2002 - Harness Tracks of America, Inc.

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
TUMULT IN ILLINOIS GAMING
There are some very unhappy people in Illinois
these days. Riverboat and casino operators for
openers. Some of them, like MGM Mirage, said
they are pulling out, forgetting about spending
$600 million or more to enter the Chicago casino
derby. All this occurred after the state
legislature’s action Sunday in raising progressive
tax rates on riverboat gambling from 35%
of revenue over $100 million to 50% over $200
million, and increasing admission taxes to the
boats from $2 to $3, without allowing more slots
and table games. Casino stock shares fell sharply
on Wall Street yesterday, ranging from losses of
6.4% for Mandalay to 20% for Argosy, and by
day’s end there was talk of legal action from the
Illinois Casino Gaming Association. If Gov.
George Ryan signs the bill, the increases would
take effect July 1, and the governor did not seem
intimidated by the threats of lawsuits. His
spokesman said the governor believes the tax increases
could withstand any sort of constitutional
challenge, and is prepared to defend the actions.
Things were no better for the embattled Emerald
Casino. The Illinois Gaming Board flatly
turned down its request for a new administrative
law judge in the licensing hearing currently
underway, and also denied the casino’s appeal
to disqualify the Gaming Board chairman from
voting in the matter.
There were some lumps for horse racing, too.
The Sunday afternoon massacre saw the temporary
death by neglect of the proposed merger of
Sportsman’s Park and Hawthorne Race Course,
with intertrack squabbling -- not unusual in
Chicago -- hastening the demise. The legislature
not only failed to act on that but also on the Illinois
budget, so it will continue in session.
Chances for new measures now grow slimmer,
since a supermajority will be needed to
pass legislation.
June 4, 2002
NYOTBS WANT NIGHT RUNNERS
Buffalo, NY, racing writer Tom Precious, writing
for Blood-Horse, reports that an unidentified “OTB
official” says the state’s OTBs are running out of
patience and want New York legislators to allow
them to carry thoroughbred signals at night. “We
think this is good for everyone. It’s not to be
greedy, but to make life better for everybody,” the
unnamed source told Precious. Everybody who?
Everybody in OTB? Everybody in harness racing?
The sport was guaranteed protection under
hold harmless provisions when OTB came into
being 31 years ago. The unidentified OTB official
told Precious, “We’ve really been very, very
patient.” So have we, waiting for some of those
hold harmless provisions to kick in. We would hate
to lose what we still have left, which are the nights,
without some generous form of compensation for
giving up that exclusivity.
A DANGEROUS MIRACLE?
Among the salves, ointments, notions, potions ,
preparations and beyond used on race horses,
one has been singled out by the federal government
as potentially dangerous, and ordered recalled.
It is Miracle Leg Paint, marketed by the
Equine Miracle Corporation of Grapeland,
Texas. The Federal Drug Adminstration says the
substance, used for the punishing old practice of
‘blistering’ a lame horse’s legs, contains a mercuric
chloride agent. Mercury is toxic and can
cause illness and even death in humans. The FDA
began investigating after an Alabama vet reported
the death and autopsy of a horse that died
after application of Miracle Leg Paint. No direct
link has been proved, but the FDA is investigating,
and says Equine Miracle was selling an
unapproved drug. Georgia Brown, the co-owner
of the company with her husband, was angry that
the FDA had not notified her earlier, but
agreed to the recall.