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
GUESS WHO’LL SAVE RACING?
The man who saved New York and is going to save
Mexico City. Rudy Giuliani himself, and his merry
crew that includes his former police commissioner,
his former head of economic development, and a
whole bunch of other ‘formers’ who were members
of his staff at City Hall when he ran the Big
Apple. They have found sanctuary in his new firm,
Giuliani Partners, and they have been hired by the
National Thoroughbred Racing Association for an
unannounced but large sum to “manage and oversee
the horseracing industry’s review of its electronic
wagering systems.” Part of that review will
include a “systematic examination” of certain wagers
over the past year -- as many as 1,000 -- to
identify “whether there are areas requiring additional
security measures.” Ernst and Young is on
board too, hired a few weeks ago, and they will
work under Rudy’s supervision. NTRA Commissioner
Tim Smith says Giuliani “brings independence
and credibility both to our review of past
wagers and our commitment to future improvements.”
Feel better?
RIGHT PLEA, WRONG GUY
A number of good lawyers, including former federal
prosecutors in New York, have been suggesting
it will be difficult to convict the three Drexel
Boys in the Pick Six Affair. Today, however, the
New York Times reported that Chris Harn, the
“rogue senior programmer” at Autotote, would
enter a guilty plea to one count of conspiracy to
commit wire and computer fraud and one count of
money laundering. This did not sit too well with
attorneys for Harn’s Drexel fraternity brothers.
Edward Hayes, representing Glen DaSilva, called
Harn “the ringleader” and said, “It’s ridiculous to
give him credibility. It’s like turning John Gotti
to go after the busboys in the restaurant.”
November 20, 2002
TRACK SLOTS BILL IN OHIO
A bill to introduce 14,000 video slot machines for
Ohio’s seven racetracks has been introduced by
state senator Louis Blessing and has been given a
fast track, with Senate president Dick Finan scheduling
hearings for tomorrow before the Senate
Agriculture Committee. The bill will be racing uphill,
however, facing opposition in the legislature
and a certain veto from governor Bob Taft. Despite
that, some legislative observers think it will
pass before the end of the year. If it does, the
Republican majority will need Democratic help to
override a veto. Republicans control the House
59-40, and the Senate, 21-12, but 60 votes are
needed in the House to override a veto. Twenty
are needed in the Senate, so a party line vote there
could get the job done, although some observers
doubt Republican House members would vote to
override their governor. As introduced, the bill
calls for 51.1% of proceeds to go to the state lottery,
which would regulate the machines at the
tracks, as is done in Ontario and elsewhere. In
Indiana, however, the state lottery gets 20%, in
West Virginia 30% and in New Mexico 25%. Slots,
under the proposed bill, could be operated 21 hours
a day, being closed only from 5 a.m. to 8 a.m., presumably
for breakfast.
CAPITAL PICKS ONE OF OWN
Capital OTB’s search for a new president in
Schnectady didn’t cover too much ground geographically.
The directors wound up picking one
of their own board members, Essex county director
Michael Connery, to replace Tom Cholakis,
who resigned. Cholakis had offered to stay through
January, rather than Dec. 31, to dispel controversy
over his pension plan, but the board solved that by
having Cholakis resign now and have Connery
come on immediately. Cholakis, who earned
$150,000 a year, estimated his total pension
will be about $78,000 a year.