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
RACING BIZARRE? NAH, WEIRD
When a routine report on little Mount Pleasant
Meadows in Michigan showed a monstrous per
capita last year, racing commission officials were
curious. What they found after investigation
makes a wildly weird tale. After the former GM
was unable to make a payment to the horsemen’s
fund, auditors found a slight discrepancy in the
track’s funds: $545,000 was missing. It turns out
that the GM had allowed a friend who owned a bar
in Mount Pleasant to bet on credit, and then joined
him in the fun. If you want to find the former GM
these days, check the state pen, where he is vacationing
after being found guilty of two felonies
and a misdemeanor involving violation of
Michigan’s rules of pari-mutuel betting. But if you
need a loan, stop in the local bar and see the owner,
John Hunter. Mount Pleasant Meadows decided
it wanted to get its half million back, so it filed a
civil action against Hunter. He acknowledged that
he owed the track $240,000 for bets he made but
didn’t pay for four years ago, and has repaid about
half of that since that time. The former GM, Jon
Leuth, reached an out-of-court settlement. Then
a court ruled the track couldn’t collect from Hunter,
because he had made an illegal bet, and the judge
dismissed the charges against him. So Hunter sued
the track, saying it had violated the RICO act by
trying to recoup money from his bets. He got a
jury trial, and the jury found Mount Pleasant
Downs was guilty of trying to collect on an illegal
wager. It awarded Hunter $100,000. Mount Pleasant
Downs is appealing. Its attorney, John Lynch,
says it absolutely has to, since under the Racketeering
Influence and Corrupt Organization Act
the track could be ordered to pay triple damages.
“You can’t let a $300,000 judgment go for a person
who testified he took the money,” Lynch says.
Hunter also may not have to pay the
$125,000 he still owes. Weird world,
racing. Think I’ll buy a bar.
April 23, 2002
HONEY, I SHRUNK THE PAYBACK
Strange things happen in legislatures, and Maryland
is no exception. A few months ago it was announced
that $4.5 million that had been set aside
for Maryland Jockey Club improvements that
were never made would be returned to the tracks
for supplementing purses, since the money really
was theirs as a result of increased takeout.
Somehow, somewhere, someone misread the law,
or misinterpreted it, or missed a few decimal
points. The tracks, it turns out, will get $3 million,
not $4.5 million, split 70% to thoroughbreds and
30% to harness racing. Sorry about that.
INDY DOWNS ON SCHEDULE
Actually ahead of it, general manager Gil Short
tells TIMES:in harness. Short says a mild winter
and good dirt have helped immensely, and the first
section of the roof is on the stands and the structure
should be enclosed in the next month or so.
Enclosure is crucial, since the track’s scheduled
opening is December 6. Short told the magazine
Indianapolis Downs plans to be good neighbors
with Indiana’s existing track, Hoosier Park. He
says horsemen will reap the benefit of an expanded
racing season, and he thinks both tracks will benefit
as well. “I respect Hoosier Park’s initial reluctance
to our going forward,” Short told TIMES.
“If I had been in their position, I’d have felt the
same way. But now, we’ll have to work together
for the betterment of the industry in Indiana. And
I think we will succeed.”
CRUNCH TIME IN OHIO
The Ohio legislature has two months left in which
to decide what to do about the state’s huge financial
shortfall. The president of the state senate
says slots at tracks have re-entered the budget
discussion, but still face a veto from Gov. Bob
Taft. A 50-cent a pack tax increase on cigarettes
also is in the works.