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
PARK PLACE WINS, BIG
It still is a few years away, but an Indian casino in
the Catskills seems a good bet today after a federal
judge yesterday dismissed a $1.8 billion lawsuit
that an outfit called Catskill Development had
brought against Park Place Entertainment. The
Catskill group, which had hoped to work with the
St. Regis Mohawks on a casino at Monticello
Raceway, had claimed Park Place enticed the
Mohawks to renege on that deal and locate at
Kutshers Sports Academy instead, and had improperly
interfered with its business. Ironically,
one of Monticello’s founders was the late Milton
Kutsher, whose family hotel has been a Catskill
landmark for years. In dismissing the suit, U.S.
District Judge Colleen McMahon said the Catskill
Development group had not proved its claims and
contentions, and granted summary judgment to
dismiss all remaining claims. Park Place executive
vice president and chief legal officer Kim
Sinatra said the company was “delighted by the
decision, which vindicates in unambiguous terms
the position that Park Place had taken from the
beginning: our dealings with the Saint Regis
Mohawk Tribe were fair, proper and above board.”
Park Place, which owns, manages or has an interest
in 28 gaming properties operating under the
Caesars, Bally’s, Flamingo, Grand Casinos, Hilton
and Paris brand names, controls some 28,000 hotel
rooms and has 55,000 employees worldwide.
The company says it will build a world-class casino
resort at Kutshers, but does not plan to begin
construction until next year, after New York
courts have ruled on a pending suit challenging
the constitutionality of casino gambling in the state.
Joseph Bernstein, an investor in Catskill Development,
said that he plans to appeal the ruling on
behalf of the company. Residents in the area hope
the proposed casino can revive the area’s
depressed and highly depressing economy.
August 23, 2002
LICENSING DELAYS IN NM
In another development issue, the New Mexico
Racing Commission announced that it is not yet
ready to act on separate applications from R. D.
Hubbard and Shawn Scott to build a new horse
racing track in the city of Hobbs. Commission
chairman Greg Drake said the commission could
not make “a good rounded decision that would be
best for racing in New Mexico at this time,” and
said it would continue investigating circumstances
of Hubbard’s huge fine and loss of license in Indiana
and Scott’s legal battles in Louisiana. Hubbard
was forced to resign as head of Pinnacle Entertainment
and was fined $740,000 after it was alleged
that prostitutes were imported to entertain
VIP guests at Pinnacle’s Belterra Casino and Resort
property in Indiana and Scott -- who recently
became involved in majority ownership at Vernon
Downs in New York and Bangor Raceway in Maine
-- is involved in a contract dispute over a bonus
issue in his purchase of Delta Downs, which he
bought for $10 million and sold for $110 million or
so two years later.
CHANSKY OUT FOR GOOD IN NJ
The New Jersey State Racing Commission, acting
following the recommendation of the state’s
Office of Administrative Law, has permanently
revoked the license of trainer Richard Chansky,
suspended a year and a half ago on charges of
possession and use of illegal substances. The ruling,
effective next month, precludes any opportunity
to ever re-apply.
BIG RACES THIS WEEKEND
Major racing on tap tomorrow night. At Yonkers,
the second leg of the Triple Crown of trotting, the
Yonkers Trot. At Balmoral in Chicago, Kadabra
and Andover Hall in the American-National and
Cameron Hall in the filly division. At Freehold,
Cane Pace elims, and at Woodbine
the Fan Hanover and elims for the Metro
and Canadian Pacing Derby.