% of the remaining<br />
money designated for purses and 5% for<br />
harness and quarter horse breed development.<br />
Kevin Flanery, speaking for Churchill Downs,<br />
said the draft is being reviewed by track officials,<br />
but that, “We’re happy that legislators are still<br />
considering alternative forms of gambling that<br />
would be located at racetracks and ultimately<br />
help the horse industry.” Another Democratic<br />
representative, Tom Burch, said earlier he would<br />
prefile a bill calling for 18,000 slots at the state’s<br />
eight licensed racetracks.<br />
FOUR BAN ROCK HORSES<br />
Pompano Park, Tioga and Vernon Downs, and<br />
the Delaware Harness Racing Commission all<br />
have banned horses that have raced or been<br />
stabled at Rockingham Park. An outbreak of<br />
strangles, a highly contagious and potentially fatal<br />
disease, has been reported at the Rock. On<br />
a happier note, the track is adding roulette and<br />
craps to its charity gaming menu, starting<br />
tomorrow.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
August 1, 2008<br />
SPORT HAS TWO NEW STARS<br />
It is August, and two new major juveniles established<br />
themselves as the best of the 2008 crop<br />
last night at the Meadowlands. Muscle Hill, a<br />
$55,000 yearling purchase last year, stamped<br />
himself as the sport’s best colt trotter, romping<br />
by six lengths in the $500,000 Peter Haughton<br />
Memorial to win in 1:55. Jerry Silva and the TLP<br />
Stable own the Muscles Yankee colt, trained by<br />
Greg Peck and driven by Brian Sears. The mile<br />
equaled the track and stakes record for 2-yearolds<br />
set two years ago by Donato Hanover. The<br />
sport’s top 2-year-old trotting filly emerged in<br />
Honorable Daughter, a $32,000 Malabar Man<br />
yearling last fall, who remained undefeated in<br />
five starts winning the $523,600 Merrie Annabelle<br />
in 1:55.4. Paolo Rosanelli and John Siena<br />
of Middletown, NY, own the filly, trained by Larry<br />
Remmen and driven by John Campbell.<br />
Tonight 2-year-old pacers take over, with Girls<br />
Nite Out and Pedigree Snob top choices in the<br />
$431,500 Sweetheart for fillies and Mysticism<br />
and Vertigo Hanover pre-race favorites in the<br />
$350,000 Woodrow Wilson for colts.<br />
Tomorrow’s all-star card features the $1.5 million<br />
Hambletonian (NBC 2 p.m. EDT) with<br />
Deweycheatumnhowe the odds-on favorite and<br />
Crazed the prime challenger, and the $750,000<br />
Hambletonian Oaks, with Lantern Kronos the<br />
top choice. Also on the card are the $407,400<br />
Mistletoe Shalee for 3-year-old pacing fillies,<br />
with one of the most competitive fields of fillies<br />
ever assembled; the $332,000 United States Pacing<br />
Championship for older male pacers, with<br />
Artistic Fella favored; the $300,000 Nat Ray for<br />
older trotters, wide open; the $232,000 Golden<br />
Girls for pacing mares, with My Little Dragon<br />
and Tidewater Dragonfly the top choices; and<br />
the $210,000 Oliver Wendell Holmes for<br />
3-year-old pacing colts wide open with no<br />
standouts.<br />
NEW BANS ON ROCK HORSES<br />
New tracks and jurisdictions have joined the<br />
ban on ship-ins from Rockingham Park, where a<br />
lone horse was stricken with equine streptococcus,<br />
or strangles. The state of Pennsylvania and<br />
the Meadowlands have joined Delaware, Tioga<br />
Downs, Vernon Downs, Pompano Park, reportedly<br />
Plainridge Racetrack, and possibly others<br />
that have not reported such bans, in refusing entry<br />
to horses shipping from Rockingham. The<br />
disease, affecting horses’ ability to breathe, is<br />
highly contagious and can be fatal.<br />
LEDFORD AT OCEAN DOWNS<br />
Eric Ledford, whose bright career was interrupted<br />
two years ago for use of banned substances in<br />
New Jersey, is tearing up the track again with his<br />
driving skills, this time at HTA member Ocean<br />
Downs, where he is the leading driver. GM Peter<br />
Szymanski said he and other officials were impressed<br />
by Ledford after interviews, and added<br />
that he believes in giving people second chances.<br />
A LEAD I WISH I HAD WRITTEN<br />
Every so often, but never often enough, a news<br />
story starts with a lead, or first line, that sparkles<br />
off the page. Today brought one of them, in<br />
a Las Vegas Review story on 9 of the 10 publicly<br />
traded gaming companies in Las Vegas suffering<br />
double digit declines in July. Howard Stutz, who<br />
wrote the story, led with, “If this were a fight, it<br />
would be stopped on cuts.”<br />
NEW YORK’S SMARTEST MAN?<br />
Louis Capelli, who recently got the state of New<br />
York to give him 75% of future profits from his<br />
huge Concord Hotel redevelopment complex<br />
that includes slots and moving Monticello Raceway<br />
to the site, now is asking Sullivan county to<br />
give him an estimated $40.3 million in sales and<br />
mortgage tax relief, and chances are good he will<br />
get it. “It’s the way to build today,” Capelli<br />
says. You got that right, Lou.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
August 4, 2008<br />
KENO KICKS IN TODAY IN OHIO<br />
More than 700 outlets, including the state’s seven<br />
racetracks, began keno operations in Ohio<br />
today. The introduction of the ubiquitous electronic<br />
betting machines marks the introduction<br />
of electronic gambling in a state that prohibits<br />
slots at racetracks. The tracks, however, were<br />
quick to avail themselves of this gaming alternative,<br />
with John Carlo of Lebanon Raceway calling<br />
them “a step in the right direction” to offset<br />
the impact of Indiana riverboats and Michigan<br />
casinos. Eleven other states permit keno, and<br />
Ohio governor Ted Strickland, who killed slots<br />
at tracks, expects the every-four-minute plays<br />
will provide $73 million toward solving Ohio’s<br />
serious budget shortage. Marie Kilhane Secker,<br />
an Ohio lottery spokeswoman, took a more cautious<br />
view, saying, “Projections can come back<br />
to bite you.” Ohio vendors will get 6.2% of terminal<br />
sales plus bonuses that could provide them<br />
with $18 million in the first year if projections of<br />
sales of $292 million hold up.<br />
IRS SPOILS ANOTHER PARTY<br />
This time it rained on JBL and Zip, two payment<br />
processors for Internet gambling sites. The boys<br />
from Foggy Bottom seized $14.2 million from<br />
JBL bank accounts and $9.87 million from Zip<br />
deposited in Wachovia, Regions, Sun Trust and<br />
Nevada State banks. Still operating, however, is<br />
Bodog, now under the name of Bodoglife, from<br />
its headquarters in Costa Rico. Calvin Ayre, the<br />
billionaire Canadian owner, claims he sold his<br />
interests to the Mohawk Indians, but the IRS remains<br />
unconvinced.<br />
HORSEMEN SEEK SPORT BETS<br />
New Jersey thoroughbred horsemen are asking<br />
others to join them and state senators Raymond<br />
Lesniak and Jeff Van Drew in seeking repeal of<br />
the federal ban on sports betting. Horsemen’s<br />
president Dennis Drazin says it<br />
would create new horseplayers.<br />
CHECK THESE PROPOSALS<br />
They could affect you. The American Horse<br />
Council reports that the Department of Justice<br />
is proposing new amendments to the 1990<br />
Americans with Disabilities Act. Among the<br />
proposals are requirements for disabled seating<br />
in public stadiums or gathering places, ticketing<br />
arrangements for disabled persons, captioning<br />
and video interpreting services, an expansion<br />
of the definition of wheelchairs and mobility<br />
devices and their accessibility at all levels, and<br />
the exclusion of horses as “service animals,” although<br />
we doubt our member tracks have many<br />
patrons who ride in. Any facilities with more<br />
than 5,000 seats would be required to have at<br />
least five wheelchair spaces and three accompanying<br />
companion seats for each of the five.<br />
The proposals also would require safety notices<br />
on tote boards or other means in facilities with<br />
a capacity of 25,000 or more, and captioning of<br />
game related information, which could include<br />
race calls, regardless of capacity size. The Horse<br />
Council cautions that the rules are “quite complex,”<br />
and suggests strongly that someone with<br />
knowledge of the Americans with Disabilities<br />
Act look them over to see what applicability they<br />
might have to your own operations. It also invites<br />
comments and concerns. The full text of<br />
the proposals can be reviewed at: http://www.<br />
ada.gov/NPRM2008/13NPRM_federalreg.pdf.<br />
AT LEAST AS GOOD AS BOXING<br />
The state of Arizona has boxed an unusual daily<br />
double. It recently advertised, in a salary range<br />
of $85,000 to $95,000, for a Director of the Department<br />
of Racing and Boxing. Five years experience<br />
in business/administration was specified<br />
and no financial interest in a racetrack or in the<br />
racing industry in Arizona while serving. The<br />
application deadline has passed, but just in case<br />
the address was Paul Ulan, Chairman, Arizona<br />
Racing Commission, 1110 W. Washington,<br />
Suite 260, Phoenix, AZ 85007.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
August 5, 2008<br />
STATES ACT ON <strong>OF</strong>FSHORES<br />
The Association of Racing Commissioners International<br />
has announced that most of the nation’s<br />
major racing states -- California, New York, New<br />
Jersey, Illinois, Pennsylvania, Ohio, Indiana,<br />
Kentucky, Delaware, Virginia, Oklahoma and<br />
New Hampshire included -- say they will begin<br />
the process of requiring that offshore wagering<br />
companies and secondary pari-mutuel wagering<br />
organizations (SPMOs) obtain certification from<br />
the ARCI as a pre-condition to approval of allowing<br />
those entities to wager into pools under<br />
the participating states’ jurisdiction. Under the<br />
Interstate Horse Racing Act, host state racing<br />
commissions must approve any SPMO betting,<br />
and officials are seeking a uniform date -- January,<br />
2010 -- for a collective implementation of the<br />
policy. That provides time for state rule promulgations<br />
where necessary and for the conduct<br />
of thorough background investigations of the entities,<br />
their owners, staff and operations by the<br />
ARCI. California Horse Racing Board chairman<br />
Richard Shapiro, noting that 90% of money bet<br />
on horse racing now occurs away from the track,<br />
and frequently out of the country, calls it “critical<br />
that the states regulating the sport know exactly<br />
who they are doing business with and that<br />
the integrity of the game is not jeopardized.” He<br />
calls the ARCI initiative “long overdue.” Frank<br />
Zanzuccki, executive director of the New Jersey<br />
Racing Commission, echoed those views, saying<br />
the certification “is a necessary and vital component<br />
to ensuring the integrity of the pari-mutuel<br />
system.” He said he will recommend adoption<br />
of the proposed regulation the New Jersey Racing<br />
Commission “later this fall.” Joe Gorajec<br />
of Indiana, chairman of the RCI board of directors,<br />
said the board unanimously approved moving<br />
ahead with the certification program. RCI<br />
president Ed Martin said commissioner<br />
Shapiro reported positive reactions from<br />
both Magna and Churchill Downs.<br />
ROCK’S HORSES ARE CLEARED<br />
New Hampshire Racing Commission veterinarian<br />
Matthew Gerard Levesque, after consultation<br />
with the state veterinarian Stephen Crawford<br />
and commission representative Dale Childs<br />
concerning a series of negative tests, has released<br />
isolated horses back into the general racing and<br />
stabling community at Rockingham Park. The<br />
reaction was immediate, with Delaware’s Harness<br />
Racing Commission removing all prohibitions<br />
it had issued earlier. Other states and<br />
tracks that had posted bans on Rockingham<br />
horses were expected to follow suit quickly.<br />
WHICH PAPER DO YOU READ?<br />
Keno got underway in Ohio yesterday, but exactly<br />
how things went depends on which newspaper<br />
you read, or which Lottery commission<br />
spokesperson you ask. The Columbus Dispatch<br />
reported, in a story headline, “Keno flawless,<br />
state says,” that 773 bars, restaurants, bowling<br />
alleys and horse tracks began operations without<br />
a hitch, quoting lottery spokeswoman Jeannie<br />
Roberts. The Cleveland Plain Dealer, however,<br />
headlined its story, “Keno starts with some hiccups,”<br />
and reported it got underway “on wobbly<br />
legs” at 717 venues, with 51 calls to the lottery<br />
commission help line by midday. It quoted lottery<br />
commission spokeswoman Marie Kilbane<br />
as saying most of the venues had no problems,<br />
but a few were unable to get the game online.<br />
One bar manager told the paper, “I heard a lot<br />
of places were having trouble.” Bettors can wager<br />
up to $20 on each game every four minutes,<br />
and spokesman Roberts said Ohioans had placed<br />
16,221 bets, spending $70,617, with 4,561 winners<br />
of $36,603, by 3:30 yesterday afternoon after<br />
the late morning start. She said she expected<br />
a surge of play in late afternoon and early evening<br />
when workers left their jobs. We will have<br />
a more complete report on what actually happened<br />
in tomorrow’s <strong>Executive</strong> News.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
In Connecticut, Foxwoods and Mohegan Sun,<br />
for the first time ever, reported year-to-year declines<br />
in slot revenues, down a combined $ 7 6<br />
million. Soaring gasoline prices and a<br />
weak economy were blamed for the unprecedented<br />
declines.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
August 6, 2008<br />
CASINOS FOR OHIO?<br />
In Nevada, MGM Mirage reported a 69% drop<br />
The Columbus Dispatch reports that it appears in net income and a 2% decline in revenue in the<br />
that Ohio voters will get another chance in this second quarter, but gave investors a sunny report.<br />
They pointed out their Strip casinos again<br />
fall’s elections to decide if they want casino gambling<br />
in the state. Backers of a proposed $600 outperformed competitors, and received word<br />
million casino resort in southwest Ohio say they that banks have agreed to loan half the money<br />
have submitted 800,000 signatures to the secretary<br />
of state, almost twice the 402,275 needed to billion City Center complex. They received a<br />
they are seeking to develop their mammoth $11.2<br />
get the issue on the November ballot. They also $1.65 billion commitment from Bank of America<br />
claim they have exceeded the required threshold<br />
in 81 counties, again almost twice the 44 re-<br />
similar loan as they and their partner, Dubai<br />
and four other banks, and expect to get another<br />
quired. The signatures still must be certified as World, seeks a total of $3 billion from the banks.<br />
valid by local county boards, but the supporters<br />
say they have done preliminary checks and complete the gargantuan City Center complex,<br />
The Kirk Kerkorian-owned company hopes to<br />
are confident they have a healthy cushion. The which will include hotels, casinos and condominiums,<br />
by late 2009. MGM and Dubai World<br />
issue has appeared on ballots in Ohio in 1990,<br />
1996 and 2006, going down to defeat each time. each will pay a billion dollars in addition to the<br />
If they approve the proposal this time, a private loans, with revenues from condominium sales<br />
company, MyOhioNow, and its partners Lakes expected to cover part of that outlay. CEO Terry<br />
Entertainment of Minnesota, say they will have Lanni, addressing the investors, was bullish, saying,<br />
“Our numbers have been rather good. Las<br />
a huge entertainment complex with a hotel, casino,<br />
golf and restaurants ready to open by early Vegas didn’t fall of the end of the earth into the<br />
2011. Anti-gambling groups and gaming companies<br />
from neighboring states reportedly already its properties fell 4%, and room revenues fell<br />
abyss.” MGM Mirage casino revenue across<br />
are preparing strong opposition campaigns. 6%, but Bellagio, the company’s highest-end<br />
property and site of the 2009 Racing Congress<br />
sponsored by HTA, TRA, USTA, HHI and other<br />
ELSEWHERE ON CASINO BEAT<br />
groups, generated operating earnings 39% higher<br />
than Wynn Las Vegas and 7% higher than Ve-<br />
In Pennsylvania, slots revenues reached their<br />
second highest level since they were legalized two<br />
netian and the newly opened Palazzo combined.<br />
years ago. The seven slots facilities currently licensed<br />
produced $35 million in gross terminal<br />
Its Mandalay Bay property reported its second<br />
highest second quarter operating earnings on record.<br />
Lanni, in his report, admitted that Steve<br />
revenues last week, on $445 million in play. The<br />
highest week occurred over the Fourth of July<br />
Wynn had “cleaned our clock” and congratulated<br />
Wynn, saying, “We want to emulate Wynn<br />
weekend, when gross revenues reached $38 million<br />
on $469 million in play.<br />
Macau and use it as our target.”<br />
In Indiana, the renamed Ameristar Casino East<br />
Chicago, formerly Resorts, laid off 41 workers<br />
and another 203 nationwide at its seven other locations.<br />
In its first month as Ameristar, the East<br />
Chicago property collected $25.8 million in<br />
revenue compared to $24.9 million in ’07.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
SANTA ANITA FOR SALE?<br />
In what had to be a painful admission, Frank<br />
Stronach told investors and analysts yesterday<br />
that Magna Entertainment would not be able to<br />
retire its debt as planned by the end of this year,<br />
and said that if Magna cannot find buyers for<br />
its smaller properties like shuttered Great Lakes<br />
Downs, it may have to sell “50%, or 60%” of<br />
storied Santa Anita and that all of its properties<br />
could be offered for sale. If that were to happen,<br />
along with the possible sale of Hollywood<br />
Park and the final 10 days of thoroughbred racing<br />
at Bay Meadows, the entire west coast racing<br />
picture would change. MEC announced it lost<br />
$21.25 million in the second quarter of this year,<br />
$2.19 million less than it lost in the same quarter<br />
last year, but that still brought 2008 losses to<br />
$67.7 million and total losses since inception to<br />
$543.9 million. Daily Racing Form’s Matt Hegarty<br />
reported that Magna’s accountants continue<br />
to prepare the company’s financial statements<br />
under a “going-concern” warning, an acknowledgment<br />
that the company cannot continue to<br />
operate unless is can make significant improvements<br />
in its financial condition. MEC recently<br />
authorized a 1-to-20 reverse stock split to meet<br />
the $1 a share requirements of Nasdaq, where<br />
it would face delisting if that trigger point were<br />
not reached.<br />
RACING CUTBACKS IN MD<br />
One of Magna Entertainment’s major holdings,<br />
the Maryland Jockey Club, announced<br />
yesterday it is closing Pimlico for training<br />
and stabling at the end of this month, cutting<br />
back live racing at Laurel by 11 days, from 76<br />
to 65, this fall, and eliminating 20 to 25 jobs.<br />
MJC president Tom Chuckas said shuttering<br />
Pimlico until spring would save $180,000 a<br />
month. The Laurel meeting will eliminate the<br />
$300,000 Frank DeFrancis, the Laurel<br />
Futurity, Selima and other stakes.<br />
August 7, 2008<br />
AROUND THE <strong>TRACKS</strong>.....<br />
Freehold Raceway opens its fall meeting today,<br />
running until Dec. 31. Features of the long session<br />
include the $300,000 est. Cane Pace on Labor<br />
Day, the $271,000 James B. Dancer Memorial,<br />
the $145,000 Shady Daisy, the $140,000 Lou<br />
Babic Memorial, the $130,000 Battle of Monmouth,<br />
and the $100,000 Charles Smith Trot.<br />
Batavia Downs and Western Regional OTB president<br />
Marty Basinait told Batavia’s Rotary Club<br />
members that Genesee county has received $2.3<br />
million from OTB on its original loan to help<br />
OTB get started, a 230% return on its investment.<br />
The track recently underwent a $20 million<br />
facelift, with 600 VLTs now in place and another<br />
150 planned for a new gaming room.<br />
Mohawk Racetrack will celebrate Somebeachsomewhere’s<br />
return Sunday night with posters,<br />
autographs by driver Paul MacDonnell and coowner<br />
trainer Brent McGrath and a trip giveaway<br />
to some beach somewhere.<br />
Veteran track photographer Jack Coady Sr. who<br />
with his sons Jack Jr. and Jeff and grandsons<br />
worked as Coady Photo at 19 harness, thoroughbred<br />
and quarter horse tracks around the<br />
country, has died of cancer at 80. HTA sends<br />
its sympathy to Prairie Meadows Racing Communications<br />
director Mary Lou Coady, Jack’s<br />
daughter-in-law, and the entire family.<br />
Isle Casino & Racing at Pompano Park, as part<br />
of its closing festivities last Saturday night, gave<br />
$25,140 to four local and national charity groups.<br />
The recipients were the Boys & Girls Club of<br />
Broward county, Ft. Lauderdale’s Cooperative<br />
Feeding program, Horse and the Handicapped<br />
of South Florida, and the Harness Horse Youth<br />
Foundation.<br />
Action Officers, please return your group sales<br />
surveys to the HTA office or to RTIP Student<br />
Steve May.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
August 8, 2008<br />
CAL REGS GET LAW APPROVAL<br />
California’s new steroid regulations, moving<br />
both the classification and the penalties for violations<br />
into stiffer categories, have been reviewed<br />
and approved by the California Office of Administrative<br />
law and given final state approval. The<br />
California Horse Racing Board immediately announced<br />
the new regulations and penalty schedule<br />
will go into effect September 4. Under the<br />
new rules, the Holy Four of stanozolol, boldenone,<br />
nandrolone and testosterone will move<br />
from class 4 to class 3 violations, and the penalties<br />
will move from class D to class B. What<br />
this means in practical terms is that any of these<br />
anabolic steroids in the post-race level samples<br />
from competing horses will result in automatic<br />
disqualification of the horse and redistribution<br />
of the purse, a minimum 30-day suspension of<br />
the trainer, and a fine of up to $10,000.<br />
ART GETS ITS DAY IN GOSHEN<br />
The Harness Racing Museum and Hall of Fame<br />
in Goshen has announced its 2008 Immortal Honorees,<br />
and Scott Leighton, the celebrated Currier<br />
& Ives artist, will be one of six individuals immortalized<br />
at next July’s induction ceremonies.<br />
Leighton was not alone among artists honored,<br />
however, with the famed painter Edward Troye<br />
and celebrated Philadelphia horse photographer<br />
George Francis Schreiber also named to the<br />
sport’s list of immortals, along with driver Lew<br />
Williams, 19th century Kentucky breeder Col.<br />
Richard West, owner of the famed sire Almont,<br />
and Gen. William Temple Withers, another early<br />
Kentucky breeder who owned Fairlawn Stock<br />
Farm. Pacer Big Towner, a racing star and sire of<br />
five millionaires, and trotter Nan’s Catch, dam of<br />
the great Moni Maker, also will be inducted into<br />
the gallery of immortals. Scott Leighton’s work<br />
for Currier & Ives is well represented in<br />
this year’s HTA Art show and Auction.<br />
The color catalog is online at HTA, and<br />
print catalogs will be mailed shortly.<br />
DECLINE “A PERFECT STORM”<br />
That is how Bill Westerman, CEO of Riviera<br />
Holdings that owns Riviera casinos in Las Vegas<br />
and Colorado, described events that led to a 15%<br />
decline in revenue and 33% decline in operating<br />
earnings in year-to-year comparisons after the<br />
second quarter. Westerman said the events represented<br />
“a perfect storm” of economic troubles<br />
for his company, blaming high gas prices, an accelerating<br />
consumer downturn and a decrease in<br />
walk-in traffic at Vegas casinos, for the tumult.<br />
Riviera was not alone. Pinnacle Entertainment<br />
also reported “a sluggish economic environment”<br />
affecting all gaming companies, and its<br />
second quarter losses led to an 8.6% drop in the<br />
value of its shares. Trump Entertainment Resorts<br />
reported a continuing drop in continuing<br />
operations, with revenue down 4.8%.<br />
FOR GAMBLING, NOT RACING<br />
That summarizes the position of the Maryland<br />
Tax Education Foundation, a taxpayer advocacy<br />
group, or at least its president, investment<br />
banker Jeffrey C. Hooke. He says 58% of Maryland<br />
thoroughbred winnings went to out-of-state<br />
owners, and says the number will be higher if<br />
proposed racing subsidies are passed in the November<br />
election. Breeders refute this with what<br />
seems to escape Hooke, that higher purses would<br />
spur a return of both breeders and owners to the<br />
state. Both have been heavily impacted by slots<br />
in adjacent states.<br />
A WARNING ON TRADE WARS<br />
Two members of Congress have warned U.S. Attorney<br />
General Michael Mukasey that continued<br />
U.S. intransigence in dealings with the European<br />
Union and World Trade Organization can lead<br />
to problems not in the best interest of the U.S.<br />
Democrats Robert Wexler of Florida and Steve<br />
Cohen of Tennessee issued the warnings. A<br />
July meeting was delayed by the U.S.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
August 11, 2008<br />
MASS GOV “WEIGHS OPTIONS”<br />
When politicians need wiggle room, they weigh<br />
options. Centaur Gaming has encountered it<br />
in Pennsylvania, where time goes by while the<br />
Gaming Control Board weighs its options for a<br />
license for Centaur’s proposed new $400 million<br />
track near the Ohio line. Unfortunately, the<br />
banks that had agreed to finance the Centaur<br />
project are now weighing their options, while the<br />
Control Board sits mute, showing that it indeed<br />
controls things.<br />
Now the ploy has surfaced in Massachusetts,<br />
where Gov. Deval Patrick is using it in refusing<br />
to talk to the Mashpee Wampanoag tribe, which<br />
wants to build at $1 billion casino entertainment<br />
complex. Scott Van Voorhis of the Boston<br />
Herald reports the tribe may have a long wait,<br />
while Patrick “weighs his options.” That is what<br />
the administration says when asked about the<br />
situation. “Should the tribe ask to commence<br />
negotiations prior to having lands in trust, the<br />
administration will weigh a number of issues in<br />
determining a response to that request,” says<br />
Kofi Jones, a spokeswoman for the executive office<br />
of housing and economic development. Patrick<br />
apparently has changed course, because in<br />
June he told WBZ-TV in Boston, “We are prepared<br />
to negotiate under the parameters that exist<br />
within current law. Some form of expanded<br />
gaming is coming, because the tribe has some<br />
tribal rights and we want to be ahead of it.” Van<br />
Voorhis says requests from the U.S. Department<br />
of the Interior, which is considering the Mashpee<br />
Wampanoags’ application for a land trust in the<br />
southeastern town of Middleborom “can take<br />
years,” and the tribe is not likely to get an answer<br />
until at least next spring. Approval of their<br />
plans by the governor, which is what they seek<br />
-- they already have tribal recognition -- could<br />
speed a decision in Washington. There will<br />
be Wampanoags growing old before that<br />
happens.<br />
HOW TO STOP A TERMINATOR<br />
Arnold Schwarzenegger, the governor of California,<br />
has ordered the state to pay its employees the<br />
federal minimum wage of $6.55 an hour until he<br />
gets a budget agreement. State controller John<br />
Chiang, who has vowed to defy Schwarzenegger’s<br />
executive order, did not take long to find<br />
a way. He told the Sacramento Bee there was<br />
no way that could be done in weeks, as the governor<br />
requested, because the state’s antiquated<br />
computer system could not handle the burden.<br />
“Pragmatically, we just can’t get the system to<br />
work in a timely manner for us to implement<br />
payment of a minimum wage.” He also said trying<br />
to do so could open the state to errors that<br />
would leave the state vulnerable to lawsuits from<br />
workers. Such cases can involve triple damages.<br />
Any questions, anyone?<br />
In Illinois, things are hardly better, as House<br />
Speaker Michael Madigan of Chicago has bottled<br />
up Gov. Rod Blagojevich’s state infrastructure<br />
construction plans, already scaled down<br />
from $33.7 billion to $25 billion. Sometimes, as<br />
a former Illinois senator once said, “Those kind<br />
of things can add up to real money,” or words to<br />
that effect.<br />
AROUND THE <strong>TRACKS</strong>.....<br />
Buffalo Raceway COO and former HTA executive<br />
assistant Jim Mango has announced a 25%<br />
increase in nationwide handle from last year. He<br />
also said track announcer and racing secretary<br />
Robin Burns has signed on for full time duties<br />
for three years, starting Oct. 1..... Youbet.com reports<br />
second quarter gross income from continuing<br />
operations at just over $2.20 million, up from<br />
a loss of $391,000 in the same period last year. It<br />
was the second consecutive quarter of profitability,<br />
CEO Michael Brodsky reported..... Handle<br />
at Mohegan Sun at Pocono Downs quadrupled<br />
with the Adios last Saturday. The race returns<br />
to a rebuilt The Meadows next year.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
August 12, 2008<br />
GOODBYE TO THE SLOT BOATS<br />
You still have time to book passage on a gambling<br />
boat out of Ft. Lauderdale’s Port Everglades,<br />
but you will have to hurry. SeaScape Entertainment’s<br />
big SeaScape will sail from there for the<br />
last time next Sunday, following the earlier departure<br />
of Horizon’s Edge Casino Cruises and<br />
Aquasino, which ceased operations in the Miami<br />
area a few months ago. That leaves only one gambling<br />
boat -- the Palm Beach Princess -- sailing<br />
from Palm Beach, and it is for sale. Indian gaming<br />
and track slots ended the cruises to nowhere,<br />
at least in the Pompano-Ft, Lauderdale-Miami<br />
area. SeaScape promised “a big announcement”<br />
today, possibly that it will move its operation to<br />
Port Canaveral with possible day cruises as well<br />
as shorter ones. Some SeaScape crew members<br />
told the Miami Herald they had not been paid in<br />
months, and a maritime lawyer filed suit against<br />
SeaScape on behalf of six of them last week. A<br />
bankruptcy lawyer handling the auction of the<br />
Palm Beach Princess said four of five prospective<br />
buyers want to continue gambling cruises.<br />
RACINOS UP, CASINOS DOWN<br />
That’s the story in Indiana, where HTA members<br />
Hoosier Park and Indiana Downs were up<br />
a combined $5 million in July over June figures,<br />
but the state’s casino industry was reporting a<br />
$31 million decline in state taxes in that period.<br />
Admissions at 11 casinos were down sharply as<br />
well during July.<br />
THE INJURY REPORT<br />
Trainer-driver Tom Haughton, involved in a racing<br />
accident at the Red Mile in Lexington Sunday,<br />
suffered a fractured shoulder blade and five<br />
cracked ribs....Driver Luc Ouellette, out of action<br />
in Ontario for a month with a fractured left arm,<br />
says his doctor has pronounced him fit to<br />
drive, and he feels that way, so is returning<br />
to the Mohawk wars this weekend.<br />
AROUND THE <strong>TRACKS</strong>.....<br />
Magna Entertainment’s selloff of its excess properties<br />
continues, with an agreement to sell 489<br />
acres of property in Ocala, Florida, to Lincoln<br />
Property company and Orion Investment Properties<br />
for $16.5 million cash.<br />
Sand Shooter, one of the sport’s top 3-year-old<br />
pacers, is being retired after cutting a tendon in<br />
the Adios at Mohegan Sun at Pocono last Saturday.<br />
The colt, owned by Jerry Silva and Bill<br />
Sanders, had earned $471,957.<br />
Fasig-Tipton’s Preferred Yearling sale of New<br />
York-bred thoroughbreds at Saratoga saw a<br />
hundred horses sold, and another 127 failing to<br />
meet their reserve prices or withdrawn for other<br />
reasons. Sale director of marketing Terence Collier,<br />
as reported in the Albany Times Union, said<br />
the numbers were “not unanticipated. We knew<br />
at the bottom end the supply might exceed the<br />
demand.”<br />
Suffolk Downs thoroughbreds in East Boston and<br />
Wonderland dog track in nearby Revere are close<br />
to final agreement on a partnership that the<br />
Raynham Call says would “dramatically reshape<br />
the state’s live racing industry and hold major<br />
implications for the ongoing gambling debate.”<br />
Both tracks hope to secure the Boston area casino<br />
site proposed by Gov. Deval Patrick but rejected<br />
by the legislature in March.<br />
State senator John Sabini has been confirmed by<br />
the Senate in his new role on the New York Racing<br />
and Wagering Board. Gov. David Paterson<br />
named him chairman for a six-year term.<br />
Vernon Downs is hosting a job fair this afternoon<br />
at its trackside hotel to fill some 30 part-time,<br />
full-time and seasonal positions. The track<br />
is looking for local workers to fill the jobs.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
August 13, 2008<br />
MILE TRACK FOR DELAWARE?<br />
The Delaware Harness Racing Commission,<br />
by a unanimous vote, yesterday granted conditional<br />
approval for a new one mile harness track<br />
in the state. The application came from developers<br />
Gene Lankford and Preston Schell, both<br />
newcomers to racetrack operation, but whose<br />
application was supported by the 1,100 member<br />
Delaware Standardbred Owners Association,<br />
and lauded by the state’s racing administrator<br />
Hugh Gallagher. “They filled it out in detail and<br />
dotted every I and every T. This is not some flyby-night<br />
group that doesn’t know everything<br />
that needs to be done or is involved.” The commission<br />
listened to the proposal, which was given<br />
legal approval by the commission counsel, and<br />
discussed it for an hour before voting. The application<br />
calls for 45 to 60 days in July and August,<br />
without conflicting with Harrington Raceway,<br />
and Gallagher said the track, to be called Del<br />
Pointe, could apply for those dates next year. The<br />
$60 million mile track is slated for 110 acres on<br />
U.S. 113 between Georgetown and Millsboro in<br />
Sussex county, the site of the former Georgetown<br />
Raceway, and 15 miles from the Rehoboth Beach<br />
summer resort area. Lankford and Schell are<br />
officials of Ocean Atlantic companies, Lankford<br />
serving as chairman and Schell as president.<br />
Lankford owns the Atlantic Sands and Breakers<br />
hotels in Rehoboth Beach, and called the summer<br />
visitors “our audience.” He said Del Pointe<br />
would not need a racino with slots to be successful,<br />
despite its projected cost, but would not rule<br />
out seeking future state approval for one. Gallagher<br />
said both men have “deep pockets and<br />
the finances to do this.” When the Wilmington<br />
News Journal contacted HTA directors Bill Fasy<br />
of Ocean Downs and Jim Boese of Harrington<br />
Raceway for comment, both said they had only<br />
recently learned of the project, and needed<br />
to see the release that officially told of the<br />
plan. They heard the details yesterday.<br />
POLS TARGET CONTROL BD<br />
Two Pennsylvania legislators, called “a political<br />
odd couple, if ever there was one” by the Pittsburgh<br />
Post-Gazette, have found common ground<br />
on revising slots law. The two -- state senator<br />
Jane Orie, a conservative Republican, and<br />
soon-to-retire senator Vincent Fumo, a liberal<br />
Democrat -- have teamed up and are proposing<br />
revisions in the state’s Gaming Control Board.<br />
Angered by the board’s almost secretive operations<br />
and its hanging Centaur Gaming out to dry<br />
by denying it a gaming license for its proposed<br />
$400 million entertainment complex in western<br />
Pennsylvania, Orie and Fumo are proposing<br />
major changes. They issued a statement saying,<br />
“Public confidence in the Gaming Control<br />
Board has been shaken recently and we must restore<br />
the complete integrity of the process in the<br />
public eye.”<br />
AROUND THE <strong>TRACKS</strong>.....<br />
Joe Costa, president and CEO of the Red Mile<br />
and the track director on HTA’s board, has been<br />
named to Gov. Steve Beshear’s Governor’s Task<br />
Force on the Future of Horse Racing.<br />
Woodlands in Kansas City, Kansas, is closing operations<br />
Aug. 21 rather than paying a 60% tax<br />
rate for slots. The track has 800 and was eligible<br />
for another 600 under Kansas law.<br />
Wyoming Downs in Evanston has planned special<br />
events and ceremonies honoring its former<br />
owner Joe Joyce, who acquired the track in 1990<br />
and revitalized it, keeping Wyoming horse racing<br />
alive. A benefit is schedule for Saturday, a<br />
dinner that evening, and live and silent auctions<br />
of racing related materials for the benefit of the<br />
Joseph F. Joyce Jr. Memorial Scholarship Fund,<br />
which awards scholarships to the University of<br />
Arizona Race Track Industry Program. Joyce’s<br />
son Eugene, general manager of Turf Paradise<br />
in Phoenix, and Joe’s widow, Elizabeth,<br />
will be on hand.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
THE AGONY AND THE ECSTASY<br />
Tioga Downs and Vernon Downs, the sister<br />
tracks in New York, are experiencing both this<br />
week. They are ecstatic, and deservedly so, for<br />
scheduling a $30,000 open trot that was enticing<br />
enough for trainer-driver-part-owner Ray<br />
Schnittker to send his Hambletonian champion<br />
Deweycheatumnhowe back into battle in his first<br />
start since winning the big one at the Meadowlands.<br />
It should be a $15,000 training session<br />
for the undefeated trotting star, but he will not<br />
be the only top performer in action at Vernon<br />
tomorrow night. Driver Brian Sears, currently<br />
second in the nation with $9.9 million won by his<br />
mounts to Tim Tetrick’s $12.3 million, will sign<br />
autographs. A Sears bobblehead and a Deweycheatumnhowe<br />
photo montage will be given<br />
away. Sears will drive Falls for You, winner of<br />
Ontario’s rich Armbro Flight earlier this year,<br />
in the $135,000 Conway Hall trot. Arch rivals<br />
My Little Dragon and HTA champion Darlin’s<br />
Delight will hook up again in the $123,500 Artiscape<br />
for pacing mares. Tetrick is scheduled to<br />
drive, along with Ron Pierce, Andy Miller, Yannick<br />
Gingras and Jim Morrill Jr., a platoon of<br />
the best in the sport.<br />
Down the highway the news was not as good at<br />
Tioga, where somehow the wrong horse raced.<br />
Always Lucky K, a 6-year-old pacing winner of<br />
$214,309, trained and driven by Rick Plano, finished<br />
second in the first race on the card, pacing<br />
his mile in 2:06.1, then raced again in the<br />
11th, a $14,000 open, where he raced last all the<br />
way, pacing in 2:06. He was not scheduled to<br />
compete in the race. The horse that was, Silver<br />
Flash, a $378,452 lifetime winner with a record<br />
of 1:49.2, did not race. The two horses do not<br />
look alike. Always Lucky K has a large star and<br />
white on the inside of his right front pastern.<br />
Silver Flash also has white in front,<br />
but both hind heels are white.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
August 14, 2008<br />
Tioga VP of Racing Jason Settlemoir said internal<br />
and New York Racing and Wagering Board<br />
investigations are ongoing to see how this mixup<br />
could have happened.<br />
PRIVATIZATION IN ILLINOIS?<br />
The odds grew shorter yesterday, at least as far<br />
as the state lottery is concerned, after House<br />
Speaker Michael Madigan said he was taking a<br />
new look at Gov. Rod Blagojevich’s proposal to<br />
privatize the lottery to pay for a statewide construction<br />
program. Madigan was quoted in the<br />
Chicago Tribune as saying House Democrats<br />
have been discussing the idea and are moving<br />
closer to supporting it. That’s a big step forward,<br />
since a Madigan ally last week said it would be<br />
“a hard sell.” Blagojevich has advocated leasing<br />
to a private company for years, and now wants<br />
to use the money toward his hugely expensive<br />
state infrastructure construction program.<br />
KENTUCKY CATCHING UP<br />
The Kentucky Equine Drug Research Council is<br />
scheduled to meet this afternoon in Lexington,<br />
and is expected to vote to effectively ban anabolic<br />
steroids in racing horses in the state. The ban,<br />
which is expected to pass, would do that by restricting<br />
the use of the four anabolics now legal<br />
to administration no closer than 30 days to race<br />
day. Lisa Underwood, executive director of the<br />
Kentucky Horse Racing Commission, said the<br />
drug council’s proposals “meet or exceed” the<br />
national recommendations of the Racing Medication<br />
and Testing Consortium. Ms. Underwood<br />
said she thought a new steroid policy could be in<br />
effect for the first graded thoroughbred races at<br />
Turfway Park in March next year. Both thoroughbred<br />
racing’s Breeders’ Cup and American<br />
Graded Stakes Committee have announced<br />
draconian new measures for violators, including<br />
life suspension from Cup participation for<br />
trainers with three anabolic penalties.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
August 15, 2008<br />
“WE’RE STILL IN” - CENTAUR<br />
The Pennsylvania Gaming Control Board signaled<br />
yesterday that its investigators are nearing<br />
the end of their long examination of Centaur<br />
Gaming, and could complete it in the next two<br />
weeks. If they do, the board expects to hold a<br />
suitability hearing by mid- to late-September,<br />
according to the Pittsburgh Post-Gazette, on Centaur’s<br />
application for a racino license. The board<br />
put Centaur in tight quarters last month, when<br />
it refused to issue the license shortly before the<br />
August 15 deadline set by its financial backers.<br />
News reports had said Centaur was dropping its<br />
plans, but company spokeswoman Susan Kilkenny<br />
informed the control board yesterday that<br />
“We have absolutely no intentions of withdrawing<br />
our gaming application.” Centaur already<br />
has a racing license, issued by the Pennsylvania<br />
Harness Racing Commission, but needs a slots license<br />
to obtain financing to build its $450 million<br />
Valley View Downs complex in Lawrence county<br />
in Pennsylvania’s far western reaches, near the<br />
Ohio line. It has been negotiating with its primary<br />
lender, Credit-Suisse Bank, for a $995 million<br />
line of credit, and Ms. Kilkenny said Centaur<br />
was “doing everything humanly possible to<br />
allow for the continued progress of the project.”<br />
If the control board approves Centaur’s application<br />
at its suitability hearing in September,<br />
and if Centaur is successful in renegotiating its<br />
financing, the board indicated it would go over<br />
the financing plan and meet in late September<br />
to consider the issue. The racing commission,<br />
meanwhile, extended Centaur’s racing license<br />
from September 2009 to September 2010. If a<br />
racino license is issued by the end of September,<br />
Valley View Downs could open as early as fall of<br />
next year. Lawrence county officials say Valley<br />
View Downs could mean $15 million in new revenue<br />
for the county, 1,500 jobs in building<br />
the track and racino, and 1,000 permanent<br />
jobs at the racino.<br />
ROONEYS MEET WITH NFL<br />
The five Rooney brothers, including Yonkers<br />
Raceway boss Tim, are scheduled to meet in the<br />
NFL offices next Thursday to discuss ownership<br />
plans for the Steelers.<br />
COUNCIL URGES STEROID BAN<br />
Kentucky’s Equine Drug Research Council voted<br />
unanimously yesterday to ban anabolic steroids in<br />
horses on race day, and require documentation of<br />
their therapeutic use as well. The Council will recommend<br />
the ban to the Kentucky Horse Racing<br />
Commission at its August 25 meeting. The council<br />
approved a two-tier system, considering use of<br />
synthetically produced steroids a Class A penalty,<br />
carrying suspensions of as long as three years,<br />
and endogenous or naturally-occurring steroids a<br />
Class B violation, which could be punished by up<br />
to two months banishment. The research council<br />
proposes mandatory reports on usage, and if approved<br />
for therapeutic use would result in prohibition<br />
of the horse racing for two months.<br />
HUGE DAY AT HARRAH’S<br />
Super Stakes Sunday at Harrah’s Chester Casino<br />
& Racetrack will see a Pennsylvania record $2.38<br />
million distributed in purses. The $500,000 Colonial<br />
for trotters and $500,000 Battle of the Brandywine<br />
for pacers, along with the $350,000 Valley<br />
Forge for 3 and 4-year old pacing fillies and mares,<br />
and five other races worth between $100,000 and<br />
$250,000, are on the card. The Colonial and Battle<br />
will be broadcast on Sirius radio, channel 127,<br />
from 6 to 7 p.m. EDT, with Dave Johnson and Bill<br />
Finley as hosts.<br />
GET YOUR SIMO ENTRIES IN<br />
Next Friday, Aug. 22, is the deadline for entries in<br />
the annual TRA-HTA simulcast awards. Send six<br />
copies in DVD format to Simulcast Awards, 420<br />
Fair Hill Drive, Suite 1, Elkton, MD 21921-2573.<br />
The award will be presented at the Simulcast<br />
Conference in St. Petersburg Sept. 30.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
MANZI, GOODELL, INJURED<br />
Chester’s big day of huge purses went well for 11<br />
races yesterday, the $2.38 million being distributed<br />
bringing out a bevy of the best in the sport.<br />
Then, in the 12th race, a four-horse spill involving<br />
four of the best drivers in the game, Tim Tetrick,<br />
Brian Sears, Eric Goodell, and Cat Manzi.<br />
Eric Goodell’s mount, the fast pacer Fake Denario<br />
N, fell with three other horses plowing into<br />
him. Manzi suffered a broken shoulder blade<br />
and two fractured ribs and was hospitalized at<br />
Crozer Chester Medical Center, from which he<br />
could be released tomorrow. Goodell also was<br />
taken to the hospital, but released last night. The<br />
nation’s two leading drivers, Tim Tetrick and<br />
Brian Sears, who stand 1-2 in earnings in North<br />
America, were involved in the spill, but both<br />
walked off the track on their own power, with<br />
only scrapes and bruises. None of the horses involved<br />
was seriously injured. Chester cancelled<br />
the 13th and final race.<br />
ROUND TABLE ROUNDUP<br />
The somber tones still reverberating from the<br />
death of the thoroughbred filly Eight Belles<br />
echoed at the Jockey Club’s annual Round Table<br />
yesterday, with more action proposed than in recent<br />
years. Chairman Dinny Phipps sounded the<br />
note, telling those assembled, “We are not recommending<br />
reforms to appease people. We are<br />
making them because we need to make them.”<br />
The need is seen as twofold: to aid the health<br />
and welfare of horses, and to keep the federal<br />
government away from intervention in the sport<br />
by taking strong proactive steps. Alan Foreman,<br />
board chairman and CEO of the Thoroughbred<br />
Horsemen’s Association, talked of formation of<br />
a single testing laboratory to be owned by the<br />
tracks; research into gene doping; universal<br />
adoption of the Racing Medication and<br />
Testing Consortium’s recommendations;<br />
and recruiting of graduate students interested<br />
in drug testing.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
August 18, 2008<br />
Of interest to those in harness racing was thoroughbred<br />
racing’s acknowledgment of milkshakes<br />
as a threat to racing, and the Thoroughbred<br />
Safety Committee recommending they be<br />
prohibited in all racing jurisdictions. We’re way<br />
ahead of the curve on that one.<br />
Foreman said 18 different laboratories do testing<br />
currently, and added that “even the best don’t<br />
have the resources to do the testing needed....<br />
Our system worked decades ago, but it won’t<br />
work now.”<br />
While the Round Table proposals received positive<br />
vocal response, one important attendee expressed<br />
skepticism. Ed Martin, president of the<br />
Association of Racing Commissioners International,<br />
perhaps seeing that organization’s projects<br />
and goals slipping away, was quoted by Tom<br />
Lamarra in bloodhorse.com as saying, “There<br />
weren’t many new ideas here today, and the main<br />
issue has not been addressed. I would challenge<br />
the industry to match the money now spent on<br />
drug testing,” which Foreman said is $30 million<br />
a year. Martin said, “There is no beef. Where’s<br />
the beef.”<br />
BOB BENOIT DIES AT 81<br />
HTA and all of American racing -- and particularly<br />
this practitioner -- lost a close friend last<br />
Friday. Bob Benoit died at 81 after a long illness.<br />
We first met Bob when he was a photographer at<br />
the old Western Harness meetings at Hollywood<br />
Park and Santa Anita, and we remained close<br />
ever since. He and his trusted colleague Rayetta<br />
Burr were always there with great pictures when<br />
requested, and Benoit of course moved far past<br />
photography, having served as publicity director,<br />
chief operating officer and general manager<br />
at Hollywood Park. He is a link to a happier<br />
time in racing, and the loss of his talents and<br />
close friendship will leave a large void.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
August 19, 2008<br />
KY GOV TO VOTERS: SPEAK UP<br />
Steve Beshear, the governor of Kentucky who if<br />
he had his way would have slots at the state’s<br />
racetracks, has been on a speaking tour of the<br />
state. He was at a town hall meeting in western<br />
Kentucky last night, and told attendees they<br />
needed to speak up and exert political pressure<br />
in an effort to be heard. Beshear has encountered<br />
heavy legislative opposition to his project,<br />
losing a vote earlier this year, but there are signs<br />
the tide is turning, with some key legislators now<br />
giving more attention to the idea.<br />
OCEAN COULD GET MD SLOTS<br />
Another governor who would like to see slots is<br />
Martin O’Malley of Maryland, and hometownannapolis.com<br />
in the state capital rebuts the idea<br />
that opposition to slots is unanimous in Ocean<br />
City. The resort town’s mayor and its chamber<br />
of commerce have fought the idea, but O’Malley<br />
told the news service that he has spoken to business<br />
people who support the idea of a racino at<br />
HTA member Ocean Downs. It is five miles inland<br />
from the beach, and Hometown Annapolis<br />
says that if Maryland voters approve slots in<br />
November, Ocean Downs is the likely site for a<br />
racino with 2,500 of them.<br />
SOME SIMULCAST WARNINGS<br />
Warning Number 1: There are only about 30<br />
rooms left in the Renaissance Vinoy’s block for<br />
the TRA-HTA simulcast conference Sept. 30-Oct.<br />
1. To avail yourself of the very special $145 rate<br />
single or double (regular rate is $259) contact the<br />
hotel, 727-894-1000 and ask for the International<br />
Simulcast Conference block. September 5 is<br />
the cutoff date. Warning Number 2: Entries for<br />
this year’s simulcast award close Friday. Send<br />
six copies of your best production, in DVD format,<br />
to TRA, 420 Fair Hill Drive, Suite<br />
1, Elkton, MD, 21921, to arrive by this<br />
Friday, the 22nd.<br />
HOORAY FOR SUPPLEMENTALS<br />
We have campaigned for years, as far back as<br />
our racing secretary days, for major stakes to be<br />
opened to supplemental entries. Without them,<br />
those races frequently wind up with major stars<br />
missing because they did not show enough promise<br />
to justify being entered at the time of original<br />
nomination. One that will not be deprived<br />
is Saturday’s upcoming Cane Pace, first leg in<br />
harness racing’s Triple Crown of Pacing. Art<br />
Official, the conqueror of Somebeachsomewhere<br />
in the $1.1 million dollar Meadowlands Pace,<br />
was not nominated for the Cane. The Art Major<br />
colt’s owners, Sawgrass Stables of Lockport, IL,<br />
and their trainer, Joe Seekman, have decided to<br />
spend the $35,000 fee to supplement the colt tomorrow.<br />
HTA DIRECTORS AND OUR ART<br />
You have heard this message before -- many<br />
times -- and are hearing it again. We are mailing<br />
all of you our 2008 art catalogue, 40 pages in<br />
color, showing all of the treasures being offered<br />
this year. If each of you would pick out one piece<br />
and bid on it, for a trophy or decor of home or<br />
office, it would go a long way to assure the success<br />
of the auction on Saturday morning, Oct. 4.<br />
Our track record in this regard is not good, in<br />
fact dismal, particularly in view of the fact that<br />
it is the engine that powers our annual award<br />
of HTA scholarships to children of participants<br />
in the sport, or participants themselves. If you<br />
believe in this worthy cause, support it, and receive<br />
in return items that artists have created especially<br />
for harness racing. You do not have to<br />
be present to bid or win. We have a battery of<br />
skilled telephone bid takers, and some remarkable<br />
works of art this year. The price range is almost<br />
infinite. If you want guidance, or estimates,<br />
call us and we’ll be happy to respond. But as<br />
Nike says, don’t just think about it. Do It!<br />
Operators are waiting for your call.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
Chiaravalle asked the commission to force WEG<br />
to accept his racing entries. He owned 12 horses,<br />
11 of them trained by Bill Elliott, the 12th -- the<br />
pacer Fox Valley Tribal -- by Brett Robinson,<br />
who received a 10-year suspension and $40,000<br />
fine a year ago for an EPO positive on the horse.<br />
Trainer Elliott subsequently was informed that<br />
entries for Chiaravalle horses would be refused.<br />
Chiaravalle appealed to Woodbine, which refused<br />
to alter or amend the ban. The deadlock resulted<br />
in an appeal to the Ontario Racing Commission,<br />
which has power to govern, direct, control and<br />
regulate racing in the province. Chiaravalle was<br />
and is an owner licensed by the commission in<br />
good standing. Ontario rules of racing provide<br />
that, “The relationship between an owner and<br />
trainer shall be based on integrity, disclosure,<br />
maintaining the health and welfare of the horse,<br />
and acting in the best interests of racing.” Chiaravalle<br />
claimed his trainers over the years -- Bill<br />
and Brett Robinson, Bill Elliott, Monte Gelrod<br />
and Nat Varty -- all had been given the request to<br />
“keep it clean.” The commission said, “At some<br />
stage it should have become apparent that simply<br />
giving that instruction to demonstrated illegal<br />
substance violators was woefully inadequate.<br />
A waste of time.” All five trainers have<br />
had illegal substance violations, some<br />
still in effect.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
August 20, 2008<br />
IMPORTANT EXCLUSION CASE The commission also was troubled by a claim<br />
We now have the full 14-page text of the Ontario<br />
Racing Commission decision in the appeal of his application stated, “During my 32 years in<br />
made by Chiaravalle. His affidavit in support<br />
of owner Antonio Chiaravalle from exclusion of the horse racing industry my horses have been<br />
his horses from Woodbine Entertainment Group involved in one prior infraction,” on a horse<br />
tracks. It is interesting, and you undoubtedly named Flight Plan for milkshaking in 2003. It<br />
will read more about it when HTA’s fourth edition<br />
of exclusion from tracks rolls from Bennett horse named Armbro Trench, trained by Monte<br />
turns out that was not true, that a Chiaravalle<br />
Liebman’s computer. The ORC held the Chiaravalle<br />
hearing June 27, a final submission was at the Meadowlands resulting in a $40,000 loss<br />
Gelrod, tested positive in two consecutive races<br />
made July 15, and the ORC report on the matter of purses for Chiaravalle and a year’s suspension<br />
for Gelrod. Chiaravalle told the commis-<br />
was dated Aug. 15.<br />
sion he had forgotten that. The commission said<br />
they found it difficult to believe that an owner<br />
would forget the stigma of two successive positives,<br />
the loss of $40,000 in purse, and having to<br />
switch trainers because of the long suspension.<br />
It said the suspension of Fox Valley Tribal was a<br />
fifth positive test for Chiaravalle horses. Given<br />
that, the commission asked rhetorically if WEG<br />
“should be obliged to absorb into its racing product<br />
the cumulative taint of five positive tests and<br />
the culminating robust tarnish of an EPO violation?”<br />
It decided it should not, and concluded that<br />
the vast preponderance of the public interest favors<br />
WEG’s position. “The applicant has failed<br />
to discharge the onus of proof of a balance of<br />
probabilities based on cogent evidence, clear and<br />
compelling.... The gravity of the industry peril<br />
from drug violators requires resolute response<br />
focused on deterrence, specific and general.<br />
No basis for ORC intervention has been established.”<br />
The commission declined to intervene,<br />
declaring WEG within its rights in banning Chiaravalle,<br />
and dismissed his appeal. The full ruling<br />
is posted on the HTA Web site.<br />
LAST 2 DAYS TO SEND DVDs<br />
Today and tomorrow are your final days to submit<br />
6 DVDs of your best simulcast production to<br />
TRA for judging. They must be received Friday<br />
to be eligible for judging.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
August 21, 2008<br />
CALIFORNIA CRACKS DOWN<br />
The California Horse Racing Board, determined<br />
to rid the state’s horse racing of illegal substance<br />
abuses, has conducted a raid of the stable of the<br />
leading trainer at Del Mar, John Sadler. No<br />
charges were leveled, but Dr. Rick Arthur, the<br />
board’s equine medical director and a leader in<br />
the national battle for uniform rules and eradication<br />
of illegal medication, said 38 of 418 steroid<br />
tests under California’s new tough laws were<br />
found in violation, 17 with one trainer and 11<br />
with another. “Two trainers have been responsible<br />
for 70% of the violations for steroid tests<br />
at Hollywood Park and Del Mar,” Arthur said.<br />
On Tuesday, racing board chairman Rick Shapiro<br />
held up a sheet of paper at a meeting of the<br />
commission’s medication committee and said,<br />
“Just look at the top of the trainers’ and owners’<br />
list.” Blood-Horse reported that racing board<br />
executive director Kirk Breed had confirmed<br />
the search of Sadler’s barn after Sadler turned<br />
up with an undisclosed number of anabolic steroid<br />
violations since official testing began Aug.<br />
1. The Paulick Report said Sadler was considering<br />
a lawsuit against the board, and Breed responded<br />
to that report by saying he welcomed<br />
the suit, and hoped Sadler’s veterinarian would<br />
sue too. Jack Shinar in his Blood-Horse story,<br />
quoted Breed as saying, “Listen, we have every<br />
right to shake his barn down and to say what we<br />
are looking for. Anything that goes on in that<br />
enclosure we can investigate. And over the past<br />
two weeks, all I can say is that his name has been<br />
coming up with positives for anabolic steroids.”<br />
Dr. Arthur was quoted as saying, “Personally,<br />
I’ve never thought that anabolic steroids were<br />
much of a performance enhancer in racehorses.<br />
I might have been wrong. Clearly, some trainers<br />
feel they are. And they are willing to embarrass<br />
themselves and embarrass the horse racing<br />
profession, which they are doing so<br />
badly here.”<br />
WE ARE NOT ALONE<br />
It is no consolation to learn that four Olympic<br />
jumping horses have been provisionally suspended<br />
by testing positive for use of capsaicin, a<br />
banned derivative of chili peppers used as a pain<br />
killer. The four were part of the teams from Ireland,<br />
Brazil, Germany and bronze medal winning<br />
Norway. Following an “accelerated” second<br />
test further action could be announced, and it is<br />
possible that Norway could lose its medal.<br />
ON THE COMMISSION BEAT<br />
In Virginia, Stan Bowker, a veteran of 40 years<br />
of racing, including 12 in Virginia, is retiring as<br />
executive secretary of the Virginia Racing Commission<br />
September 1. His successor is Vic Harrison,<br />
a longtime popular figure with United Tote,<br />
and more recently an official at Tioga Downs and<br />
Vernon Downs in New York.<br />
In Maine, the Gambling Control Board, noting<br />
candidly that “everyone was ignoring it anyway,”<br />
decided to lift its moratorium on more casinostyle<br />
gambling venues. During the two-year period<br />
the “nonbinding resolve” was in effect, the<br />
state has seen several gambling proposals arise.<br />
A proposed gambling impact study never was<br />
funded or done, so the commission decided to let<br />
the moratorium request “die on the vine.”<br />
Thriving on the same vine is HTA member Bangor<br />
Raceway, now known as Hollywood Slots<br />
Hotel and Raceway. When it opened its new<br />
$132 million facility July 1 it began a recordsetting<br />
run that included four $3 million days<br />
and twelve $2 million days, with total handle of<br />
more than $75 million. Hollywood Slots is a Penn<br />
National track, an HTA member, and has an immediate<br />
opening for a full time track maintenance<br />
man. Maine is pretty and offers good living, and<br />
the track is doing well. If interested, contact<br />
corey.smith@pngaming.com.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
August 22, 2008<br />
HUGE BOOST FOR HTA ART<br />
In a hugely significant art development for harness<br />
racing and art collectors, and a giant boost<br />
for HTA’s College Scholarship Fund, the upcoming<br />
Oct. 4 HTA art auction has had nine original<br />
paintings and drawings by George Ford Morris<br />
consigned to the sale.<br />
The collection, including seven exquisite oil<br />
paintings, are of celebrated harness horses of<br />
the past. The oils include Messenger, his sire<br />
Mambrino, Electioneer, Axtell, Greyhound, Dan<br />
Patch, and Blackhawk and Lady Suffolk, and a<br />
superb charcoal of Justin Morgan.<br />
The paintings are from the estate of Sandra Van<br />
Buren, wife of former harness racing executive<br />
Bill Van Buren, and are the most valuable single<br />
consignment in the 31 years of the HTA Scholarship<br />
Art Auction. George Ford Morris works<br />
are highly sought by collectors, and a collection<br />
of this magnitude almost never appears on the<br />
market.<br />
With the regular 40-page printed catalogue of<br />
the auction already in distribution, a special full<br />
color supplement featuring the works is being<br />
prepared.<br />
LIKE BIG PAY<strong>OF</strong>FS? TRY THESE<br />
Sweden’s V64 bet, available to American bettors<br />
at HTA members The Meadowlands and Freehold<br />
Raceway and also at the Meadowlands’ sister<br />
track Monmouth Park, will carry a jackpot<br />
pool of $3.7 million into next Wednesday’s races.<br />
Advance wagering begins Monday, involves<br />
picking the winners of six consecutive races, and<br />
further information on procedures and racing<br />
information can be obtained from the publicity<br />
department at the Meadowlands, 201-460-4050.<br />
Betting is available until post time at 1<br />
p.m. eastern time on Wednesday. No<br />
mastery of Swedish is necessary.<br />
MAJOR PROPOSAL ON WHIPS<br />
The Board of Directors of the Hambletonian Society<br />
has passed a resolution on whipping, and<br />
submitted it to the United States Trotting Association<br />
as a proposed rule change. The proposed<br />
rule would require drivers to keep a line<br />
in each hand for the entire duration of a race,<br />
thus eliminating the negative image of vigorous<br />
one-handed whipping, widely perceived as brutality<br />
rather than necessity. The Society, in its<br />
proposal, said the rule “certainly is not intended<br />
as a criticism of our drivers whose use of the<br />
whip was within the rules in the past. It also is<br />
not intended in any way to relieve any driver of<br />
the responsibility of maintaining control of their<br />
horse for their own safety and the safety of others<br />
during the race when they use their whip as<br />
permitted under the rule.” The specified proposal<br />
calls for amending the last sentence in the<br />
second paragraph of USTA Rule 18, Section 9,<br />
which currently reads, “Drivers shall keep a line<br />
in each hand from the start of the race until the<br />
head of the stretch finishing the race,” to read,<br />
“Drivers shall keep a line in each hand from the<br />
start of the race until after the finish of the race.”<br />
The Society intends to urge the Association of<br />
Racing Commissioners International and its<br />
members where harness racing is conducted to<br />
amend their rules “for the sake of the industry’s<br />
public responsibility and image.”<br />
“WE MEAN BUSINESS!”<br />
That was the angry response of California Horse<br />
Racing Board chairman Richard Shapiro after<br />
hearing a report from Dr. Rick Arthur, the<br />
board’s equine medical director, that some trainers<br />
are continuing to administer anabolic steroids.<br />
Vice chairman John Harris, who serves<br />
on the board’s medication committee with Shapiro,<br />
backed up the board’s resolve, saying, “We<br />
will have no sympathy for any owners or trainers<br />
who flaunt our rules.” No names were mentioned<br />
during the committee meeting.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
August 25, 2008<br />
ANOTHER SERIOUS ACCIDENT<br />
On the heels of racing accidents that hospitalized<br />
top drivers Cat Manzi and Tommy Haughton,<br />
another -- this one in Maritime Canada --<br />
where Canada’s leading woman driver, Clare<br />
MacDonald, was injured in a spill at Exhibition<br />
Park in Saint John, New Brunswick. She was<br />
thrown from her sulky and dragged across the<br />
racing surface, and was unconscious for an hour<br />
after being taken to St. John General Hospital<br />
yesterday. She suffered rib and other injuries,<br />
but is conscious now and reported recovering<br />
rapidly. Ms. MacDonald is the only Canadian<br />
woman driver with more than 1,000 victories,<br />
and was scheduled to drive in two Mildred Williams<br />
series races this week for the benefit of the<br />
Canadian Breast Cancer Foundation.<br />
OHIOANS FAVOR CASINO<br />
At least that’s what the Columbus Dispatch says<br />
its latest poll shows. The newspaper reported<br />
that 53% of 2,102 voters contacted said they either<br />
favor or strongly favor the creation of a $600<br />
million casino and resort between Columbus and<br />
Cincinnati, near the town of Wilmington, long<br />
a harness stronghold. Thirty-seven percent oppose<br />
or strongly oppose the idea.<br />
MORE PENNSYLVANIA FIGURES<br />
The Harrisburg Patriot-News reports its nearby<br />
Hollywood Casino at Penn National Race Course<br />
is running ahead of projections despite gas prices<br />
that exploded about the time the $312 million casino<br />
opened six months ago. It has handled some<br />
$1.2 billion and paid out $1.1 billion, which puts<br />
it between the $1.3 billion poured into slots at<br />
Philadelphia Park and ahead of the $791 million<br />
dropped in at Mohegan Sun at Pocono Downs.<br />
The story by Sharon Smith says Philadelphia<br />
Park earned $120.4 million from slots in<br />
those six months and Mohegan Sun at<br />
Pocono $62.1 million. Business is brisk.<br />
“A BAFFLING CONVERSATION”<br />
That was the quote attributed to CNET founder<br />
Halsey Minor in this morning’s edition of Ray<br />
Paulick’s newsy Paulick Report, following Minor’s<br />
attempts to discuss buying Santa Anita and<br />
the Maryland Jockey Club tracks with Magna<br />
Entertainment’s chief financial officer, Blake Tohana.<br />
“I had the most baffling conversation in<br />
my life with a CFO, particularly one whose job<br />
depends on asset sales,” Minor e-mailed Paulick,<br />
and reportedly copied Tohana. “Basically,” Minor<br />
said, “nothing is for sale. Maybe they have<br />
some time shares for you.” Tohana said Frank<br />
Stronach misspoke when he said “he was considering<br />
selling a majority interest in Santa Anita.<br />
Now it is back to a minority interest.”<br />
Minor, who is trying to buy Hialeah Park from<br />
John Brunetti, also told Paulick that Magna is<br />
not guaranteed any slot franchises in the measure<br />
going to voters in November in Maryland,<br />
and they would need to post a $50 million bond<br />
“which they don’t have to get one.” He said,<br />
“You would think you were talking to the CFO<br />
of Microsoft sitting on a pile of cash, given the<br />
attitude.... Without an investment bank, nothing<br />
sells if my experience is any guide.” Tohana<br />
told Minor, who he said he did not know and<br />
ultimately hung up on, that Minor “misrepresented”<br />
the conversation. “Further,” he e-<br />
mailed them, “Your manner of communicating<br />
to me via e-mail and telephone was inconsiderate,<br />
rude and misinformed. In doing my job, I<br />
have always carried myself with dignity and professionalism.<br />
I think that view would be shared<br />
by anyone who has dealt with me during my career.”<br />
He said Magna has sold more than $400<br />
million in assets “without investment bankers”<br />
and would continue to pursue other asset sales<br />
and joint venture transactions as in the past. Tohana<br />
was greatly annoyed at both Paulick’s and<br />
Minor’s “insulting” calls during a family<br />
vacation.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
ROONEYS MEET NFL TODAY<br />
The five Rooney brothers are meeting with National<br />
Football League commissioner Roger<br />
Goodell today in New York, complying with<br />
Goodell’s request to see if the ownership of the<br />
Pittsburgh Steelers can be resolved. Brother<br />
Dan, the Steelers chairman, has offered a plan<br />
to buy out his brothers -- Tim, Art Jr., Pat and<br />
John -- but they have rejected that idea and<br />
hired Goldman, Sachs & Co. to provide guidance.<br />
Tim Rooney, who runs Yonkers Raceway,<br />
told the Pittsburgh Tribune-Review that he had<br />
“no particular hopes or wishes” for the meeting,<br />
that he was meeting to comply with the commissioner’s<br />
request, and that “we will have to wait<br />
and see what develops.”<br />
A LOVELY PROBLEM TO HAVE<br />
Cash rich Keeneland in Lexington, KY, is one of<br />
America’s truly great racetracks, and certainly<br />
one of its prettiest. It has a problem, however,<br />
in that it draws more people than it can accommodate<br />
comfortably, so its president, Nick Nicholson,<br />
called a town hall meeting last night to<br />
get suggestions. A gathering of 125 or so turned<br />
out, and their refrain was, “Keep it green, and<br />
add more toilets.” Nicholson acknowledged the<br />
problem, saying that two-thirds of its 477,000<br />
patrons last year had no place to sit down, the<br />
track having only 8,500 seats. Nicholson has<br />
hired the sports stadium firm HOK to make<br />
recommendations, saying changes will be on the<br />
interior of the track and not its leafy, green exterior<br />
grounds. He acknowledged people spent<br />
too much time in lines and too much time getting<br />
in and out of the plant. Big player Mike<br />
Maloney urged plans for technology for handicappers.<br />
One fan urged no changes in the rural<br />
atmosphere and greenery of the exterior, saying,<br />
“That’s really where the magic is.”<br />
Nicholson said, “We’re growing faster<br />
August 26, 2008<br />
than our facility is, but not going to change who<br />
we are,” or mess with Keeneland’s soul.<br />
AN ANABOLIC FREE AUTUMN<br />
There will be no horses racing with anabolic<br />
steroids at the fall Grand Circuit meeting at the<br />
Red Mile, or if there is it is likely to be the last<br />
time it happens. Kentucky has adopted tough<br />
new rules, and is requiring trainers shipping<br />
horses to Kentucky to abide by them or certify<br />
their horses have not been administered steroids<br />
for 60 days prior to racing. If they have, they<br />
will be ineligible to race in the state for 60 days<br />
or until a testing lab provides a negative steroid<br />
report. Harnessracing.com, reporting on<br />
the development, says persons claiming a horse<br />
can request steroid tests and void any claim that<br />
comes back positive.<br />
LIFE BEGINS AT 90<br />
A chestnut trotter named Winsome Wyoming<br />
won the second race at the DuQuoin State Fair<br />
in Illinois Sunday. Nothing too unusual about<br />
that, except the driver was Leo Burns of Albion,<br />
Illinois. Burns is 93 years old, the oldest active<br />
driver in the United States. It was his fourth<br />
win this year. Last year he won 8 of 12 starts.<br />
He took the wins casually, saying, “I ain’t got no<br />
secret about winning. I’ve been racing for more<br />
than 50 years. DuQuoin is one of my favorite<br />
tracks.”<br />
DON IRVINE JR. DOWN AGAIN<br />
Don Irvine Jr., the six-time leading driver at<br />
Hoosier Park in Indiana, but racing on a probationary<br />
license after failing a sobriety test last<br />
March, has been suspended again. No details<br />
available yet from the commission, which is investigating,<br />
but harnessracing.com reports the<br />
suspension came following an incident in the<br />
Hoosier Park casino.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
August 27, 2008<br />
NEW HALL <strong>OF</strong> FAMERS NAMED<br />
Kentucky breeders Tom Crouch and Alan<br />
Leavitt, and New York track operator and<br />
breeder Tim Rooney, have received harness racing’s<br />
highest honor, election to the sport’s Living<br />
Hall of Fame.<br />
Crouch, owner of Kentuckiana Farms, has bred<br />
six winners of Breeders Crowns, and was the<br />
co-founder of the Kentucky Standardbred Sales<br />
Company and a director of the Hambletonian<br />
Society.<br />
Leavitt has been associated with some of the<br />
greatest horses in the sport, including Speedy<br />
Crown, No Nukes, Mack Lobell, Andover Hall,<br />
Conway Hall and Cambest, in his role as master<br />
of Lana Lobell Farm and now Walnut Hall Stud.<br />
He was the man most singularly responsible for<br />
syndication in the sport.<br />
Rooney, one of the five sons of legendary Art<br />
Rooney, has run Yonkers Raceway in New York<br />
as part of the Rooney sports empire that includes<br />
the Pittsburgh Steelers and Palm Beach Kennel<br />
Club, and has bred top horses at his breeding<br />
operation in Maryland.<br />
Also headed to enshrinement in Goshen are longtime<br />
Illinois and Florida harness racing publicist<br />
John Berry and New Jersey’s public relations<br />
consultant and legislative lobbyist Leon Zimmerman,<br />
both named to the Communicators<br />
Hall of Fame.<br />
In Canada, harness breeder Pierre Levesque,<br />
owner of Angus Farms; the late Cliff Chapman<br />
Jr., former publisher of the Canadian Sportsman<br />
and incomparable auction bid-spotter; and<br />
archivist and historian Louis Cauz, along with<br />
the superb trotting mare Peaceful Way and pacing<br />
standout Real Desire, will be inducted<br />
into the Canadian Horse Racing Hall of<br />
Fame tomorrow night.<br />
TUCSON <strong>OF</strong>FICIALS SEMINAR<br />
The Racing Official Accreditation Program announced<br />
today that it will conduct the first “Conference<br />
on Officiating Horse Racing” on Monday,<br />
Dec. 8, the day before the University of Arizona’s<br />
35th annual Symposium on Racing and Gaming<br />
gets underway in Tucson. The morning and afternoon<br />
sessions, designed for stewards, judges,<br />
racing commissioners, regulators, horsemen<br />
and racing fans interested in the daily regulation<br />
and officiating of horse racing, will be free,<br />
with lunch served. Prior registration will be required,<br />
available either online at www.horseracingofficials.com<br />
under “Upcoming Events,”<br />
or by calling Jennifer Voss-Franco, ROAP coordinator<br />
of racing officials, at 859-224-2702.<br />
The announced agenda includes discussions on<br />
determining penalties, trainer responsibility,<br />
enforcing house rules, race video review, model<br />
rules development, coordinating uniform regulations<br />
and education requirements for licensees.<br />
Frank Lamb, former executive director of<br />
the Wyoming racing commission, will serve as<br />
moderator, and speakers include Alan Foreman,<br />
chairman and CEO of the Thoroughbred Horsemen’s<br />
Assn.; Dr. Ted Hill, Jockey Club steward<br />
at NYRA tracks; Eddie Arroyo, Illinois Racing<br />
Board steward; Dr. Scot Waterman, executive<br />
director of the Racing Medication and Testing<br />
Consortium; Hugh Gallagher, executive director<br />
of the Delaware Harness Racing Commission;<br />
Duayne Didericksen, chairman of the American<br />
Quarter Horse Assn. Racing Committee; Stan<br />
Bowker, chairman of the Racing Officials Accreditation<br />
Program; and Joe Gorajec, executive<br />
director of the Indiana Horse Racing Commission<br />
and chairman of the Association of Racing<br />
Commissioners International. We trust excessive<br />
whipping will be addressed during the daylong<br />
seminar at the Westin La Paloma Resort,<br />
with discussion of enforcement of present<br />
rules and proposed new ones.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
August 28, 2008<br />
WALTER CASE BACK IN NEWS<br />
A chat line report today says Walter Case Jr., one<br />
of the supreme driving talents in harness racing<br />
but a problem child for years, will be getting out<br />
of prison next month, nine months early for good<br />
behavior, “and will be taking his whip, helmet<br />
and colors to take up residence at The Meadows.”<br />
The report was news to The Meadows.<br />
Vice president and general manager of racing<br />
John Marshall said it was the first he had heard<br />
of the report, that he never had heard from Case,<br />
and that obviously approval of the Pennsylvania<br />
Harness Racing Commission would be the first<br />
essential step to Case returning to action in the<br />
state. Marshall said he would consider an application<br />
from Case if he received commission<br />
approval, and that he is weighing the status of<br />
Eric Ledford, who recently was forgiven his sins<br />
by Peter Szymanski of Ocean Downs, who said<br />
he believed in giving people a second chance. If<br />
Pennsylvania’s commission felt that Walter Case<br />
had served his time and paid for his misdeeds,<br />
and The Meadows were to accept him, it would<br />
set up a classic confrontation between Case and<br />
Dave Palone, who has long dominated the track’s<br />
driving colony and overshadows all drivers competing<br />
there. He and Case rank high among the<br />
sport’s all-time great drivers. Palone has won<br />
HTA’s hugely difficult-to-win Driver of the Year<br />
title four times, and Case won it three times before<br />
his career was cut short.<br />
THE POWER <strong>OF</strong> SLOTS<br />
The Meadows, while discussing it, is perhaps the<br />
prime example of what slots can do for tracks<br />
and the horsemen who race at them. A year ago<br />
the track was overpaid $2.5 million in its purse<br />
account. Today, 12 months later, it is underpaid<br />
by $5.6 million. John Marshall is meeting with<br />
his horsemen to discuss the underpayment,<br />
with plans to enrich The Meadows<br />
stakes program for 2009.<br />
TOUGH TIMES, NEW <strong>TRACKS</strong><br />
Times may be tough economically, but the shining<br />
light of alternative gaming still serves as a<br />
lure to entrepreneurs hopeful of cashing in on<br />
slots. Two new race tracks, one in Ontario and<br />
the other in New Mexico, are in the news today.<br />
In Ontario, a Toronto-based group called<br />
Baymount Inc. is holding a groundbreaking<br />
ceremony today in Belleville, Ontario, on a $22<br />
million development of a new racetrack, racino<br />
and Quinte Exhibition grounds. In New Mexico,<br />
the racing commission approved the application<br />
of a group called Horse Racing at Raton for a<br />
$50 million track and racino. A Toronto-area developer<br />
named Michael Moldenhauer, plans to<br />
build a facility on 225 acres in Raton, which was<br />
home to New Mexico’s first racetrack, La Mesa<br />
Park, which opened in 1946 and closed in 1992.<br />
Raton won out over two other applicants, one in<br />
Tucumcari that would draw mainly Texas fans,<br />
and the other by the Pueblo of Pojoaque Indian<br />
tribe, which was denied after officials of The<br />
Downs in Albuquerque refused to sign an agreement<br />
to allow simulcasting in Santa Fe, within<br />
80 miles of the area protected by New Mexico<br />
law.<br />
PRICE FIXING, PURE & SIMPLE<br />
That was the charge of Churchill Downs against<br />
the recently formed Thoroughbred Horsemen’s<br />
Group and other horsemen’s groups it has sued,<br />
as reported by Ryan Conley on bloodhorse.com.<br />
Churchill was responding to a motion to dismiss<br />
its lawsuit against “ringleaders” of an alleged<br />
conspiracy to unlawfully increase revenue<br />
shares from internet, telephone and mobile wagering<br />
devices. The horsemen had cited the Interstate<br />
Horseracing Act of 1978 in its rationale,<br />
but Churchill attorney David M. Schiffman says<br />
that act contains no exemption from antitrust<br />
laws and does not say that horsemen’s rights<br />
are “absolute, without regard to other federal<br />
statutes.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
August 29, 2008<br />
A HUGE WEEKEND <strong>OF</strong> RACING<br />
It would be hard to imagine a bigger weekend of<br />
racing than this Labor Day holiday lineup. Anchoring<br />
the whole show is a remarkable Saturday<br />
night card at Mohawk Racetrack, so remarkable<br />
that it warrants listing the first 10 races. They<br />
are:<br />
1. $50,000 consolation, She’s A Great Lady<br />
2. $600,000 Breeders Crown open trot<br />
3. $132,327 Simcoe 3-year-old open trot<br />
4. $100,000 Metro consolation, 2-year-olds<br />
5. $672,000 She’s A Great Lady, 2-year filly pace<br />
6. $1 million Metro 2-year-old pacing colts<br />
7. $250,000 Breeders Crown mare trot<br />
8. $331,500 Breeders Crown mare pace<br />
9. $500,000 Breeders Crown older pacers, featuring<br />
another meeting of Mister Big and Artistic<br />
Fella.<br />
10. $132,327 division, Simcoe 3-year-open trot<br />
Mohawk follows on Sunday with the $249,813<br />
Simcoe for 3-year-old filly pacers, and three divisions,<br />
each worth between $111,636 and $113,636,<br />
for 2-year-old trotters.<br />
On Monday Mohawk will host three $96,508 divisions<br />
of the Champlain Stakes for 2-year-old<br />
filly trotters.<br />
In DuQuoin, Illinois, the $500,000 World Trotting<br />
Derby with undefeated Deweycheatumnhowe<br />
going for a world record, and the $250,000<br />
filly division.<br />
At Freehold Raceway, the $392,850 Cane Pace,<br />
first leg of the Triple Crown for 3-year-olds, and<br />
the $156,940 Battle of Freehold for 2-year-olds,<br />
both on Labor Day.<br />
At Rockingham Park Sunday, the $50,000 Carney<br />
Memorial Trot.<br />
And other $50,000 attractions dotting the<br />
holiday cards.<br />
MAGNA WELCOMES THG TALKS<br />
While Churchill Downs sues them, calling them<br />
“ringleaders” of an alleged conspiracy to unlawfully<br />
increase revenue shares from internet,<br />
telephone and mobile wagering devices, Magna<br />
Entertainment has announced it is continuing<br />
discussions with the Thoroughbred Horsemen’s<br />
Group “aimed at improving the economic<br />
condition of the horse racing industry through<br />
the development of more equitable pricing and<br />
distribution models for advanced deposit wagering.”<br />
Magna chairman and CEO Frank<br />
Stronach, commenting on the discussions, said,<br />
“We welcome the opportunity to work with the<br />
THG as a national agency assisting local horsemen’s<br />
groups. We are having very constructive<br />
conversations with Bob Reeves and Wilson Shirley<br />
of the THG. We all understand horseracing<br />
faces major challenges, and I personally believe<br />
that a national horsemen’s group could be very<br />
beneficial in addressing major national issues<br />
like advanced deposit wagering pricing and distribution<br />
strategy. I am hopeful that in the near<br />
future, we will develop a new framework which<br />
will improve the economics of the horseracing industry<br />
for both race tracks and horse owners.”<br />
AROUND THE <strong>TRACKS</strong>.....<br />
An HTA member association located in Canada is<br />
looking for a Director of Racing. The position is<br />
full-time/year-round. Interested parties should<br />
send resumes to info@harnesstracks.com.<br />
The Meadows announced today that its Meadows<br />
Racing Network will be broadcast by Comcast<br />
starting next Tuesday, making the show available<br />
to 175,000 cable subscribers in Pittsburgh<br />
and its surrounding area.<br />
The California Horse Racing Board will conduct<br />
a public hearing to consider mandating the use<br />
of safety reins.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
September 2, 2008<br />
A CHALLENGE IN MARYLAND<br />
As the fate of slots in Maryland -- and the state’s<br />
racetracks -- draws nearer, opponents have<br />
mounted a bid to prohibit election officials from<br />
certifying the ballot language. They are asking<br />
the state, according to delmarva.com, to direct<br />
the secretary of state “to revise the ballot<br />
question with neutral language that fairly and<br />
accurately apprises voters of the true nature of<br />
the issue.” The secretary of state in Maryland,<br />
recently appointed, is John McDonough, a longtime<br />
lawyer and lobbyist for HTA member Rosecroft<br />
Raceway.<br />
The opponents, anti-slots groups called Stop<br />
Slots Maryland and No Casino Maryland, are<br />
represented by attorney Irwin Kramer, who last<br />
year tried to overturn the special legislative session<br />
that approved the upcoming Nov. 4 referendum.<br />
Kramer, filing an emergency motion with<br />
the Anne Arundel County Court, says the secretary<br />
of state “is not permitted to beg the question<br />
or to manipulate voter preferences by emphasizing<br />
certain aspects of the revenue plan and by<br />
omitting less popular purposes.” He wants the<br />
present language to authorize slots, which reads<br />
“for the purpose of raising revenue for education<br />
of children in public schools....and construction<br />
of capital projects at community colleges<br />
and higher education institutions,” but does not<br />
mention benefits for Maryland horse racing, to<br />
be changed to “for the purpose of raising revenue<br />
to be distributed to certain public programs<br />
and private entities.”<br />
McDonough, named secretary of state last month<br />
by Gov. Martin O’Malley, said he anticipated<br />
criticism but was simply condensing the will of<br />
the General Assembly. Fred Puddester, chairman<br />
of a group called Maryland For Our<br />
Future that favors slots, says “voters<br />
know what they’re voting on -- a slots bill<br />
that funds education.”<br />
POMPANO TAKES THE LEAD<br />
The Isle Casino and Racing at Pompano Park,<br />
preparing for its 45th season of racing Sept. 12,<br />
has announced the most stringent track rules<br />
on whipping in harness racing. Under the program,<br />
drivers and trainers will be prohibited at<br />
all times -- in races, non-wagering events, qualifying<br />
races, and warming up -- from taking the<br />
lines in one hand and whipping, or reaching back<br />
to whip with their whip hand behind their head<br />
or hips. Penalties will be $100 for the first offense,<br />
$250 and five-day suspension for a second,<br />
and possible denial of all racing privileges and<br />
ejection from the grounds for multiple offenses.<br />
The same penalties will be enforced for striking<br />
a horse below the shafts of the sulky, and excessive<br />
whipping at any point in a race will subject<br />
the offender to fines of up to $1,000 and possible<br />
suspension or ejection. Pompano says the whipping<br />
issue was first brought to its attention by<br />
leaders of the Florida Standardbred Breeders<br />
and Owners Association, and the new rules have<br />
been endorsed by leading drivers at the track.<br />
Michael Bloom, The Isle’s vice president and<br />
general manager, said, “We’re very pleased to<br />
be the first track in North America to implement<br />
these new rules. We know our drivers will abide<br />
by them and we hope to become the model for all<br />
horse tracks to follow.”<br />
<strong>HARNESS</strong> SERIES ON TVG<br />
Trotters & Pacers, a series of half-hour features on<br />
all aspects of harness racing, debuted this morning<br />
on TVG. Produced by Vigilante Films, the<br />
series is admirably hosted by Gary Seibel, longtime<br />
harness racing commentator and currently<br />
a host on TVG. Today’s first show, sponsored by<br />
the Hambletonian Society, includes segments on<br />
the Breeders Crowns, Donato Hanover, trainer<br />
Steve Elliot, and Ray Schnittker and the<br />
undefeated Deweycheatumnhowe.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
September 3, 2008<br />
AN HISTORIC DAILY DOUBLE A RALLY TO SHAKE A SLOW BOARD<br />
Mohawk Raceway has scored a coup, and could Come Friday, it will be a year since the Pennsylvania<br />
Harness Racing Commission granted<br />
enjoy its biggest night ever Saturday when the<br />
two reigning kings of North American harness Centaur Gaming the state’s final harness racing<br />
racing, trotter Deweycheatumnhowe and pacer license. A year later, the state’s Gaming Control<br />
Somebeachsomewhere, both race in an unprecedented<br />
first dual appearance.<br />
on Centaur’s principals. We do not know how<br />
Board says it still is doing background checks<br />
many days a week, or how many hours a day,<br />
Dewey, unbeaten in 17 career starts, will appear<br />
in an elimination race for the upcoming $1 a world record for delay. The board holds an-<br />
the board’s investigators work, but they may set<br />
million Canadian Trotting Classic. This year’s other meeting this month, while Centaur tries to<br />
Hambletonian winner has banked $2,237,080 hold its financing together in tough times for the<br />
and is coming off a 1:50.4 victory in the $550,000 $400 million plus project. To lend support, officials<br />
of Lawrence county, where the track will<br />
World Trotting Derby in DuQuoin, Illinois. His<br />
opponents Saturday night include Crazed, who be built when the gaming board approves, will<br />
tested him in a stirring stretch drive while finishing<br />
second in the Hambletonian.<br />
near the site of the proposed track and racino.<br />
be holding a rally Friday along state route 422,<br />
Carmen Schick, once a foe but now an ally and<br />
Somebeachsomewhere, winner of 14 of 15 lifetime<br />
starts and with earnings of $2,324,092, will rally. He told the Pittsburgh Post-Gazette that<br />
part of the Centaur plan, is helping organize the<br />
race in a $132,326 division of the Simcoe stakes the mile track and racino, together with a $400<br />
for 3-year-olds. He set a world record of 1:49.2 million indoor water park he plans to build at<br />
on a half-mile track, winning the $493,000 Confederation<br />
Cup at Flamboro Downs in his last shops and condominiums, “is the linchpin to this<br />
the site with hotels, 400,000 square feet of retail<br />
start, has won four in a row, and is being pointed region’s economic recovery.” Lawrence county<br />
toward a world record performance at the Red commissioner Dan Vogler, leading the rally effort<br />
with Schick, told the newspaper he plans to<br />
Mile in Lexington, KY, in coming weeks. He has<br />
drawn the rail for Saturday’s Simcoe, facing a attend every gaming board meeting, held once or<br />
field that includes The Mohegan Pan, Legacy N twice a month, in support of Centaur until action<br />
Diamonds, Dali and Deuce Seelster.<br />
is taken on the license application. Richard Wukich,<br />
an art professor at nearby Slippery Rock<br />
PA DOING WELL, THANK YOU University, who is one of the Friday rally organizers,<br />
said people need to realize the importance<br />
The state of Pennsylvania thanks all of its slots<br />
contributors for their avid play at the state’s of the several thousand jobs that will be created<br />
racetracks. The state collected $47.5 million in by the project. Friday’s rally will begin at 2 pm<br />
August, bringing its fiscal year total to $102.6 at Schick’s Ambrosia Enterprises in Edinburg,<br />
million, according to pennlive.com. Those numbers<br />
include taxes, fees and interest, and $47 hold a “suitability hearing” this month to hear<br />
PA. Gaming board officials, meanwhile, plan to<br />
million of the total goes to property tax relief testimony on its background check. It will get<br />
for Pennsylvanians. That brings the tax around to the license application sometime, it is<br />
reduction fund to $101.8 million for the<br />
hoped, while thousands wait for work in the<br />
fiscal year.<br />
economically hard-pressed area.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
September 4, 2008<br />
SPECIAL HTA AUGUST REPORT<br />
HTA’s August report for our track executives, a<br />
265-page study of Purse Distribution Analysis by<br />
Race Type at HTA Tracks in 2007 by executive<br />
assistant Brody Johnson, is a valuable addition<br />
to HTA literature. It is posted today on our proprietary<br />
home page Web site.<br />
This sixth edition of the survey covers 33 member<br />
tracks, using a model developed by University<br />
of Arizona Race Track Industry students eight<br />
years ago that was applied to every race at each<br />
HTA member last year. Raw data was provided<br />
by David Carr of USTA, and our deep thanks to<br />
both.<br />
The report creates a benchmarking record of<br />
where purses have been and where the trends<br />
are leading. Each track was separated into its<br />
own Excel file, with each race categorized as<br />
claiming, conditioned or a stakes event. The<br />
data for each track was used to create tables and<br />
charts indicating the purse and race percentage<br />
as compared to the total distribution, as well as<br />
the average number of starters in each category.<br />
Claiming races are grouped according to price<br />
level, conditioned races are grouped by nonwinners<br />
of a certain number of races or amount<br />
of money, and stakes are grouped according to<br />
purse levels. There is no report like it available<br />
anywhere else in harness racing.<br />
EXPERIENCED GM AVAILABLE<br />
A general manager with longtime successful experience<br />
currently is available for immediate<br />
duty. Interested parties should contact HTA.<br />
Also on the job front, Steve Morro, chief operating<br />
officer of slot maker International Game<br />
Technology, resigned yesterday, but will remain<br />
with the Reno, Nevada based company in a<br />
non-executive capacity. T.J. Matthews<br />
will assume COO duties Sept. 27.<br />
I’M THE DECIDER: JOHN SABINI<br />
He didn’t put in quite the same language as our<br />
leader in Washington, but John Sabini, the new<br />
chairman of the New York Racing and Wagering<br />
board, made it clear he will be in charge in his<br />
new role. The Saratogian in Saratoga Springs,<br />
NY, quoted him as using the third person in<br />
saying, at his first racing board meeting, “The<br />
governor indicated that the new chairman will<br />
have a lot to say about where we’re heading as a<br />
state with regard to all of these revenue issues.”<br />
The former state senator from Queens, who describes<br />
himself as “a very casual horseplayer,”<br />
gave what is a heads-up to tracks and racinos<br />
when he said the thought New York “can and<br />
should be able to reap greater financial rewards<br />
from each entity in racing.” The Saratogian led<br />
its story by Paul Post saying, “John Sabini has<br />
a simple goal: raise more money for the state.”<br />
Forewarned may or may not be forearmed for<br />
New York tracks, but we thought we would pass<br />
this along.<br />
KY CONSIDERS ITS OWN LAB<br />
At the recent Jockey Club Round Table, Alan<br />
Foreman, chairman and CEO of the Thoroughbred<br />
Horsemen’s Association, discussed the possibility<br />
of a central super testing laboratory to be<br />
owned by tracks. We wrote that states would not<br />
readily give up those labs they zealously control.<br />
It did not take long for proof. Kentucky announced<br />
yesterday it is considering establishing<br />
“a top quality drug testing lab,” perhaps by accepting<br />
the offer of an existing lab (Iowa State?)<br />
to move to Kentucky and using it as the base for a<br />
Kentucky lab. The proposal was discussed at the<br />
first meeting of the Governor’s Task Force on the<br />
Future of Horse Racing. Board chairman Tracy<br />
Farmer said, “Kentucky’s the logical place for<br />
a super lab for other athletic endeavors.” The<br />
U.S. Equestrian Federation, which does testing<br />
for quarter horses, expects to relocate<br />
from Ithaca, NY, to Lexington.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
ODDS CALLED EVEN IN MD<br />
Shawn Soper, the news editor of The Dispatch in<br />
Ocean City, Maryland, reports this morning that<br />
“despite strong rhetoric from an organized and<br />
vocal anti-slots contingent in the local area and<br />
across Maryland, the November referendum on<br />
the gaming machines appears to be an even bet.”<br />
Citing local merchants’ opposition, Soper noted,<br />
“What is uncertain, however, is just how the<br />
general population in the resort, or Worcester<br />
county, or even across the state, feel about legalizing<br />
the gaming devices.” He added, “All of the<br />
e-mails, phone calls and personal contacts I’ve<br />
had in this district seem to indicate a pro-stance<br />
on slots.” Ocean City Chamber of Commerce<br />
lobbyist Dennis Rasmussen acknowledged that<br />
“there appears to be a silent majority across<br />
Maryland in favor of the gaming machines. With<br />
two months to go, the referendum could go either<br />
way and it will likely come down to which faction<br />
is most successful in getting its message out.” If<br />
slots are approved, HTA member Ocean Downs,<br />
less than 10 miles from the shore resort, will be<br />
a site. State senator Lowell Stoltzfus, commenting<br />
on that, said that Ocean Downs “will likely<br />
be transformed from a folksy, country racetrack<br />
to something far different. Mr. Rickman will be<br />
required to spend $125 million there if slots are<br />
approved for Ocean City. It’s going to look good<br />
and it’s going to look glitzy.”<br />
NEW RACE BOSS IN ALBERTA<br />
Shirley McLellan, who has held five cabinet<br />
portfolios including deputy prime minister of<br />
Alberta, is the new chairwoman of Horse Racing<br />
Alberta. A lifetime fan of both harness and<br />
thoroughbred racing, she succeeds and will work<br />
closely with Dr. David Reid, who stepped aside<br />
after six years under the provincial mandatory<br />
term limit, but will remain on the<br />
board as chief executive officer.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
September 5, 2008<br />
Ms. McLellan’s appointment was applauded<br />
widely, particularly by Northlands Park, whose<br />
racing manager Kevin Behm said the track was<br />
pleased with the appointment, “Shirley has<br />
worked hard, and her experience is sure to be<br />
helpful in these difficult and turbulent times for<br />
the racing industry. She has the kind of background<br />
needed to help put the sport back on<br />
track in many ways.” Outgoing chairman Reid,<br />
who has introduced numerous innovations during<br />
his maximum six-year term, said, “If you<br />
close your eyes and try to imagine who would<br />
be the sort of person we would need....you would<br />
keep coming back to her name. It’s amazing to<br />
us that she had enough interest to apply. She has<br />
enormous skills.”<br />
INDIAN WARS IN BUFFALO<br />
The buffalo played a major role for Indians in<br />
the early west in this country, and now Buffalo,<br />
the city, and the federal government are giving<br />
them trouble. In July, a federal judge revoked<br />
the Seneca Nation’s authority for a temporary<br />
casino, but the Senecas refused to comply or shut<br />
it down. Now the National Indian Gaming Commission<br />
has issued a “notice of violation” for the<br />
temporary operation, which sits on the site where<br />
the Senecas have started to build a $333 million<br />
permanent casino. The government has told the<br />
Senecas it plans to shut down the present casino<br />
within five days. The Senecas have appealed and<br />
said they will not close, despite facing a $25,000<br />
a day fine.<br />
JUST CHANGE THE WORDING<br />
On the west coast, the Sacramento Bee editorialized<br />
yesterday with a headline that read, “As<br />
Usual: If the tribes want it -- BINGO! -- they<br />
get it,” saying the “tribes prevail at almost every<br />
legislative hearing. Just change the “tribes”<br />
to “Atlantic City casinos” and you have a<br />
valid editorial for New Jersey.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
YONKERS INVESTIGATING<br />
Yonkers Raceway, or Empire City at Yonkers<br />
Raceway if you prefer, is conducting an internal<br />
investigation, along with lottery division officials,<br />
into the track’s “Play Off Your Mortgage”<br />
slots promotion. VP Bob Galterio told The Journal<br />
News, serving the lower Hudson Valley, that<br />
computer problems led to the investigation and<br />
that Yonkers may drop its electronic system and<br />
use paper chances for future promotions. Galterio<br />
said there were “some system issues” that<br />
led to patrons’ inability to register their promotion<br />
cards, and one woman, Bette Slutsky won<br />
both the grand prize of $250,000 and one of four<br />
$10,000 prizes. It is not known if Ms. Slutsky<br />
is from the famed harness racing family in the<br />
Catskills, and the double prize is possible under<br />
promotion rules that call for all winning entries<br />
in the $10,000 events to be returned to the pool<br />
for the final. The same rule is in effect in many<br />
major charity promotions nationwide.<br />
MAKE IT AND SPEND IT WISELY<br />
The pacer Art Official has won $1.2 million this<br />
year, including beating Somebeachsomewhere<br />
in the Meadowlands Pace, but there are maintenance<br />
costs even with Horse of the Year candidates<br />
like this 3-year-old. His owners, James<br />
and Joyce Jesk, did not expect to own one<br />
of the nation’s best, and did not stake him<br />
to some of the major stakes events.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
September 8, 2008<br />
KY GOV SIGNS STEROID BAN Fortunately for their Sawgrass Farms of Lockport,<br />
Illinois, and for trainer Joe Seekman, two<br />
Kentucky governor Steve Beshear lost no time<br />
autographing new rules that ban steroids from of the legs of the Triple Crown of pacing now<br />
harness and thoroughbred racing in Kentucky. offer supplementary entries. The Jesks ponied<br />
Beshear, using emergency procedures, signed up $35,000 to enter the first leg, the Cane Pace<br />
the measure into law Friday, making the presence<br />
of steroids in a horse’s blood a state offense. hot young stallion Art Major, won in 1:51.1 over<br />
at Freehold, which Art Official, a son of the red<br />
Beshear acted on recommendations of the drug the half-mile track. Now comes the second leg,<br />
policy review committee he appointed, and the the Little Brown Jug in Delaware, Ohio, and Art<br />
new rules and regulations become effective immediately<br />
under the emergency mandate. ther. The Jug now has a supplementary entry<br />
Official was not made eligible to that classic ei-<br />
rule that provides for winners of previous legs to<br />
supplement for $45,000, and the Jesks are in for<br />
the pot. As someone in Washington once said, a<br />
million here and a million there can add up to<br />
real money.<br />
THE BEACH IS SANDY<br />
Speaking of Somebeachsomewhere, who won<br />
his 15th race in 16 lifetime starts over the weekend,<br />
sending his earnings to over $2.3 million,<br />
co-owner and trainer Brent MacGrath says his<br />
champion was slowing down in his 1:50.4 victory<br />
at Mohawk Saturday and a scoping showed mucus<br />
in his throat and lungs. He is undergoing<br />
medication and still will pursue a world record<br />
at Lexington. His co-superstar, the 3-year-old<br />
trotter Deweycheatumnhowe, lost for the first<br />
time in 18 lifetime starts on the same card, defeated<br />
by Crazed, who was second to him in this<br />
year’s Hambletonian. His earnings now stand<br />
at $2.28 million, as the two brilliant 3-year-olds<br />
continue down their remarkably similar paths of<br />
near invincibility.<br />
FUMO TRIAL STARTS TODAY<br />
Pennsylvania’s wealthy power-wielding former<br />
state senator Vincent Fumo, who played a key<br />
role in development and passage of the state slots<br />
bill four years ago, goes on trial this morning, accused<br />
of financing his very high living style with<br />
$3.5 million of what he called OPM -- other<br />
people’s money.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
September 9, 2008<br />
JIM HARRISON DEAD AT 87<br />
Harness racing has lost one of its brightest stars<br />
with the death at 87 of the multi-talented Jim<br />
Harrison. As editor of Hoof Beats at USTA he<br />
took on the job of editing the original Care and<br />
Training of the Trotter and Pacer, the most successful<br />
publishing venture in USTA history. He<br />
was an executive with both Hanover Shoe Farms<br />
and Lana Lobell Farms, serving as executive<br />
vice president and general manager at Hanover,<br />
and one of the sport’s leading pedigree authorities.<br />
A winner of the harness writers’ Proximity<br />
Achievement award and publicists’ Golden Pen<br />
award in 1970, he also was elected to the Communicators’<br />
Corner of the Hall of Fame in Goshen<br />
in 1986. A tough and no-nonsense executive,<br />
he had strong views on conflict of interest and<br />
principles, and would never write after his retirement,<br />
despite repeated requests and offers to<br />
contribute to publications as a columnist. His<br />
views on breeding were valued and respected. A<br />
veteran of Army Air Corps service in World War<br />
II, he earned a Purple Heart and Air medal, with<br />
several clusters, in combat action. His wife Margaret<br />
died two years ago. HTA extends its deep<br />
sympathy to his sons and extended family.<br />
KENO REVIEWS ‘MIXED’<br />
The Dayton Daily News, reporting on keno play<br />
in Ohio, says it is faring better in the northern<br />
reaches of the state than the southern. Three<br />
northern counties -- Cuyahoga (Cleveland), Lucas<br />
and Lorain -- are among the top four selling<br />
areas in the state, where 974 locations now are<br />
selling the numbers game. The lottery’s spokeswoman,<br />
Marie Kilbane, said, “Four weeks out,<br />
we are cautiously optimistic about Keno sales.<br />
We expect sales to pick up as we bring on more<br />
retailers and as we enter the fall and winter sales<br />
season, our strongest.” Some vendors now<br />
are questioning whether the 6.2% commission<br />
on sales is worth the paper work<br />
and added administrative costs.<br />
TOP TRAINERS STEP DOWN<br />
Peer pressure can play a major role in racing’s<br />
battle against illegal drugs, but it has been in<br />
short supply. Now, for the first time, there are<br />
visible signs it is emerging. John Sadler, the<br />
leading trainer at Del Mar’s recent meeting,<br />
elected in July as president of the California<br />
Thoroughbred Trainers, has taken a “voluntary<br />
leave of absence,” according to a report from the<br />
training group’s executive director, Ed Halpern,<br />
in today’s Paulick Report. Jeff Mullins, a<br />
member of the CTT board, also took a voluntary<br />
leave of absence while racing board charges<br />
against him are litigated. Halpern told Paulick<br />
the CTT board agreed with the leaves of absence<br />
“because of the controversy surrounding recent<br />
revelations” by the racing board.<br />
MESSAGE FROM TERRY LANNI<br />
MGM chief executive officer Terry Lanni, who<br />
addressed the Racing Congress in Las Vegas<br />
three years ago, spoke most recently to 165 newspaper<br />
editors, who are facing threats to their industry<br />
from technology and other sources that<br />
are forcing change. Lanni quoted former Army<br />
chief of staff Eric Shinseki, who advised, in discussing<br />
changes in the Army, “If you don’t like<br />
change, you’re going to like irrelevance even<br />
less.” Track operators note.<br />
TWO SPORTS TRY NEW TRICKS<br />
Lanni took his own advice at MGM Grand at<br />
Foxwoods, where it was announced that Foxwoods<br />
is building a huge skating rink for a reality<br />
show called “Thin Ice,” in which the public<br />
will have its say as to who stays and goes. The<br />
show will be televised nationally, on a network<br />
not yet named. Fox Searchlight Pictures, meanwhile,<br />
beat out rivals at the Toronto Film Festival<br />
for rights to “The Wrestler,” a film featuring<br />
Mickey Rourke as a retired wrestler attempting<br />
a comeback. Now for change and some<br />
originality in presenting harness racing.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
In Montreal, where live racing is held only once<br />
a week at Hippodrome de Montreal, on Sunday<br />
afternoons, Gazette racing writer Paul Delean<br />
reports that the province’s biggest yearling<br />
sale, scheduled for October 11, has been cancelled,<br />
leaving consignors of 129 colts and fillies<br />
to scurry for cover. The cancellation followed<br />
a disastrous Canaco sale in which only 9 of 42<br />
head offered were bought, with the highest price<br />
$10,000. The cancelled sale could be rescheduled<br />
for November, Delean reports, if a parliamentary<br />
commission reports favorably on guarantees<br />
for purses next year.<br />
In Illinois, revenues and admissions dropped<br />
in August at both casinos in Joliet. The Empress<br />
saw receipts fall 15%, with admissions<br />
down 7.97%. Harrah’s adjusted gross receipts<br />
dropped 24.4% against August 2007, and admissions<br />
fell 17.85%.<br />
Video lottery play in gambling Kanawha county,<br />
West Virginia, also dropped, with a new smoking<br />
ban blamed.<br />
Pennsylvania slots wagering dropped 3% from<br />
the Labor Day weekend. The Meadows did best,<br />
leading the state with a 91.7% payout rate<br />
and $3,048 in weekly gross terminal wagers<br />
per machine.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
September 10, 2008<br />
ALL SIGNS POINT ▼▼▼▼<br />
In Florida, the St. Petersburg Times reported,<br />
It’s sunny outside, but a gloomy day news-wise. “The Florida Lottery, long a cash cow for public<br />
Everything, even the clang of slots and the horse education, can no longer pay its share of the bill<br />
sale at Keeneland, a sure winner, have minus because of falling ticket sales. To make up for<br />
signs to report.<br />
lost cash, the state has to dig around for spare<br />
change. In Tallahassee today, lawmakers will<br />
Keeneland opened with a 7.7% decline in average<br />
price and a 16.8% drop in gross sales. The<br />
tap $48 million from an account filled with unclaimed<br />
checks, forgotten utility deposits and<br />
number of unsold horses rose 5%, to 29%, and<br />
other unclaimed property to stave off cuts in<br />
in a bizarre episode one colt, the royally-bred<br />
education.” A lobbyist for the Florida Education<br />
son of A.P. Indy and Azeri named Vallenzeri,<br />
Association, Michael Ogletree, called developments<br />
“A very scary trend.”<br />
was bid-in by consignor Michael Paulson at $7.7<br />
million.<br />
In Maryland, a double whammy. A poll conducted<br />
by a marketing research firm found support<br />
for the upcoming Maryland slots vote had<br />
dropped from 54% support in January to 49%<br />
in August. Maryland’s political leaders, meanwhile,<br />
learned today that the state faces a $432<br />
million revenue shortfall that could rise to a billion<br />
next year, according to the Baltimore Sun.<br />
With that news, a new poll might show stronger<br />
support for slots. Officials of the University System<br />
of Maryland’s board of regents, unable to<br />
see how the university can do without slots money,<br />
publicly endorses a “yes” vote on the issue.<br />
To end this depressing report on declines, still<br />
another, on a more personal note. Phil Pines,<br />
former curator of the Hall of Fame and Harness<br />
Racing Museum, was hospitalized recently, and<br />
now has been transferred to the Schervier Pavilion<br />
in Warwick, NY. On release Pines and wife<br />
Jane will be moving to the Walkill Living Center,<br />
455 Schutt Road, #218, Middletown, NY 10940,<br />
phone to be 845-342-4437. Messages from Phil’s<br />
friends would be helpful.<br />
On a more cheerful note, Saratoga Gaming and<br />
Raceway has added three Monday afternoon<br />
programs to its live racing schedule for October,<br />
on Oct. 6, 20 and 27. It already had a Columbus<br />
Day Monday card scheduled Oct. 13.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
September 11, 2008<br />
WANT TO LEASE A LOTTERY?<br />
You may not, but you can be sure someone will,<br />
particularly with a 50-year deal. The Illinois<br />
House and its leader Michael Madigan finally<br />
relented yesterday and passed a bill to lease the<br />
Illinois state lottery to a private vendor. It will<br />
require $10 billion for approval, and would run<br />
for not less than 50 years nor more than 60. Illinois<br />
would collect 20% of what the new operator<br />
earns, with $600 million for schools annually, and<br />
the first $3 billion would be set aside to create a<br />
trust fund whose interest would guarantee that<br />
payment. The next $7 billion would go to pay for<br />
repair of Illinois roads, bridges and other infrastructure,<br />
which was the key to passage. No other<br />
way was available to obtain that kind of money.<br />
Illinois’ Democratic governor Rod Blagojevich<br />
was not totally happy over the deal. He told reporters<br />
the 75-38 vote pleased him, but he feared<br />
it was “just another delay tactic in the games that<br />
are being played” by his fellow Democrats who<br />
lead the House, particularly speaker Madigan,<br />
who has blocked such a move for years. The bill<br />
itself does not provide for any spending, and still<br />
needs approval in a hostile Senate. Adding insult<br />
to injury, the House voted 101-12 to restore $221<br />
million or $372 million (news reports varied) in<br />
budget cuts and 325 jobs that Blagojevich had<br />
imposed, without knowing where all the money<br />
involved would come from. They bridled, however,<br />
at Gov. Blagojevich’s proposal to revise the<br />
state’s ethics legislation, and took only four minutes<br />
to shoot down, 101-3, a threat that would<br />
have changed legislation that currently bars major<br />
state contractors from contributing to the<br />
governor and other officeholders. House leaders<br />
accused Blagojevich of “one, last, desperate<br />
attempt to prevent the ethics bill from becoming<br />
law,” but the governor’s spokesman blasted<br />
them as being “dishonest and self-serving”<br />
in rejecting his changes. There is an election<br />
coming up in November.<br />
BIG HASSLE OVER ONE WORD<br />
Opponents of slots in Maryland won a battle,<br />
but not the war, yesterday. A panel of Circuit<br />
court judges decided with the plaintiffs that the<br />
present language of the proposed slots bill was<br />
“misleading,” but they said one added word<br />
could remedy the problem and they ordered it<br />
inserted. The word was “primary,” as in “the<br />
primary purpose of the slots referendum is to<br />
raise revenue for education projects.” The present<br />
wording merely said the amendment has “the<br />
purpose of raising revenue for education.” The<br />
three-judge panel ruled that adding “primary”<br />
clarified the fact that there would be other beneficiaries,<br />
including the horse racing industry<br />
in Maryland. They said the secretary of state<br />
had violated state election law by not including<br />
the word in the proposed constitutional amendment,<br />
and ordered the November ballot to be<br />
changed accordingly. The attorney for the slots<br />
opponents said he would appeal, seeking to have<br />
all beneficiaries listed or none, and charged that<br />
the present framing of the bill would amount<br />
“to granting the legislature a license to deceive.”<br />
The head of a pro-slots movement called the intention<br />
to appeal “a waste of taxpayers’ dollars<br />
by continuing their frivolous lawsuit.”<br />
THERE IS NO JOY IN VEGAS<br />
Hotels and their casinos in Las Vegas are taking<br />
multiple hits. July marked the biggest monthly<br />
decline in visitor traffic in five years, since the<br />
Iraq war began, according to the city’s Convention<br />
and Visitors Authority. Average room rates<br />
dropped by 10% against a year ago, running at<br />
86% weekdays and 91% weekends. Passenger<br />
traffic at McCarran airport was down 9% and<br />
auto traffic fell 7%. The number of conventions<br />
rose in July, however, up 9% from a year ago.<br />
Which reminds us: don’t wait too long to make<br />
air reservations for arrival on Feb. 2 for the<br />
2009 Racing Congress. Airlines are cutting<br />
flights. Don’t get shut out.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
September 12, 2008<br />
PENN NAT’L: BYE TO KANSAS<br />
Penn National Gaming announced yesterday it<br />
was abandoning its plans for a casino in Cherokee<br />
county in southeastern Kansas, saying an<br />
Oklahoma Indian casino whose parking lot is<br />
in Kansas is more competition than it cares to<br />
battle. Penn National was the only bidder for<br />
the license, and decided the $225 million investment<br />
was too large for the risk. It had hoped to<br />
get around the Kansas law that there could be<br />
only one casino in a county, and those owned by<br />
the Kansas lottery, by operating one in Cherokee<br />
county and linking it with one in Sumner county.<br />
The Kansas casino review board, however, gave<br />
the Sumner license to Harrah’s Entertainment,<br />
and Penn National’s Eric Schippers said the<br />
Cherokee operation “is simply not viable on a<br />
stand-alone basis.”<br />
COURT SAYS NO, TRIBE YAWNS<br />
The Florida Supreme Court yesterday refused to<br />
hear an appeal from governor Charlie Crist and<br />
the Seminole Indians of an earlier decision that<br />
invalidated the state’s gaming compact with the<br />
Seminoles. The tribe says only the legislature<br />
could undo the compact, which was declared illegal,<br />
and it will not shut down its gaming operations.<br />
A major change in the composition of the<br />
Florida legislature in November may result in a<br />
willingness of that body to sign off on the Crist<br />
compact, according to the Palm Beach Post. The<br />
court’s earlier decision said Crist had exceeded<br />
his authority in signing the compact, allowing table<br />
games as well as slots, and that “such power<br />
falls exclusively to the legislature.” Florida faces<br />
a $47 billion deficit in its current fiscal year that<br />
runs until next June, and if the compact were to<br />
remain invalid the state would get nothing from<br />
the Indian gaming that now flourishes there.<br />
The Seminoles’ attorney told the Post, “If they<br />
don’t approve it, we may end up back in<br />
court.”<br />
BATAVIA CHALLENGE BEGINS<br />
HTA member Batavia Downs launched a unique<br />
Drivers Challenge this week, with a different top<br />
driver competing each week for eight weeks in<br />
eight races. The winner in point standings after<br />
the series ends takes down a $10,000 prize, but all<br />
winnings each night of the competition go to the<br />
Breast Cancer Coalition of Rochester. Wanda<br />
Polisseni, who races as Purple Haze Stable and<br />
has lost family members and friends to cancer,<br />
is the creator and major sponsor of the charity<br />
event. Michael Kane, Batavia’s vice president<br />
of live racing, said local drivers “have graciously<br />
given up eight drives each Wednesday to the All-<br />
Stars,” and Bruce Tubin, president of the western<br />
New York Harness Horsemen’s association,<br />
said, “It’s our pleasure to help out in this great<br />
cause.” He added, “It’s also a great way to highlight<br />
our product to new fans.” Veteran Howard<br />
Parker started off the challenge this week, scoring<br />
34 points and picking up $400 in purses for<br />
the charity. In the weeks ahead Vernon’s Howard<br />
Okusko Jr., Ontario’s Jody Jamieson, Rick Zeron<br />
and Luc Ouellette, Jim Morrill Jr., Stephane<br />
Bouchard and Jeff Gregory will try their luck<br />
and donate their winnings to the Breast Cancer<br />
Coalition.<br />
CRAZED, DEWEY AT IT AGAIN<br />
Crazed, conqueror of Deweycheatumnhowe<br />
last weekend, and the only horse ever to beat<br />
him, tries again tomorrow night at Mohawk,<br />
this time for a million dollars in the Canadian<br />
Trotting Classic. Dewey drew 10th post, which<br />
won’t make his task any easier. Also on tap at<br />
Mohawk tomorrow night, two $500,000 races,<br />
the Peaceful Way for 2-year-old trotting fillies<br />
and the Wellwood for 2-year-old trotting colts.<br />
The card also includes $194,000 divisions of the<br />
Nassagaweya for 2-year-old pacing colts, and the<br />
$175,000 Moni Maker for 3-year-old filly trotters.<br />
Somebeachsomewhere is resting up<br />
for a Lexington world record try.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
September 15, 2008<br />
CASE MAKES IT <strong>OF</strong>FICIAL<br />
As reported here weeks ago, Walter Case Jr.<br />
hopes to be released from prison soon and may<br />
apply for a Pennsylvania license to enable him to<br />
race at The Meadows. Dave Little, the New York<br />
Daily News’ harness racing writer, provided fuller<br />
details in yesterday’s edition. Little and his<br />
wife Debbie, who holds the same position at the<br />
New York Post and is president of the U.S. Harness<br />
Writers Assn. are friends and admirers of<br />
Case and keep in close touch with his activities.<br />
Dave reports that Walter’s attorney, Lawrence<br />
Whitney, has filed a motion for judicial release in<br />
the Court of Common Pleas in Portage county,<br />
Ohio, where the trial judge who sentenced Case<br />
will hear the appeal. A decision is not expected<br />
for several weeks, but regardless Case is eligible<br />
for parole from his felonious assault charges involving<br />
the stabbing of his former wife Nadine.<br />
If five years imprisonment has taught Case lessons<br />
he long has ignored, he could return to<br />
add the electrifying excitement that his driving<br />
style brings to the sport. John Marshall, vice<br />
president and general manager of racing at The<br />
Meadows, told <strong>Executive</strong> News that Case had<br />
not applied for anything at the track, but that if<br />
Case were licensed by the Pennsylvania Harness<br />
Racing Commission he would give an application<br />
due consideration. A Case v. Dave Palone<br />
rivalry would be a huge draw, and could modify<br />
the domination of Palone at The Meadows. A<br />
behaving Case would be a draw anywhere. He<br />
has paid his debt to society and hopefully has<br />
learned self control, and it is likely that his supreme<br />
driving skills could be honed sharp again<br />
in short order.<br />
KEENELAND DOWN 13%<br />
After 6 of the 15 sessions of its monster September<br />
sale, Keeneland is down 13% in gross receipts.<br />
The Paulick Report says this translates to<br />
a $41 million decline in revenue.<br />
YO HTA: ART NEEDS YOU NOW<br />
The HTA Scholarship Art Show and Auction<br />
now is less than two weeks from getting underway,<br />
without response from member tracks. The<br />
auction is the engine that drives our scholarship<br />
program, and if each track were to commit to<br />
buy one piece of art, either selected from our catalogue<br />
that you have received, or for a specified<br />
amount with us choosing the piece, it would help<br />
assure the success of the auction Oct. 4. We understand<br />
times are tough, but we either support<br />
the scholarship fund or abandon it after decades<br />
of usefulness to the sport. We have no fund raising<br />
sources other than donations and the sale of<br />
art. We have 215 very special works, including<br />
an unprecedented 11 George Ford Morris originals<br />
and 50 Currier & Ives lithographs and spectacular<br />
bronzes and woodcarvings to sell this<br />
year. Pick one out or authorize us to select one<br />
for you up to a specified amount. If you don’t<br />
get it, it at least will sustain bidding to that point.<br />
The logistics of assembling and staging the auction<br />
are huge, and it deserves your support.<br />
BRUISING ILLINOIS DATE BIDS<br />
The Illinois Racing Board considers 2009 date<br />
applications today, and the hearing is not likely<br />
to be cordial. Neil Milbert reports in the Chicago<br />
Tribune that Balmoral/Maywood is seeking<br />
all of Hawthorne’s harness dates, and Arlington<br />
Park is asking for a slice of the Cicero track’s<br />
thoroughbred dates. Milbert says Balmoral/<br />
Maywood is seeking a combined 309 year-round<br />
dates that would eliminate Hawthorne’s 39<br />
nights of harness, which were raced from June<br />
24 to August 7 this year. Hawthorne, for its part,<br />
has responded aggressively, asking to expand<br />
to a June 1 - August 31 summer harness meeting<br />
that would double the dates raced this year.<br />
Hawthorne also wants to race a Feb. 27-May 2<br />
thoroughbred winter-spring meeting, and<br />
trim two weeks from Arlington in the fall.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
September 16, 2008<br />
HAWTHORNE LOSES <strong>HARNESS</strong><br />
The Illinois Racing Board yesterday stripped<br />
Hawthorne Racecourse of its harness racing<br />
meeting, giving its racing dates for 2009 to Balmoral<br />
and Maywood Parks and giving those<br />
tracks 267 dates for next year. Hawthorne had<br />
raced a June 24 thru August 7 meeting this year,<br />
but the board allocated them to a reduced schedule<br />
meeting at both Balmoral and Maywood, acceding<br />
to those tracks’ wishes and those of the<br />
Illinois Harness Horsemen’s Association, which<br />
argued for reduced racing in order to boost<br />
purses. Neither Balmoral nor Maywood will<br />
race from Jan. 5 to Jan. 27 next year, and Balmoral<br />
will discontinue Tuesday night racing in<br />
February through April and in November and<br />
December. Balmoral will race Jan. 3 and 4 and<br />
then three programs a week from Jan. 28 thru<br />
April 29; four a week from May 2 thru Oct. 31;<br />
and three a week from Nov. 1 thru Dec. 30, a total<br />
of 171 nights. Maywood will race 96 nights, Jan.<br />
1 and 2, and two programs a week from Jan. 29<br />
thru Dec. 31. Revenues gained from betting on<br />
other tracks during the 43 newly created dark<br />
nights will be used to boost purses. Hawthorne<br />
has been a long time member of HTA, extending<br />
from its takeover of the old Suburban Downs,<br />
also a longtime member.<br />
MD SLOTS CHALLENGE DEAD<br />
Maryland’s highest court, the Court of Appeals,<br />
yesterday ended the legal challenge to what slots<br />
opponents called “misleading” ballot language.<br />
The issue resulted in a three-man panel of a<br />
lower court changing one word on objectives of<br />
the proposed amendment. That decision was appealed.<br />
The Court of Appeals issued a one-page<br />
order Monday affirming the lower court decision.<br />
The one word change inserted the word<br />
“primary” describing the measure’s primary<br />
purpose being educational support.<br />
It also authorizes 15,000 slots at various<br />
state locations.<br />
KY TAKES ACTION ON WHIPS<br />
Kentucky, following the example of Pompano<br />
Park and heeding the pleas of racing commission<br />
member Alan Leavitt, is about to become the<br />
first state to mandate rules against one-handed<br />
whipping for harness racing. The new rule will<br />
ban one-handed whipping and require drivers<br />
to keep both hands in front of their bodies during<br />
a race. The action was recommended by a<br />
safety and welfare panel and the full commission<br />
could approve the new rules on September 22 at<br />
its next meeting. Changes in whips and rules for<br />
thoroughbred racing also are being considered,<br />
with the state’s new equine veterinary chief Mary<br />
Scollay saying, “I don’t care where his arm was,<br />
if he cuts the horse, he’s wrong.” Keeneland<br />
also is experimenting with new whip designs for<br />
runners. The Lexington Herald Leader story by<br />
writer Janet Patton carried a color photo with it<br />
showing a driver, arm upraised behind his head,<br />
flailing away at a pacer in the stretch.<br />
FULL RACE REPLAYS AT SARATOGA<br />
There is a new convenient service for racing fans<br />
at HTA member Saratoga Gaming and Raceway.<br />
The track has introduced full race replays on its<br />
Web site, including race archives that go back<br />
as far as May of last year. The replays can be<br />
accessed at www.saratogaraceway.com, and will<br />
be available moments after each race is declared<br />
official, along with pari-mutuel payoffs. Fans<br />
can follow the “race replays” link on the front<br />
page of the Web site, select a date, and choose the<br />
number of the race they wish to review.<br />
NEW TRIBAL TWIST: SLOT LEASES<br />
The Navajo Nation in Arizona, which has the<br />
rights to 1,400 slot machines and hopes to build<br />
four casinos in the state when it gets the money,<br />
is leasing more than 1,000 to three other tribes,<br />
one the Tohono O’odham Nation near HTA’s<br />
home in Tucson. The Navajos are opening<br />
a casino in Gallup, New Mexico, Nov. 17.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
September 17, 2008<br />
MAGNA CASTS A SLOTS VOTE<br />
Frank Stronach has in the past expressed disdain<br />
for slots and racinos, preferring entertainment<br />
complexes to attract racing fans, but he is too<br />
smart to let opportunities pass by. His Magna<br />
Entertainment Corporation has obtained clearance<br />
from his MI Developments Corporation to<br />
use up to $2 million of a $100 million loan to support<br />
slots in the upcoming election in Maryland.<br />
At stake for Magna is a possible racino site at<br />
its Laurel Park, although that is not assured and<br />
would have to be won through a bidding process<br />
if the slots referendum passes Nov. 4. Magna at<br />
least is one of five in the hunt. The Baltimore<br />
Sun reports that recent polls have shown “solid<br />
though dipping popular support” for the slots<br />
bill, and a late surge of track and casino money<br />
in support of the measure is expected, including<br />
Penn National Gaming, which hopes to build<br />
and operate a racino in Cecil county in western<br />
Maryland.<br />
In other news from Maryland, the state’s racing<br />
commission has approved the Racing Medication<br />
and Testing Consortium’s general guidelines on<br />
banning anabolic steroids, joining neighboring<br />
Pennsylvania, Delaware and Virginia. Commission<br />
executive director Mike Hopkins was quoted<br />
in the Sun, saying, “I think the general consensus<br />
in the industry is that these drugs shouldn’t<br />
be used the way they’ve been used.” Noted<br />
Maryland thoroughbred trainer Bill Boniface<br />
said, “I’m very proud that Maryland has joined<br />
the ban. It’s better for the sport’s image and<br />
more importantly for the horse.” Boniface said<br />
steroids have “artificially stimulated growth in<br />
young horses, to the detriment of the breed.” An<br />
administrative panel of state legislative delegates<br />
and senators must approve the measure before<br />
it can become effective, and it does not provide<br />
for penalties. Hopkins says horsemen and<br />
racing officials will decide on those by<br />
January 1.<br />
JUG SUPPORTS WHIP RULES<br />
In Delaware, Ohio, where the state pauses for<br />
tomorrow’s Little Brown Jug pacing classic for<br />
3-year-olds, the Jug Society’s directors voted to<br />
support proposed whipping rule changes calling<br />
for drivers to keep a line in each hand. They<br />
also added their support for the Racing Medication<br />
and Testing Consortium’s ban on anabolic<br />
steroids, and approved the option -- but not the<br />
action -- of holding Jug and Jugette eliminations<br />
on a day other than Jug Thursday. They signified<br />
their intention of continuing the present<br />
multi-heat format. The Jug’s HTA director Tom<br />
Thomson and alternate director Phil Terry were<br />
reelected as president-treasurer and secretary<br />
of the Little Brown Jug Society, and Thomson’s<br />
son Chip became the third generation Thomson<br />
to serve as a director, following his dad and<br />
grandad, Jug founder Hank Thomson.<br />
BARNEY FRANK WINS A ROUND<br />
Congressman Barney Frank won’t quit in his<br />
efforts to derail prohibition of Internet betting,<br />
and this week he won a first-round victory. His<br />
Internet Gambling Regulation and Enforcement<br />
Act was defeated last summer in a committee<br />
vote, but this week a revised version, The Payment<br />
Systems Protection Act of 2008 (H.R. 6870)<br />
was approved by the House Committee on Financial<br />
Services, which Frank chairs. The bill<br />
would direct the Treasury and Federal Reserve,<br />
along with the Attorney General, to appoint a<br />
special administrative law judge to define types<br />
of unlawful gaming and conduct an economic<br />
impact study on the costs for compliance. If<br />
passed, it would delay implementation of the<br />
Unlawful Internet Gambling Enforcement Act<br />
of 2006, known as UIGEA, by assuring that program<br />
did not impair the U.S. system of payments<br />
or prevent legal online transmissions. Frank is<br />
optimistic about passage next year. Racing currently<br />
is exempt from the ban, with conditions.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
September 18, 2008<br />
A BUREAUCRATIC HANGING<br />
It is not dead yet, and it vows to continue gasping<br />
for breath, but Centaur Gaming has told the<br />
Pittsburgh Tribune-Review that while its project<br />
to build Valley View Downs racetrack and racino<br />
“has not been cancelled, the money to build<br />
it has been returned to the banks.” It has been<br />
strangled by the Pennsylvania Gaming Control<br />
Board, which has refused to grant a gaming license<br />
although Centaur already possesses the<br />
last harness license available in the state. In a<br />
masterpiece of disingenuous denial, Doug Harbach,<br />
a spokesman for the board, said, “We do<br />
not have all the information we need to move<br />
forward with Centaur’s license. We were still<br />
awaiting additional information on their financing.”<br />
Harbach and the board had to know the<br />
financing was awaiting its approval, and would<br />
have been forthcoming with it, but kept procrastinating<br />
until now when the financial crisis on<br />
Wall Street makes the needed financing unlikely.<br />
Susan Kilkenny, a Centaur spokeswoman, said<br />
Centaur “will continue vigorously to pursue the<br />
successful development of Valley View Downs &<br />
Casino through all means available to us. We remain<br />
fully committed to doing everything in our<br />
power to help ensure that Valley View is built<br />
at its current site.” Lawrence county officials<br />
and residents have expressed strong desire for<br />
the track, and Centaur holds one trump card.<br />
While the Gaming Control Board continues to<br />
deny licensing, no one else can obtain a racing<br />
license. Centaur holds the only one remaining,<br />
and Anton Leppler, executive director of the<br />
Pennsylvania Harness Racing Commission, told<br />
the Tribune-Review it was “way too premature”<br />
to talk about taking away Centaur’s harness<br />
racing license and giving it to someone else. The<br />
commission last month gave Centaur until 2010<br />
to have a track operating, and Leppler<br />
said the commission favors the Centaur<br />
site because of benefits of its location.<br />
MAJOR WORK AT HTA <strong>TRACKS</strong><br />
Two major construction projects are moving<br />
forward rapidly at HTA tracks in Indiana and<br />
Pennsylvania. The Indianapolis Star and Anderson<br />
Herald Bulletin both carried solid stories<br />
and photographs of progress on the permanent<br />
casino construction at Indiana Downs in Shelbyville.<br />
Completion is not expected until mid-<br />
March of next year, but impressive steel work<br />
has been finished on a three-story parking garage<br />
and the 233,000 square-foot main racino<br />
structure. Project manager Chris Blust says<br />
the exterior is about 80% complete. When finished,<br />
it will house 2,000 slot machines, and will<br />
dwarf Indiana Downs’ present temporary casino,<br />
which has 65,000 square feet. The new facility<br />
will contain electronic table games and four<br />
restaurants surrounding a central bar. The four<br />
include a Maker’s Mark Steakhouse, NASCAR<br />
Sports Grill, Angel’s Rock Bar and Live Market<br />
that will seat 300 and serve a variety of international<br />
foods. The estimated annual payroll of the<br />
racino will be $20 million, projected taxes will be<br />
$112 million, with $70 million of that earmarked<br />
for the state’s property tax reduction trust fund,<br />
and $6.7 million going to Shelby county towns.<br />
ROONEYS VOTE TODAY<br />
Four of the five Rooney brothers, including Tim,<br />
operator of Yonkers Raceway, and his brothers<br />
John, Pat and Art Jr., are scheduled to meet and<br />
vote today on whether to sell their individual<br />
16% holdings in the Pittsburgh Steelers to New<br />
York billionaire Stanley Druckenmiller. He has<br />
offered to buy their cumulative 64% share in the<br />
NFL franchise, with a deadline tomorrow. The<br />
Pittsburgh Post-Gazette in today’s editions says<br />
that even if they decline his offer, the Rooney<br />
brothers might decide to seek another investor<br />
once a calamitous economy settles, rather than<br />
accept the offer made by their brother Dan,<br />
the team’s president, and his son Art II.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
September 19, 2008<br />
SCIOTO AVERAGE UP 87.3%<br />
Under the new program, with $25,000 added unrestricted<br />
from Plainfield Asset Management of<br />
HTA member Scioto Downs closed its 2008 meeting<br />
showing a stunning 87.3% increase in average<br />
daily handle, with a new simulcast agree-<br />
Downs and Vernon Downs, Dr. Jesty’s clinical<br />
Greenwich, CT, which has investments in Tioga<br />
ment with its neighbor, Beulah Park, fueling the fellowship will be $220,000. Her project will involve<br />
the investigation of cardiac arrhythmia in<br />
increase. General manager of racing operations<br />
Stacy Cahill acknowledges the Beulah boost, but horses and development of new medications to<br />
adds the increase “was probably due to a lot of correct it. She has specialized in equine cardiology<br />
at the University of Pennsylvania and Cor-<br />
different things. We certainly had competitive<br />
racing and that’s the most important thing for nell.<br />
our bettors. But we also had a strong year in the<br />
clubhouse and patio and many compliments on<br />
the food service. We also had a lot of giveaways.”<br />
The latter were part of Scioto’s 50th anniversary<br />
season, which provided momentum at the start<br />
of the run.<br />
RESEARCH NEWS AT CORNELL<br />
A major veterinary research development -- the<br />
first of its kind in the U.S. -- is being introduced<br />
at Cornell University, and could have major long<br />
range benefits for racing. The program is designed<br />
to address a growing shortage of academic<br />
veterinarians, those who work in laboratories<br />
studying common diseases and innovative solutions<br />
and potential cures. Under a new two-year<br />
course of study, three fellowships of $60,000 a<br />
year and $15,000 each to fund a research project<br />
have been awarded to veterinarians. Dr. Sophy<br />
Jesty, one of the first recipients, explained the<br />
importance of the program. “Once you train<br />
clinically, it’s only a small subset of people who<br />
are then interested in or educated enough to continue<br />
on to do research. Most go directly into<br />
veterinary clinical practice. After we’re trained<br />
as clinicians, it’s the most obvious choice. But<br />
clinical research is how we advance our diagnostic<br />
tests and therapies.” Dr. Jesty said finances<br />
are another part of the problem. When veterinarians<br />
finish their doctorate, they are of- ten,<br />
at least $80,000 in debt, and it becomes<br />
necessary to go to work immediately in<br />
order to begin to pay off their loans.<br />
ONLINE IN CONGRESS, AGAIN<br />
Internet betting is back in Congress, and Information<br />
Week says a vote on Rep. Barney Frank’s<br />
new bill to relieve financial service companies<br />
from implementing bans on Internet bets could<br />
be considered by the full House as early as next<br />
week. Frank’s bill would delay implementation<br />
of bans on Internet gambling.<br />
GOLDSTEIN TO HALL <strong>OF</strong> FAME<br />
Bernard (Bernie) Goldstein, chairman of the<br />
board and former CEO of Isle of Capri Casinos,<br />
Inc., the parent of HTA member the Isle at Pompano<br />
Park, has been inducted into the Gaming<br />
Hall of Fame. Goldstein is known in the industry<br />
as the father of riverboat gaming.<br />
ROONEYS SAY NO TO MILLIONS<br />
After seven months of negotiations on an offer<br />
of hundreds of millions of dollars for control of<br />
the Pittsburgh Steelers, four of the five Rooney<br />
brothers trying to buy out their brother Dan said<br />
no yesterday to billionaire Stanley Druckenmiller.<br />
The billionaire financial wizard announced<br />
following the Rooneys decision that he was withdrawing<br />
the offer and wishing them the best of<br />
luck.<br />
WAITING ON YOUR ART BIDS<br />
HTA agents are standing by, waiting for bids on<br />
scholarship art from member tracks. Our<br />
phone and fax lines are open 24/7.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
September 22, 2008<br />
CRISIS DELAYS BIG A SLOTS<br />
The New York Post reports this morning that the<br />
long awaited decision on who gets to run the casino<br />
at Aqueduct racetrack has again been put<br />
on a back burner, as New York governor Paterson<br />
considers calling another special session of<br />
the legislature next month for budget cuts beyond<br />
the $400 million grudgingly approved by<br />
the legislature last month. Paterson has been<br />
watching events in Massachusetts, where tax receipts<br />
dropped by $200 million in the first two<br />
weeks of September, before the full impact of the<br />
Wall Street crisis. Paterson hopes to have updated<br />
New York figures by Thursday, and will decide<br />
by Friday if he will call the legislature back.<br />
Meanwhile, no decision on Aqueduct’s slot operators,<br />
the Post’s Frederick Dicker reports.<br />
KEENELAND SALES DIP 14.6%<br />
With the Lexington harness yearling sales only<br />
10 days away, and the HTA art auction less than<br />
two weeks off, figures at the giant Keeneland<br />
thoroughbred yearling sales are not comforting.<br />
Blood-Horse reports figures through yesterday<br />
at Keeneland, where more than 5,500 horses<br />
are being offered, down 14.6% in gross, down<br />
10.9% on average, and down 6% in median<br />
prices. Everything is relative, of course. With<br />
3,245 yearlings thru the ring so far, gross sales<br />
are $325,277,800, average price is $100,240, and<br />
median price is $47,000. A year ago, with 3,384<br />
sold in the same number of sessions, gross was<br />
$380,836,600, average price was $112,540, and<br />
median was $50,000.<br />
PENN NAT’L SEEKS $25 MIL<br />
Penn National Gaming has gone to court in Kansas,<br />
seeking a return of a $25 million privilege<br />
fee it paid for the right to operate a casino that it<br />
decided was a bad deal. Cherokee county, where<br />
the state-owned casino is to be located, has<br />
filed a breach of contract suit contesting<br />
return of the money.<br />
SBOA NJ BACKS SPORTS BETS<br />
The Standardbred Breeders and Owners Association<br />
of New Jersey has adopted a formal resolution<br />
supporting efforts to change federal law<br />
to allow sport betting in the state. The resolution<br />
pledges “active support of appropriate legal and<br />
policy measures” to legalize sports betting in the<br />
46 states where it now is illegal. The resolution<br />
was passed in support of efforts of New Jersey<br />
state senator Raymond J. Lesniak, a Democrat<br />
who has been leading efforts to end the federal<br />
ban and allow sports betting at racetracks and<br />
casinos. The resolution says legalization of professional<br />
sports betting could revitalize New<br />
Jersey’s horse racing industry, which the SBOA<br />
says generates $1.5 billion in economic activity,<br />
creates 13,000 jobs, and supports activity on<br />
142,000 acres of open space and farmland in the<br />
state.<br />
FLORIDA AG WANTS FED BAN<br />
Bill McCollum, the attorney general of Florida,<br />
has asked the National Indian Gaming Commission<br />
to step in and stop slots and bank card<br />
games at the Seminole Indians’ Hard Rock Casinos.<br />
The AG told the commission that Florida<br />
“is in the untenable position of having a tribal<br />
gaming operation, which everyone acknowledges<br />
is unauthorized, ongoing without the jurisdiction<br />
to stop the illegal activities.” The Seminoles’<br />
attorney, Barry Richard, dismissed the action,<br />
saying McCollum had “no official role” in the<br />
matter, and said the Seminoles would continue<br />
operating until Gov. Charles Crist and the legislature<br />
discuss the issues, probably not until next<br />
March. “No one is going to be injured if they<br />
wait a few months to work everything out,” he<br />
told the Miami Herald.<br />
13 ART SHOPPING DAYS LEFT<br />
Note to track operators: there now are just 13<br />
shopping days left to buy HTA art and support<br />
our college scholarship fund.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
September 23, 2008<br />
KY ENACTS WHIPPING BAN<br />
Emerging from an undistinguished past to a<br />
national leadership role in racing -- at least<br />
harness racing -- Kentucky yesterday became<br />
the first state in the nation to enact rules banning<br />
one-handed whipping. Pompano Park in<br />
Florida had taken similar action several weeks<br />
ago, but as a track rule, as opposed to the statewide<br />
regulation approved yesterday by the Kentucky<br />
Horse Racing Commission. Its new rules<br />
not only require drivers to keep a line in each<br />
hand during the entire course of a race, but also<br />
banned snappers on the ends of whips. The new<br />
rules will not go into effect until the spring of<br />
next year, but when they do, after a public comment<br />
period, they will provide for fines of $100<br />
to $13,000 and suspensions of 10 to 30 days for<br />
a first whipping offense. Use of a snapper carries<br />
a fine up to $20,000 and suspension for up<br />
to one year. Alan Leavitt, a commission member<br />
and operator, with his wife Meg, of Walnut<br />
Hall Limited, told Janet Patton of the Lexington<br />
Herald-Leader, “I’ve been in harness racing for<br />
50 years and over that time I’ve watched abusive<br />
whipping become a cancer on our business. And<br />
until we get rid of it, it’s going to be impossible<br />
to increase our fan base and we’re not going<br />
to be able to attract new owners. People don’t<br />
want to see it.” Leavitt, a part owner of Deweycheatumnhowe,<br />
said owner-trainer-driver Ray<br />
Schnittker had expressed regret that he hit Dewey<br />
once in the stretch while fending off Crazed in<br />
the Hambletonian. Leavitt quoted Schnittker as<br />
saying, “I shouldn’t have done it. He was giving<br />
me all that he had.”<br />
The Hambletonian Society and USTA support<br />
the new rules, and are urging state racing commissions<br />
to adopt them. The Ontario Racing<br />
Commission recently held a forum on the<br />
subject, and action is expected in that<br />
quarter as well.<br />
AND ACTS ON INTERNET BETS<br />
Kentucky’s governor, Steve Beshear, and his<br />
justice secretary, J. Michael Brown, have gone<br />
to court to stop unregulated and illegal Internet<br />
gambling in the state. They obtained an order<br />
from a county judge last week to transfer domain<br />
names to the state, and a hearing on the<br />
matter is scheduled for Thursday. Brown called<br />
the move “a first step to blocking the activity,”<br />
and says if the forfeiture of names is ordered<br />
Thursday, the state can require the domain registrar<br />
to transfer their control to the state and<br />
block Kentucky Internet users from accessing<br />
the sites. He acknowledged that the action could<br />
block national access as well. Brown says the<br />
state can seize any “devices” used in illegal gambling,<br />
and the Franklin county judge involved,<br />
Thomas Wingate, accepted the state’s contention<br />
that domain names constitute devices. The<br />
transfer involves 141 domain names, including<br />
sportsbook.com, pokertime.com, and casinobar.<br />
com, and were differentiated from legal, regulated<br />
sites like Churchill Downs’ twinspires.com.<br />
The effort was called “unprecedented in this<br />
country,” and comes as the U.S. Congress prepares<br />
to consider moves to weaken Internet bans<br />
in a bill sponsored by Rep. Barney Frank. The<br />
Louisville Courier-Journal, commenting on the<br />
move, quoted a Washington, DC attorney, David<br />
Stewart, identified as an expert on gambling law,<br />
as saying, “This is -- forgive me for being blunt<br />
-- a stunt.” He said New York and other states<br />
had tried to prosecute operators of illegal gambling<br />
sites without success, but others, including<br />
Jim Quinn, COO of the Off Shore Gaming<br />
Association, said going after domain names was<br />
“a new approach to cracking down on Internet<br />
gambling.”<br />
12 SHOPPING DAYS LEFT<br />
Note to track operators: there now are 12 shopping<br />
days left to buy HTA art and support<br />
our college scholarship fund,
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
September 24, 2008<br />
KOCH NEW BIG M RACE SECY<br />
Peter Koch, currently racing secretary at Freehold<br />
Raceway, is moving to larger quarters. He<br />
has been named racing secretary at the Meadowlands<br />
by the New Jersey Sports and Exposition<br />
Authority, and will take over Nov. 1 from<br />
Tad Stockman, who will assume a new role in<br />
administration. Koch, president of the American<br />
Harness Racing Secretaries Association in<br />
2006-7, is a graduate of the University of Arizona’s<br />
Race Track Industry Program, and worked<br />
previously at numerous HTA tracks, including<br />
the race secretary’s offices at Buffalo Raceway<br />
and Batavia Downs following graduation. He<br />
has been assistant racing secretary at the Little<br />
Brown Jug meeting in Delaware, Ohio, and has<br />
served as presiding judge at both Freehold and<br />
the Meadowlands. His wife Cindy is the daughter<br />
of the late, great Hall of Fame trainer-driver<br />
John Chapman, and she and Peter are one of the<br />
most popular and personable couples in officialdom<br />
in the sport.<br />
GRIFFIN NEW MTR PRES, CEO<br />
Robert F. Griffin, senior vice president of operations<br />
for Isle of Capri Casinos, has been named<br />
president and CEO of MTR Gaming, owner of<br />
HTA members Scioto Downs and Running Aces,<br />
and will succeed retiring Ted Arneault no later<br />
than Jan. 2 next year. Griffin is a veteran with<br />
25 years experience in the gaming industry, and<br />
Arneault called him “a great strategic fit” as his<br />
successor. Arneault, 61, has run MTR for 13<br />
years, and was instrumental in its growth with<br />
development of its flagship Mountaineer Casino<br />
Racetrack & Resort in Chester, West Virginia,<br />
and its Presque Isle Downs in Erie, Pennsylvania.<br />
MTR chairman Robert Blatt said Griffin’s<br />
“track record in multiple jurisdictions makes<br />
him the best choice to head our company.” Financial<br />
analyst Nicholas A. Dana said<br />
Griffin “bodes well for the company.”<br />
PENN NAT’L JOINS OHIO FIGHT<br />
The Columbus Dispatch reports this morning<br />
that “the sponsors of a low-key ballot measure<br />
to build a casino in southwestern Ohio suddenly<br />
have a battle on their hands -- both hands.” The<br />
paper says Penn National Gaming, whose holdings<br />
include Toledo harness track Raceway Park<br />
and the Argosy riverboat casino near Cincinnati,<br />
is providing funding for the No On 6 group opposing<br />
the casino and that development “could<br />
upend the dynamics of the race.” No On 6 officially<br />
entered the battle with the announcement<br />
that its efforts will be headed by former Cincinnati<br />
mayor Charlie Luken. No On 6 began its<br />
television spot opposition to the casino last night,<br />
and a spokesman, Bob Tenenbaum, said it will<br />
concentrate on opposition to the casino, and not<br />
on gambling in general, as another opposition<br />
group, Vote No Casinos, does. He called the current<br />
ballot measure “a mess,” claiming the language<br />
could allow the proposed casino to escape<br />
the promised 30% tax if an American Indian casino<br />
were to open in Ohio.<br />
‘STUNT’ SCARES CASINOS<br />
Kentucky governor Steve Beshear’s move to<br />
transfer Internet domain names to the state,<br />
reported here yesterday, may be “a stunt” to<br />
Washington lawyers, but Casino News says it has<br />
“created a hornet’s nest because servers based<br />
in foreign territory now find their Internet identity<br />
at risk if the domain name was registered in<br />
the United States.” The world’s second largest<br />
provider of domain names, dNom, already has<br />
complied with a Kentucky judge’s order to turn<br />
certain domain names over to Kentucky’s state<br />
Justice Cabinet. Casino News says the matter is<br />
certain to command attention at this week’s Internet<br />
gaming conference in Barcelona.<br />
11 SHOPPING DAYS LEFT<br />
Track operators: there are only 11 shopping<br />
days left to buy HTA art. Call now.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
September 25, 2008<br />
HORSEMEN WIN OHIO CASE<br />
A federal judge in Ohio has ruled that the Interstate<br />
Horseracing Act takes precedence over Ohio<br />
state law, and that the Ohio racing commission<br />
could not overrule the decision of the Ohio thoroughbred<br />
HBPA to block simulcast signals from<br />
Beulah Park to Harrah’s Chester Casino and<br />
Racetrack in Pennsylvania. The Ohio HBPA<br />
had taken that action two years ago, using the<br />
federal statute to deny permission for Beulah to<br />
export the signal, saying it wanted host fee rates<br />
raised from 3% to 5%. Ohio had passed a law<br />
allowing tracks to appeal to the racing commission<br />
in such cases if it found the signal blockage<br />
unreasonable, which it did in December of 2006,<br />
overruling the ban of signals from Beulah Park<br />
and River Downs. The tracks began sending<br />
their signals to HTA member Chester the following<br />
month, and this week’s decision by U.S. District<br />
Court judge Michael Watson says Chester<br />
violated the Interstate Horseracing Act, and said<br />
imposition of damages could follow. In a similar<br />
ongoing challenge involving horsemen’s bans of<br />
signals using the Interstate Horseracing Act as<br />
the rationale, Churchill Downs is challenging the<br />
bans, claiming the horsemen’s group’s actions<br />
violate antitrust laws.<br />
RACING WINS ONE IN ILLINOIS<br />
In another court decision involving a racing legal<br />
dispute, the Illinois Supreme Court this week<br />
ruled unanimously, 7-0, for tracks and horsemen<br />
in the state, denying an appeal from the state’s<br />
riverboat casinos to invalidate the 3% share of<br />
revenues imposed to compensate racing. Some<br />
$68 million is involved and in escrow, pending<br />
final resolution of the matter. That resolution<br />
may be far off, however, for the riverboats seem<br />
certain to appeal to the U.S. Supreme Court.<br />
A victory there for racing would end the<br />
matter, but if the high court decides to<br />
hear the case a decision would be many<br />
months away.<br />
CASINO CLOUT ON SMOKING<br />
Detroit’s casinos flexed their muscles in Lansing<br />
this week, and their strength carried the day as<br />
the House narrowly rejected a bill to impose a<br />
smoking ban in all Michigan workplaces. Both<br />
houses of the Michigan legislature approved a<br />
ban on smoking earlier this year, but failed to<br />
reconcile differences over exemptions in conference.<br />
Gov. Jennifer Granholm did not vacillate<br />
in her reaction, saying she would sign a smoking<br />
ban with or without exemptions, but casino<br />
pressure prevailed and the House agreed, with<br />
Detroit House members saying the smoking ban<br />
would hurt casino revenue, in which the city and<br />
state share, and that the ban “was a government<br />
overreach into citizens’ lives.” Backers of the ban<br />
argued the issue was one involving the health of<br />
non-smokers. The House Speaker, Andy Dillon,<br />
said after the 50-49 vote, with 11 abstentions or<br />
absences (56 votes were needed for passage of<br />
the ban), that the issue could be revisited later<br />
this year.<br />
BEN LIEBMAN TO NYRA BOARD<br />
In a victory for racing and reason over politics,<br />
Gov. David Paterson of New York has named Ben<br />
Liebman, executive director of the Albany Law<br />
School Government Law Center, to the board of<br />
directors of the New York Racing Association.<br />
Under terms of the agreement to extend NYRA’s<br />
racing franchise for 25 years, the state, through<br />
appointments by the majority party in the Senate<br />
and Assembly, appoints 11 of the 25 members<br />
of a new NYRA board, and the appointment of<br />
Liebman, a former New York racing commissioner<br />
and tremendously knowledgeable racing<br />
man, gives racing a strong voice on the NYRA<br />
board.<br />
10 SHOPPING DAYS FOR ART<br />
Only 10 days left for tracks to buy HTA art. Support<br />
your scholarship fund and call Cindy<br />
Knox at HTA. The fund needs your help.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
September 26, 2008<br />
HEARING ON DOMAIN GRAB<br />
A hearing on Kentucky Gov. Steve Beshear’s<br />
seizure of 141 Internet gambling domain names,<br />
originally scheduled for yesterday, was delayed<br />
until 3 p.m. today, without explanation. The governor<br />
took the unprecedented action alleging the<br />
sites “promote, conduct and/or advance illegal<br />
gaming” in Kentucky. The hearing, in Franklin<br />
County Circuit Court, affects mostly poker sites<br />
that do not use U.S. issued domains, according<br />
to Kentucky Online, so the action may have little<br />
impact even if approved today. The seizure is<br />
based on Kentucky law that permits forfeiture<br />
of any gambling device or gaming record that<br />
aids illegal action in Kentucky, and a Franklin<br />
county judge ruled last week that the Internet<br />
sites qualified as gambling devices and said<br />
probable cause existed demonstrating that they<br />
were being used illegally. Horse racing and the<br />
state lottery are the only forms of legal gambling<br />
in Kentucky. The Interactive Media Entertainment<br />
and Gaming Association, which has legal<br />
standing in U.S. courts, was preparing to challenge<br />
the seizure, according to the news report,<br />
but the Poker Players Alliance, which claims to<br />
represent a million poker players, reportedly has<br />
opted to work thru the Internet Gaming Counsel,<br />
which has no legal standing in U.S. courts,<br />
rather than with Interactive Media.<br />
POLL: MD SLOTS WINNING<br />
A small telephone poll of 500 Maryland voters,<br />
conducted by a research firm, shows -- for what<br />
it may be worth -- that 54% of respondents favor<br />
the slots bill in the state, while only 35% oppose<br />
it, and presumably 11% are undecided. Meanwhile,<br />
the Baltimore Business Journal reports the<br />
Greater Baltimore Committee is the latest group<br />
to support slots, joining the Maryland Chamber<br />
of Commerce and Maryland Association<br />
of Counties. Magna also has entered the<br />
fray supporting the slots referendum.<br />
$60 MILLION NOT TEMPORARY<br />
The Pittsburgh Tribune-Review, reporting ontime<br />
progress in construction of the 350,000<br />
square-foot, $175 million permanent racino<br />
scheduled for spring opening at The Meadows,<br />
also says the temporary racino, four times smaller,<br />
produced $60 million in profit this fiscal year.<br />
The current racino may be temporary, but it<br />
sure isn’t shabby.<br />
At Mohegan Sun at Pocono Downs across the<br />
state, meanwhile, horsemen received a record<br />
$14,588,000 in purses during the recently completed<br />
95-day meeting. Daily average purses, including<br />
Pocono’s one-season hosting of the Adios<br />
for the Meadows and three other major stakes --<br />
the Hempt Memorial, W. N. Reynolds Memorial<br />
and Jim Lynch Memorial -- reached $153,500,<br />
the total including $778,000 in bonuses to Pennsylvania-owned,<br />
bred and sired horses. The<br />
president of the Pennsylvania Harness Horsemen’s<br />
Association, Earl Beal Jr., called it “a very<br />
exciting and successful year for our members.”<br />
BIG DEAL IN BRITISH <strong>HARNESS</strong><br />
An historic harness racing championship in<br />
England, a $46,400 pace sponsored -- and televised<br />
-- by William Hill, one of England’s biggest<br />
bookmaking firms. The race will be at Wolverhampton,<br />
a major English thoroughbred track.<br />
LOWERING THE BOOM IN CAL<br />
The California Horse Racing Board has finally<br />
ended the career of oft-suspended jockey Patrick<br />
Valenzuela in the state, ruling him ineligible<br />
to hold or reapply for a license. The board also<br />
fined trainer Jose De La Torre $20,000 and suspended<br />
him for six months for double use of the<br />
illegal bronchodilator clenbuterol.<br />
9 SHOPPING DAYS FOR ART<br />
Time is running out, track operators, to<br />
support your college scholarship fund.
Staff in Lexington<br />
Monday and Tuesday <strong>Executive</strong> News will be combined<br />
5 shopping days left till the art auction
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
HOW TO SAVE THE FUND<br />
While Washington gropes and fumbles over how<br />
to save the nation financially, we have developed<br />
our own plan, on a smaller scale. We have figured<br />
out a way to save the HTA College Scholarship<br />
Fund. Send us your money and we will<br />
invest it for you, in HTA art that will allow us to<br />
continue sending bright young people to college<br />
each fall and provide you with very special harness<br />
racing art.<br />
You can do it two ways.<br />
Either pick something out of our HTA art catalogue,<br />
or go online and check the enlargeable<br />
photos out on our home Web page, and send us<br />
your top bid for the item or better yet items, or<br />
have Cindy in the office arrange for one of our<br />
phone bid takers to call you Saturday morning<br />
at a phone of your choice.<br />
Or, if you trust us and our art taste, simply tell us<br />
how much you are willing to spend, and we will<br />
pick something out that we think is high on value<br />
and beautiful. If your bid isn’t high enough to<br />
get the piece, you will have helped the bidding<br />
and it will cost you nothing.<br />
Here are a few examples: #1 in the program is a<br />
vertical by Zenon Aniszewski, our most popular<br />
artist. Its dimensions and subject make it ideal<br />
for a past performance program cover for next<br />
season.<br />
#108 is a truly spectacular oil painting of Dexter,<br />
and should be hanging at Freehold Raceway<br />
or the Harness Racing Museum. Numbers 144,<br />
145 and 169, all original lithographs, also have<br />
Dexter as subject, with other great horses of the<br />
period.<br />
#109-I, a rare George Ford Morris oil<br />
painting of Dan Patch, belongs in either<br />
Hoosier Park’s or Indiana Downs’<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
September 30, 2008<br />
racino. James McAuliffe’s 1872 oil painting of<br />
Goldsmith Maid, #109, should be hanging in the<br />
Meadowlands, or Harness Racing Museum.<br />
#103, a large watercolor by the late Phil Berkeley,<br />
one of the finest of all HTA artists, is of Stanley<br />
Dancer’s barn at Pompano Park, and belongs<br />
there.<br />
#167, an 1882 Currier & Ives of the pacer Little<br />
Brown Jug, should be hanging at Delaware. So<br />
should #16, a fine pencil drawing of one of their<br />
outriders.<br />
#67, an exceptional large folio Currier & Ives of<br />
the champion pacer Johnston from 1884, should<br />
hang in John Johnston’s office at Balmoral or<br />
Duke Johnston’s at Maywood Park.<br />
#4, Doris Turnbaugh’s fine oil done at the Red<br />
mile, belongs there, and so do #30, Turnbaugh’s<br />
Red Mile and Groom, and #53, Adrienne Gualco’s<br />
beautiful watercolor of Sand Vic beating<br />
Vivid Photo in the Allen Ridge Farm Trot in<br />
2006 at that track.<br />
Any of the Currier & Ives matched comic sets<br />
from #122 thru 137 would make ideal Xmas or<br />
Chanukah gifts for friends or family or special<br />
patrons, and if you have equestrians or equestriennes<br />
in the family, the art of jumping as<br />
expressed beautifully in woodcarving #121 -- a<br />
very special piece -- or #190, a colorful work by<br />
star Canadian artist Alyson Champ, would be<br />
perfect.<br />
Ten rare harness racing cartoons by Daily Racing<br />
Form artist Peb came from Roosevelt Raceway,<br />
and should be in your office now.<br />
You get the idea. This a pleasant, productive and<br />
rewarding way to support our major and<br />
most worthy cause.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Paul J. Estok, Editor<br />
October 1, 2008<br />
TOUGH TIMES SPREADING<br />
Another sign of the economic times, in case one<br />
was needed, comes with the news that Foxwoods<br />
Resort Casino has announced that it will lay off<br />
700 employees in the next few weeks, about six<br />
percent of its workforce. “It’s an across-theboard<br />
reduction. It’s not focusing on any specific<br />
department,” Lori Potter, spokeswoman for<br />
the Mashantucket Pequot Tribal Nation, which<br />
owns and operates Foxwoods, told the Hartford<br />
Courant. Potter said it’s not yet known how<br />
many workers will be affected at the original<br />
casino and how many at the newly opened MGM<br />
Grand resort and casino at Foxwoods. Foxwoods<br />
employs about 9,000 workers while the MGM<br />
Grand, which opened less than six months ago,<br />
employs around 2,000. Tribal officials noted that<br />
the country’s economic downturn is to blame<br />
for the layoffs. “Revenues have been fluctuating<br />
since the summer, but there was a significant<br />
drop in September” said Potter.<br />
Elsewhere in Connecticut, the Mohegan tribe,<br />
owners and operators of the Mohegan Sun<br />
casino, announced last week that it would delay<br />
construction of the largest phase of their ongoing<br />
casino expansion. Citing declining slot revenue,<br />
nervous customers, tight credit markets and<br />
huge construction costs, the tribe suspended the<br />
final $735 million phase of the expansion.<br />
IN CALIFORNIA, 5,000 MORE SLOTS<br />
Legislation ratifying an amended compact between<br />
the Shingle Springs Band of Miwok Indians<br />
and the State of California allowing for as many<br />
as 5,000 slot machines at the tribe’s new casino<br />
has been signed by Gov. Arnold Schwarzenegger.<br />
The compact runs through 2029 and calls for the<br />
tribe to share a percentage of net win, ranging<br />
from 20 to 25 percent, with the state, in<br />
addition to other payments to a fund for<br />
non-gaming tribes in California.<br />
MASS. FACING DOG RACE BAN<br />
If animal welfare activists have their way, greyhound<br />
racing in Massachusetts will soon come<br />
to an end. Voters will have their say on the issue<br />
next month, but an Associated Press article<br />
characterizes the “real question” as “whether<br />
the once-popular sport dies a quick death or a<br />
slow one.” While greyhound track owners fight<br />
the proposed ban by arguing that the dogs are<br />
anything but mistreated, some racing executives<br />
admit that there has been a “cultural shift away<br />
from the sport.” Gary Guccione, executive director<br />
of the National Greyhound Association noted<br />
of the greyhound industry that “it’s certainly<br />
changing....it has downsized in recent years.<br />
We’ve seen a decrease in the number of tracks<br />
and dogs being bred.” The 1980s saw more than<br />
50,000 greyhounds being bred each year to race<br />
at the 60 or so racetracks in the United States.<br />
This year, fewer than 20,000 greyhounds will<br />
be bred to race at around 30 racetracks. Since<br />
2004, 13 dog tracks in the U.S. have closed or<br />
ceased live racing. If the ban passes in Massachusetts,<br />
the state will join seven others (Idaho,<br />
Maine, North Carolina, Nevada, Vermont, Virginia,<br />
and Washington) in prohibiting live greyhound<br />
racing.<br />
NEW RACING SEC’Y AT DOVER<br />
Rod Newhart will assume the duties of racing<br />
secretary at Dover Downs when the Delaware<br />
racetrack begins its 40th season of harness racing<br />
on October 29.<br />
ONLY TWO SHOPPING DAYS LEFT<br />
Only two shopping days left until the HTA Scholarship<br />
Art Auction! Time to decide what you<br />
want to bid on in order to help support a program<br />
that has given more than $700,000 in scholarships.<br />
Contact the HTA office at 520-529-2525<br />
or e-mail info@harnesstracks.com to bid<br />
or arrange for telephone bidding.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
MORE INTEGRITY, LESS TAKE<br />
The views of big bettors were solicited again this<br />
week on widely separate fronts, and the messages<br />
were the same: we’re not confident or happy<br />
with racing’s present efforts on integrity and<br />
takeout. In St. Petersburg, Florida, at the annual<br />
TRA-HTA Simulcast conference, the speakers<br />
were former betting syndicate member Michael<br />
Konik and Larry Higgins, executive VP of the<br />
Tampa Bay HBPA and a million dollar a year<br />
bettor. Konik said the technically sophisticated<br />
computer bettors spurn track takeout and claim<br />
bookies spurn them because of their smarts.<br />
Higgins also said he and others could not bet into<br />
29% takeout rates. He railed against late betting<br />
and odds changes, a message echoed in Lexington,<br />
Kentucky, where huge bettor and frequent<br />
commentator on the subject Mike Maloney told<br />
Gov. Steve Beshear’s taskforce that greater emphasis<br />
on those and other integrity issues would<br />
do more than any ideas he heard at the conference.<br />
He told the committee Kentucky could be<br />
transformed into a national leader if it took the<br />
initiative in ending past posting, saying present<br />
stop-wagering protocols were not working. He<br />
called such an initiative “the best marketing we<br />
could do.” In St. Petersburg, two cooks who<br />
stir the racing stew -- TRA executive vice president<br />
Chris Scherf, who runs the simulcast conference,<br />
and Thoroughbred Horsemen’s Group<br />
vice president Drew Couto -- both called present<br />
policies “a recipe for disaster” -- but for different<br />
reasons. Couto was lamenting present ADW<br />
splits; Scherf was referring to allowing horsemen<br />
an expanded role in track management<br />
prerogatives. A third party in these matters also<br />
was heard from, when Youbet.com attorney Dan<br />
Perini, speaking from the perspective of a major<br />
ADW provider, said a proposed ADW three-way<br />
equal split of takeout would leave Youbet<br />
and other ADW suppliers “with nothing.”<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
October 2, 2008<br />
Back in Kentucky, the governor’s taskforce, facing<br />
a Dec. 1 deadline to report to Beshear, heard<br />
suggestions on diverting tax monies from the<br />
state’s general fund to financial support of the<br />
understaffed racing commission, which faces a<br />
$614,000 shortfall in the next two years as it is.<br />
NO FEAR <strong>OF</strong> THIS AT HTA ART<br />
Halsey Minor, the 43-year-old technology zillionaire<br />
who was turned away this week in his efforts<br />
to buy Hialeah from John Brunetti, is hock<br />
deep in legal problems with the giant art auction<br />
house Sotheby’s. Sotheby’s sued Minor for $16.8<br />
million it says he owes for Edward Hicks’ famed<br />
“Peaceable Kingdom” and two other works of<br />
art, and the Paulick Report says he in turn is<br />
suing Sotheby’s in a class action for deceptive<br />
practices, saying the company failed to divulge it<br />
had an economic interest in the artwork, and its<br />
director of American paintings had advised him<br />
to buy “Kingdom” rather than other works. Minor<br />
alleges thousands of other buyers also were<br />
never informed Sotheby’s had undisclosed interests<br />
in work it sold.<br />
We promise if you spend $16.8 million at our<br />
art auction Saturday morning -- or $16,000 or<br />
$1,600, you won’t have that problem. Today and<br />
tomorrow are the last two days, however, that<br />
Cindy Knox will be in the HTA office to arrange<br />
for telephone bidding. Call her at 520-529-2525,<br />
fax her at 520-529-3235, or email her at cindy@<br />
harnesstracks.com.<br />
ANOTHER MAGNA SETBACK<br />
Frank Stronach’s hopes for a huge mall complex<br />
at Santa Anita received another setback this<br />
week when a Superior Court judge reaffirmed<br />
his earlier decision that the city of Arcadia was<br />
deficient in 11 areas of environmental concern,<br />
including air quality, traffic and waste. Arcadia<br />
has not decided whether to appeal.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
October 3, 2008<br />
GOOD NEWS IN NEW ENGLAND<br />
In a move that should strengthen New England<br />
harness racing, HTA members Plainridge Racecourse<br />
in Massachusetts and Rockingham Park<br />
in New Hampshire have reached an agreement to<br />
form a coordinated circuit for 37 weeks of harness<br />
racing. Plainridge will open in mid-March<br />
and race until early June. Rockingham then will<br />
race a summer meeting extending through late<br />
August, after which Plainridge will again take<br />
over and race until the end of November, racing<br />
four days a week to fulfill its 100 days a year obligation<br />
for live racing. Gary Piontkowski, Plainridge<br />
president, said the circuit is needed to offset<br />
competition from tracks in surrounding states<br />
that have slots, which neither Massachusetts nor<br />
New Hampshire have at present. Rockingham<br />
president Ed Callahan said, “We are trying to<br />
do the best thing for horsemen in the area and<br />
for harness racing in New England.” Horsemen<br />
agreed. Mike Perpall, president of the Harness<br />
Horsemen’s Association of New England, said,<br />
“Our organization is thrilled that the horsemen’s<br />
suggestion of a New England circuit was approved<br />
by both tracks.” Under the arrangement<br />
there will be 150 racing dates without head-tohead<br />
competition, which existed under the scheduling<br />
now being proposed, subject to approval<br />
of racing commissions in both states. Plainridge<br />
general manager Steve O’Toole, a former driver<br />
who won almost 1,000 races before switching to<br />
administration, says the new schedule “is a good<br />
opportunity to try some unique ideas to generate<br />
excitement for our sport, such as late closing<br />
events.” New England Harness Writers veteran<br />
president Jack Ginetti wrote, “This has been a<br />
long time in coming, and can only make for better<br />
racing and improved revenue production under<br />
the toughest of economic times. I’m thrilled<br />
the two sides were able to work out this<br />
agreement.” From this distance, it looks<br />
like a win-win decision.<br />
VET TURBULENCE IN KY, IOWA<br />
Two Ohio veterinarians have been suspended<br />
indefinitely at HTA member Red Mile in Kentucky,<br />
and another has been suspended for<br />
seven months at HTA member Prairie Meadows<br />
in Iowa. After two Kentucky Horse Racing<br />
Commission investigators searched their trucks<br />
Wednesday, veterinarians Rick Rothfuss and<br />
Rick Mathers, both with practices in Columbus,<br />
Ohio, were suspended pending results of investigations<br />
of substances found in the vehicles. The<br />
Red Mile’s presiding judge imposed the suspension<br />
after reviewing the physical evidence, and a<br />
hearing has been scheduled.<br />
In Iowa, Dr. Robert McFarlin, an Arkansas vet,<br />
who was suspended in August for treating a<br />
horse with a drug on race day, was suspended<br />
again for having Modafinil, a drug used to treat<br />
narcolepsy in humans, in the stable area. The<br />
drug was found July 19 in his trailer office in<br />
the Prairie Meadows stable area, before the race<br />
day incident, and McFarlin’s attorney claims it<br />
had been given to McFarlin two years ago by the<br />
manufacturer for testing, but had been left on a<br />
shelf for two years, unused. If both penalties are<br />
sustained after appeals for an administrative law<br />
judge hearing, McFarlin could be barred from<br />
practicing for as long as 19 months.<br />
Back in Kentucky, the state’s chief veterinarian,<br />
Dr. Lafe Nichols, resigned under fire, after<br />
he told the racing commission that he had not<br />
tested for milkshaking at Ellis Park because he<br />
opted “to put our priorities into the ambulance<br />
runs we were making there with heat conditions<br />
and problems.” He said he preferred keeping<br />
his veterinarians on the track rather than in the<br />
barn area. The Louisville Courier-Journal said<br />
neither Nichols nor racing commission executive<br />
director Lisa Underwood returned email<br />
inquiries about the issue.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
HTA’s scholarship fund and the five young persons<br />
who benefit from it this year owe a debt of<br />
gratitude to Silva and Gentry. Without them,<br />
the auction showed a lack of interest from management,<br />
media and well-placed owners who<br />
viewed the art, expressed admiration for what<br />
was the highest quality collection of oils, watercolors,<br />
bronzes, and woodcarvings ever offered<br />
by HTA, and then did not support the venture.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
The show and auction represents a huge undertaking,<br />
with expensive logistics and an expenditure<br />
of time and labor from the entire HTA staff<br />
that is far too large to justify the results.<br />
HTA’s Scholarship Committee, a group<br />
of our directors who show deeply ap-<br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
October 6, 2008<br />
FINAL ART AUCTION IN BOOKS preciated diligence, care, and sincere interest in<br />
Thanks in large measure to two buyers with selecting each year’s winners from the lengthy<br />
good taste and the means to back that up, HTA’s list of impressive young applicants, now can turn<br />
31st and almost certainly last harness racing art their attention to finding new and alternate ways<br />
show and auction wound up a success. One was of funding the operation. There were, of course,<br />
the hugely involved Long Beach, NY, horse owner<br />
Jerry Silva, a partner on a cavalry brigade of ble support. That list is too long for full men-<br />
a host of others who did actively provide tangi-<br />
top horses in the sport, and the other the most tion here, but special thanks go to Gary Foerster<br />
gratifying surprise of all 31 auctions, the noted and Dave Briggs at Canadian Sportsman, Nicole<br />
Kraft at Hoof Beats and Ellen Harvey and<br />
thoroughbred owner and breeder Olin Gentry.<br />
Silva bought 9 works of art for $53,700, including<br />
four of the top five high priced items in the Bradford and the four owners of the Red Mile<br />
Anna Svensson at HRC, to Joe Costa and Donna<br />
sale, and Gentry, who walked in unannounced, for their generosity in providing the facilities, art<br />
bid successfully on a carefully selected set of 8 of authority and adviser Richard Stone, columnists<br />
the best pieces in the sale, spending $27,550 for Dean Hoffman, Ray Paulick and Maryjean Wall,<br />
them.<br />
to media rep Dee Stewart and the indefatigable<br />
Charlie Bowen and photographer Nigel Soult of<br />
Gentry’s appearance and purchases of the magnificent<br />
Richard Stone Reeves oil painting of who helped mount the show and to all who pur-<br />
the Red Mile staff, and to countless volunteers<br />
Albatross for $15,000 accomplished a longtime chased art last Saturday. I firmly believe the<br />
hope and desire of the editor: greater cooperation<br />
and cross breed mutuality between harness this undertaking meant to harness racing until<br />
sport and industry will not fully appreciate what<br />
racing and thoroughbred racing, and his participation<br />
was the most satisfying aspect of the en-<br />
unlike any in thoroughbred racing in scope and<br />
they suddenly realize it is gone. It was a project<br />
tire show and auction.<br />
offerings, but the shrinking universe of support<br />
indicates HTA’s energies can better be funneled<br />
to undertakings that draw greater support and<br />
appreciation. Here are the five top selling items,<br />
and buyers:<br />
$15,000 #101, Albatross, oil painting by Richard<br />
Stone Reeves. Olin Gentry<br />
$11,000 #48, Currier & Ives Hartford poster,<br />
Jerry Silva<br />
$11,000 #93, Ethan Allen & Dan Mace bronze,<br />
by Maretta Kennedy, Jerry Silva<br />
$10,000 #109A, Blackhawk and Lady Suffolk,<br />
oil painting, George Ford Morris, Jerry Silva<br />
$10,000 #74, Belgian Show Hitch, John<br />
Kittelson woodcarving, Jerry Silva
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
courtroom on Tuesday. According to Poker<br />
News, “the implications of the hearing seeking<br />
an order requiring these sites to forfeit their domain<br />
manes to the state go far beyond the future<br />
of online gambling, raising significant questions<br />
regarding the future of all Internet commerce<br />
and how it may be regulated or controlled by the<br />
government.” The publication says “nearly every<br />
major online gambling company is expected<br />
to be in attendance at Tuesday’s hearing. On behalf<br />
of the domain name defendants, attorneys<br />
for the Interactive Media Entertainment and<br />
Gaming Association (IMEGA) have filed a motion<br />
to dismiss the state’s action.” Representatives<br />
of the Internet Gaming Council, Interactive<br />
Media Entertainment, Internet Commerce<br />
Association and Americans for Tax Reform have<br />
indicated their intention of being present at the<br />
hearing.<br />
Attorney William C. Hurt Jr., in a brief filed on<br />
behalf of the state, contends that under Kentucky<br />
law domain names are “illegal gambling devices”<br />
and as such may be forfeited to the state. IM-<br />
EGA contends they are not devices, saying those<br />
are actual physical objects. The Poker Players<br />
Assn. contends poker is not a game of chance,<br />
but a game of skill, and thus not subject to gambling<br />
laws. Attorney Robert Foote, representing<br />
Kentucky, contends that no one has standing<br />
to appear before the court until a person or<br />
corporation is named, and that a domain name<br />
has no right to have a lawyer. Joe Brennan Jr.,<br />
president of IMEGA, says, “Robert Foote may<br />
wish that was true; in fact, it is not.” We<br />
will find out what judge Thomas Wingate<br />
thinks tomorrow.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
October 7, 2008<br />
KY HEARING A BIG DRAW Wingate understands his decision could have<br />
Tomorrow’s hearing before a county judge in far-reaching consequences, but doubts the defendants’<br />
contention that domain names have<br />
Kentucky on the state’s right to seize 141 gambling<br />
Internet domain names has drawn international<br />
attention, and is likely to overflow his neys, “You are going to have to eventually pony<br />
the protection of confidentiality. He told attor-<br />
up and say who these people (the domain name<br />
holders) are.”<br />
HIGHLY RECOMMENDED READ<br />
For some highly entertaining reading on how<br />
racing is regulated, we strongly recommend you<br />
go online and access today’s edition of Ray Paulick’s<br />
absorbing Paulick Report. He leads with a<br />
live online blog, moment by moment, of yesterday’s<br />
first meeting of Kentucky governor Steve<br />
Beshear’s Task Force on the Future of Horseracing’s<br />
subcommittee on integrity of pari-mutuel<br />
activities. Paulick writes a fascinating diary of<br />
events, starting with a note that a quorum was<br />
not present, so nothing of substance could be<br />
accomplished. He takes us through pronouncements<br />
of chairman Ned Bonnie, and of testimony<br />
starting with Isadore (Izzy) Sobkowski, working<br />
on a system of wagering security for the Association<br />
of Racing Commissioners International,<br />
whose president Ed Martin also appeared. Then<br />
Paulick, in his flowing humorous style, introduces<br />
big gambler Mike Maloney, still irate over past<br />
posting and the lack of off-time technology, who<br />
explains to Bonnie that “the industry lacks oversight.”<br />
Then, at 3:30, two and one-half hours into<br />
the discussion, comes Frank Fabian, president of<br />
the TRPB and SIS, who Paulick identifies as “a<br />
smooth talker.” Fabian and Curtis Linnell give<br />
their pitch for the TRA’s own wagering integrity<br />
efforts, which Maloney greets with skepticism.<br />
Thoroughbred breeder Gary Bisantz is even<br />
more skeptical, and at 5 p.m. Bonnie adjourns<br />
the meeting, saying “When we have a quorum<br />
we’ll take some action.” Paulick ends his blog<br />
by saying, “Let’s hope someone holds the<br />
commission to that.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
MEGAN JONES, 19, Wayne, Michigan, majoring<br />
in anthropology at Wayne State University.<br />
A figure skating instructor for the city of<br />
Wayne, she is the daughter of Richard C. Jones,<br />
an assembly line worker at General Motors, and<br />
Tammy L. Jones, a groom in the Vincent Copeland<br />
stable. Megan hopes to become a forensic<br />
anthropologist and college professor teaching the<br />
subject. She and her mother, father and brother<br />
operate a small family harness racing stable, and<br />
Megan has maintained a 3.93 grade point average<br />
(out of a possible 4) during two years of college,<br />
with straight A’s in her sophomore year.<br />
CHELSEA ELIZABETH MASSIE, 17, Sycamore,<br />
Ohio, a pre vet freshman at the University<br />
of Findlay. Her father Curtis Massie is a groom in<br />
the Brian Brown stable, and her mother Jeanne<br />
is a factory worker for Timken. A member of<br />
4-H for 10 years and Future Farmers of America<br />
for 4, Chelsea hopes to attend vet school at Ohio<br />
State or Michigan State after her four years at<br />
Findlay. A self-described “barn brat,” she is the<br />
fourth generation family member involved in<br />
harness racing. She owns and shows a Quarter<br />
horse gelding and Paint mare in open and 4-H<br />
shows. She was a straight A student in her junior<br />
year at Upper Sandusky high school and<br />
received 13 A’s and one B+ in her senior<br />
year, including A’s in biology and anatomy<br />
and physiology.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
October 8, 2008<br />
FIVE GET HTA SCHOLARSHIPS ARIANA JOY PELUSO, 21, White Lake, NY,<br />
Five bright and needy young college students, now attending the University of Tennessee veterinary<br />
school. She is the daughter of harness<br />
all from harness racing families or participants<br />
themselves, have been named recipients of Harness<br />
Tracks of America’s 2008 college scholartive<br />
assistant Michele Peluso. A graduate of<br />
racing trainer Andrew Peluso and administraships<br />
of $5,000 each.<br />
Cornell University, where she majored in animal<br />
sciences, she was a research and teaching assistant.<br />
She will focus on Equine Sports Medicine<br />
Selected from more than 30 applicants, the five<br />
were chosen by the HTA Scholarship Committee at Tennessee. Her family has been involved in<br />
of 12 directors on the basis of scholastic accomplishment<br />
and economic need. The five are: as a groom for the immortal Stanley Dancer and<br />
harness racing for 30 years, her father starting<br />
now racing and managing Misty Acres farm.<br />
BRITTANY SCHWARTZ, 21, Strasburg, PA,<br />
currently a junior majoring in equine studies<br />
at Delaware Valley College in Doylestown, PA,<br />
with a minor in business, and serving as an intern<br />
with Dr. Hurtgen in Nandi Farms and as an<br />
assistant trainer in the James Groff stable. Her<br />
father Paul is in sales and her mother Priscilla<br />
is self-employed in cleaning. A cross-country<br />
runner, she holds a school track record for 5,000<br />
meters, and hopes ultimately to operate her own<br />
training facility specializing in breeding, training<br />
and boarding standardbred horses.<br />
KATRINA MARY SHAND, 21, Penns Grove,<br />
NJ, a junior majoring in radio, television and<br />
film production at Rowan University in Glassboro,<br />
NJ. The daughter of harness racing trainer<br />
Kenneth Shand and horse owner and bookkeeper<br />
Shirley Shand, Katrina has worked as a<br />
caterer, cashier and toll collector for the Delaware<br />
River and Bay Authority to help finance<br />
her education and has maintained a 3.74 grade<br />
average while doing so. Her trainer father came<br />
to America from Australia in 1974 and Katrina<br />
and her four siblings all have worked with the<br />
family stable and are involved in various aspects<br />
of the sport, her brother Ross as a farrier and<br />
former competitor in HTA’s junior driving<br />
championships.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
WOODBINE PADDOCK A WINNER<br />
HTA member Woodbine Entertainment Group<br />
(WEG) unveils its new standardbred paddock<br />
and retention barn in a ribbon-cutting ceremony<br />
today. A WEG release describes the 62,000<br />
square foot facility as having the “look and<br />
feel of a cupola’ed Kentucky barn.” The new<br />
barn incorporates 120 stalls, office for industry<br />
regulators and other racing officials, a new<br />
broadcast studio and tack shop. A new amenity<br />
provided for horsemen is a second-floor lounge<br />
and restaurant that offers a panoramic view of<br />
the track. The separate 32-stall retention barn<br />
adjacent to the new paddock facility will serve<br />
both thoroughbreds and standardbreds and<br />
function as a quarantine barn when necessary.<br />
Bruce Murray, vice president of standardbred<br />
racing at WEG, said, “During the business<br />
phase of the paddock, we investigated the best<br />
practice features at other racetrack paddocks<br />
and incorporated them into this facility to make<br />
it state of the art.” The new facilities were built<br />
with “green” in mind. With improved insulation<br />
and “smart” meters installed throughout to<br />
monitor electricity consumption, the building<br />
“will offer unparalleled comfort to horsemen<br />
and horses in both winter and summer.” Gray<br />
water from wash stalls and the parking lot<br />
will be diverted to the infield lagoons and used<br />
for watering and conditioning the racetracks.<br />
Recycled products have been employed whenever<br />
possible, including fans, lights and heaters from<br />
the old paddock building. Both new facilities are<br />
wheelchair accessible.<br />
In recognition of the fact that WEG<br />
serves as a leading-edge corporation for<br />
environmental stewardship, it is being awarded<br />
JohnsonDiversey’s “Sustainable Facility Care<br />
Award,” the first Canadian corporation<br />
to receive the distinction. The award is<br />
to be presented to WEG Chairman and<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Paul J. Estok, Editor<br />
October 9, 2008<br />
CEO David Willmot during the ribbon-cutting<br />
ceremony for the new paddock. The award<br />
recognizes facilities that demonstrate a firm<br />
commitment to environmental sustainability.<br />
CASE PROBATION PLAN AIRED<br />
Former driver Walter Case is hoping to be released<br />
on parole after serving four years of a<br />
five-year sentence for stabbing his wife with a<br />
steak knife. Case was in court on Monday in<br />
Portage County, Ohio, along with his attorney,<br />
Lawrence Whitney, according to an article in<br />
the New York Daily News by scribe Dave Little.<br />
At the hearing, Judge John Enlow saw fit to approve<br />
an early release for Case, on the condition<br />
that the State of New York go along with the<br />
probation plan Case and his attorney proposed.<br />
Under the plan, Case’s probation supervision<br />
would be transferred to New York correctional<br />
authorities and Case would be “released to his<br />
(trainer) brother (Tim) and work for his brother<br />
and work his way back -- hopefully -- into the<br />
good graces of the licensing people,” Whitney<br />
told Little. His probationary period would run<br />
two years, during which time he would “have to<br />
obey all laws and have to undergo counseling for<br />
alcohol, drugs and anger management, and he<br />
would have to report to (a probation officer) and<br />
be under the thumb of that probation officer for<br />
24 months.” Whitney added, “The judge has set<br />
another hearing for Oct. 27 and he is going to let<br />
him out if the folks in Orange County, New York<br />
will accept him as a probationer.”<br />
PLEASE SEND IN THOSE SURVEYS<br />
HTA <strong>Executive</strong> Assistant Brody Johnson is asking<br />
that HTA track personnel complete the two<br />
surveys that were sent to them. The first survey<br />
concerns Group Sales and is for a joint HTA-<br />
TRA project. The second survey is all about<br />
sponsorships. Deadline for returning the<br />
surveys is October 22, so please hurry!
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
October 10, 2008<br />
MAGNA ALL IN ON SLOTS VOTE<br />
Magna’s main man in Maryland, Tom Chuckas,<br />
the former boss at Rosecroft Raceway, has made<br />
clear that Magna will go all out to support an<br />
affirmative vote on slots at next month’s general<br />
election. The Baltimore Business Journal quoted<br />
Tom as saying, “Question 2 (the slot vote) will<br />
help preserve Maryland racing, which is supported<br />
by thousands of employees, hundreds<br />
of horse farms including thousands of acres of<br />
green space. All of which is at risk of disappearing<br />
from Maryland’s cultural, financial and historical<br />
landscape.”<br />
A bit higher up the Magna ladder, head man<br />
Frank Stronach, thru his COO Ron Charles<br />
at Santa Anita, announced that it will welcome<br />
“only those trainers and owners who have the<br />
welfare of racehorses as their primary concern.”<br />
Toward that quest, any trainer or owner transporting<br />
a horse to a slaughterhouse or an auction<br />
house engaged in selling horses for slaughter will<br />
be denied stalls at Magna tracks.<br />
DEWEY TO DAZZLE ‘EM IN KY<br />
The brilliant Deweycheatemnhowe, first trotter<br />
ever to win more than $3 million at 2 and 3, and<br />
still counting, will stand his first season of stud<br />
next year at Meg and Alan Leavitt’s Walnut Hall<br />
Ltd. in Lexington, for a $25,000 stud fee. With<br />
the Hambletonian, World Trotting Derby, Canadian<br />
Trotting Classic and Kentucky Futurity<br />
trophies all now carrying his name, the winner<br />
of all 10 starts at 2 and 11 of 13 at 3 still has the<br />
Breeders Crown in sight before season’s end and<br />
his retirement from racing. He will be bred to no<br />
more than 140 mares, and if he were to reach a<br />
75% success rate in settling those mares his stud<br />
fees for 105 matings could bring $2,625,000 to<br />
his owners -- trainer-driver Ray Schnittker, Ted<br />
Gewertz, Charles Iannazzo and the Deweycheatemnhowe<br />
stable, and breeder<br />
Walnut Hall Ltd.<br />
AND SPEAKING <strong>OF</strong> ROI<br />
Two of the six owners of Somebeachsomewhere,<br />
principal shareholder and trainer Brent<br />
MacGrath and now retired fellow auto dealer<br />
Reg Petipas, talked to veteran Atlantic Canada<br />
harness writer Doug Harkness this week about<br />
their success. They discussed their initial investments<br />
of $10,000 each to buy the colt as a<br />
yearling at the Lexington yearling sale, paying<br />
$40,000, and revealed that after the colt’s first<br />
race and first victory, a track record 1:54.2 mile at<br />
Grand River Raceway in Ontario, they were offered<br />
$250,000 for Somebeachsomewhere. They<br />
turned it down, considering they had the best<br />
horse for the $300,000 final of the race. It was<br />
a rather wise decision, considering that after the<br />
colt’s victory last Saturday in the $293,000 Tattersalls<br />
Pace his earnings stand at $2,603,775.<br />
JUG WINNER IN WINDY CITY<br />
Shadow Play, the winner of this year’s Little<br />
Brown Jug at Delaware, Ohio, tries for big city<br />
laurels tonight in the $275,000 Windy City Pace at<br />
Maywood Park. It cost his owners, who include<br />
former Montreal Canadians HNL star Serge<br />
Savard and his son Serge Jr., $30,000 to supplement<br />
the colt, who was not originally nominated<br />
for the rich race. He will face the million-dollar<br />
winner Badlands Nitro and local favorite Mucho<br />
Sleazy, over Maywood’s half-mile track. Badlands<br />
Nitro has won $1,287,184 this year, including<br />
the Art Rooney and Battle of the Brandywine<br />
and a second place finish in the Cane Pace<br />
in his accomplishments. The race takes two of<br />
the world’s best drivers, Brian Sears and David<br />
Miller, to Chicago, Sears driving Badlands Nitro<br />
for trainer George Teague and Miller guiding<br />
Shadow Play, as he did in the Jug.<br />
WE KNOW YOU’RE BUSY, BUT...<br />
Please take the time to return your Group Sales<br />
and Sponsorship surveys to Brody Johnson<br />
at HTA by Oct. 22.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
October 13, 2008<br />
TANNER NEW USTA EXEC VP<br />
Mike Tanner, a veteran of both the harness and<br />
thoroughbred wars, has been named the new executive<br />
vice president of the United States Trotting<br />
Association. Tanner, 42, brings youth and<br />
creativity to the job, having most recently run<br />
the racing operations at Harrah’s Chester Casino<br />
and Racetrack in Pennsylvania and previously<br />
serving as director of marketing, media<br />
and simulcasting, assistant to the president and<br />
director of communications at Magna Entertainment’s<br />
Gulfstream Park in Florida. In that role<br />
he served on the National Thoroughbred Racing’s<br />
Association Technology Group’s Communications<br />
Task Force. At Chester, he served as<br />
Action Officer and an alternate on HTA’s Board<br />
of Directors and a member of its Labor and<br />
Horsemen’s Relations committee. Tanner and<br />
his wife Gail will move shortly to Columbus and<br />
Mike will take charge of the association, which<br />
has been without a formal day-to-day administrator<br />
since the departure of Eric Sharbaugh.<br />
HTA looks forward to working in close cooperation<br />
with Mike and congratulates him on his new<br />
role.<br />
THE FASTEST TROTTER EVER<br />
The sport has a new trotting king, the first ever<br />
to break the 1:50 mark for a mile. Enough Talk,<br />
owned by the Peter Kleinhans Stable and Jerry<br />
Silva, trained by Kleinhans and driven by Ron<br />
Pierce, won the $100,000 Patriot Invitational<br />
at Colonial Downs in Virginia Saturday night<br />
in 1:49.3, scoring by eight and one-half lengths<br />
over Vivid Photo. The victory over the mile and<br />
a quarter Colonial oval vaulted Enough Talk<br />
into the history books and into totally new time<br />
territory for trotters, and sent his earnings to<br />
$948,091, $15,000 more than his sire, the Swedish<br />
owned Enjoy Lavec, a son of Pine Chip.<br />
The win marked a major highlight for the<br />
savvy Kleinhans, a lawyer turned race<br />
called and trainer-driver.<br />
ITALIAN RACING IN CHAOS<br />
Horse racing in Italy -- harness and thoroughbred<br />
-- is non-existent at the moment, in the<br />
throes of a 10-day strike by horsemen protesting<br />
the lack of what they consider adequate purses<br />
from the nation’s governing racing body, UNI-<br />
RE. More than 2,000 of them reportedly held<br />
a protest in Rome last Wednesday, according to<br />
reports to USTA from its Italian correspondent<br />
Karsten Bonsdorf, then went on strike, cancelling<br />
Italy’s biggest weekend of harness racing,<br />
featuring the Oaks for fillies and Gran Premio<br />
Gaitano Turilli for colts and Derby Italiano, Europe’s<br />
richest race for 3-year-old trotters, yesterday.<br />
All three had been scheduled for the Tordivalle<br />
track in Rome.<br />
DEL NORTH IN STRETCH DRIVE<br />
Two-thirds of the way home in its race for the<br />
right to run a racino at Aqueduct, given the<br />
blessings of New York governor David Paterson<br />
and Assembly Speaker Sheldon Silver last<br />
Friday, Delaware North is mounting an all-out<br />
drive to clinch the deal this week by convincing<br />
Senate Majority Leader Dean Skelos it is the<br />
right company to do the job. The Buffalo News<br />
Albany bureau writer Tom Precious says Skelos,<br />
who can veto the deal, is unconvinced, and<br />
Delaware North president Bill Bissett will try<br />
to change Skelos’ mind this week. Bissett told<br />
Precious a Delaware North victory could add 50<br />
jobs at its Buffalo headquarters and create 1,500<br />
in Queens. Early Friday reports had said Delaware<br />
North had won the deal, but Skelos, who<br />
has taken over Joe Bruno’s powerful role in the<br />
state Senate, quieted that story later in the day<br />
when he said too many questions still were unanswered<br />
in Delaware North’s proposal, including<br />
a hotel and entertainment complex promised<br />
by its two competitors. SL Green and its partner<br />
Hard Rock Enterprises and Capital Play and<br />
its partner Mohegan Sun. Bissett questions<br />
the plans and projections of both.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
October 14, 2008<br />
HAWTHORNE SEEKS CASINO<br />
Daily Racing Form reports this morning that<br />
Hawthorne Race Course president Tim Carey<br />
and business associates will submit an ambitious<br />
bid to the Illinois Gaming Board today for the<br />
10th and final casino license available in the state.<br />
The plans, if Hawthorne gets the license, would<br />
transform the big track into a major entertainment<br />
destination, with the grandstand to be torn<br />
down and replaced with a casino suites hotel, a<br />
water park, a subterranean music theater in the<br />
infield, and movie theaters and retail space. The<br />
project, called Champions Resort and Casino,<br />
will be discussed at a public hearing tomorrow<br />
at which Hawthorne and other bidders will be<br />
announced. Three top bidders will be chosen<br />
within 10 days, and the gaming board hopes to<br />
announce the winner of the license, which was<br />
stripped from a disgraced casino in Rosemont,<br />
seven years ago, before the end of the year. The<br />
Carey bid, in partnership with Joe Canfora’s<br />
Merit Management and Ed Pilarz’ Atrium Development,<br />
has a compelling scenario, located<br />
as it is seven miles from Chicago’s downtown<br />
Loop, four miles from Midway airport, and with<br />
4.2 million people within 30 minutes driving<br />
time. “The more we talked about slots,” Carey<br />
told the Form’s Marcus Hersh, “the more we<br />
thought something needed to happen here over<br />
and above racing. Racing as it exists here is not<br />
going to last much longer.” Hawthorne had its<br />
harness racing dates stripped from it by the Illinois<br />
Racing Board recently, and Carey says if<br />
approved the track’s redevelopment would take<br />
place in two phases, with a major “retrofitting”<br />
within six months to house the casino, which<br />
would cover 40,000 square feet with 1,150 slots,<br />
table games and a poker room. Regardless of<br />
where the 10th casino license is awarded, legislation<br />
fortunately requires 15% of adjusted<br />
gross revenues go the racing industry in<br />
Illinois.<br />
A HOTEL FOR POMPANO?<br />
The South Florida Business Journal says Pompano<br />
Park will ask the Broward County Commission<br />
today to approve zoning changes that<br />
would open the way for owner Isle of Capri<br />
Casinos to build a 500-room hotel and industrial<br />
construction on parts of its 162 acres of<br />
track property. Isle also wants approval to expand<br />
its casino, currently 46,503 square feet, to<br />
55,000. Broward’s Environmental Protection<br />
and Growth Management Development and<br />
Regulation division has recommended approval<br />
of the requests. No requests are included<br />
for changes in the 5,256-seat grandstand, the<br />
850 stalls on the backstretch, or the track’s 154<br />
dormitory rooms for grooms.<br />
DRIVERS GET 60K AT CHESTER<br />
Harrah’s Chester Racetrack, continuing major<br />
innovations, conducted its $60,000 Drivers’<br />
Challenge Sunday, with 8 top drivers chosen<br />
randomly from a list of 12 nominees. The winner,<br />
taking down $15,000, was Daniel Dube,<br />
with Yannick Gingras winning second prize of<br />
$12,000 and Tim Tetrick earning $10,000. The<br />
rest of the field all won money, David Miller<br />
getting $8,000 for fourth, Cat Manzi $6,000 for<br />
fifth, Eric Goodall $5,000 for sixth, Dave Palone<br />
$3,000 for seventh and George Napolitano Jr.<br />
$1,000 for eighth. All drivers competing donated<br />
their 5% driving purse shares to Operation<br />
Warm, a charity that provides warm winter<br />
clothing to underprivileged children.<br />
RACING IN FOR $2.6 MIL IN MD<br />
Racing interests, led by Penn National’s $1 million,<br />
have pumped $2.6 million into support of<br />
the slots drive in Maryland, according to a report<br />
by David Collins of WBAL-TV.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
October 15, 2008<br />
CASINO RACE HEATS UP IN CHI<br />
The race for the 10th and final casino license in<br />
Illinois heated up this morning, with Hawthorne<br />
president Tim Carey announcing Chicago hero<br />
Mike Ditka, former Bear great and coach, as part<br />
of the Hawthorne bid package. Rosemont, where<br />
the old 10th Emerald casino license was nullified<br />
years ago, also had a major announcement,<br />
saying it had sold the 7-acre Emerald property<br />
and another stretch along the Tri-State tollway<br />
near O’Hare Field to Trilliant Gaming Illinois,<br />
an offshoot of Los Angeles-based Trilliant whose<br />
principals include former MGM chairman and<br />
MGM Grand president Alex Yemenidgian and<br />
Canadian investment conglomerate Onex Corporation.<br />
The Illinois Gaming Board will announce<br />
all applicants today and hopes to narrow<br />
the field to three finalists in the next week or so.<br />
WHIPLESS AT INDIANA DOWNS<br />
In an interesting experiment, Indiana Downs<br />
race secretary Scott Peine has scheduled Saturday’s<br />
night’s 7th race, a conditioned event for<br />
non-winners of $1,501 in their last 5 starts, to be<br />
raced without whips, and has boosted the purse<br />
to $8,000 for the event. A full contingent of the<br />
track’s leading drivers will participate. The HTA<br />
member has been a leader nationally in punishing<br />
whip infractions under presiding judge Tim<br />
Schmitz. Saturday’s card also will include four<br />
$80,000 Indiana Sire Stakes for 2-year-olds of<br />
both gaits.<br />
HEY FOLKS - YOU’RE IN HTA<br />
It has been called to our attention that a number<br />
of member tracks do not list HTA in the links lists<br />
on their Web sites. This is an appeal to our general<br />
managers and contact officers to check your<br />
Web sites and please have your Web mas- ters<br />
take care of this immediately. We’re<br />
proud of our Web site, and you should be<br />
too.<br />
<strong>OF</strong>F-TRACK TESTS FOR CUP<br />
Horses pre-entered yesterday for the Breeders’<br />
Cup races at Santa Anita will be subject to outof-competition<br />
testing by the California Horse<br />
Racing Board and Breeders’ Cup. The racing<br />
board said horses would be selected randomly<br />
from the pre-entry lists, and the tests would target<br />
epoetin, darbepoetin and other agents normally<br />
administered days or weeks before competition<br />
and not usually detectable in traditional<br />
drug-tests of post race samples. The Breeders’<br />
Cup will assist the racing board in collection of<br />
samples from pre-entered horses prior to their<br />
arrival in California.<br />
BENOIT TRIBUTE TOMORROW<br />
Oak Tree Racing, currently operating at Santa<br />
Anita, will host a memorial tribute to Bob Benoit<br />
tomorrow afternoon. The event will be held immediately<br />
after the races in Santa Anita’s Turf<br />
Club Chandelier Room. The popular Benoit,<br />
who died two months ago, was a former general<br />
manager and COO of Hollywood Park and operated<br />
his own public relations and racing photography<br />
firm, now operated by his partners<br />
Rayeta Burr and Tom Abahazy. Oak Tree executive<br />
vice president Sherwood Chillingworth,<br />
in announcing the memorial tribute, called Bob<br />
“a dear friend and an incredibly talented guy.”<br />
The editor, who enjoyed a 55-year friendship<br />
with Benoit, can echo those sentiments. Further<br />
details of the Benoit Memorial can be obtained<br />
from Oak Tree at 626-574-6345.<br />
A TIMELY SUGGESTION<br />
Debbie Little, president of the United States Harness<br />
Writers Assn. has cautioned her members<br />
not to delay in making air reservations for the<br />
HTA-TRA-USTA Racing Congress in Las Vegas<br />
Feb. 2-5. Flights have been reduced in number,<br />
and seats and rates should be locked in as early<br />
as possible. Hotel reservations for Bellagio<br />
should be made through HTA.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
October 16, 2008<br />
WIDE SPREAD IN CHI BIDS<br />
The Illinois Gaming Board, now preparing to<br />
narrow seven bids for the last Illinois casino license<br />
down to three, face a spread ranging from<br />
$60 million to $435 million in money plans offered<br />
by the applicants. The board’s attorney,<br />
Michael Fries, told the Chicago Tribune, “No one<br />
should assume that any one applicant has an advantage<br />
over another based solely on the amount<br />
of the initial application fee offered.” He said<br />
character and reputation of the applicants and<br />
their key officials, time needed to get operating,<br />
and how the new casino would affect existing<br />
ones, were among the major factors to be considered.<br />
The high bid came from Trilliant Gaming<br />
of Los Angeles, which bought the old Emerald<br />
Casino property and additional real estate from<br />
the town of Rosemont. The city of Waukegan,<br />
north of Chicago near the Wisconsin line, was<br />
second highest bidder at $225 million. Tim Carey<br />
of Hawthorne bid $150 million. A quick decision<br />
is expected from the board in narrowing its<br />
choice to three, with a final decision by the end<br />
of the year.<br />
NYRA MUDDY...FROM POLITICS<br />
The long anticipated racino at Aqueduct Racecourse,<br />
which seemed close to a decision on the<br />
operator last Friday when New York governor<br />
David Paterson and Assembly Speaker Sheldon<br />
Silver spoke for Delaware North, is stalemated<br />
again, mired in the mud of Albany politics. Senate<br />
Majority Leader Dean Skelos, despite taking<br />
part in what was described as “a good meeting”<br />
at Delaware North’s Buffalo headquarters, still<br />
will not sign off, and a new twist entered the picture<br />
yesterday when Senate Minority Leader<br />
Malcolm Smith said allowing Delaware North to<br />
modify its proposal would open the entire procedure<br />
to a lawsuit from the unsuccessful<br />
applicants. With Thanksgiving ahead,<br />
be thankful for what you have.<br />
AROUND THE CIRCUIT......<br />
THE RED MILE is likely to discontinue winter<br />
training, president and CEO Joe Costa announced,<br />
declaring it not economically viable.<br />
The track’s winter training population, he said,<br />
has dropped from 300 to 100 in the last seven<br />
years and although horsemen have offered to<br />
lease the barns and track, Costa told the Lexington<br />
Herald-Leader’s Janet Patton, “That doesn’t<br />
really work in the business model to do that.”<br />
Present plans call for closure from Nov. 15 to<br />
next July. Costa said he did not think shutting<br />
down for the winter made the track “any less viable,”<br />
noting it had always lost money on winter<br />
training. It will remain open for simulcasting.<br />
FREEHOLD RACEWAY has announced the appointment<br />
of Karen Fagliarone as its new race<br />
secretary, taking over for her longtime boss Peter<br />
Koch, who moves to the job at the Meadowlands.<br />
Karen has worked at Freehold for 29 years in a<br />
variety of roles, from the racing commission to<br />
publicity to assistant to racing secretaries Frank<br />
Ferrone and Koch. Her husband Michael is<br />
Freehold’s track superintendent.<br />
AT THE MEADOWS, perennial leading driver<br />
Dave Palone has won his 500th stake at the<br />
track.<br />
INDIANA DOWNS has modified conditions of<br />
its “whipless race” Saturday night. Drivers will<br />
be allowed to carry whips tucked under their<br />
arms, but use them only in an emergency.<br />
HALL <strong>OF</strong> FAME CEO Gail Cunard has been<br />
named winner of the Excelsior Award “for untiring<br />
dedication to the sport.” The award is presented<br />
by the Monticello-Goshen chapter of the<br />
U.S. Harness Writer’s Association and will be<br />
presented at the chapter’s 50th anniversary<br />
banquet at Kutsher’s Oct. 26.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
October 17, 2008<br />
GOOD NEWS IN CALIFORNIA<br />
The racing industry in California can breath<br />
easier today, with Gov. Arnold Schwarzenegger<br />
announcing the reappointment of Richard B.<br />
Shapiro to the California Horse Racing Board.<br />
Shapiro, former president of Western Harness<br />
Racing Association and current president of Winco<br />
Real Estate Services, is from an old-line dual<br />
breed harness racing and thoroughbred family.<br />
He has led the board as chairman in recent<br />
years as an activist, pursuing new reforms that<br />
have increased the board’s stature and standing<br />
on the national racing scene. Schwarzenegger<br />
showed good judgment in reappointing the respected<br />
and knowledgeable racing leader.<br />
TWO WORLD MARKS IN WEEK<br />
Time, which has been assaulted regularly in the<br />
game this year, was buffeted again -- twice -- in<br />
the last week. First Peter Kleinhans’ and Jerry<br />
Silva’s Enough Talk lowered the world trotting<br />
record for a mile to 1:49.3 in the $100,000 Patriot<br />
Invitational over Colonial Downs’ mile and<br />
a quarter one-turn track, beating Vivid Photo<br />
by eight and one-half lengths with Ron Pierce<br />
driving. Then, yesterday at the Meadows, the<br />
2-year-old S J’s Caviar colt Keystone Activator,<br />
owned by Trillium Racing Stable and Tammie<br />
Raymer, and driven by trainer Jim Raymer, won<br />
the $125,389 Keystone Classic, trotting in 1:55.3,<br />
the fastest mile ever by a 2-year-old on a fiveeighths<br />
mile track.<br />
A TAKEOVER AT YOUBET?<br />
Ryan Conley, writing for Bloodhorse.com, reports<br />
that Michael Brodsky, president and CEO<br />
of Youbet.com, could be contemplating a takeover<br />
of the company by New World Opportunity<br />
Partners, a firm he also manages. Youbet would<br />
not comment, but New World mentioned a<br />
takeover of all shares in a filing with the<br />
SEC, according to Conley’s story.<br />
VIGILANTE: <strong>HARNESS</strong> ON TV<br />
There is much talk but little action getting harness<br />
racing on television, but a video production<br />
company out of the unlikely location of Bozeman,<br />
Montana, has quietly been doing the best<br />
job in the industry. Backed by industry sources<br />
including the Hambletonian Society/Breeders<br />
Crown, Tioga and Vernon Downs, and the<br />
Purple Haze Stable, Vigilante Films’ aggressive<br />
producer-writer Stephen Ellis has landed multiple<br />
harness shows on TVG. Utilizing the formidable<br />
talent of TVG announcer Gary Siebel,<br />
Vigilante has placed a half-hour weekly show<br />
called Trotters & Pacers on TVG, and its episode<br />
on the Hambletonian has been playing this<br />
week, Monday at 9:30 a.m., Tuesday at 1 a.m.,<br />
Wednesday at 10 a.m., and today at 8:30 a.m.,<br />
all times Eastern. It may not be prime time, but<br />
it is a foothold not available previously. In addition<br />
to live racing, the show includes interviews,<br />
handicapping tips, feature stories and race analysis,<br />
with Siebel performing at his very top form.<br />
Vigilante also has produced a half-hour show on<br />
Tioga and Vernon Downs scheduled for showing<br />
on TVG. It features Tioga’s annual drivers’<br />
championship and interviews with defending<br />
champion Yannick Gingras and the veteran Vernon<br />
trainer-driver Howard Okusko Jr.<br />
DISMISSAL DENIED ON DOMAIN<br />
The judge handling Kentucky’s threat to take<br />
over 141 Web site domain names the state says<br />
are operating there illegally, yesterday denied a<br />
request from the defendants to dismiss the case,<br />
and set Nov. 17 for a hearing. A review of the<br />
judge’s reasoning will appear here Monday.<br />
TAKE HEART AT PA <strong>TRACKS</strong><br />
In a bold proactive move to ensure cardiovascular<br />
health of horses racing in Pennsylvania, the<br />
racing commission is implementing a heart testing<br />
program including on-track electrocardiograms.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
October 20, 2008<br />
BOBBY SOPER A MEDIA STAR<br />
Gaming & Leisure is a slick, shiny and very expensive<br />
($15 a copy) quarterly magazine on<br />
resort and entertainment technology. It was a<br />
double delight, therefore, to see the cover of its<br />
Fall issue feature a great full color picture of<br />
Robert J. (Bobby) Soper, president and CEO<br />
of HTA member Mohegan Sun at Pocono and<br />
that track’s representative on the HTA Board of<br />
Directors. The magazine’s feature story inside<br />
devotes four full pages, with more four-color illustrations,<br />
of Soper and the track near Wilkes-<br />
Barre, PA, selecting him as the subject of the<br />
gaming industry’s “Top 20 Under 40.” The full<br />
story will be sent to all other directors as this<br />
week’s Track Topics, and Bobby’s comments in<br />
the long interview make interesting reading for<br />
racing and gaming executives everywhere.<br />
DELAWARE NORTH BATTLING<br />
William Bissett, president of Delaware North<br />
Companies Gaming & Entertainment, met in<br />
Albany last Friday with the Senate Majority<br />
staff, explaining in a question-answer session<br />
his company’s plans for the Aqueduct casino, if<br />
it gets that plum. Bissett said Delaware North<br />
was not asked to amend its bid, “nor are we<br />
able to do so because of legal constraints,” but<br />
he called the meeting “productive in dispelling<br />
certain misconceptions regarding our approach,<br />
chief among them that our proposal does not involve<br />
economic development.” Bissett said the<br />
proposal always included “a comprehensive vision<br />
for a world-class destination attraction that<br />
would be a catalyst for regional growth.” Gov.<br />
David Paterson and Assembly Speaker Sheldon<br />
Silver both have endorsed Delaware North as the<br />
Aqueduct operator, but Senate Majority Leader<br />
Dean Skelos so far has refused to grant his needed<br />
Senate approval. Bissett says Delaware<br />
North approval would produce 1,200 permanent<br />
jobs in Queens and up to 100 at<br />
the company’s Buffalo headquarters.<br />
BIG PAYDAY FOR ARNEAULT<br />
<strong>Executive</strong> pay for departing chieftains -- some<br />
who run their companies into the ground -- is hot<br />
news these days, but in the case of Ted Arneault<br />
it is a different story. Arneault built MTR Gaming<br />
Group from the ground up in the last 13<br />
years, and the company acknowledged that last<br />
week in providing him with some $12 million as<br />
he prepares to leave. In addition to the corporate<br />
residence and a $400,000 bonus, he walks<br />
away with a 30-month consulting contract paying<br />
$512,000 a year and a compensation trust<br />
worth $11.9 million before the recent economic<br />
turbulence. In return, Arneault agreed to a noncompetitive<br />
clause covering gaming and racing<br />
properties within 150 miles of any MTR operation.<br />
MTR’s new president and CEO, Robert F.<br />
Griffin, will take over from Arneault on Nov. 1.<br />
CAPELLI SCALES BACK<br />
Developer Louis Capelli’s $1.1 billion Entertainment<br />
City in the Catskills in New York is shrinking<br />
a bit under the pressure of the lending crisis.<br />
Capelli hired a new architect, and the sweeping<br />
curves of his proposed 750-room hotel are being<br />
replaced by a more conventional rectangular<br />
tower. Capelli also is moving some buildings<br />
around, but says the project still will be completed<br />
on schedule by 2010.<br />
WHICH PAPER DO YOU READ?<br />
If you live in Maryland, your daily read is likely<br />
to be either the Baltimore Sun or the Washington<br />
Post. If you read both, you may be confused<br />
about the upcoming vote on slots in Maryland.<br />
Both ran editorials on the issue yesterday, the<br />
Sun calling slots the best chance for Maryland to<br />
boost its sagging revenue, the Post calling them<br />
“a neon mirage” that will enrich owners of race<br />
horses and the tracks they run on. That issue,<br />
and Issue 6 in Ohio -- approval or rejection of<br />
a $600 million casino -- will be decided<br />
Nov. 4.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
On the argument of whether poker is a game<br />
of luck or skill, Wingate said it made no difference<br />
in this instance. The Poker Players Alliance<br />
contended their interests were different from<br />
others because poker required more skill than<br />
luck. Wingate said it was immaterial because<br />
Kentucky’s statute involved in the case was silent<br />
on the issue, simply indicating an element of<br />
chance, but not specifying proportions between<br />
luck and skill.<br />
As to Kentucky having jurisdiction over domains<br />
that are not present or maintained in the state,<br />
Wingate dismissed the argument that a domain<br />
is where it is owned or housed, and reaffirmed<br />
a state’s right to adjudicate the matter. He said<br />
Internet geoblocking was one way of bringing<br />
the sites into conformity with state law.<br />
The judge made clear that any of the 141 sites<br />
that provide information only would be dismissed<br />
from the case at the Nov. 17 hearing,<br />
where the state’s action in confiscating the domain<br />
names of sites that failed to block<br />
Kentucky residents from participating in<br />
their gambling action.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
October 21, 2008<br />
TOUGH JUDGE IN KENTUCKY As for the major organizations contesting Kentucky’s<br />
right of confiscation of domain names,<br />
Thomas Wingate, the Franklin county circuit<br />
court judge handling Kentucky’s battle against Wingate ruled they had no legal standing in the<br />
141 illegal Web gambling sites, has shown toughness<br />
and an understanding of the issues in the ance that says it has more than a hundred thou-<br />
matter. That included the Poker Players Alli-<br />
ground-breaking case. Gov. Steve Beshear is attempting<br />
a unique takeover of the Internet dotion;<br />
and the Interactive Media Entertainment<br />
sand members; the Internet Commerce Associamains<br />
of the sites, and so far Wingate has supported<br />
the governor’s arguments for. Last week and ICA had not claimed standing, but filed am-<br />
and Gaming Association (IMEGA). The PPA<br />
he denied a motion for dismissal of the case by icus “friend of the court” briefs. Network Solutions,<br />
another organization involved, was denied<br />
lawyers representing the gambling sites, and set<br />
Nov. 17 for a hearing. In doing so, he spelled standing until it identifies its owners. Online<br />
out his rationale, and his reasoning is interesting.<br />
Here are a few of his points, as reported by IMEGA “surprising,” in view of its acceptance<br />
Casinos called the ruling of no standing against<br />
Online Casinos:<br />
in a federal case earlier this year. Wingate made<br />
it clear that he shares the state’s contention that<br />
affected domain owners should appear in court<br />
and identify themselves.<br />
‘BIG’ DOINGS AT HARRINGTON<br />
Harness racing’s best older pacer, Joe Muscara’s<br />
Mister Big, proved his standing again last night,<br />
scoring his ninth straight victory with a 1:51.1<br />
triumph in the $317,000 Bobby Quillen Memorial<br />
at HTA member Harrington Raceway in Delaware.<br />
The win sent Mister Big’s lifetime earnings<br />
past $3.2 million. The 5-year-old son of<br />
Grinfromeartoear is trained by Virgil Morgan Jr.<br />
and was driven by Brian Sears. The race, with a<br />
standout full field, was Harrington’s richest, and<br />
honors the track’s former longtime board member<br />
and state legislator, Bobby Quillen.<br />
IKE K.O.’S HOUSTON MEETING<br />
In the “things could be worse” department,<br />
count your blessings that your track is not on<br />
the Gulf coast. Sam Houston Park in Houston,<br />
Texas, had to cancel its 65-day meeting at its<br />
home track yesterday, unable to complete timely<br />
repairs to its grandstand and stable area inflicted<br />
by Hurricane Ike Sept. 13. Discussions are<br />
underway to move the meeting to another<br />
Texas track.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
October 22, 2008<br />
YO! EXPRESS YOURSELF<br />
We now are only 15 weeks away from the 2009<br />
Racing Congress at Bellagio, and the HTA staff<br />
has turned its full attention from producing and<br />
auditing the art auction to arranging and programming<br />
the Congress, and turning out our<br />
regular HTA daily, weekly and monthly reports.<br />
Put another way, you now have only three months<br />
to make your plane reservations (whichever airline<br />
you choose); only two months to make your<br />
Bellagio hotel reservations (thru HTA, not the<br />
hotel, cutoff December 15); and two days -- or<br />
today -- to unburden yourself of novel and original<br />
ideas for new approaches, new speakers, new<br />
panels, new ideas, for operations and answers to<br />
the vexing problems of the present.<br />
Well, we’ll give you a little longer, but the gist of<br />
the message is don’t delay. Tell us of scintillating<br />
speakers you have heard, inspiring motivators<br />
you have met, brilliant ideas you have harbored<br />
for years. Do it now, before we finalize the agenda,<br />
which hopefully will both entertain and educate<br />
in new ways. Those two guys on television<br />
are not the only ones planning change. And keep<br />
in mind that TRA, horsemen, writers and other<br />
racing organizations will be meeting with us.<br />
JEFF GREGORY UP AT BATAVIA<br />
Another round tonight in Batavia Downs’ unique<br />
All-Star Drivers Challenge. Instead of head-tohead<br />
competition -- often difficult to arrange<br />
given individual schedules of star drivers -- Batavia<br />
took a different approach. It scheduled a<br />
different top driver each week, for eight weeks,<br />
with each starting from the rail in his first race<br />
and moving out one post position in each race.<br />
Points are awarded 9-5-3-2-1 for finishing first<br />
to fifth. Jody Jamieson of Ontario leads after six<br />
weeks with 35 points. Jeff Gregory is up<br />
tonight. Jason Bartlett, who will represent<br />
the U.S. in the World Driving Championship,<br />
closes the series next week.<br />
OHIO COMMISSION SPEAKS UP<br />
The Ohio State Racing Commission has adopted<br />
a resolution opposing Issue 6 on the Nov. 4 ballot,<br />
which would open the way for a mega casino in<br />
one county, Clinton in the southwest portion of<br />
the state. The resolution says the commission is<br />
in favor of increased gaming in the state, but opposes<br />
Issue 6 “because it does not help the Ohio<br />
horse racing or agricultural industry, and may<br />
actually hurt the Ohio horse racing industry.”<br />
GOOD MOVES AT M’LANDS<br />
Meadowlands’ new director of racing, Peter<br />
Koch, is proposing significant changes for 2009.<br />
The late fall meet will be abandoned in favor of a<br />
Jan. 1-Aug. 21 schedule, the Hambletonian will<br />
be moved from the first week in August to the<br />
second, and the Sweetheart and Woodrow Wilson<br />
for 2-year-olds will be raced after the Hambletonian.<br />
Good moves!<br />
EADINGTON SEES TROUBLE<br />
Bill Eadington, the director of the Institute for<br />
the Study of Gaming and Commercial Gaming at<br />
the University of Nevada Reno, is no stranger to<br />
HTA. He has forecast problems and dark clouds<br />
for our game for years. Now the Reno Gazette-<br />
Journal reports Eadington telling an advanced<br />
economics class that three major Las Vegas casinos<br />
-- MGM Mirage, Las Vegas Sands and Boyd<br />
Gaming -- have been “whip-sawed” by debt<br />
markets and the global economy, and all three<br />
could face the prospect of bankruptcy because<br />
of heavy debt and falling stock prices. Eadington<br />
noted that MGM Mirage traded at $15 last<br />
Friday, down from a 52-week high of $95.66;<br />
Sands was at $13.06, from a high of $128.76; and<br />
Boyd Gaming traded at $5.22, from a year high<br />
at $42.85. “Either they are phenomenally good<br />
(stock) buys, or some of these companies are not<br />
going to be around,” Eadington said. Boyd Gaming<br />
called the idea of bankruptcy “preposterous.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
October 23, 2008<br />
IT’S DELAWARE NORTH<br />
With Senate Majority leader Dean Skelos relenting<br />
in his opposition to Delaware North as<br />
the operator of a racino at Aqueduct, the Buffalo<br />
sports giant scored what could be the most<br />
significant contract victory in its long history.<br />
Barring last minute complications, the longawaited<br />
and debated project now can get underway.<br />
Delaware North, already the choice of Gov.<br />
David Paterson and Assembly Speaker Sheldon<br />
Silver, got Skelos’ blessing after an important<br />
key to the issue -- state senator Serpin Maltese<br />
of Queens, where Aqueduct is located -- asked<br />
for it. Maltese is in a hot battle for re-election,<br />
facing a formidable Democrat opponent, and if<br />
he loses the Republicans could lose control of the<br />
Senate. Faced with that prospect, Maltese said<br />
Delaware North had convinced him of its commitment<br />
to go beyond its $370 million bid for the<br />
contract and provide other development for the<br />
Queens community. It is expected that the Aqueduct<br />
racino will take 15 months or so to build,<br />
which means it will open eight years after slots<br />
at tracks were approved in New York state. For<br />
Delaware North and its president, Bill Bissett,<br />
who skillfully navigated the mine field of New<br />
York politics, it was a case of good things happening<br />
for those who wait.<br />
In another lesser flap in New York state, the<br />
Paterson administration has refused to release<br />
contents of a report on privatization of the state<br />
lottery that cost taxpayers almost half a million<br />
dollars. New York paid the global financial services<br />
firm Rothschild that amount, but refuses to<br />
disclose what the report says, claiming to do so<br />
would “infringe on the state’s ability to potentially<br />
seek bidders to buy the lottery.” Gannett<br />
News Service was rebuffed in an attempt to access<br />
the information through the Freedom of Information<br />
Act, the state saying the report<br />
was exempt because it was prepared to<br />
assist state decision makers.<br />
IMPORTANT! GIVE US A HAND<br />
HTA executive assistant Brody Johnson has two<br />
works in the hands of students at the Race Track<br />
Industry Program at the University of Arizona,<br />
who help do the projects as part of class assignments.<br />
Those talented kids face school deadlines,<br />
and those tracks that have not returned their<br />
surveys are making life tough on the students<br />
and on HTA as well. There currently are two<br />
surveys in your hands -- one on Group Sales and<br />
the other on Sponsorship -- and all of us here,<br />
HTA, the RTIP, and particularly the students<br />
Brody has recruited, hope you will respond this<br />
week. Take a few minutes to fill them out and return<br />
them ASAP to enable the kids to get school<br />
credit and enable us to continue the program so<br />
helpful in providing additional staff support.<br />
“INTERNET SKILL” IN SENATE<br />
To add to the burden of keeping an eye on state<br />
and federal legislation, now comes a new proposal<br />
from Robert Menendez, U.S. Democratic<br />
senator from New Jersey. He has introduced the<br />
Internet Skill Game Licensing and Control Act<br />
of 2008, S. 3616. It would authorize the licensing<br />
of “Internet skill game facilities” which could<br />
then offer “Internet skill games.” What are such<br />
games? Senator Menendez says they are those<br />
“that use simulated cards, dice or tiles in which<br />
success is predominantly determined by the<br />
skill of the players, including poker, bridge and<br />
mahjong.” His legislation, the American Horse<br />
Council reports, would allow individuals to compete<br />
online in games against each other, but not<br />
in games against the ‘house,’ and not on sports<br />
events or pari-mutuel racing. All these years we<br />
apparently have been kidding ourselves, thinking<br />
handicapping of horse racing, regardless of<br />
breed, was skill, and raising and racing horses a<br />
matter of luck. Menendez’ bill has been referred<br />
to the Senate committee on banking, housing<br />
and urban affairs, with no action this session,<br />
but a likely hearing next year.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
October 24, 2008<br />
WHIPPING THE WHIPPERS<br />
Anti-whipping vigilance is spreading. At HTA<br />
member Plainridge Racecourse in Massachusetts,<br />
where former trainer-driver Steve O’Toole<br />
is general manager and Peter Tomilla is presiding<br />
judge, the track has banned one-handed<br />
whipping for months and now is introducing<br />
some whipless racing, with no whips allowed.<br />
The first of those appears on Plainridge’s condition<br />
sheet for next Monday, Oct. 27, offering an<br />
extra $500 to the purse for low earners. Since<br />
those horses frequently have difficulty getting<br />
regular starts, it was a logical move to get a full<br />
field. The track is serious about the subject. It’s<br />
leading driver, Jim Hardy, was set down for a<br />
week and the second leading driver, Mike Eaton,<br />
was benched for five days and fined $500, both<br />
for first offenses.<br />
CROWN VIDEO NEXT ON TVG<br />
Vigilante Films continues its harness racing<br />
productions on Television Games Network next<br />
week, presenting an episode on the Breeders<br />
Crown in its series Trotters and Pacers. The<br />
show can be seen on TVG Monday, Oct. 27, at<br />
9:30 a.m., Tuesday, Oct. 28 at 1 a.m., Wednesday,<br />
Oct. 29 at 10 a.m., and Friday, Oct. 31 at<br />
8:30 a.m., all times eastern.<br />
ANOTHER GOOD GUY GONE<br />
Les Ford, former editor of Harness Horse and<br />
a writer for that magazine for 38 years, died recently<br />
in Harrisburg, PA. He was 84. Les was a<br />
low key, highly efficient reporter, and his contributions<br />
to the sport were recognized by the U.S.<br />
Harness Writers Association 15 years ago, when<br />
he was inducted into the Communicators Corner<br />
of the Hall of Fame in Goshen. He also led<br />
American tours of European classic events with<br />
his Trotting Tours. Viewing is tomorrow<br />
at 10 a.m. at Paxton Presbyterian Church<br />
in Harrisburg, with services at 11.<br />
100 YEARS <strong>OF</strong> HISTORY GOING<br />
The 800 members who control the New South<br />
Wales Racing Club in Sydney, Australia, meet<br />
Sunday to vote on selling the historic Down Under<br />
track. Located in the heart of Sydney, Australia’s<br />
biggest city, the real estate value of the<br />
106-year-old track, and the move of racing to<br />
a new larger track in the suburb of Menangle,<br />
make it likely that a sale will be approved by a required<br />
50% of the club’s members. The Sydney<br />
Daily Telegraph reports if the sale is approved,<br />
the track should bring upwards of $150 million.<br />
The track’s chairman, Rex Horne, predicts that<br />
if the track is sold, as expected, $10,000 purses<br />
at Menangle will rise to $20,000, the Australian<br />
Derby will go from $100,000 to $200,000, and the<br />
Miracle Mile will be raised from $500,000 to $1<br />
million.<br />
MASS, DELAWARE ON BOARD<br />
Two more racing states have adopted the new steroid<br />
rules of the Racing Medication and Testing<br />
Consortium. The Massachusetts Racing Commission<br />
will institute prohibition of anabolic steroids<br />
Jan. 1, and the Delaware Harness Racing<br />
Commission has asked its Rules Committee to<br />
do the same, with an effective date of April 1,<br />
2009. Delaware is advising its horsemen, however,<br />
to cease administration of any and all anabolic<br />
steroids now.<br />
IT’S <strong>OF</strong>FICIAL. 2 VETS BANNED<br />
Their names and precise penalties have been<br />
backstretch talk all month, but the $10,000 fines<br />
and six-month suspensions of Ohio veterinarians<br />
Rick Mather and Rick Rothfuss from practicing<br />
in Kentucky were not confirmed until after<br />
a hearing earlier this week. It did not reach<br />
print in the Lexington Herald-Leader, however,<br />
until today. Unlabeled substances were found in<br />
searches of the vets’ vehicles. Their lawyer said<br />
they would not appeal. Out of competition<br />
testing also produced four positive tests.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
BIG A OK, BELMONT NEXT<br />
With Delaware North safely home a winner in<br />
the battle for the Aqueduct casino, the struggle<br />
now turns to Belmont Park. In a strange<br />
turn of events, the alliance that gave Delaware<br />
North the prize -- New York governor David<br />
Paterson and Assembly Speaker Sheldon Silver,<br />
overcoming opposition by Senate majority<br />
leader Dean Skelos -- now has changed, with<br />
Paterson and Skelos teaming up to push the<br />
Belmont plans against Silver’s opposition. The<br />
Associated Press reports that the Paterson-<br />
Skelos plan for Skelos’ district calls for 4,500<br />
video slots, a hotel, a spa and a conference and<br />
events center at Belmont. Whether Delaware<br />
North fits into the new plan is not clear. John<br />
Sabini, chairman of the New York State Racing<br />
and Wagering Board, seemed to be a step<br />
behind the doings in Albany. He told Newsday,<br />
“Nothing is off the table, but VLTs certainly<br />
aren’t going to be a keystone to this either.”<br />
Seems they are.<br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
October 27, 2008<br />
will vote on is whether to allow a big casino in<br />
the southwestern section of the state. Chances<br />
are good, given three earlier rejections, that the<br />
proposal will fail. Its chances were not helped<br />
over the weekend, when the governor of Ohio,<br />
Ted Strickland, publicly announced his opposition,<br />
saying, “I don’t think this is the right thing<br />
for Ohio.”<br />
THE BRITISH ARE COMING!<br />
And American thoroughbred racing had better<br />
find a Paul Revere to sound the alarm. With<br />
overseas visitors, four from England and one<br />
from France, winning Breeders’ Cup races on<br />
a glorious racing day at Santa Anita Saturday,<br />
American breeders need to take another look at<br />
the overall scene. Renowned racing writer and<br />
handicapper Andy Beyer and others feel synthetic<br />
tracks, much closer akin to turf than dirt,<br />
are going to change the face of American racing.<br />
Whether they do or not, it is clear European<br />
horses like them, and more will be on the way.<br />
IT’S <strong>OF</strong>FICIAL: HAROLD GONE<br />
While changes at century-old Belmont seem<br />
certain, another hundred-year-old track will<br />
be gone within two years. More than 300<br />
members of the New South Wales Racing Club<br />
in Sydney, Australia’s largest city, voted 90%<br />
in favor Sunday to sell venerable Harold Park,<br />
located in the populous Glebe section of Sydney,<br />
close to downtown. A sales price of $150<br />
million is expected, with the University of Sydney<br />
a potential buyer. Harold Park’s racing<br />
will move to the newly constructed Menangle<br />
Park, with purses doubling after the sale.<br />
OHIO GOV OPPOSES SLOTS<br />
When Ohio voters go to the polls next<br />
Tuesday, one of the hot-button items they<br />
In harness racing, meanwhile, it is the Canadians<br />
who are coming. The remarkable Somebeachsomewhere<br />
continued on his brilliant<br />
way, pacing through a driving windblown rain<br />
to catch Shadow Play at the wire for a neck<br />
victory in the $630,000 Messenger Stake, third<br />
leg of the pacing Triple Crown, over Yonkers<br />
Raceway’s half-mile track. He now has won 18<br />
of 19 races and $2.848 million lifetime. While<br />
the Canadian-owned Somebeachsomewhere<br />
was winning at Yonkers, Woodbine in Toronto<br />
saw Hawaiian Drink win the $585,000 Three<br />
Diamonds for 2-year-old filly pacers; Up<br />
Front Annika the $616,000 Goldsmith Maid<br />
for 2-year-old trotting fillies; Federal Flex the<br />
$718,000 Valley Victory for 2-year-old trotters<br />
and Nebupanezzer the $820,000 Governor’s<br />
Cup for colt pacers.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
October 28, 2008<br />
TROUBLES IN MINNESOTA<br />
Minnesota’s two racetracks -- HTA member<br />
Running Aces Harness Park and Canterbury<br />
Park -- have fallen on hard tines. Southwest<br />
Casino Corporation, operator of Running Aces,<br />
suffered a $4 million loss in its first season of operation,<br />
and has transferred its 50% ownership<br />
interest to Black Diamond Commercial Finance,<br />
a Connecticut lender that was the source of twothirds<br />
of the funding that built the $64 million<br />
track. Thomas Fox, president of Southwest Casino,<br />
which was listed as equal partner with MTR<br />
Gaming of West Virginia when the track opened,<br />
told the Minneapolis Star Tribune that Black Diamond<br />
had provided some $42.2 million of the<br />
initial investment. MTR announced some time<br />
ago it was seeking to sell its 50% share, estimated<br />
to be worth between $9.2 million and $12.5<br />
million. Operations continue with the track’s<br />
popular card room in operation and daily harness<br />
racing simulcasting continuing 7 days and<br />
nights a week with a sharply reduced staff. The<br />
53-night 2008 harness race meeting ended in<br />
July. The ownership transfer reportedly allows<br />
Southwest to repurchase its 50% ownership<br />
share as circumstances permit. Southwest CEO<br />
James Druck said he looked forward ultimately<br />
to doing that. In the meantime, Southwest will<br />
provide consulting services to Black Diamond<br />
for four months. Druck said Southwest Casino<br />
“remains committed to the success of Running<br />
Aces and is continuing to contribute to the city<br />
of Columbus,” where it is located. Canterbury<br />
Park, the state’s thoroughbred track, announced<br />
it will be laying off 60 employees, 10% of its staff,<br />
and will suspend its management bonus plan and<br />
employee stock ownership plan contribution for<br />
fiscal 2008. CEO Randy Sampson told the Minneapolis-St.<br />
Paul Business Journal the downturn<br />
in the nation’s economy had a significant<br />
adverse effect on the track’s card room<br />
and pari-mutuel revenues.<br />
SAVE LIVES OR SAVE JOBS?<br />
That was the choice facing the Atlantic City,<br />
NJ, City Council this week, and it chose, by a<br />
5-4 vote, to save jobs. It rescinded its two-week<br />
old ban on smoking in the city’s casinos, and returned<br />
to a partial smoking ban in which smoking<br />
is allowed in no more than 25% of a casino<br />
floor. Employees during the deliberation were<br />
split, some shouting, “Save Our Jobs!” while<br />
others chanted, “Save Our Lives!” according<br />
to newsday.com. Councilman Bruce Ward told<br />
the news service, “We had to reconcile two very<br />
compelling sides. No one wants to lose their job<br />
and certainly no one wants to lose their life. But<br />
the background of the financial crisis is connected<br />
to where we are tonight.” The Council acted<br />
after casinos told of losses close to 20% following<br />
the ban, and the president of the local chapter<br />
of the casino hotel, food and beverage workers,<br />
Bob McDevitt, pushed for the relaxation of the<br />
ban, saying, “In the current economic environment,<br />
I don’t think anyone with any intelligence<br />
would say its a good idea to give people another<br />
reason not to come to Atlantic City.” Of course<br />
not. Just don’t breathe while you’re there.<br />
CAMPBELL & BET<strong>AMERICA</strong><br />
BetAmerica.com, a service of Horse Race North<br />
Dakota, the charity which conducts live horse<br />
racing in Fargo ND, in association with Lien<br />
Games Racing, LLC, successor to Susan Bala’s<br />
shuttered Fargo operation, has announced a<br />
sponsorship contract with all-time driving champion<br />
John Campbell and other leading drivers.<br />
Campbell is wearing a BetAmerica patch on his<br />
driving pants and on the pocket of his driving<br />
jacket, and says he will do some promotional<br />
spots for the company during the year. In announcing<br />
the contract deal, BetAmerica said it<br />
“looks to increase visibility of harness racing<br />
worldwide.”
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
ANY IDEA HOW BIG THIS IS?<br />
Does anyone realize just how huge the Aqueduct<br />
casino, finally ready to be built, will be? Two<br />
people who do, clearly, were pictured on the<br />
front page of the Buffalo News business section<br />
yesterday: Gov. David Paterson of the state of<br />
New York and Jeremy Jacobs, chairman and<br />
CEO of Delaware North, who will develop and<br />
run the Aqueduct operation. Not only will it<br />
be the only legal casino in the city of New York,<br />
but it will have its own subway stop to transport<br />
thousands to the site. Delaware North is paying<br />
$370 million upfront, and a minimum $250<br />
million for development of a world-class gaming<br />
and entertainment center, and another $200 million<br />
possible for a hotel and other components<br />
of the Aqueduct complex. The governor, in the<br />
Buffalo press conference, said he felt the Aqueduct<br />
operation would provide the state with<br />
“new economic resources” in its effort to close<br />
a multibillion dollar budget gap. He showed a<br />
sense of relief and humor, too. When a reporter<br />
asked how long it will take to build, Paterson<br />
replied, “I guarantee you it will take less than<br />
seven years,” alluding to the time passed since<br />
the enabling legislation for the racino was passed<br />
by the state legislature. The expected construction<br />
time for the 328,000 square-feet casino is 14<br />
months. It will be built by the Peebles Corporation,<br />
the nation’s largest African-American real<br />
estate development company, headed by R. Donahue<br />
Peebles. One headline read, “R. Donahue<br />
Peebles Makes Grand Entrance Into New York.”<br />
The company has a $4 billion portfolio of luxury<br />
hotels, high rise residences and commercial developments<br />
nationwide. In an interesting aside,<br />
Delaware North Gaming & Entertainment president<br />
Bill Bissett said the present financial crisis<br />
and its resulting credit crunch will not represent<br />
any significant hurdle for the project, casually<br />
noting that, “If need be, we can finance<br />
this without the credit markets.”<br />
October 29, 2008<br />
FEES NOW, INTEGRITY LATER<br />
In a clear statement of the priority of things<br />
in racing, or at least in Kentucky, an interesting<br />
juxtaposition of events this week. While<br />
Gov. Steve Beshear was signing an emergency<br />
regulation to increase all licensing fees for participants<br />
-- owners, trainers, drivers, jockeys<br />
veterinarians -- immediately, the commission<br />
sent a medication violation of Kentucky Derbywinning<br />
trainer Richard Dutrow Jr. back to a<br />
hearing officer who had recommended the commission<br />
overturn a 15-day suspension for excessive<br />
clenbuterol handed down by the stewards at<br />
Churchill Downs. A “clerical error” by a testing<br />
laboratory triggered the further delay. Also delayed<br />
was a new regulation requiring tracks to<br />
report all violations, results of investigations and<br />
security reports to the commission. This one is<br />
a real surprise, since it would seem a no-brainer<br />
that tracks should not keep security findings secret<br />
from the commission entrusted to run racing<br />
in the state. The tracks did not object to the<br />
proposal, but to its imprecise language, and the<br />
commission ordered it back for study and revision.<br />
It takes a little longer to get things right<br />
in Kentucky, but they are trying, having come<br />
a considerable way from the old days, and they<br />
deserve credit for effort. It was nice to hear attorney<br />
Ned Bonnie, one of the really good guys<br />
in Kentucky on things racing, give credit to harness<br />
racing for vigilance in banning two Ohio<br />
veterinarians whose trucks turned up with unlabeled<br />
substances in searches at the Red Mile. He<br />
implied such actions might be an inspiration for<br />
the runners. Great idea.<br />
BE GOOD TO BRODY WEEK<br />
Brody Johnson is up to 14 responses from HTA<br />
member tracks for the group sales survey and<br />
13 responses for the sponsorship survey for his<br />
monthly reports with the RTIP students. He<br />
has until Friday, then he’s gone. Save<br />
Brody. He’s too good to lose.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
October 30, 2008<br />
THE FREEHOLD DISPUTE<br />
HTA member Freehold Raceway has found itself<br />
caught in an unpleasant situation -- not of its<br />
own doing -- with its horsemen, members of the<br />
SBOA of New Jersey. The horsemen want the<br />
$1.6 million plus that was negotiated with Atlantic<br />
City casinos and Freehold would like them, for<br />
obvious reasons, to have it. At issue, however, at<br />
higher levels, is a disagreement over whether the<br />
money can be paid directly to the horsemen, who<br />
are threatening legal action to get it, including<br />
a counterproductive threat of cutting off simulcasting<br />
through the Interstate Horseracing Act,<br />
a move that would shut down horsemen’s share<br />
of those funds. Freehold’s owner Pennwood racing,<br />
a consortium of Penn National Gaming and<br />
Greenwood, owner of Philadelphia Park, hopes<br />
to resolve the issue, which also touches on their<br />
right to continue lobbying for slots during the<br />
three-year term of the Atlantic City agreement.<br />
Tom Luchento, president of the SBOA, says all<br />
the group wants is the money “obtained through<br />
the good faith efforts of the New Jersey Sports<br />
and Exposition Authority,” but also claims Pennwood<br />
has refused to sit down to discuss the issue,<br />
which Pennwood says is not true. Steps are<br />
underway today to resolve the issue, and officials<br />
are optimistic that a mutually agreeable settlement<br />
will be found without resorting to legal<br />
challenges.<br />
OHIO SIRE STAKES IN A JAM<br />
Doug Thomas, the administrator of the Ohio Sire<br />
Stakes, told tracks and horsemen yesterday that<br />
the fund faces a $300,000 deficit because of falling<br />
pari-mutuel handle. He says sponsorship of<br />
the Ohio ‘Super Night’ of OSS finals could solve<br />
the problem, or a cut from $20,000 to $16,000 for<br />
each leg of the series, with $80,000 finals. The<br />
fund controlling the stakes will reconvene<br />
Dec. 9 to vote on proposed budget changes,<br />
conditions, and dates for 2009.<br />
BIG WIN FOR WOODBINE LIVE!<br />
The Toronto City Council yesterday gave overwhelming<br />
support to a $120 million tax break<br />
over the next 20 years that helps clear the way<br />
for the huge $1 billion multiuse development<br />
of Woodbine Live!, the ambitious project being<br />
launched by Woodbine Entertainment on<br />
the spacious grounds surrounding its Woodbine<br />
track. Toronto mayor David Miller, a strong<br />
proponent of development of the largest plot of<br />
undeveloped land in the city, told reporters the<br />
project ultimately will add $250 million to Toronto’s<br />
coffers by 2028. Woodbine Live! is expected<br />
to be fully operational by the spring of 2011.<br />
AUSSIES PROPOSE HAIR TESTS<br />
On the eve of Australia’s biggest racing event, the<br />
Melbourne Cup Carnival, the nation’s largest<br />
selling daily newspaper, the Herald Sun, blazed<br />
a headline reading, “EPO rampant in racing:<br />
claims.” The story, like a Newark Star Ledger<br />
story a few years ago days before the Hambletonian,<br />
talked about the drug and not about<br />
racing, saying Racing Victoria Limited “has<br />
become increasingly concerned that the drug is<br />
being widely used in Victorian racing,” despite<br />
the fact that the RVL CEO, Rob Hines, told the<br />
Herald Sun’s rival Australian the day before that<br />
his board was determined Victorian racing was<br />
conducted without drugs. Hines did acknowledge<br />
that “It is possible that EPO is being used<br />
on horses,” said it was tested for randomly in<br />
blood and urine without one positive, but added<br />
that “anecdotally, we hear that the use of EPO is<br />
out there in the industry, so we cannot be certain<br />
that it is not in use and going undetected.” Victorian<br />
chief steward Terry Bailey is pushing for<br />
hair tests, a sophisticated procedure where hairs<br />
from a horse can show drug use over a prolonged<br />
period of time. It was used recently in Australia<br />
to determine that the great Phar Lap died<br />
of arsenic poisoning 76 years ago, in 1932.
<strong>HARNESS</strong> <strong>TRACKS</strong> <strong>OF</strong> <strong>AMERICA</strong><br />
<strong>Executive</strong> <strong>Newsletter</strong><br />
A daily fax and e-mail report on racing and gaming developments in North America and beyond<br />
Stanley F. Bergstein, Editor<br />
October 31, 2008<br />
SPOTLIGHT ON CHICAGO<br />
The nation’s harness racing spotlight falls on<br />
Chicago this weekend, with Balmoral Park featuring<br />
the American-National festival of racing.<br />
The ‘festival’ starts with the $116,000 2-year-old<br />
filly pace, with the local star Fox Valley Topaz,<br />
winner of 8 of 11 this year, the likely favorite.<br />
The $170,000 event for 2-year-old pacing colts<br />
and geldings is a standout race on paper, with<br />
Annieswesterncard, Schoolkids and Standupnkissme<br />
providing fireworks. Western Gritty,<br />
winner of 10 of 21 and in the money 16 times,<br />
faces the eastern invader Btwnyurheartnmine, a<br />
$322,525 winner, in the $165,000 3-year-old filly<br />
pace. Shadow Play, winner of the Little Brown<br />
Jug and Windy City, returns as a $28,000 supplemental<br />
entry in the $300,000 3-year-old colt<br />
pace. The continent’s best older pacer, Mister<br />
Big, winner of 11 of 13 and $1.5 million this<br />
year, figures to win another major victory in the<br />
$200,000 AmNat, and Enough Talk, a $16,000<br />
supplemental entry, should win the $190,000 trot<br />
for older horses.<br />
ON A SADDER CHICAGO NOTE<br />
The city of Cicero, home of Sportsman’s Park,<br />
has awarded a contract for the final demolition of<br />
the racing landmark. With leveling of the track,<br />
Sportsman’s joins Roosevelt Raceway on Long<br />
Island, Liberty Bell in Philadelphia and Brandywine<br />
Raceway in Wilmington, Delaware as major<br />
American tracks that are now huge shopping<br />
malls, or in the case of Sportsman’s soon will be.<br />
Cicero bought the entire Sportsman’s site for<br />
$18 million five years ago, found tax increment<br />
financing, and sold it for $28 million to developer<br />
John Buck, who will pay Cicero $25 million over<br />
23 years in installments on the TIF funding. The<br />
intersection of rising land value and descending<br />
racing revenues spelled the doom of the<br />
four giants, all within easy memory of<br />
current racegoers.<br />
WHILE ON THAT SUBJECT.....<br />
The owners of Wonderland Greyhound Park,<br />
long a fixture on the Boston area scene, came up<br />
with $752,301 in cash this week to avoid foreclosure.<br />
The track owed that amount to the city of<br />
Revere, a Boston suburb, for two years of back<br />
taxes and utility bills, along with the first two<br />
quarters of the current tax year, plus interest,<br />
and came up with it just in time to reapply for an<br />
operating license for 2009. Dog racing’s future<br />
rests in the hands of voters next Tuesday.<br />
AN ALL-<strong>AMERICA</strong>N POSITIVE<br />
It now turns out that Stolis Winner, the winner<br />
of the $1 million All-American Futurity for<br />
quarter horses at Ruidoso Downs in New Mexico<br />
last month, won with caffeine in his system. The<br />
substance is not allowed in New Mexico in any<br />
quantity, and Jerry Windham of College Station,<br />
Texas, owner of Stolis Winner, may be forced to<br />
return his share of the million dollar purse. A<br />
commission hearing has been scheduled for Nov.<br />
15, and the horse’s trainer, Heath Taylor, has<br />
been ordered to appear.<br />
GREGORY WINS BATAVIA PRIZE<br />
Jeff Gregory, a veteran of the Yonkers-Freehold<br />
circuit, has won first prize of $10,000 in HTA<br />
member Batavia Downs’ All-Star Drivers Challenge.<br />
With a different top driver competing<br />
each week of the eight-week competition, Gregory<br />
compiled 39 points on Oct. 22, and that total<br />
held up as highest in the tournament. Ontario’s<br />
Jody Jamieson was second with 35 points,<br />
Saratoga’s Howard Parker third with 34. The<br />
competition was co-sponsored by Batavia and<br />
the Purple Haze Stable, which is based nearby.<br />
Although he did not win, fans were impressed by<br />
Jason Bartlett, one of the most promising young<br />
stars in the sport, who finished no worse than<br />
third in eight drives. The Breast Cancer Coalition<br />
of Rochester was a beneficiary of the<br />
charity event.