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2002 - Harness Tracks of America, Inc.

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HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor November 1, <strong>2002</strong><br />

A STORY GONE, A STORY HERE Now we find out.<br />

The Breeders’ Cup now is last Saturday’s news,<br />

but the Breeders’ Cup Ultra Pick Six is still very<br />

much with us, on page one <strong>of</strong> this morning’s New<br />

York Times and in newspapers everywhere else in<br />

North <strong>America</strong>. Secure computer tote systems, it<br />

turns out, are only as secure as the people operating<br />

them. Scientific Games, parent <strong>of</strong> Autotote,<br />

announced yesterday it had fired ‘a rogue s<strong>of</strong>tware<br />

engineer,’ and shortly after that it was reported<br />

that the rogue, identified by other sources<br />

as Chris Harm, 29, who worked in Autotote’s<br />

<strong>of</strong>fices in Newark, Delaware, reportedly had gone<br />

to Drexel University in Philadelphia with Derrick<br />

Davis, also 29, the $3 million Pick Six winner who<br />

had claimed he was an innocent victim who had<br />

just gotten incredibly lucky. Lorne Weil, chairman/CEO<br />

<strong>of</strong> Scientific Games, said that the “rogue<br />

s<strong>of</strong>tware engineer” possessed the password to get<br />

into Autotote’s data system and presumably could<br />

A “Wagering Technology working group” was immediately<br />

announced by the NTRA, with an oversight<br />

committee led by old familiar industry faces.<br />

“Industry initiatives” and task forces can, <strong>of</strong><br />

course, ultimately announce the upgrades in technology<br />

that Lorne Weil says now are available and<br />

should have been in place all along. Alan Marzelli,<br />

president-elect <strong>of</strong> the Jockey Club, thinks throwing<br />

money at the problem is the answer, saying<br />

the tote companies are undercapitalized and that<br />

centralization and upgrading <strong>of</strong> tote s<strong>of</strong>tware platforms<br />

is a legitimate goal, according to Tom<br />

LaMarra <strong>of</strong> Blood-Horse. LaMarra reminded<br />

readers that Mark Elliott <strong>of</strong> IBM Global Services,<br />

addressing the issue <strong>of</strong> technology two<br />

years ago, said, “I don’t want to be overly abusive,<br />

but as an industry, you are as far behind in<br />

the use <strong>of</strong> technology to improve your business<br />

have altered the winning ticket after the first as any I’ve ever seen.” Taking action obviously<br />

four races <strong>of</strong> the Ultra Pick Six had been run.<br />

The revelation brought a torrent <strong>of</strong> pious pronouncements<br />

and quick egg-wiping <strong>of</strong>f faces that<br />

had rushed to defend the winning bet as handicapping<br />

skill and luck. Donald Groth, president<br />

is needed and should be applauded. What-<br />

ever steps are now taken, and whatever money<br />

spent, needs to be tempered with one question that<br />

looms over all technology: How to address human<br />

frailty and dishonesty.<br />

<strong>of</strong> Catskill OTB where the bet was made, first<br />

NJ COMMISSION BILL PASSES<br />

was quoted as vouching for the character <strong>of</strong> the<br />

Assuming governor McGreevey signs the bill that<br />

bettor, although the bet was the first he had<br />

passed both houses yesterday on a vote <strong>of</strong> 24-7,<br />

made through Catskill. Groth, who originally had<br />

New Jersey will be getting a new racing commission<br />

that will include two thoroughbred horse- men<br />

issued the non-sequiter <strong>of</strong> “I know why you’re suspicious,<br />

but that’s not my job,” came up with another<br />

beauty yesterday, saying, “This is a big left<br />

and two harness horsemen. The bill had received<br />

a second reading in the Senate on concurrence<br />

turn in the story, I’m afraid. I’m still in shock. It’s<br />

Monday and passed yesterday and now goes to<br />

always regrettable when humans act like the textbooks<br />

say they should.” Scientific Games’ Weil<br />

the governor’s desk. The bill requires that 4 <strong>of</strong><br />

the 9 members <strong>of</strong> the racing commission be owners<br />

or trainers <strong>of</strong> thoroughbred or standardbred<br />

said, “The industry is going to organize a task force<br />

and look into how to prevent this from happening<br />

horses, and stipulates they cannot hold a license<br />

again. Not immediately transferring data<br />

to race in New Jersey. Nothing precludes them<br />

and letting it sit in limbo was an accident<br />

from racing in any other state, however.<br />

waiting to happen.”<br />

Each commissioner will hold <strong>of</strong>fice for six<br />

years.

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