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
UNHAPPY NEW YEAR!
At least for Vernon Downs, which yesterday was
denied a racing license and ordered to close down
operations as of the end of the year by the New
York Racing and Wagering Board. The board,
vexed by Vernon’s serious financial problems
and its refusal to cooperate with regulators, said
enough was enough, and that it was spending a
too much of its time and resources on Vernon’s
problems. Board chairman Michael Hoblock
said that when Vernon was granted a license in
July, three months into its racing season, “We
chose to give those involved one more chance.
We did what we did based on faith. I think it’s
time.” He and commissioner Cheryl Buley listened
to a recitation of Vernon’s problems from
the board’s director of racing operations, Joe
Lynch, and then voted to pull the plug. Track
president Andrew Goodell claimed Vernon was
not given an opportunity to state its case, and
said he hoped the track would seek a court order
in the next few days that would allow it to operate
past the end of the year.
Part of Vernon’s problem, according to Goodell,
is the status of John Baldwin, whom the state
claims controls most of the finances of Shawn
Scott of Las Vegas, the controversial figure who
loaned Vernon either $8 million or $15 million
at high interest, depending on which reports you
read. Baldwin has until recently resisted licensing
in New York, which the board demands. He
said his lawyers had recently said he would go
along with the state’s request if it paid for the
costs and provided confidentiality. The board
has charged that Vernon has failed to pay off its
debts, to eliminate credit accounts and rebates
for certain patrons, to maintain proper security,
and to forbid its employees from participating
in racing. Vernon’s 2003 racing
schedule is supposed to begin in April.
Whether it does remains to be seen.
December 24, 2002
The Blood-Horse, meanwhile, said board chairman
Hoblock announced four new rules for operation
for all New York tracks for 2003 in the wake of the
Pick Six scandal
* No bets can be cancelled once a race has
started.
* Portable betting units issued may not contain
the ability to cancel bets.
* The units can be issued and used by one individual
or betting interest only.
* Every person who opens a day or temporary
betting account must provide identification including
social security number, and the records
must be kept for three years by all tracks.
WOE IN PHILADELPHIA, TOO
Philadelphia Park and its horsemen are at it
again, and the track could face a shutdown January
1. The track wants a multi-year contract.
The horsemen, with slots on the horizon, want to
sign only for one year, and are insisting on a
clause -- which Philadelphia Park says it will not
accept -- which provides that the track will pledge
to “maximize revenues,” something that normally
is taken for granted in any for-profit organization.
Apparently not so in Philly, and unless
an agreement is reached by New Year’s Day a
total shutdown is possible. President and CEO
Hal Handel has told horsemen they will have to
vacate the grounds by Jan. 6 if no agreement is
reached.
CPMA SAYS IT CAUGHT ERROR
Yesterday’s Newsletter reported laxity by testing
personnel as well as the track identifier in the
“wrong horse” incident at Woodbine. The Canadian
Pari-Mutuel Agency says that is inaccurate,
and that its drug control testing personnel
not only were diligent in their duties but were
the persons who detected the error when the wrong
horse reported to the test barn. Meanwhile,
Merry Christmas. We’ll be back Thursday.