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
Magna Entertainment’s CEO Jim McAlpine told
shareholders at an annual meeting at Santa Anita
yesterday that Magna will be looking to acquire 3
to 5 more tracks in the next 12 to 24 months, and
will increase its off-track betting operations from
its present 26 to as many as 75 in the next year
and expand telephone and Internet wagering. Boss
Frank Stronach said his company “is in the process
of building the largest lottery corporation in
the world,” and that it will be actively developing
land around its racing operations
into entertainment and retail venues.
In New Mexico, two major figures are bat-
Stanley F. Bergstein, Editor April 19, 2002
ACCORD OPENS DOORS IN NJ tling for the right to build a fifth race track in that
A major obstacle blocking telephone account wagering
and off-track betting in New Jersey appears owner of Hollywood Park in California and The
sparsely populated state. R.D. Hubbard, former
to be cleared, with Gov. James E. McGreevey Woodlands in Kansas City, and present owner of
scheduled to make the announcement this afternoon
at Monmouth Park that thoroughbred and Shawn Scott, former brief owner of Delta Downs,
Ruidoso Downs, is one of them. The other is
harness horsemen have agreed to a plan that will which he bought in 1999 for $10 million and sold in
provide thoroughbreds with 141 days of racing this 2001 for a reported $110 million, and current suitor
year, which is what they sought. The agreement for Vernon Downs in New York. A Scott consultant,
Toney Anaya, yesterday suggested that the
carries a price for the runners, however, in the form
of lower daily purses, and the issue of thoroughbred-harness
split of revenues from simulcasting ability” of Hubbard as an applicant for a New
New Mexico commission should look into the “suit-
and OTB operations remains unresolved. George Mexico license because the Indiana Gaming Commission
is investigating activities of Pinnacle En-
R. Zoffinger, president and CEO of the New Jersey
and Exposition Authority, says that issue will tertainment, a gaming company in which Hubbard
be worked out in the next 90 days, and he also is a major stockholder. Ironically, Scott currently
announced the extra 21 days of thoroughbred racing
will be conducted at the Meadowlands. Wagering Board as to his suitability as the poten-
is being investigated by the New York Racing and
Zoffinger thinks that the agreement could enable tial purchaser of Vernon Downs.
telephone account wagering to become a reality
by the end of this year, four years after it was approved
in a statewide referendum. Off-track betting,
signed into law last August, is not likely in
2002, but could be operational next year.
A FEEDING FRENZY IN RACING
Everyone, it seems, wants a racetrack. Or many
racetracks.
In North Dakota, the state racing commission increased
its investment in a proposed track in
Fargo from $1 million to $2.5 million, the money
to be used to lengthen the track by 110 yards and
to cover higher than anticipated construction costs.
Despite the increased supplement for Fargo, which
outbid the Mandan Park Board for the license last
summer, the new track still will have portable toilets,
gravel parking lots and bleachers instead of
a grandstand, according to the Bismarck Tribune.
Two and a half million barely gets you a seat these
days.
In British Columbia, Woodbine Entertainment is
inching closer to completing its deal to take over
the Pacific Racing Association, operators of
Hastings Park Racecourse. The Daily Racing
Form’s Randy Goulding’s lead on today’s story
about the acquisition says, “It’s a done deal. Well,
almost a done deal.” Hastings’ GM Phil Heard
says, “I’m still optimistic, but I’ve been that
way all along.”