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
E-DAY FOR RACING, SLOTS
Voters in eight states make decisions on gaming
today, either directly or indirectly, and most of them
affect racing. Three of the most interesting involve
gubernatorial races -- in Maryland, Pennsylvania
and Ohio -- and a fourth, in Arizona, could
affect not only the governor’s race but also produce
a nightmare if none of three gambling propositions
receives a majority, as some expect.
In Pennsylvania and Ohio the outcome seems assured.
Both of Pennsylvania’s gubernatorial candidates,
Democrat Ed Rendell and Republican
Mike Fisher, favor slots at tracks, so that development
seems likely even though there is some
substantial legislative opposition.
In Ohio, Republican Bob Taft is expected to score
a clear victory over Democrat Timothy Hagan, and
Taft’s resolute opposition to slots at tracks is not
likely to change. Whether there is enough legislative
strength to pass such a bill and override a
Taft veto seems highly unlikely, although it is being
predicted in some quarters because of Ohio’s
budget crisis and school funding needs.
Maryland is a different story. There is a tight race
for governor there, between Kathleen Kennedy
Townsend, the Democratic candidate who lends the
magic Kennedy name to the race, and Robert
Ehrlich Jr., a Republican who favors slots at
tracks. Mrs. Townsend does not, and the winner
could determine the future welfare of Rosecroft
Raceway under new owner Centaur, and of Ocean
Downs and Pimlico and Laurel as well.
Even Tom Grey, the Illinois crusader against gambling,
acknowledges that if any state elects a governor
who wants gambling, “It’s going to
be pretty hard to stop it.”
November 5, 2002
Arizona is a totally different case, and a real Wild
West battle was raging not only in the months leading
to the election but on election morn today.
If the fight were just between Proposition 202,
backed by 17 Indian tribes, and Proposition 201,
backed by Arizona’s horse and dog tracks that want
slots, it is likely 202 would emerge a clear winner.
But the issue is clouded by a third proposition --
200 -- which is supported by Indians in the western
part of the state, and which could split the vote
enough so that none of the three bills muster the
needed 50% plus one vote to carry. While more
than one theoretically could pass, the more likely
scenario is that none of the three muster the needed
majority, in which case a new governor and legislature,
and possibly the courts, would have to determine
if the Indians retain their gambling monopoly
in Arizona, or if horse and dog tracks share
the privilege.
Elsewhere Tennessee, which along with Utah and
Hawaii is the only state without any form of legalized
gambling, votes on a lottery today. And in
Iowa, 11 counties vote on whether they want to
continue gambling or end it. Iowa has an eightyear
sunset review, and American Gaming Association
president Frank Fahrenkopf says the decisions
in that state are “where the rubber meets
the road.”
Some familiar names in gambling legislation are
up for election today. Robert Goodlatte of Virginia
and Michael Oxley of Ohio, both Republicans,
are expected to win. John Conyers and
Barney Frank, both Democrats and both opponents
of Internet prohibitions, are sure winners, Frank
running unopposed. Republican Mike Castle of
Delaware, who also opposes the Leach bill, is considered
a shoo-in in Delaware. Leach himself
may not survive in Iowa.