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
ZOFFINGER NAMED PRESIDENT
George R. Zoffinger, Gov. James McGreevey’s
choice as new head of the New Jersey Sports and
Exposition Authority, was appointed president by
the Board of Commissioners last Friday and is
working on a plan to realize greater administrative
efficiency and enhance revenues at the Meadowlands
and other NJSEA facilities. Zoffinger, who
has accomplished notable business restructuring
during his career, called that aspect of his new post
“the most exciting, most important period of any
new assignment,” and said he had been spending
time since his appointment by the governor visiting
facilities and preparing a budget and transition
report to the governor.
SETBACK FOR FLORIDA VLTS
The Florida legislature ended its session Friday
night without approving VLTs for the state’s 31
racetracks and jai alai frontons, but Senator Steve
Geller says the proposal will still be on the table
when legislators return to Tallahassee to work on
the state budget. “Not only do we need the tax
dollars,” Geller told the Miami Herald, “but we
also need to keep the Florida parimutuel industry
alive. The VLT bill is still in play.”
A similar bill still is in play in Kentucky, but time is
running out with only eight days left in the session
and Senate leaders saying the bill has about as
much chance as a $20,000 claimer in the Kentucky
Derby. Legislative leaders in both houses are calling
passage unlikely, and the Senate may not even
vote on the bill. An attachment to the budget bill
may have the best possible chance. The Lexington
Herald-Leader thinks a referendum on the issue
would take political pressure off legislators,
but the bill’s principal House sponsor says he
will deal with that only when he knows the
bill is dead. He may not have long to wait.
March 25, 2002
NY DEADLINE FOR TRACK VLTS
The New York state lottery division, which will
administer track VLTs in the Empire state, has
given tracks until April 1 to opt in or out of the
program. The division is ready to divvy up the
11,400 VLT terminals among eight tracks, but only
on the terms of the legislation, without further financial
assistance. Under its plan, Yonkers Raceway
will get 2,500 machines, Monticello 1,800, the
Saratoga Equine Sports Center 1,000, Buffalo
Raceway and Batavia Downs 750, and Vernon
Downs 500 this year and another 600 next year.
The 25% track cut will remain static, and tracks
still must foot the bill for construction and security,
and there still is a 3-year sunset provision on
the legislation.
While this is going on in New York, Tri-State Racetrack
in Nitro, West Virginia got commission approval
for another 1,000 slots, doubling its present
allocation, to bolster the Charleston-area track as
a tourist attraction. Tri-State says it will use slots
revenues to finance $15 million in expansion construction,
including a new restaurant, simulcast parlor,
four bars and an entertainment facility with a
stage for performers.
$100 MILLION 5-YEAR LEASE
The Des Moines Register reported yesterday that
the impasse in negotiations between Prairie Meadows
Racetrack and Casino and its landlord, Polk
county, have produced an agreement on a $20 million
a year, five-year contract that will give the
county $100 million and enable it to go forward
with bond repayments adequate to build a new $212
million Iowa Events Center in downtown Des
Moines. A county supervisor says “We promised
that we would not build the Events Center on the
backs of taxpayers. This allows us to do that.”
The handshake agreement must be ratified by
the county and Racing Assn. of Central
Iowa, which holds the Prairie Meadow license,
and the county.