2002 - Harness Tracks of America, Inc.

More documents

Recommendations

Info

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 MORE ENRON FALLOUT In a move that could have serious impact on beleaguered Arthur Andersen, the attorney general of New Jersey, David Samson, yesterday moved to bar Atlantic City casinos from doing business with the accounting firm, saying the company’s federal indictment calls its integrity into question. “It is essential,” Samson said, “to maintain public confidence in New Jersey’s casino industry and its financial soundness through objective and impartial auditing.” The New Jersey Division of Gaming Enforcement’s acting director, Thomas Auriemma, said, “Based on the seriousness of the charges set forth in the federal indictment, exemption from licensure is no longer warranted.” Auriemma’s division filed a motion yesterday with the state Casino Control Commission seeking a temporary order prohibiting Atlantic City casinos and their parent organizations from using Andersen, and the matter is scheduled to be heard March 27. If the attorney general’s and Gaming Division’s efforts are successful, the question arises as to similar action in Las Vegas, where Andersen serves as outside auditor for companies controlling 12 Las Vegas casino properties. Bobby Siller, a member of the Nevada Gaming Control Board, told the Las Vegas Review-Journal , “It’s too early to tell what the impact would be here,” saying his board was waiting to get an explanation of the proposed temporary order from New Jersey officials. Andersen’s Vegas clients include MGM Mirage, Mandalay Resort Group, Harrah’s Entertainment, Station Casinos and Ameristar Casinos. TOP GEMSTAR EXEC QUITS Peter Boylan, co-president and co-COO of Gemstar-TV Guide, the parent of TVG, resigned yesterday as the company announced it will take a write-down for amortization of goodwill of up to $5 billion this quarter. Gemstar shares fell 9.1% in after-hours trading. March 19, 2002 THE VERNON SITUATION In a long “Top News” story, the Syracuse Post- Standard has examined the interesting situation developing over control of Vernon Downs. Titled “Scott’s track record depends on who’s telling the story,” the article zeroed in on Shawn Scott, the 35-year-old wunderkind who bought Delta Downs for $10 million in 1999 and sold it to Boyd Gaming last year for $130 million, and who now is seeking control of Vernon. Scott has bought some 4% of Vernon stock, loaned the track $400,000, and is seeking an agreement with the track’s majority shareholders to gain control. The Scott story is fascinating. He says he went to Louisiana after seeing an ad for a Best Western motel that was for sale. He bought it and an adjoining truck stop( which are allowed to have 50 VLTs in Louisiana), bought a 65-foot houseboat and a home, and ultimately bought the ailing racetrack. He is handsome and charismatic -one colleague described him as “JFK-like...you put him on TV and he makes all the old ladies’ hearts spin” -- but there are those in Louisiana and Nevada who have different views. Complicating the picture as Vernon celebrates its 50th anniversary, is an option held by a harness racing group consisting of Eric Cherry, Sandy Goldfarb and Steven Goldberg. Cherry and his partners exercised their option, but it must be approved by Vernon’s shareholders, and if Scott is able to get control he presumably could have the option voted down. Further, all of the applicants will need to gain approval of the New York State Racing and Wagering Board. TAMPA GETS KY SIGNALS In a move certain to have repercussions, the Kentucky HBPA has voted to reinstate Kentucky simulcasting signals to Tampa Bay Downs, long embroiled with its horsemen, who got colleagues in other states to embargo signals to the track. Churchill and Keeneland signals are included as well as Turfway Park.
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 NO ACTION, BUT A FORECAST In a committee hearing reported by the Bergen Record that produced no results, the future may have reared its head -- ugly or otherwise -- in the New Jersey legislature. The Assembly Tourism and Gaming Committee this week heard testimony in favor of legislation that would allow living room Internet betting on Atlantic City casinos. The committee took no action, but Assemblyman Anthony Impreveduto, who has been the prime mover of Internet casino betting in New Jersey, said, “We cannot be like a proverbial ostrich and stick our heads in the sand and say it doesn’t exist. Anyone can gamble. Anyone who currently gambles on the Internet is nuts. You don’t know the safety of the game. You don’t know the legitimacy of the game. They could be Colombian drug dealers, for all we know. People in New Jersey are gambling on the Internet and New Jersey’s not getting a penny.” Perhaps more significant than Impreveduto’s remarks were those of Thomas N. Auriemma, acting director of the Division of Gaming Enforcement, who said that since federal law is silent on Internet gambling and Internet gambling cannot feasibly be eliminated, the Attorney General’s office will not oppose the proposed legislation. “If the Legislature and the people decide to legalize Internet gambling in some form, we can and will regulate it,” Auriemma said. Gary Guear, the chairman of the Assembly committee that heard the proposal, said, “Somewhere down the line, in the future, we’re going to see Internet gaming here in the state of New Jersey.” FIRST TO THE MARKET” Underscoring the New Jersey proposal is the news item from Los Angeles from a company called Bentley Communications, which claims to have a “first-to-market” advantage on legal online wagering with “real time online ATM card pay-in, pay-out transactions.” March 20, 2002 The company says such transactions “can be done at any Internet connected PC equipped with a certified user-friendly credit card, ATM card and Smart card stand-alone unit like the Cash pad (TM).” $57 MILLION LEASE IN IOWA Prairie Meadows, hoping to settle a dispute with Polk county, Iowa, which owns the track, has offered to lease the track from the county for three years for $57 million, $19 million a year, including $2.5 million in property taxes. CASH TIME AT VERNON DOWNS Vernon Downs agreed yesterday to borrow nearly $9 million from Las Vegas entrepreneur Shawn Scott, and track president Justice Cheney says Vernon’s board of directors has decided to give three option holders -- Eric Cherry, Sandy Goldfarb and Steven Goldberg -- one more chance to up their $9 million bid. That was the word today from the Syracuse Post-Standard, which reported that Scott and his partner, Hoolae Paoa, now control more than a third of the shares of Mid-State Raceway, the parent of Vernon, and they alone can kill the option held by the Cherry trio. Dominic Giambona, a member of the Mid-State board, said he had contracted to sell his stock to Scott and that Scott and his partner “have a great business plan.” Paoa was quoted as saying the loan would pay off the track’s debt, including a $2.8 million loan due at the end of the month on the track’s Country Suites hotel. He said Vernon would not get a license from the New York Racing and Wagering Board if it does not have enough working capital, and that “if you lose your two most valuable assets -- your hotel and your racing license -- you might as well shut the place down.” Scott bought Delta Downs in Louisiana for $10 million three years ago and sold it to Boyd Gaming last year for $130 million.
Page 1 and 2: HARNESS TRACKS OF AMERICA Executive
Page 49: HARNESS TRACKS OF AMERICA Executive
Page 101 and 102:
HARNESS TRACKS OF AMERICA Executive
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
HARNESS TRACKS OF AMERICA THIS OUTF
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
HARNESS TRACKS OF AMERICA Paul Jose
Page 205 and 206:
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
Page 221 and 222:
Page 223 and 224:
Page 225 and 226:
Page 227 and 228:
Page 229 and 230:
Page 231 and 232:
Page 233 and 234:
Page 235 and 236:
Page 237 and 238:
Page 239 and 240:
Page 241 and 242:
Page 243 and 244:
Page 245 and 246:
Page 247 and 248:
Page 249:
show all

2002 - Harness Tracks of America, Inc.

Create successful ePaper yourself

Delete template?

Save as template?