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
Paul Joseph Estok, Editor October 9, 2002
GEMSTAR CEO QUITS
BATAVIA GRAND RE-OPENING!!!
In a long-expected shake-up, Gemstar-TV Guide The grand re-opening of HTA member Batavia
International Inc. founder and chief Henry Yuen Downs happens tonight as Western Regional Offresigned
Tuesday, leaving with a $22 million payout
and handing potentially lucrative intellectual a cocktail reception for 400 guests, including HTA
Track Betting Corporation (WROTB) officials host
property rights to the maker of TV show guides. Executive Vice President Stan Bergstein. In addition
to fine dining, the new clubhouse also offers
Yuen was immediately replaced by Gemstar’s
Chief Operating Officer Jeff Shell, who was brought state-of-the-art computerized table-side betting.
to the troubled company, which is the parent company
of the TVG Network, by Rupert Murdoch’s High School Band, under the direction of Don
On hand for tonight’s festivities will be the Attica
News Corp. Ltd., a 42-percent Gemstar owner, as Rogers, and Justine Bateman will sing the National
Anthem. Live music and other entertain-
the company’s difficulties mounted over the last
year. According to a statement by Gemstar, Yuen ment will continue throughout the week. Post time
remains as Gemstar chairman, but only in a nonexecutive
capacity. In addition, Yuen’s longtime
is 7:35.
friend and colleague, Chief Financial Officer Elsie PA. POL WANTS SLOTS ACTION
Leung, resigned and will be replaced by News A Democratic state legislator yesterday urged the
Corp. finance executive Paul Haggerty, who will Pennsylvania House to move forward with a
be acting CFO while Gemstar looks for a permanent
replacement. Leung received a $7 million machines at the Keystone State’s four horse racing
proposal he introduced a year ago to legalize slot
severance payment and like Yuen will remain a tracks. Rep. Thomas Petrone’s bill has seen no
board member, Gemstar said. The moves had been movement since it was assigned to the House
anticipated after Gemstar suffered a string of legal
setbacks in recent months concerning patents racetracks to apply for slot machine licenses if
Finance Committee. The bill would allow
for television program guides. In addition, voters in the counties where they are located
Gemstar revealed in August that it would reverse support legalization in a referendum. “The modest
$20 million in 2001 sales and review its accounting
procedures. Later that month, Gemstar’s top help turn things around for the industry, the Lottery
expansion of gaming my legislation proposes would
officers failed to certify recent financial reports Fund and the economy,” said Petrone. But Steve
for the U.S. Securities and Exchange Commission Miskin, spokesman for House Majority Leader
and Nasdaq notified the company it was considering
delisting Gemstar shares from its stock mar-
expect to consider any proposals to expand gaming
John M. Perzel, said legislative leaders do not
ket system. Gemstar shares began 2002 at around until after the Nov. 5 election. The legislative
$28 but have lost more than 90 percent of their session ends Nov. 30.
value. On Tuesday, they ended the trading day at
STRONACH BUYS MORE MAGNA
$2.59 per share. Yuen will continue working with
Magna Entertainment Chairman Frank Stronach
Gemstar’s program guides and technologies, and
bought 1,852,450 shares of stock in the company
he agreed to assign the company all intellectual
property for company businesses
at prices between $3.40 and $4.92 in August and
early September, to hold a total of 3,434,050
he has developed or will develop.
shares in the racetrack and real estate
conglomerate.