HARNESS TRACKS OF AMERICA Executive Newsletter

HARNESS TRACKS OF AMERICA
DARKNESS DESCENDS
The sky turned black for Jeff Gural and horsemen
at his Vernon Downs and Tioga Downs
operations yesterday when “me too” infighting
among New York tracks doomed the tax relief
bill sponsored by Gary Pretlow, chairman of
the Assembly Racing and Wagering Committee.
Pretlow could muster only 2 votes on the 10-man
committee. He held the bill aside rather than see
it killed in committee, which could end racing at
the two Gural tracks. Pretlow said Yonkers Raceway
opposed the bill because it didn’t do enough
to help the track get out of a ‘bad’ business decision
to invest $280 million on a VLT facility that
doesn’t earn enough to pay off loans. Unlike
many racinos, Yonkers did not bring in major
professional operators to run its slots project,
but opted to do so itself. Two of Pretlow’s committee
members who opposed the bill said they
did so at the request of Yonkers, Monticello and
Saratoga. Other committee members objected
that Aqueduct was not included. An angry Pretlow
said his bill -- “which I never wanted to do”
-- would have provided $2.8 million for Batavia
Downs, $4.8 million for Buffalo Raceway, $2.4
million for Finger Lakes, $6 million for Monticello,
$6.2 million for Saratoga, $6.3 million for
Tioga Downs, $5.1 million for Vernon, and $26
million for Yonkers. Vernon and Tioga’s principal,
Jeff Gural, who was relying on passage of
the bill, said after it went down, “I don’t know
what to do. This is an example of just pure greed
on the part of some tracks in the state.”
The New York Racing Association, meanwhile,
still faces a Feb. 13 deadline, when its franchise
extension granted by the legislature expires.
CEO Charles Hayward says NYRA is working
on a contingency plan, which “we should be able
to share in the next day or two without
employees.” Hayward said the employees
will meet, perhaps tomorrow.
Executive Newsletter
A daily fax and e-mail report on racing and gaming developments in North America and beyond
Stanley F. Bergstein, Editor
February 6, 2008
If the sun isn’t shining in New York, it’s no brighter
in New Jersey. Bloomberg.com addressed the
issue today, saying Gov. Jon Corzine is caught
between Atlantic City’s casinos and the state’s
racing industry, harness and thoroughbred.
The article quoted Senate President Richard D.
Codey as saying, “The clock is ticking. If they
don’t do something quick, especially with the
subsidy, all hell is going to break loose.” Corzine
does not want to give the tracks slots, and the
casinos do not want to continue the $20 million a
year subsidy they paid the last four years under
a now expired contract. The quid pro quo was
that the tracks would not seek slots, effectively
guaranteeing the casinos slots monopoly in the
state. Now the casinos want it both ways. They
don’t want to help the tracks, their spokesman
asking, “Is Smith Corona looking for a subsidy
from IBM?” while at the same time asking the
state of New Jersey to leave them free of all competition.
A question for Joe Corbo, the president
of the Casino Association of New Jersey, would
seem appropriate: “Is IBM looking for a state
or federal law to eliminate competition, including
Smith Corona?”
STRONACH TO INVEST OWN $$
In a long interview in today’s Toronto Star, Frank
Stronach says his Magna Entertainment, which
saw its stock fall below $1 a share on Dec. 31,
will soon benefit from an infusion of millions of
dollars from Stronach’s own personal fortune.
“I can tell you now,” Stronach told business reporter
Tony Van Alphens, “I will put quite a bit
of money in there. I will put more than last time
($20 million last September) because I believe in
the concept.”
VETERANS AT RUNNING ACES
Bob Farinella has been named general manager
and Gregg Keidel racing secretary at the
new Minnesota track opening April 19.