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
AHC ADDRESSES IHA CHANGES
Members of the American Horse Council’s Racing
Advisory Committee on Tuesday voted to oppose
the Pallone amendment to the Interstate
Horseracing Act of 1978 (IHA). (See HTA
Executive Newsletter of May 15, 2002.) The
amendment would have required an additional
approval (by the horsemen’s organization of the
same breed as the simulcast in the receiving
jurisdiction) for interstate simulcasting. Committee
members agreed that any possible changes to the
IHA should be discussed fully and openly by all
segments of the racing industry before such
changes are proposed to Congress. Since the
Pallone legislation had not been discussed
industry-wide, the committee voted to oppose the
legislation. In addition, the committee agreed that
issues not currently dealt with by the IHA might
best be handled at the state level or contractually.
AQHA SUIT SETTLED
The American Quarter Horse Association (AQHA)
reached an out-of-court settlement Tuesday that
will allow horse breeders to register embryo-transfer
foals, according to the Associated Press. (For
more on the case see the HTA Executive Newsletter
of June 11, 2002.) Attorneys involved in the
settlement said the AQHA agreed to amend its
rules, and horse breeders agreed to drop millions
of dollars in damage claims against the association.
District Judge Pat Pirtle approved the deal
that requires the AQHA to pay $550,000 in legal
fees. In 2000, several horse breeders sued the
AQHA, saying the association would not register
numerous superiorly bred, embryo-transferred
horses, a rule that seriously damaged the value of
their horses. Under the AQHA’s embryo-tranfer
rule, a mare could only produce one foal per
year eligible for AQHA registration. By
transferring embryos from one mare to a
surrogate, a breeder can produce multiple
June 12, 2002
foals per year, but only one foal was eligible for
AQHA registration each year. Under the settlement,
the AQHA agreed to change its rules effective
immediately. The AQHA said any foals produced
by the embryo-transfer technique will be eligible
for registration if they meet other registration
requirements.
PRAIRIE WINS BIG TAX CASE
A split Iowa Supreme Court on Wednesday struck
down a state law that taxes land-based casinos
more heavily than floating riverboat gambling operations.
The decision could punch an $8 million
hole in an already strapped state budget. “The
essence of the tax is that it treats racetrack slot
machines differently than riverboat slot machines,”
the court said. “Where the same activity is being
taxed at significantly different rates, a mere difference
in location is not sufficient to uphold the
discriminatory tax.” Dissenters in the 4-3 decision
argued that the legislature ought to be free to
structure a tax system as it sees fit. Under state
law, riverboat casinos initially paid a tax of 20 percent
on receipts over $3 million, since raised to 22
percent. Casinos located at racetracks are currently
taxed at a 32 percent rate that is scheduled
to increase to 36 percent. The court ordered that
both forms of gambling be taxed at 22 percent.
LIVERMAN TO CANADIAN HALL
Prominent Canadian harness owner and breeder
Irving Liverman has been elected to the Canadian
Horse Racing Hall of Fame. Liverman, who will
be inducted at a ceremony in Toronto on Aug. 29,
is one of four additions on the harness racing side,
along with horseman William (Bud) Fritz and horses
Staying Together and Super Wave. Thoroughbred
inductees include owner and breeder (and racetrack
owner) Frank Stronach, trainer Mac Benson,
jockey Ted Atkinson and racehorse Chief
Bearhart.