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2002 - Harness Tracks of America, Inc.

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HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor<br />

DOWN AND DIRTY IN ARIZONA<br />

The bitter battle reported here yesterday and previously<br />

between Jane Hull, the governor <strong>of</strong> Arizona,<br />

and the president <strong>of</strong> the state Senate, Randall<br />

Gnant, over awarding slots to the state’s thoroughbred<br />

and greyhound tracks took another surprising,<br />

and perhaps alarming, turn yesterday afternoon.<br />

The governor has opposed giving the tracks<br />

slots, saying she preferred to keep them where<br />

they currently are, on land <strong>of</strong> 17 Indian tribes in<br />

the state. Gnant sponsored a bill that would have<br />

continued Indian gaming but also would have put<br />

casino style games at the state’s racetracks. That<br />

bill was killed Tuesday by the Senate Government<br />

Committee.<br />

Rather than accept that defeat, Gnant -- who pr<strong>of</strong>esses<br />

to oppose political maneuvers to hamstring<br />

legislation -- used a rarely used procedural move<br />

to kill the governor’s bill late yesterday by having<br />

the Senate Rules Committee announce that the<br />

bill did meet constitutional standards. The ominous<br />

part <strong>of</strong> the move was that the Senate’s rules<br />

attorney and the state attorney general both told<br />

the committee that it did. Gnant cast the decisive<br />

vote for the measure, creating a 4-4 tie which in<br />

Arizona is tantamount to a defeat. Democrats were<br />

enraged, and one <strong>of</strong> them, Herb Guenther -- the<br />

sponsor <strong>of</strong> the governor’s bill -- quickly rounded<br />

up 18 signatures on a discharge petition to force a<br />

vote by the full Senate. He also said, “It demonstrates<br />

a part-time morality. We violated one <strong>of</strong><br />

our own internal policies. When that happens, I<br />

lose faith.” The Arizona Republic reported that<br />

Gnant was deluged with angry calls and e-mails,<br />

and in a remarkably insensitive and racially tinged<br />

remark he told the newspaper, “I’ve been called<br />

everything but a white man.” He also said, “This<br />

is a message to the governor that the Senate<br />

runs the Senate, not the governor.” Or<br />

perhaps Randall Gnant.<br />

April 18, <strong>2002</strong><br />

MORE TROUBLE FOR PRAIRIE<br />

The troubles for Prairie Meadows Racetrack and<br />

Casino, which seemed over with the drafting <strong>of</strong> a<br />

five-year, $100 million agreement with Polk county<br />

three weeks ago, fell apart Tuesday when the Polk<br />

county Board <strong>of</strong> Supervisors voted not to ratify<br />

the deal. The county has been concerned about<br />

getting enough from the lease to pay for a new,<br />

$200 million Iowa Events Center in Des Moines,<br />

and the county supervisors decided the $20 million<br />

a year might not be adequate to cover payments<br />

on the Events Center and other projects in<br />

downtown Des Moines if track and casino pr<strong>of</strong>its<br />

lag. The agreement calls for $1 million a month in<br />

rent, plus a quarterly share <strong>of</strong> net pr<strong>of</strong>its that would<br />

total $8 million a year. Track <strong>of</strong>ficials could opt to<br />

pay less than that if business expenses exceeded<br />

gaming revenues. The supervisors say they will<br />

meet with RACI in two weeks, but the association<br />

says arbitration may be the next step.<br />

ACCORD IN NEW JERSEY<br />

The New Jersey Sports and Exposition Authority<br />

and New Jersey horsemen’s groups have reached<br />

accord on resolution <strong>of</strong> date differences for <strong>2002</strong>,<br />

and will announce the settlement Friday afteroon<br />

at 1:30 at a press conference at Monmouth Park<br />

in which Governor James E. McGreevey, NJSEA<br />

president/CEO George Z<strong>of</strong>finger, New Jersey thoroughbred<br />

attorney Dennis Drazin and harness<br />

counsel Joel Sterns will speak.<br />

YOUBET AUDITOR PESSIMISTIC<br />

Youbet.com’s auditor, BDO Seidman, says it has<br />

substantial doubt about the company’s ability to<br />

continue as a growing concern. In Youbet.com’s<br />

annual report filed this week with the SEC, BDO<br />

cited recurring Youbet operating losses and a need<br />

to raise additonal funds as causes for its concerns.<br />

Youbet says it is confident it can improve cash<br />

flow.

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