2002 - Harness Tracks of America, Inc.
2002 - Harness Tracks of America, Inc.
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.