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
KEY REPUB. OPPOSES ’NET BILL
An influential House Republican leader opposes
the current form of H.R. 3215, the Combating Illegal
Gambling Reform and Modernization Act,
and will resist efforts to advance the legislation to
the House floor this year, according to a report
published in the Las Vegas Review-Journal. House
Majority Whip Tom DeLay of Texas does not favor
Internet gambling, but is concerned that the
prohibition proposed by Rep. Bob Goodlatte (R-
VA) would diminish states’ rights, spokesman
Jonathan Grella said. “As far as moving forward,
Congressman DeLay wants to see all interested
parties work together on a ban that would not infringe
on states’ rights,” Grella said. With the bill
now opposed by Congressional leaders like DeLay
as well as by most gambling groups, the individual
states and several credit card companies -- who
feel the bill puts the onus of regulating the Internet
on them -- the House leadership will be hesitant
about bringing the legislation to the floor, several
lobbyists working on Internet gaming predicted.
Instead, legislation that came out of the Financial
Services committee, co-sponsored by James Leach
(R-IA) and Mike Oxley (R-OH) might have a better
shot. While several lobbyists say prohibiting
online gaming in the United States would only lead
to the increased use of offshore gaming sites, the
Leach-Oxley bill takes another approach by prohibiting
credit cards and other financial institutions
from collecting on those charges. And while some
credit card companies have already instituted policies
prohibiting online gambling with their cards,
the Leach-Oxley bill would likely force others to
follow suit.
VICTORY TILLY COMING TO U.S.
The connections of Swedish trotting champion Victory
Tilly have accepted an invitation to
compete in the $500,000 Nat Ray Trot on
Aug. 3 at the Meadowlands.
July 11, 2002
IOWA SUP. CT. SEEKS ADVICE
The Iowa Supreme Court has asked racetrack
operators to join the debate on its tax ruling last
month favoring the racetracks. In a brief order,
the court said interested parties have until July 24
to answer the state’s claim that the ruling was
flawed and should be reversed. Legal experts said
the order was unusual and an indication that the
justices, divided 4-3 on the tax ruling, were getting
ready to take another look at both sides of
the issue. In mid-June, the state high court struck
down a state law that allowed racetrack slot machines
to be taxed more than riverboat gambling
revenues. The court’s majority said the situation
was contrary to the equal protection clause and
therefore unconstitutional. In a strongly worded
petition filed on June 26, the Iowa attorney general,
representing the state, said the court intruded
on the authority of lawmakers, especially in the
area of taxes. “Courts must not pass on the reasonableness
of a tax by assessing its impact on a
particular business,” the petition said. Historians
note that the Iowa Supreme Court has reversed
itself only twice in the past decade while writing
about 2,000 opinions. The court is expected to consider
the attorney general’s petition in August.
TRUMP BUYS INTO VEGAS STRIP
New York-New Jersey real estate developer and
casino boss Donald Trump recently purchased a
9.8 percent stake in the Riviera casino’s parent
company, Riviera Holdings, in a deal he says was
solely done for “investment purposes.” The purchase
follows Trump’s announcement in April of
plans to join with casino operator Phil Ruffin to
build a $350 million, 60-story condominium just off
the Strip, near Ruffin’s New Frontier casino and
the Fashion Show Mall. For now, The Donald says
he has no plans to purchase or jointly operate
the 2,254-room Riviera after making the
stock buy.