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
WHEN UPSET, TURN ON RACING
That seems to be happening with increasing frequency
lately, the latest example being that of
Donald Stephens, the mayor of Rosemont, the
Chicago suburb where the Emerald Casino sits
in skeletal form. A story in today’s Chicago Tribune
reports that Stephens, the central figure in
drafting the final deal with Emerald that led to
enabling legislation three years ago, now claims
he was ‘snookered’ by racing lobbyists, and is
threatening to scuttle the deal as structured by
increasing the monies that would go to the state
and slashing those scheduled to go to racing. The
paper quotes Stephens saying, “The horse industry
will get two times what the state gets, and
that’s just not right. If this casino were getting
ready to open in Rosemont with that in it, where
the state gets less than half of what the horse racing
industry gets, they won’t open here because
we’ll stop it. I’d go before the Gaming Board
and ask them not to issue the license.” Thom
Serafin, an Arlington Park spokesman, wondered
how come Stephens was taking the stand now,
three years after the law’s passage and after three
years of silence on the issue. “We’re befuddled
by the whole thing,” Serafin said. “The detailed
analyses of the legislation and the numbers were
all there in black and white. The fact that things
haven’t gone the way he (Stephens) would have
liked shouldn’t mean that the 40,000 plus people
who work in the horse racing industry should
suffer and not be able to make a living.” The
Tribune reported a stormy luncheon at which
Dick Duchossois and Scott Mordell reportedly
walked out after angry words with Stephens, but
Duchossois denied that report and said he and
Stephens merely had “agreed to disagree,” amicably.
Others in Illinois racing said they felt betrayed
by Stephens, and the long delayed
casino issue has led to bitterness and
charges of deceptions and outright lies.
February 28, 2002
HARDBALL AT THE NJSEA
That was the headline in today’s Newark Star-
Ledger, over a long story telling how Raymond
Bateman, called “the most powerful member of
the Sports Authority board” by the newspaper,
promised a fight over new Governor James
McGreevey’s appointment of financier George
Zoffinger to head the agency. Bateman faxed a
four-page statement to the agency’s 11 other commissioners,
senior staff and Senate co-president
Richard Codey saying Zoffinger “can’t have my
vote until he apologizes to the men and women
who work at the Sports Authority.” Bateman
was referring to Zoffinger labeling the NJSEA a
bastion of political patronage, although it is the
top grossing sports and entertainment destination
in the country, with the race track serving
as what the Star-Ledger calls “the financial engine
of the business.” According to the newspaper,
Zoffinger, a Democrat, must receive votes
from 8 of the NJSEA’s 14 board members, 9 of
whom are Republicans, with 3 vacancies. The
paper said NJSEA vice-chairwoman Candace
Straight also sent a letter to her Republican colleagues
on the board, and to the governor and
Zoffinger, saying she would not support the nomination
until Zoffinger explains his management
philosophy and plans for the agency.
AND HARDBALL IN NEW YORK
Margaret DeFrancisco, the head of New York
state’s lottery division, has said tracks should not
expect any state financial help in covering the
costs of installing and operating VLTs. Tom Precious,
writing for Blood-Horse Interactive, quotes
Ms. DeFrancisco as saying, “I don’t know where
it (construction funds) would come from. There’s
just so much that can be done.” Between high
costs for construction of facilities and a threeyear
sunset provision on the VLT legislation,
plus legal challenges, no immediate
action seems likely in New York.