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
EPO BAN LIKELY ON COAST
The California Horse Racing Board meets next
Wednesday, and it appears certain, given staff approval
and no adverse comments, that it will formalize
making the possession or use of erythropoietin
and darbepoietin a prohibited veterinary
practice in the state. The ban falls under interesting
language, noting that the two are in a category
“for which a recognized analytical method has not
been developed to detect and confirm its administration;
or the use of which may endanger the
health and welfare of the horse, or the safety of
the rider or driver.” It has been the editor’s position
that until “a recognized analytical method”
has been developed, which appears to be close at
hand, the happy face that has been put on drug
testing results in this country is largely meaningless
at worst, and misleading at best. California is
to be congratulated, along with other states and
organizations that are invoking prohibited practice
status for EPO and its related derivatives.
MIXED SIGNALS AT YOUBET
Youbet.com posted healthy figures for its second
quarter, with betting handle up 39% from $28.4
million in 2001 to a record $39.6 million this year,
and increasing monthly. In the six weeks since
June 30, handle averaged $3.6 million a week, up
from $3.1 million a year ago. The company’s net
loss dropped, down 21% to $2.58 million from $3.25
million a year ago. In its Form 10-QSB filing with
the Securities and Exchange Commission, however,
Youbet reported that it will require additional capital
to fund its future cash requirements on a timely
basis. Youbet noted that it has “suffered significant
recurring operating losses and needs to raise
additional funds to accomplish its objectives.
These matters raise substantial doubt about
the Company’s ability to continue as a going
concern” and restructuring may be
needed.
August 15, 2002
ROSECROFT “NOT FOR SALE”
That was the word from Sharon Roberts, executive
vice president of the Cloverleaf Standardbred
Owners Association, which owns the HTA track,
following a general membership meeting to discuss
two unsolicited bids from suitors. One was
from Greenwood Racing, which owns Philadelphia
Park and is in partnership with Penn National
Raceway in operation of Freehold Raceway, and
the other was from Centaur, which owns a sizeable
interest in Hoosier Park in Anderson, Indiana.
Ms. Roberts said the two companies presented
their proposals to Cloverleaf’s members, but
“there was no vote, just a chance for the membership
to have something to chew on.”
THE BUSINESS BEAT
With Bank of America and other banking firms
using statement stuffers to let customers know
they can’t use their credit cards for transactions
like Internet gambling, online services are resorting
to new technology. Ladbrokes, for instance,
has signed an agreement with Earthport, a payment
infrastructure company, to provide an e-wallet
service to players. The device will enable customers
to gamble online even when they are from
countries where there is a reluctance to use credit
cards for Internet purchases, according to Interactive
Gaming News........Siemens of Germany is
partnering with a new German software company
called Scaraboo to provide betting on sports events
after they have begun. Frank Shoop, chairman of
the Kentucky Racing Commission, said the idea
is worthy of discussion. “If someone wants to bet
on a horse race after it’s begun, then let them bet,”
Shoop says......Del Mar president Joe Harper and
MGM Grand/Mirage chairman J. Terrence Lanni
have resigned from the board of directors of Magna
Entertainment, citing time constraints involving
their own businesses.