HARNESS TRACKS OF AMERICA Executive Newsletter

HARNESS TRACKS OF AMERICA
Executive Newsletter
A daily fax and e-mail report on racing and gaming developments in North America and beyond
Stanley F. Bergstein, Editor
February 14, 2008
HERE IS NY’S VALENTINE The franchise board could create local advisory
Here is a summary of what the new racing legislation
passed yesterday in New York state pro-
offer input on development plans proposed by
boards for each track in the state which could
vides:
NYRA.
Extends NYRA’s franchise for 25 years.
Clarifies that the state owns all land on which
the three thoroughbred tracks rest, the physical
properties themselves, and all intellectual rights
including simulcasting.
Reconstitutes the NYRA board to include a total
of 25 members: 14 to be appointed by NYRA; 7
by the governor; 2 by the Senate and 2 by the Assembly.
The governor’s 7 would include 1 recommended
by horsemen, 1 by breeders, 1 by the
AFL-CIO and 1 by OTBs.
Ensures that the selection of the VLT operator to
be named at Aqueduct be subject to the unanimous
approval by the governor, Senate and Assembly.
Obligates NYRA to honor all collective bargaining
agreements to which it currently is a party,
and provides that any VLT operator selected will
enter into present labor agreements and they
and their service industries be represented by a
labor union.
Creates a Franchise Oversight Board of 5 members,
3 appointed by the governor and 1 each
by the Senate and Assembly, to ensure quality
racing and growth of the industry, raise revenue
for education, and ensure integrity and public
confidence in NYRA. The board would monitor
NYRA’s compliance with the franchise agreement,
could terminate NYRA’s franchise if there
were failure to comply with performance
standards, represent the state’s interests
and hold title to the tracks.
Provides for NYRA’s franchise agreement to
include performance standards, to be reviewed
by the oversight board every four years, relating
to racing dates, New York-bred races, stall
maintenance, jockey and equine safety, CAFO,
backstretch operations and the Saratoga training
track.
Provides a statutory percentage payment to
horsemen and breeders at NYRA and harness
tracks and increases marketing allowances to
VLT operators and capital expenditure allowances
(the Vernon Downs solution, but applicable
to all tracks.) In Yonkers’ case, the allowances
could reach $26 million. Vernon’s racino
reopened today.
EDUCATORS BACK GOV’S PLAN
In a lengthy document signed by scores of western
New York education advocates, the signors
endorsed Gov. Eliot Spitzer’s $4 billion public
higher education endowment without ever mentioning
expansion of the state lottery, which will
fund it. The plan is expected to initially produce
$220 million a year of new funding for state universities
and colleges, with that number increasing
to $330 million within 10 years by creating
an endowment fund of $6.3 billion.
AND OF COURSE NAYSAYERS
Not everyone was happy. Newsday on Long Island
called the NYRA agreement “bad for state
and Long Island” because it passed up billions
from private investors and does not provide
VLTs for Belmont Park. Its wrath was directed
against Assembly Speaker Sheldon Silver, who
successfully protected Aqueduct by shutting
out Belmont in the slots legislation.